1. SECTOR OVERVIEW SECTOR SNAPSHOT: SALES PASSENGER VEHICLE COMMERCIAL VEHICLE TWO-WHEELER...

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2 TABLE OF CONTENTS 1. SECTOR OVERVIEW SECTOR SNAPSHOT: SALES PASSENGER VEHICLE COMMERCIAL VEHICLE TWO-WHEELER THREE-WHEELER REGULATORY UPDATES TECHNOLOGY INTERNATIONAL NEWS AUTOMOTIVE COMPONENTS SECTOR TOP 10 MERGERS AND ACQUISITIONS DISCLAIMER CONTACT INFORMATION

3 1. SECTOR OVERVIEW PM Oli invites Indian industry to invest in Nepal Prime Minister of Nepal, KP Sharma Oli and his government s aim is to make Nepal a middle-income country by 2030 and to do that he invited the Indian industry to invest in Nepal. He also said that most enterprises in Nepal were highly profitable and that his government have including smooth administrative procedures with no inequality between national and foreign investors along with setting up of SEZs with a focus on infrastructure development too. He also stated that the Indian industry can take advantage of the preferential market access that Nepal enjoys with the different countries around the world. In co-operation with the Ministry of External Affairs, Government of India, Federation of Indian Chambers of Commerce and Industry, and Associated Chambers of Commerce & Industry of India this forum was organised by the Confederation of Indian Industry. He also said that Nepal who has undergone major political transformation in the past couple of years and now is a stable government. Indian investors, Maha Prasad Adhikari, chief executive officer, Investment Board of Nepal pointed, Nepal will offer various incentives. The country is also aiming to increase the share of the manufacturing sector in the GDP and has taken several measures to improve the investment situations of the country along with amending the Foreign Investment and Technology Transfer Act, Mining and Minerals Act, Companies Act, to name a few. The trade relations between India and Nepal had grown 11 times since 1996, and India being the largest investor in Nepal accounting around 40 per cent of the total FDI of the country said, Sandeep Jajodia, president, Assocham and chairman & managing director, Monnet Group. To promote Indian investment it is essential to create a stable policy environment, liberalization of the parameters for doing business, and encouragement to foreign capital says, Shobana Kamineni, president, CII & executive vice chairperson, Apollo Hospitals Enterprise. Industry participants also highlighted opportunities for cooperation in energy (hydro-power, solar power, power distribution, bio-energy, bagasse and waste to energy), food processing, electric vehicle manufacturing, cement, tourism, health and education, FMCG and cement, among others. 1 Introduction of Novo tractors: M&M's Farm Equipment Sector Mahindra & Mahindra launched high-tech, semi-autonomous Novo 65 HP & 75 HP tractors. The price of the tractor starts from Rs lakh for 65 HP 2WD (655 DI) to Rs lakh for 75 HP 4WD (755 DI) variant. The launch of the Novo tractor fulfils the company's vision of becoming the pioneer in providing technology driven farming solutions to the farmers across the country. It is offered in 2WD & 4WD versions in open station design. Novo tractor is on the verge of changing the farming practices to improve productivity and performance which in turn will help to generate higher output. At Mahindra our purpose is to pioneer accessible technology which transforms lives of farmers, worldwide. As a part of Farming 3.0 initiative, the focus is on cutting edge technology and superior farming solutions. We take great pride in presenting state of the art HP range of Mahindra Novo tractors to evolved Indian farmers. I am confident that this will set new benchmark in the industry. We will shortly introduce our global product from this range with integrated cabin in India, was said by Rajesh Jejurikar, president Farm Equipment Sector, Mahindra & Mahindra, at the launch. 2 1 (Source: 2 (Source: 3

4 Tata Motors becomes the fourth-largest PV maker in FY18; dethrones Honda Cars With a growth rate of 22% Tata Motors sold 187,321 units in the April 2017-March 2018 period. Whereas, in the same period with a growth rate of 8% Honda Cars India sold 170,026 units. Tata Motors has become the fourth-largest passenger vehicle (PV) maker by dethroning Honda Cars Indian in the FY18. Regardless of growth in the Honda Cars India Sales, Tata Motors swiped the fourth slot mainly due to the increase in sales of Tata Motors compact utility vehicles like Nexon and mini-hatchback Tiago. Since the launch of Tata Tiago it has contributed over 40 per cent of Tata s domestic sales. However, the Hexa and the Tigor did not fly-off well because there was strong competition in the segment. Meanwhile the executive sedan Honda City and the crossover WR- V are helping to boost the Japanese carmaker s domestic sales month-on-month. Out of the first six months of FY18 (April September 2017), Honda cars outsold Tata Motors in the April, July and August months. As both the carmakers are either launching new products in the new segment, or refreshing the old models thus the industry experts believe that the competition between the two will remain alive for the next few months. However at this moment, Tata Motors is the one who is gaining a lot from the competition. Tata Motors who has already launched its majority of products while the Industry experts believe that this year Honda is planning to launch the new Amaze, Civic and CR-V cars. However, Tata Motors intend to become the number three carmaker to support its growth and aims to have products in all the segments. 3 E-Autos to be introduced on Hyderabad roads: Ola Ola is in discussion with the Telengana government to introduce e- rickshaws in Hyderabad as the demand for the cab users is high. An Ola official says that their target is to introduce electric vehicles in various cities in India which will help to lower the pollution. They had 1st launched the e-vehicles charging stations and battery swapping stations in Nagpur, where the project was succeeded and now plans to cater Hyderabad markets as there are high cab users. Introduction of e-vehicles will be an advantage for the users as the fares would be lower as compared to normal taxis and autos. While there would be job opportunities as the company would hire the drivers for new e- vehicles. 4 Audi: Unfavourable Indian tax structure dissuades investment in India India being the strategic market, its unfavourable tax structure is discouraging the luxury car makers to invest in the country. Regardless, German automakers would continue its investment. Rahil Ansari, Country brand head said, that the company is planning to change its strategy as they gain the 1st position in the luxury vehicle market. They are planning to roll out products in volume segment, below A3 and Q3 to increase their customer base. 5 3 (Source: 4 (Source: 5 (Source: 4

5 Q4 2018: Mahindra & Mahindra (M&M) the top utility vehicle seller Mahindra & Mahindra (M&M) becomes the top utility vehicle seller in the fourth quarter ended 31 March 2018.The automaker sold 67,805 units in the fourth quarter compared to Maruti Suzuki that sold 63,781 units in the same period last fiscal and dethroned Maruti Suzuki to be the top utility vehicle seller. The Bolero Power+ and the all-new powerful Scorpio along with the increased adhesion for the TUV300 and the refreshed KUV100 NXT saw the demand growth in the FY18 says Rajan Wadhera, president - Auto Sector, M&M. Still the country's largest carmaker Maruti Suzuki sold 65,730 units in the third quarter of the FY18, outselling M&M that sold 51,512 units in the same period which is why Maruti Suzuki topped the chart of the utility vehicle seller in the third quarter of the FY2018 as well in the overall FY18. Indian consumers are now advanced to compact utility vehicle from the hatchback. According to industry sources reason behind the success of Maruti Suzuki in the UV space was only because of the Vitara Brezza and refreshed version of the S-Cross. In fact, Maruti Suzuki has over 45,000 pending orders of the Vitara Brezza and the S-Cross due to production constrain and due to the newly launched Swift. Maruti Suzuki has more than 2,600 outlets across the country while M&M has a robust network of 1,700 dealerships. Maruti Suzuki dealer sells 3-4 cars a month, it will be translated into a big number but M&M is missing a strong product in its portfolio. However, M&M is betting big on new launches this fiscal as the company intend to launch three new products in the segment code named - U321, S201 and G4 SUV. Along with this it is also planning to launch few refresh brands. Meanwhile, Maruti Suzuki has slated the launch of its new Ertiga this fiscal. 6 6 (Source: 5

6 SALES (Units) GROWTH SALES (Units) GROWTH 2. SECTOR SNAPSHOT: SALES 2.1. PASSENGER VEHICLE The total units sold by PV market leader Maruti Suzuki India in April 2018 was 172,986 units as compared to 151,215 units in April 2017, increased by 14.4%. The domestic sales of the company was 164,978 units while the exports contributed 8,008 units. From the domestic sales, passenger vehicle sales were 163,434 units as compared to 144,081 units surged up by 13.4%. The highest growth was witnessed in Maruti Suzuki s compact car portfolio which were the Baleno, Ignis, Swift, Dzire, and Tour S that was up 31.8% to units. Vans (Eeco and Omni) surpassed the upturn in the utility vehicle segment growing by 14% to units. In comparison, the UV segment (Vitara Brezza, S-Cross, Ertiga, and Gypsy) posted a marginal step up of 0.8% to units. Though gathering higher volumes than the UV models with domestic sales of units, the Mini segment led by the Alto and Wagon R declined 2.8 percent. The mid-segment sedan Ciaz also declined at 5116 units, down by 27.2%. Total domestic sales of Mahindra & Mahindra (M&M) was units as compared to units in April 2017, rise by 19%. Passenger vehicles sales were units as compared to units, grew by 13%. Cars and vans were 1556 units saw an increase of 51%, while UVs sales increased 11% to units. Tata Motors' passenger vehicles domestic sales also kick-started on an encouraging note. The company s sales were 17,235 units as compared to 12,827 units increased by 34%. Honda Cars India (HCIL) sales declined in April 2018 down from units in April 2017 to the current 9143 units, by 36.85%. Its highest selling model has been the new City with sales of 3366 units, WR-V with 2949 units and Jazz with 1747 units. There was no production of the old Amaze in April. Another positive start was made by Toyota Kirloskar Motors (TKM) in the new fiscal with sales of units in the domestic market up by 5.64 percent. It exported 834 units of the Etios series clocking a total of units. In FY18, TKM had registered a marginal decline of 1.90 percent with domestic sales pegged at 140,645 units. Ford India sold units in April 2018 as compared to 25,149 units in same month last year, declined by 39.23%. The company s domestic sales stood at 7,428 units in April against 7,618 units in the same month last year, down 2.49%. YEAR ON YEAR COMPARISON OEM Maruti Suzuki India Mahindra & Mahindra Year-on-Year Comparison (units sold) Apr-18 Apr-17 Growth% % % Tata Motors % TKM % Hyundai % Honda Cars India % Ford India % Maruti Suzuki India SALES - PASSENGER VEHICLES Mahindra & Mahindra Tata Motors TKM Hyundai Honda Cars India Apr-18 Apr-17 Growth% Ford India 40.% 30.% 20.% 10.% 0.% -10.% -20.% -30.% -40.% -50.% (Source: ET Auto May l 03, 2018) MONTH ON MONTH COMPARISON OEM Maruti Suzuki India Mahindra & Mahindra Month-on-Month Comparison (units sold) Apr-18 Mar-18 Growth% % % Tata Motors % TKM % Hyundai % Honda Cars India % Ford India % Maruti Suzuki India SALES - PASSENGER VEHICLES Mahindra & Mahindra Tata Motors TKM Hyundai Honda Cars India Apr-18 Mar-18 Growth% Ford India 20% 10% 0% -10% -20% -30% -40% (Source: ET Auto May l 03, 2018) 6

7 Top 25 selling models of April 2018 Rank OEM Model April'18 (Units Sold) April'17 (Units Sold) Growth (%) 1 Maruti Dzire % 2 Maruti Swift % 3 Maruti Alto % 4 Maruti Nexa Baleno % 5 Maruti Wagon R % 6 Hyundai i20 Elite % 7 Hyundai i10 Grand % 8 Maruti Vitara Brezza % 9 Maruti Celario % 10 Hyundai Creta % 11 Mahindra Bolero % 12 Maruti Omni % 13 Maruti EECO % 14 Toyota Innova Crysta % 15 Maruti Tiago % 16 Renault KWID % 17 Maruti Ertiga % 18 Maruti Nexa Ciaz % 19 Maruti Nexa IGNIS % 20 TATA Nexon Hyundai Eon % 22 Mahindra Scorpio % 23 Tata Nexon Hyundai Verna % 25 Maruti Nexa S-Cross % (Source: AutoPunditz) 7

8 SALES (Units) GROWTH SALES (Units) GROWTH 2.2. COMMERCIAL VEHICLE The largest commercial vehicle manufacturer Tata Motor shoot its domestic sales to 36,276 units as compared to 16,017 units in the same month in last year, gaining a rise of 126%. The M&HCV truck segment of Tata s sales increased to 14,028 units, up by 317%. The I&LCV truck segment grew 94% at 3,229 units due to new product launches, e-commerce and growing rural consumption. The SCV cargo and pickup segment increased 84% to 14,620 units. The bus segment also rose 46% to 4,399 units, due to healthy demand for school buses with the onset of the annual school season. M&M saw an increase in sales by 26% to units as compared to units. The truck and bus division continues to outperform with a high Y-O-Y growth, said Rajan Wadhera. Ashok Leyland recorded total sales of units as compared to 7090 units during the month under review, with an increase of 79%. M&HCVs sales increased to 8968 units as compared to 4532 units in April Light commercial vehicles (LCVs) were up 45% with sales of 3709 units compared to 2558 units in April Alternatively, Volvo Eicher Commercial Vehicles (VECV) sold 3,959 units during the month compared to 3,089 units sold in April 2017, increased by 28.1%. This included 3,939 units of the Eicher brand and 20 units of Volvo. In the LCV segment, Maruti Suzuki s Super Carry continued to make inroads in Tier II and III towns, increased 275.7% over a low base of last year to 1544 units. Commercial vehicles sales of Bajaj Auto in the domestic market increased to 28,722 units from 15,957 units in April 2017 by 80%. YEAR ON YEAR COMPARISON OEM Year-on-Year Comparison (units sold) Apr-18 Apr-17 Growth% SALES - COMMERCIAL VEHICLES 300% Tata Motors % M&M % % 200% VECV % SML-Isuzu % Maruti Suzuki Ashok Leyland % ,090 79% Tata Motors M&M VECV SML-Isuzu Maruti Suzuki Ashok Leyland Bajaj Auto 150% 100% 50% 0% Bajaj Auto % Apr-18 Apr-17 Growth% (Source: ET Auto May l 03, 2018) MONTH ON MONTH COMPARISON Month-on-Month Comparison (units sold) OEM Apr-18 Mar-18 Growth% Tata Motors % M&M % VECV % SML-Isuzu % Maruti Suzuki % Ashok Leyland % Tata Motors SALES - COMMERCIAL VEHICLES M&M VECV SML-Isuzu Maruti Suzuki Ashok Leyland Bajaj Auto 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% Bajaj Auto % Apr-18 Mar-18 Growth% (Source: ET Auto May l 03, 2018) 8

9 SALES (Units) GROWTH SALES (Units) GROWTH 2.3. TWO-WHEELER The sales of largest two-wheeler Hero MotoCorp was 694,022 units as compared to 595,706 units, grew by 16.5%. Honda Motorcycle & Scooter India (HMSI) crossed the 6 lakhs mark in domestic sales for the first time in April FY19. Domestic sales grew 15% from 5,51,732 units in April 2017 to 6,35,811 units this April. In scooters segment, Honda sold 4,23,527 units in April 2018 as compared to 3,68,550 units, rise by 15%. Honda s motorcycle sales grew 16% to 2,12,284 units in April 2018 as compared to 1,83,182 units. TVS company increased their sales to 293,418 units in April 2018 as compared to 241,007 units in two-wheeler. Their domestic sales increased 17.6% from units in April 2017to units in current April. The scooter sales grew to 89,245 units from units in April 2017, surged by 9.6%. While the motorcycle sales grew 31.8% from 99,890 units to 131,704 units. Bajaj Auto recorded 29% increase in overall domestic sales to 229,464 units against 177,887 units in April last year. While the company's domestic motorcycle sales were 200,742 units, against 161,930 units during the same period a year ago, rise by 24%. Royal Enfield sold a total of 76,187 motorcycles in April 2018, compared to 60,142 units in April 2017, up by 27%. Domestic sales contributed units as compared to units in April 2017, increased by 27.42%. YEAR ON YEAR COMPARISON OEM Year-on-Year Comparison (units sold) Apr-18 Apr-17 Growth% TVS % SALES - TWO WHEELER 50% 45% 40% 35% 30% Royal Enfield % Hero Motocorp % % 20% 15% 10% 5% Bajaj 2,00, % Suzuki Motorcycles % 0 TVS Royal Enfield Hero Motocorp Bajaj Apr-18 Apr-17 Growth% Suzuki Motorcycles 0% (Source: ET Auto May l 03, 2018) MONTH ON MONTH COMPARISON Month-on-Month Comparison (units sold) SALES - TWO WHEELER OEM % Apr-18 Mar-18 Growth% % TVS % Royal Enfield % % 15% 10% 5% Hero Motocorp % % -5% Bajaj 2,00, % Suzuki Motorcycles % 0 TVS Royal Enfield Hero Motocorp Bajaj Apr-18 Mar-18 Growth% Suzuki Motorcycles -10% (Source: ET Auto May l 03, 2018) 9

10 SALES (Units) GROWTH SALES (Units) GROWTH 2.4. THREE-WHEELER M&M sales in the three-wheeler segment grew 26% from 3438 units in April 2017 to 4327 units. TVS Motor Company also grew by percent to 11,377 units (5,303 units) in its three-wheeler portfolio during April YEAR ON YEAR COMPARISON OEM Year-on-Year Comparison (units sold) SALES - THREE-WHEELER 120% Apr-18 Apr-17 Growth% % % M&M % % % TVS % % Atul Auto % 0 M&M TVS Atul Auto Apr-18 Apr-17 Growth% 0% (Source: ET Auto May l 03, 2018) MONTH ON MONTH COMPARISON Month-on-Month Comparison (units sold) SALES - THREE-WHEELER OEM Apr-18 Mar-18 Growth% % -5% -10% -15% M&M % TVS ,894 0% % -25% -30% -35% Atul Auto % 0 M&M TVS Atul Auto Apr-18 Mar-18 Growth% -40% (Source: ET Auto May l 03, 2018) 10

11 3. REGULATORY UPDATES From April 15; Intra-state e-way bill to be introduced in 5 states From April 1st, the government had launched the electronic-way or e-way bill system for moving goods from one state to another of worth over Rs 50,000. Now from April 15, E-way bill within the state will be rolled out in 5 states. They are Andhra Pradesh, Telangana, Gujarat, Kerala and Uttar Pradesh. Karnataka is the only state which had rolled out e-way bill system for intra-state movement of goods from April 1 and since then more than 63 lakh such bills have been generated till 9th April, Starting with inter-state from April 1 and intra-state from April 15 the GST council, last month decided the rollout of the e-way bill. First introduced on February 1 the e-way bill provision of the goods and services tax (GST) which is an anti-evasion measure that would help boost tax collections by reducing on trade that currently happens on cash basis. With several states starting to generate intra-state e-way bills on the portal the implementation was put on hold after the system developed glitches in generating permits as the system developed an obstacle.now the platform has been made robust enough so that it can handle load of as many as 75 lakh inter-state e-way bills daily without any glitch. 7 NITI Aayog submits draft Cabinet note on zero-emission vehicles In a written reply to the Lok Sabha Rao Inderjit Singh Minister of State for Planning said that, in order to promote electric vehicles, NITI Aayog has proposed the formation of six committees. NITI Aayog has submitted a draft Cabinet note on developing a strategy for zero emission vehicles and ancillary technology. He also adds each committee, to be headed by the respective secretaries, who will decide issues pertaining to finalisation of non-fiscal incentive; promotion of last mile connectivity; electric mobility in public transport; technology development of R&D electric mobility; charging infrastructure for electric mobility, and demand and supply side incentive. NITI Aayog has prepared a report titled 'Roadmap for Make in India in Body Armour' says Singh in reply to a separate query. Major recommendations made in the report covered issues such as promotion of indigenous manufacturing of body armours including raw material, creating more testing facilities, adoption of Indian Standards in Body Armours, setting up of Centres of Excellence for pursue of R&D in nano-technology materials for lightweight armours and simplification of permanent process. Rao Inderjit Singh also says that the government constituted an empowered committee on January 30, 2018 under the chairmanship of NITI Aayog member to drive and implement various recommendations of the report. This empowered committee will examine the proposals that will be received from aspiring products and take suitable decisions. 8 Power Ministry directs; no license required for EV charging infrastructure The Power Ministry extinguished the speculation over the activity of EV charging through batteries falls under sale and purchase of power under the provisions of the Electricity Act 2003 and also cleared that companies setting up charging infrastructure for electric vehicles do not require any separate license for electricity transmission, distribution or trading. A consumer as any person who is supplied with electricity for his own use which includes any persons whose premises are for the time being connected for the purpose of receiving electricity whereas trading is defined as procurement of electricity for resale according to Section 2 of the Electricity Act. The ministry says that the charging of battery involves utilization of electrical energy which is further converted to chemical energy which is then stored in the battery. Thus for charging an electric vehicle at charging station service is required for the consumption of electricity and in return to generate revenue from the owner of the vehicle. As there is no distribution or trading of electricity and only use is charging the battery to use in electric vehicle, the charging station does not perform any other activities. And hence for charging of batteries of electric vehicles through charging station does not require any licence under the provisions of the Electricity Act, 2003." For transmission, distribution or trading in electricity The Electricity Act, 2003 was brought into force with effect from 10th June 2003, which as per section 12 requires a license to be obtained for the activities mentioned. 9 7 (Source: 8 (Source: 9 (Source: 11

12 4. TECHNOLOGY QR codes on autos and taxis to be introduced in Delhi; May From May onwards the passengers would get the details of the drivers on their mobile phones by scanning the QR codes. They need to download Delhi Police s Himmat Plus mobile application. A transport department official after a State Transport Authority meeting on Friday, said; We have now made it mandatory for all autos and taxis to have QR codes. Commuters will get all information about the driver, including their photograph, name, address and public service vehicle badge number. he added that QR codes are made compulsory and auto and taxi drivers are given one month time to get the code. The department suspects that the introduction of QR codes will be successful in making sure the safety of passengers, primarily women. the official added; From the photo, commuters will be able to find out if the driver is the person in whose name the vehicle is registered." they will manage to share the details to their family members and also could trace the movement of the vehicle. The official added; "The registration number of every vehicle will also have to be prominently displayed on the rear side of the driver s seat. By having the number displayed inside the vehicle, commuters will be able to note it down if required. 10 Next battery revolution; Graphene material Graphene a material made up of lattice of carbon atoms and was discovered years ago by scientists who also won a Nobel Prize in Physics. This material is now been studied by the researchers to use in batteries as there is a potential that the performance would boost in a muchneeded technology. Graphene is very light in weight and also highly conductive of heat and electricity and stronger than steel too. After it was discovered many believed that graphene could change everything from electronics to carbon-fiber composites to biotechnology. But it turned out to be that the supply chain was difficult and the production of the material was expensive. The researchers at Samsung Advanced Institute of Technology announced that it had developed a material called graphene ball, that would allow lithium-ion batteries to charge five times faster and have 45 percent more capacity. This would make a huge impact on both consumer electronics as well as the automotive industries. One day, graphene might fit in all sorts of cool gadgets from phones to magazines that connect to the Internet. Until then, it ll probably keep on improving. 11 Opening of swappable battery station in Bengaluru: Sun Mobility Swappable battery station for two and three-wheeler electric vehicles was launched on 17th April, 2018 by Sun Mobility at its technology centre in Bengaluru. The energy platform is an universal architecture solution that works across various two and three-wheeler vehicles.it enables electric two and three wheelers to be cost neutral as compared to conventional diesel/petrol ones. It will be offered in collaboration with multiple OEMs and solution providers and will support a range of new models as well as retro-fit applications. The company launched the solution after 2 months from displaying smart mobility solution for buses, in partnership with Ashok Leyland at Auto Expo By enabling the electrification of two-wheelers, three-wheelers and buses through our comprehensive smart mobility ecosystem, we are addressing the current urban mobility crisis and consciously exploring solutions to change the way the world commutes, Khemka added. Sun Mobility with its partners, plans to introduce this network of Quick Interchange Stations gradually across major cities, which will help the customers to make a choice for using electric mobility an innovative pay-per-use model which will enable to decrease not only their initial cost of purchase but also overall operating cost. Chetan Maini, co-founder & vice chairman of Sun Mobility said With over 18 million two-wheelers and three-wheelers sold in the country last year, we have introduced the world s first interoperable solutions for electric two and three-wheelers that will transform the way people commute. He also added that Sun Mobility is enabling the electric mobility ecosystem in the country by offering solutions that are convenient, cost-effective and scalable (Source: 11 (Source: 12 (Source: 12

13 New Technology introduced to prevent drunk driving The researchers of Uttarakhand have introduced a new device from the waste which will stop vehicles from operating if the driver is drunk. The car will not start, if you are drunk. A team including R.P. Joshi, Akash Pandey and Kuldeep Patel evolved a framework, which will be formed by graphene from the waste product and grasses as one of the element. The Uttarakhand Residential University in Almora and Haldwani-based RI Instruments and Innovation India have together developed the technology where the vehicle would not start if the driver is drunken or feeking drowsy, or is on call. Joshi told IANS, Graphene has an important role in the device as graphene-coated electrodes can catalyse the process of oxidation of ethyl alcohol into acetic acid. The concentration of alcohol will automatically disconnect the device." The driver, first needs to blow the sensor on the device to start the vehicle. It will automatically activate the sensor which will investigate and evaluate the liquor content present in the blood of the driver. If the liquor content is more than the specified limit under Motor Vehicle Act, the engine will not start. The other feature of the device detects if someone other than the driver if blows the sensor the vehicle won t start as the infrared feature of the sensor analyses it. In case the driver feels drowsy while driving, the object and imaging module of the sensor will examine his eye movements and would alert the co-passengers. The imaging technique of the device can also send an alert if the driver is on call. As the device is equipped with the GPRS-GSM and biometric technologies which will enable to know the location of the vehicle. In case of an accident, the device will automatically, within five to 10 minutes, dial phone number 100 to send an SOS to the police. The team, on the advice of Uttarakhand Governor K.K. Paul, has sent the device to the patent cell of the Uttarakhand State Council for Science and Technology, Dehradun, for patent. The Governor has also advised the team to modify the device for use in commercial vehicles in the state that witnesses frequent fatal accidents. This device will put on test at International Centre for Automotive Technology in Manesar, SGS Lab in Gurugram and the Automotive Research Association of India in Pune before it is used in vehicles (Source: 13

14 Formula 1-Inspired Electric Cars soon to enter India and Australia Tycoon Sanjeev Gupta s GFG Alliance, which aims to model the budget, lightweight city cars on a design developed by former McLaren Racing and Brabham technical director Gordon Murray, will build EV plants as part of his worldwide push into the auto supply chain. Sanjeev Gupta could start building Formula 1-inspired electric vehicles in India and Australia early next decade, adding automobiles to a roster of global businesses that span steel-making to banking. He also adds that, GFG has been selected as preferred bidder for Indian auto parts maker Amtek Auto Ltd, and acquiring its assets will give it a platform for further expansion in the second-most populous nation. According to Bloomberg New Energy Finance India almost doubled sales of EVs in 2017, though they account for only about 0.1 percent of total new vehicle sales. Toyota Motor Corp. and Suzuki Motor Corp. are among manufacturers developing plans to begin EV sales in India. Demand for private passenger EVs is seen increasing from the mid-to-late 2020 s as cheaper models enter the market and the nation installs charging infrastructure. Sanjeev Gupta says In Australia the car industry has created an opportunity and also relocated there following local deals including the purchase of the steel and iron ore assets of Arrium from receivers. The country s last auto plants in recent years has offered potential opportunities to acquire parts of assembly lines or body shops. Acquiring a plant or equipment would speed GFG s entry into production, meaning it could begin as soon as Launching a car is not a joke, it s a big undertaking, says Sanjeev Gupta. He also adds, if we are to do something with an existing plant then it ll be faster also Capital expenditure to enter production may be less than $500 million. According to Murray s istream design applies motor-sport principles to reduce the weight of a regular vehicle and claims to cut the cost of an assembly plant by as much as 80 percent with a simplified production process. He also plans to move into production, including for external customers. According to Chief Executive Officer Hiroyuki Yanagi, now chairman said Yamaha Motor Co. has produced prototypes using Murray s istream platform, including the MOTIV compact city car presented at a 2013 motor show in Tokyo, a two-seater sports vehicle and an SUV who also is considering bringing one of the concepts to market. Lighter cars will offer better battery range meaning motorists need to recharge less frequently, while the design allows producers to manufacture vehicles in smaller volumes than the sector s dominant players says Gupta. GFG, which produces automobile components in the UK, has made a bid for AR Industries, a French manufacturer of aluminium wheels and is constructing a two million wheels a year plant in Scotland next to its smelter in Fort William. Gupta s GFG has led an acquisitions spree since 2013 that s included deals in Europe, the US and Australia for businesses including steel mills, aluminium smelters, energy producers and automobile components manufacturers also has committed more than $3 billion to investments (Source: 14

15 5. INTERNATIONAL NEWS Smart road with the ability to charge cars: China China with Qilu to tests an intelligent highway with solar panels, mapping sensors and electric-battery rechargers which could speed the transformation of the global transportation industry. This new technologies will be fixed under the transparent concrete and about 45,000 vehicles can roll over the roads every day, and the solar panels which can generate enough electricity to power highway lights and 800 homes. The government believes that about 10% of the cars should be self-driving by 2030 and Qilu is planning to develop better traffic updates, accurate mapping and on-the-go recharging of electric-vehicle batteries. President Xi Jinping government with Made in China 2025 plans to improve the manufacturing power and also evolve its artificial-intelligence industry to become the world s primary AI innovation centre by Yuan Peng says the ministry to offer smart roads for the smart cars. Smart road will consist of three vertical layers with the top layer made of see-through material allowing sunlight to reach the solar cells underneath along with thread recharging wires and sensors that monitor temperature, traffic flow and weight load. Zhou Yong said The road will be smart enough to analysis the kind of data that is needed for the vehicle. 15 Carmakers should invest in electric cars, German minister Economy Minister Peter Altmaier says he does not understand why aren t carmakers not investing enough in the electric car technology and suggests that the industry must invest a lot in electric car technology and develop battery production facilities in Europe. To keep up with global competitors, the German car industry which is one of Europe's biggest economy need to invest in two-digit billion amounts in electric car technology or else a large part of the value will be produced in Asia or the United States instead of here in Europe. The German government plans to ease the tax burden on drivers of electric vehicles and provide an additional 100,000 charge points across the country and along with car-sharing to push a shift to greener transportation. And further carmakers such as VW, Daimler and others have stepped up with the development of electric cars to reduce pollution levels and avoid a total ban on diesel vehicles in the future. They also plan to fund the research process of self-driving technology and support the establishment of battery cell production in Germany. He added that the first safe self-driving cars must operate with German technology and should cost less but needs to be at least in the range of Tesla. He also says that German companies should also work with other European firms to develop a European battery cell production. As it is crucial to secure the hundreds of thousands of jobs which now support the car and supplier industries (Source: 16 (Source: 15

16 6. AUTOMOTIVE COMPONENTS SECTOR E- Store of genuine parts & accessories introduced by Hero MotoCorp Hero MotoCorp launched an e-commerce portal to retail hero genuine parts and accessories for its two-wheeler products. This platform allows the customers to buy genuine parts and genuine accessories online directly from the company. The users would get their parts for their motorcycles at a touch of button. By introducing this platform the company is planning to reach out to the users all over the country. The manufacturer is now focusing on the innovation part for their services they are offering. Hero MotoCorp has joined hands with Delhivery: pan-india e-commerce logistics service provider, which will help them to deliver the parts and accessories to the users all over the country. The company uses hub and spoke model so that the deliveries to the users is on time. The company had sold 500,000 two-wheelers earlier when they were partners with Snapdeal. 17 Castrol introduces New Castrol Magnatec with Dualock technology in India Castrol, the lubricant company launches the latest generation of Castrol Magnatec engine oil with Dualock technology. The technology is specially designed to provide non-stop engine protection, not only during warm up but also during stop-start driving conditions. Castrol Magnatec with new and unique Dualock technology uses a combination of two different protective molecules that lock together at the engine surface to create a powerful force-field of protection, delivering a ground breaking 50% reduction in warm-up and stopstart wear. Castrol Magnatec Stop-Start 0W-20 and Castrol Magnatec Stop-Start 5W-30 offer an additional benefit of fuel efficiency of up to 60 litres per annum. said Simon Edwards, Head of Technology Castrol India and Middle East. As the needs of the Indian passenger car market is evolving, the company have introduce this technology on full range of the Castrol Magnatec product portfolio across viscometrics. Castrol Magnatec 10W-40 is suitable for petrol and Castrol Magnatec Diesel 15W-40 for diesel engines. Castrol Magnatec Stop-Start 5W-30 is suitable for application across petrol, diesel and CNG engines. Castrol Magnatec Stop-Start 0W-20 for petrol engines is also introduced with this new launch. Both car engines and drivers are under considerable stress in today s congested traffic conditions. The average driver can stop and start as many as 18,000 times a year and can spend up to 1/3 of the journey time idling. This puts up to 66% more load on critical engine parts compared to driving on the open road. The reinvented Castrol Magnatec formulation with ground breaking Dualock technology is engineered specifically for such stressful driving conditions. We believe that this launch will further strengthen Castrol s leadership position in the passenger car segment in India. said Kedar Apte, VP Marketing, Castrol, India. 18 Maintenance-free battery; introduced by Exide Exide Industries Ltd launched the "country's first" completely sealed and maintenance-free battery for the automotive market on April 10, Excide said; 'Advanz' new battery is at present "only one of its kind in the Indian market" which does not require any topping up. Having different other features, one of the main feature is that this battery is India's only battery equipped with a magic eye that can accurately indicate the health of the battery and determine its end of life. The prices of 'Advanz' is still not revealed by the company. Exide Industries said the product will be available for all types of cars in the Indian market, and comes with a 15-month warranty (Source: 18 (Source: 19 (Source: 16

17 7. TOP 10 MERGERS AND ACQUISITIONS The year was a strong year for the automobile sector. During the year the sector have observed investments of the international and Indian companies worldwide and locally to expand and support to attain that positive momentum. Merger and Acquisition help not only to set the standard of the company but also the overall industry. The aim of the M&A is mainly to meet the targets of the electric vehicles and platform sharing to make auto components in India and around the globe too. Here are the top M&As signed in FY Suzuki Motor, Toshiba, Denso 1st joint venture of FY Initial capital expenditure was Rs. 1,184 Cr., Suzuki owing 50% Toshiba owing 40% and Denso 10%. The joint venture was for production of automotive lithium-ion battery packs in India. The factory may be set up in Gujarat, close to the existing factory of Suzuki Motor. 2. Hero Motors with Hewland Hero Motors joined hands with Hewland Engineering Ltd. to provide powertrain solutions. The company hero motors is manufacturer of automotive transmissions and powertrain systems. While Hewland is a motorsports transmission company which is known for its design, innovation and specialist manufacturing for a range of automobiles ranging from commercial vehicles to Formula 1 cars. The new company is known as Hero Hewland Ltd and will be located in Maidenhead, UK, a short distance from London. Both partners coming together, will deliver end to end solutions for powertrain systems to automotive OEMs, recreational vehicles as well as electric vehicles. 3. Fiat India Auto partners with Tata Motors, Maruti Suzuki Fiat India Automobiles joined hands with Tata Motors and Maruti Suzuki to supply 2.2 lakh diesel engines over 3 years. In this contract, Maruti Suzuki which is sourcing 1.3-litre multijet engines from Fiat India, planned to buy 1.5 lakh more units of the same engine for its popular models such as Swift, Dzire, Ignis, Ciaz and Vitara Brezza. On the other side, Tata Motors planned to source 70,000 units of 2-litre multijet engines for the SUVs it was developing on a Land Rover platform. 17

18 4. Volkswagen, JAC join hands for e-cars Volkswagen Group signed 50:50 joint venture with Chinese automaker Anhui Jianghuai Automobile (JAC) to develop, produce and market electric vehicles and mobility services in China. The objective of VW s is to deliver 400,000 electric vehicles to the Chinese market in 2020 and 1.5 million electric vehicles in The new joint venture with JAC will produce its first jointly developed electric vehicle this year. 5. Ashok Leyland tie-up with Sun Mobility Ashok Leyland, manufacturer of trucks and busses has joined hands with Sun Mobility to produce and sell electric vehicles. They have planned that first electric bus will be introduced in the market in months. Both the companies together will invest around Rs. 100 Cr. in the initial period with the first model by January Though Ashok Leyland has come out with electric buses previously, this alliance will deliver a swappable smart battery solution, which has not been successful in other parts of the world. Even though, earlier Ashok Leyland has already introduce electric busses, but this venture will additionally deliver smart battery solution. The model includes setting up stations with robots to swap batteries, and an IT network with the electric vehicles. This will reduce the asset costs and man power requirements. The initial customers for these electric vehicles expects to be STUs (state transport undertakings) with whom Ashok Leyland has already commenced discussion. 6. Acquisition of UK's Parkinson Harness Technology by India- based Dhoot Transmission Dhoot Transmission, 2nd largest manufacturer of wiring harness in India in 2-wheeler space and 4th largest overall acquires Parkinson Harness technology, leading manufacturer, and supplies to its reputed clients across CV s, off-road vehicles, construction vehicles, railways, defence and utility vehicles. After this acquisition, Dhoot Transmission's portfolio expands in the lucrative four-wheeler category, especially in the construction, agriculture and off-road vehicle segments. This transaction is part of our strategy to acquire key clientele in the European geography, while at the same time diversifying our domestic businesses within the four-wheeler category in the agricultural and construction sectors, adding to our leadership position in the two-wheeler space. This acquisition will help us make giant strides in the UK market and at the same time expand the product portfolio in the domestic market. With this acquisition, we are confident of achieving our target of growing from Rs. 500 Cr. in revenue in 2017, to Rs. 1,000 Cr. in said Rahul Dhoot, managing director, Dhoot Transmission. David Earnshaw, managing director, Parkinson Harness Technology, said We are very happy to pass the business we have built over the last two decades into the hands of Dhoot Transmission Group. We are sure that they will continue to nurture what we have built over so many years and take it to greater heights than it would have been possible for us to achieve in isolation. 7. Toyota joint venture with Mazda for EVs Toyota s joint venture with Mazda and Japanese tech firm Denso with an aim to produce electric vehicles. This joint venture is named EV CA Spirit Co which will produce technology for both Japanese manufacturers upcoming electric vehicles (EV). Toyota to invest 90 percent while Mazda and Denso will contribute 5 per cent of each in the total investment. This EV joint venture is expected to produce electric tech for both car makers for different products along with Japan-only mini cars. They even plan to produce SUVs for the mass-market and for globalsales including passenger cars and commercial vehicles too. The joint venture contribution includes Denso expertise in electronics and Mazda s product planning and computer modelling experience which will be based on Toyota s new TNGA platform which will be adjusted so that it can be used for all new EV models. Toyota who is already in collaboration with Mazda and Denso for the EV project says other car makers along with part suppliers are also invited to be a part of this project. 18

19 8. M&M collaborates with Ford Mahindra and Mahindra (M&M) and Ford Motor Company have decided to get in a partnership and explore the mobility programs, connected vehicle projects, electrification and sourcing. This partnership is for the period of 3 years which can further be renewed or discontinued once the initial 3 year period is over. With the help of this collaboration the two companies will be able to support each as Ford could help sell Mahindra s vehicles overseas and in turn Mahindra could help expand Ford s dealer network in India. This could be a win-win situation for both the carmakers as getting easy access to the markets without going through the process of appointing dealers. However, things like branding, warranty and overall support of the vehicles sold still remain unclear by the two companies. 9. Adient-Arvind joined hands to manufacture and sell automotive fabrics Adient Arvind Automotive Fabrics was formed by Adient, an automotive seating manufacturer, and Arvind, the textile-to-retail conglomerates. The new venture will develop, manufacture and sell automotive fabrics in India. It will be based in Ahmedabad manufacturing facility where the manufacture of high-end performance fabrics for automotive seating systems will be done. The stake of Adient in the new company is 50.5% and it expects that the new company to be included in their consolidated financial statements. Each of the company will have representation on BOD of new company, Adient Arvind Automotive Fabrics. Jef Vercammen, vice president, Global Fabrics at Adient said, Adient is committed to delivering new value to our customers while enhancing our fabrics product portfolio through continuing advancements. This partnership with Arvind gives us an exciting opportunity to do just that in India s rapidly growing automotive market. Combining Adient s global fabrics design and technological resources with Arvind s extensive manufacturing capabilities will enable us to accelerate the pace at which we bring innovative automotive fabrics products to market in India." Lalbhai, executive director, Arvind said, We are transforming our business quickly through technologies and partnerships that enable us to explore and create new opportunities across our business divisions. One of our key pillars is to extend textile manufacturing into newer frontiers outside of fashion and into various spaces like human protection, construction and transport. This partnership is a watershed moment in this journey. The partnership will leverage Adient s market presence and automotive expertise with Arvind s textile manufacturing capabilities to provide customers superior and high-quality automotive seating solutions. 10. Toyota & Suzuki: EV Deal On Friday, Japanese carmakers Toyota Motor Corp and Suzuki Motor Corp signed an agreement to get in a partnership and introduce electric cars in India by The agreement signed by the two Japanese auto makers focuses on developing environment-friendly vehicles, automobile safety and mutual supply of products and components. Based on the agreement, Suzuki will manufacture electric cars for India and also supply some units to Toyota with technical support. Further on both companies plan to conduct studies on car charging stations, training of technicians and disposal of electric car batteries. The government has set a 2030 deadline for India to move to an all-electric passenger vehicles and indicates vehicles manufactures to switch from diesel and petrol engines to environment-friendly alternatives. To boost the governments Make in India initiative Suzuki plans to procure electric motors and other major components from Indian companies. The lithium-ion battery have a high cost factor which is discouraging other manufacturers from entering the EV sector Source: ETAuto / Updated: 14 th April,