Automobile Industry through my eyes

INDIAN PASSENGER CAR INDUSTRY IN 2013 – 14 [APRIL – AUGUST]

2013-09-17T07:29:00.000-07:00

The economic scenario of the country has not looked overtly positive in the first 5 months of the current fiscal. This year, being the election year, will be tumultuous with less fiscal initiatives to boost the economy and major push expected to come from the RBI. Amidst this scene, RBI hasn’t reduced its interest rates by a heavy margin. This has reduced a lot of capital in the market and hence a general slowdown in being observed.

Automobile industry and especially the passenger cars are dependent on the cash abundance in the public domain. That is the reason why this industry is facing slowdown too.

The passenger car numbers are not impressive leading to the festival time.

Apr-13	May-13	Jun-13	Jul-13	Aug-13
199496	193338	187458	176949	180897

Let’s look at the scenario with the manufacturers:-

Column1	Apr-13	May-13	Jun-13	Jul-13	Aug-13	Overall MS
Maruti	90523	77821	77002	75145	76018	42%
Hyundai	32403	32102	30606	25965	28311	16%
Mahindra	20749	22244	17232	15530	15821	10%
Tata	11570	11134	11804	10824	11564	6%
Toyota	9007	10023	11010	11515	12007	6%
Honda	8488	11340	9297	11222	8913	5%
Ford	4003	4002	7145	7867	8008	3%
Chevrolet	8196	8496	6575	6503	6673	4%
Renault	6314	6300	6007	3763	3733	3%
Volkswagen	4566	5116	5356	4739	4805	3%
Nissan	1239	2080	2954	1225	2494	1%
Skoda	1934	1916	1579	1560	1374	1%
Fiat	391	620	775	928	1003	0%
HM-MITSUBISHI	113	144	116	163	173	0%
Grand Total	199496	193338	187458	176949	180897

- Maruti Suzuki still manages to hold on the NUMERO UNO position with a healthy market share of 42%

- Hyundai has been threatened by some of the other players but is still a strong No. 2 in the list.

- Mahindra showed a lot of promise with XUV 500 but the initial boom has fizzed out by now and is facing the heat from the soft roaders in the market. Going is expected to be tough for this UV company.

- Tata Motors looks quite content in this position for a while now with steady monthly number of 11k types. Sad story indeed especially when one thinks of the glorious past. A few months in passive mode and you might see the rank of this company slip further down the ladder.

- Toyota has been going steady even though they have not had a launch vehicle to boost their sales. Innova is still their lead player with it raking 5.5k alone.

- Honda has seen a surge in its numbers, thanks to a positive response on Amaze. However, the other models are fading out and pose a serious question to the management.

- Skoda looks to have given up the race already. Chevrolet has a lot of internal problems to deal with and the numbers are not helping them either. Fiat is on its comeback trail. For the first time in this fiscal, the company has clocked 1000 numbers and that’s not a mean feat with just 2 models. Volkswagen has been going steady even though they have not had a launch to help their cause. Renault and Nissan are trying hard to gain numbers but limited distribution network and less number of models in their stable is hurting them bad.

Now, what kind of vehicles are getting sold?

	Apr-13	May-13	Jun-13	Jul-13	Aug-13
HATCH	52%	50%	54%	52%	53%
SEDAN	23%	24%	20%	22%	21%
MUV	17%	17%	16%	17%	17%
SUV	8%	9%	9%	9%	9%

Even though the SUV market has seen a lot of action in the recent past, but the number game is still being played by the hatchbacks. This clearly shows that the economic slowdown is shifting the customer preference towards the lower-priced hatchbacks.

PRODUCTS ON THE RISE

Make	Model	Apr-13	May-13	Jun-13	Jul-13	Aug-13
Ford	Ecosport			4002	4715	5372
Honda	Amaze	4852	6036	4965	6515	6242
Toyota	Innova	3192	4216	4964	4677	5075
Chevrolet	Beat	1986	1506	2081	2479	2926
Toyota	Liva	1832	1934	1951	2097	2578
Chevrolet	Enjoy	691	2173	2578	2235	2200
Tata	Nano	948	1014	2003	2052	2081

Ecosport and Amaze are definitely on the rise and expected to give good numbers to their respective manufacturers in the coming months. These 7 vehicles are expected to show growth in the coming months too.

PRODUCTS SLIPPING AWAY …

Make	Model	Apr-13	May-13	Jun-13	Jul-13	Aug-13
Renault	Duster	5362	5146	4523	3089	2967
Hyundai	Santro	4264	4274	4721	2961	2417
Honda	City	1917	3202	1830	1953	953
Chevrolet	Sail Sedan	2469	2027	998	789	841
Skoda	Rapid	1585	1121	1142	1077	810
Ford	Fiesta New	101	53	233	16	19
Chevrolet	Tavera	1571	1475	-26	93	-3

Duster came into scene with a lot of promise but the customers are slowly moving into better alternatives like Ertiga, Ecosport or the bigger ones. Santro, Hyundai’s old warhorse, is slowly fading away and i10 Grand is expected to takes its place in the near future. It’s a matter of time before these models become history from the Indian Automobile scene.

September marks the first month of the festive season and it remains to be seen how the company’s fare and how the customers behave!

FADING STARS IN THE INDIAN AUTO INDUSTRY

2013-03-17T20:20:00.000-07:00

Fames and names go hand – in – hand with the Indian auto industry where sentiments and public perceptions plays a very important role in the sales numbers of a particular model. If we are to see the sales numbers in the last 12 months, then we can clearly demarcate the rising stars from the fading ones. Let’s look at some of the fading stars or those models which are on a declining trend in the popularity – cum – sales trend-line.

1. NANO

No other model in our country ever evoked more interest than Nano. Yet, the depressing trend in the sales numbers is a cause of concern for Tata Motors.

From a high of 10475 in March this model is seeing numbers like 1504 in Jan’13 & Feb’13. Quite depressing indeed for a model that burst into the scene with a lot of promise both for the company and also for the country.

2. SX4

SX4 is the first model that Maruti introduced in the above 9 lakh segment. A bold and desperate move to stay in the above middle class C segment. But the numbers indicate that the move has long lost its lustre.

From 2000 numbers in Jan’12 & Feb’12, it has come down to 200 in Feb’13. Quite sad indeed!

3. Etios LIVA

Toyota had no presence in the small car segment that comprises of close to 60% of the entire industry. Then came Etios LIVA with a lot of promise and long queue of bookings. 1 year back, this model was raking in numbers to the tune of 4000 a month. This year, it has come down to 1600 per month. Looks like the company needs to do something really afresh in order to infuse some enthusiasm in this model.

4. Sunny

Undoubtedly the most spacious sedan this country has ever seen. Nissan brought its killer product from its global stable to win over this Indian market that is perceived to value space a lot. Initial numbers suggested the accuracy of their strategy. But in a year’s time, the numbers has come down from 4000 a month to 1100.

There are other models as well that are fast losing their grounds to the new models and more aggressive competitors. E.g. Chevrolet Spark, Nissan Micra, Chevrolet Cruze, Hyundai Accent, Fiat Punto, Skoda Fabia, Ford Fiesta new, Toyota Corolla, Fiat Linea, Tata Venture and Chevrolet Optra. For all these models, the respective companies have to think fast or else these names will soon become history in this fast changing automobile industry.

CRASH TEST

2012-08-14T21:49:00.000-07:00

It’s easy to gauge the safety of a house. The strength of the doors and windows will indicate that. But what happens inside a four-wheeled vehicle! Mere doors and windows don’t protect the passengers sitting inside the car. There are multiple methods that have been incorporated by the auto companies in order to address this common concern. Seat belts, airbags, ABS, EBD and collapsible steering are all such items that aim to improve the safety index of a passenger car. Now, how does a company or an auto association regulate this index? The answer is crash tests. There are various forms of crash tests that are pressed upon the vehicles and the effects are rated by experts depending on the damage done to the dummy sitting behind the wheels.

The countries across the world have resorted to various acceptance levels of this rating, largely depending upon the development of the domestic auto industry.

The various forms of crash testing are:-

Frontal
Frontal off-set
Side on
Steering impact
Seat-belt anchorage
Rear impact
Roof strength
Roll over testing
Component testing like- a. Pedestrian; b. Child safety

The testing methods of some of the above mentioned ones are given below:-

FRONTAL

· 40 % ± 20 mm overlap in 56 km/h. (EU); 30 mph 0^o ± 30^o (USA)

· Deformable barrier (AL honeycomb).

· Two Hybrid III dummies in the front seats (injury criteria).

· No door is allowed to open during test and the front doors may not bejammed.

· It should be possible to open at least one door per passenger row without tools after crash and the maximum force needed to unbuckle the crash test dummy is 60 N. Further on, the dummy must be removable without adjusting the seats.

· The fuel leakage may not exceed 30 g/min.

India follows the USA version.

SIDE IMPACT

· A movable deformable barrier (MBD) weight of 950 ± 20 kg

· Ground clearance: 300 ± 5 mm

· Velocity: 50 ± 1 km/h (EU); The barrier strikes the vehicle oblique to simulate a speed of

30 mph for the striking vehicle and 15 mph p g p for the struck vehicle.(USA)

· EUROSID crash test dummy

India follows the USA version but only the static impact

REAR COLLISION

For this test, a moving barrier of weight 4000 lbs and speed 30 mph is made to hit the car.

COUNTRY – WISE CRASH TESTING REGULATION

India

· Frontal crash

· steering impact

· seat-belt anchorage

Europe

· Steering Mechanism Impact

· Seat Belt Anchorage

· Restraints and Safety Belts

· Seat Anchorages & Head Restraints

· Non-incorporated Head Restraints

· Rear-End Collision

· Child Restraints in Power Driven Vehicles

· Frontal Collision Safety

· Occupant Protection in Lateral Collision

United States of America

· Interior head impact

· Interior head impact (Pole)

· Interior head impact (Upper)

· Head Impact

· Head Restraints

· Steering Control Impact

· Steering Control Rearward Displacement

· Seating

· Occupant Crash Protection

· Seat Belt Assemblies

· Anchorages for Seat Belt Assemblies

· Child Restraint System

· Protection from Side-Impact

· Protection from Rear-Impact

· Anchorage Systems for Child Restraints

KOREA

· Full-wrap frontal collision test (against a rigid barrier at 56km/h)

· Offset frontal collision test (against a deformable barrier at 64km/h)

· Side collision test (against a moving barrier at 55km/h)

· Pedestrian (head and leg) protection performance test

· Neck protection test in a rear-end collision

· Braking performance test

· Roll over test

CHINA

· Full-wrap frontal collision test (including AF05 passenger in rear seats)(against a rigid barrier at 50km/h)

· Offset frontal collision test (including AF05 passenger in rear seats)(against a deformable barrier at 56km/h)

· Side collision test (against a moving barrier at 50km/h)

· Installation seatbelt reminder, ISO-FIX anchorage assessment

AUSTRALIA, NEW ZEALAND

· Offset frontal collision test (against a deformable barrier at 64km/h)

· Side collision test (optionally pole test)(against a pole at 29km/h)

· Pedestrian (head and leg) protection performance test

· Installation of ESC equipment

This clearly shows that cars available in the Indian market are not the safest. ARAI needs to bring in stricter norms for the companies to adhere. Else, the customers will continue to suffer from lack of safety in the cars.

PASSENGER CAR SEGMENTS – INDIA

2012-08-12T00:35:00.000-07:00

A 3-million huge industry cannot be devoid of some classical segmentization. India’s passenger car industry is broken down into multiple segments. This is done for ease of understanding and improved competition among manufacturers to get bigger pies of particular segments.

While there are multiple ways of segmenting this industry like based on price and engine size but the most prevalent and the official method is based on dimension. i.e. the length of the vehicle under consideration.

A1 Segment - Mini – Up to 3400mm (M800, Nano)
A2 Segment - Compact – 3401 to 4000mm (Alto, wagon r, Zen,i10,A-star,Swift,i20,palio,indica etc)
A3 Segment – Midsize – 4001 to 4500mm (Manza, City, Sx4, Dzire, Logan, Accent, Fiesta, Verna etc)
A4 Segment - Executive – 4501 to 4700mm (Corolla, civic, C class, Cruze, Optra, Octavia etc)
A5 Segment - Premium – 4701 to 5000mm (Camry, E class, Accord, Sonata, Laura, Superb etc)
A6 Segment – Luxury – Above 5000mm (Mercedes S class, 5 series etc)
B1 Segment - Van – Omni, Versa, Magic etc
B2 Segment - MUV/MPV – Innova, Tavera, Sumo etc
SUV Segment - CRV, Vitara etc

While its easy for SIAM to segment the vehicles as per dimensions but for consumers, it becomes a tad difficult. This is primarily because of the widely varying / spread out prices of the vehicles. A 2 segment, as per the above criterion, will range between 3 lakhs to 7 lakhs. And A 3 will be between 4.5 to 9 lakhs. Such wide variation in prices has distorted the image of segments in the minds of consumers.

Hence, for simplicity purposes, a different segmentation has cropped up. The details are as follows:-

A Segment – Approximately below 3.5 lakhs - Alto, Eon, Nano, Spark, 800
B 1 Segment – Hatchback largely below 6 lakhs – Wagon R, Indica, Beat, Santro, A Star, Micra, Estilo
B 2 Segment – Hatchback majorly below 7.5 lakhs – Swift, I 10, I 20, Ritz, Figo, Polo, Liva, Vista, Jazz, Punto, Brio, Fabia, Pulse, Aveo UVA
C 1 Segment – Sedan below 8 lakhs – Dzire, Indigo, Etios, Sunny, Fiesta Classic, Verito, Accent, Ambassador, Aveo

C 2 Segment – Sedan below 9.5 lakhs – Linea, Manza, Verna, Rapid, Vento, City, SX 4, Verna New, Optra
D 1 Segment - Premium Sedan below 15 lakhs – Corolla, Civic, Cruze, Laura, Jetta, Fluence
D 2 Segment – Luxury Sedan below 25 lakhs– Superb, Passat, Accord, Camry, Sonata, Teana, Kizashi
B1 Segment - Van – Omni, Versa, Magic etc
B2 Segment - MUV/MPV – Innova, Tavera, Sumo etc
SUV Segment - CRV, Vitara etc

Now, lets see how the volumes stack up segment wise.

If we consider the 1^st Quarter of 2012-13, then total vehicle sales has been around 6.32 lakh units.

The hatchback segments has totaled to 56% of the entire passenger car sales in India. This comes to 355857 units. This clearly shows the popularity of smaller cars in the Indian market. Alto continues to be the top selling brand with 17422 in July. It is followed by Swift (11421) and Wagon R (9582) – all Maruti brands. This is an indication of how well the Maruti team has understood the Indian market. i 10, I 20, Nano, Beat, Figo, Santro & Polo are some of the high selling models in these segments and these models continue to clock more than 3000 units monthly. Nano has been a disappointment so far with huge expectations but it is showing some kind of resilience off late. Lets see how Tata Motors team takes this special car ahead!

As a segment, the Utility segment is showing the maximum growth. In fact, this segment has outclassed the other popular segments of A, B 1 & B 2. With 128110 units under its hood in the 1^st quarter, the segment is definitely making some good progress. Maruti’s Ertiga, Mahindra’s XUV 500 & Bolero has been instrumental in pushing the volumes of this segment. Innova and Omni too are raking in good numbers. What has been disappointing is the performance from the Tata Motors stable. Venture, Safari and Sumo have been showing steady decline in the numbers per se but definitely possess huge potential to challenge the other models.

Among the sedans, Maruti Dzire continues to lead the pack. With 11413 numbers in July, it is way ahead of its next model Verna (5300). The iconic models of City, Linea, SX4 have been showing consistent degrowth and seriously calls for some introspection by their respective manufacturers. Vento & Rapid also showed some slack but given the aggression of VW and Nissan, it wont be long before they start to pull in good numbers. Tata’s Indigo and Manza were on a slightly negative terrain all these months but somehow the trend has been reversed in July. 6816 for these 2 models augurs well for the company and lets hope the reversed trend continues. Frankly speaking, these 2 models are real value for money and pose serious threat to Maruti’s Dzire.

’12-’13 BUDGET ANALYSIS – AUTO INDUSTRY

2012-03-21T00:55:00.000-07:00

On 16th March, Honorable finance minister Mr. Pranab Mukherjee presented the budget for 2012-13 – a year that heralds the beginning of the 12th 5-year plan. The overall review of the budget has not been very positive though some quarters have expressed happiness.

Let us understand how some of the budget points impact the automobile industry.

The major impact points are as follows:-
1. Service tax rate hiked by 2% (from 8% to 10%)
     -> This increases the vehicle prices by 2% almost flatly. So for vehicles falling in the price bracket          of 3 – 10 lakhs, the price increase can be approx 6 – 20 k.
     -> My personal feeling is that this will not have any negative impact on the sales numbers;          attractive schemes and value for money purchase will be differentiating factors
2. Service tax hike for luxury cars – vehicles that were attracting a duty of 22% will now be taxed 24% and those with 22% + 15,000 will be taxed flat at 27%
     -> Certain vehicles having more than 1500 cc engine will fall under this bracket
     -> The impact on masses will be minimal
3. Customs duty on CBU’s of large cars / MUV’s / SUV’s with price >= $40,000 increased from 60% to 75%
     -> Will impact the imported vehicles from the stables of BMW, Audi, VW to name a few
     -> This is a favourable point for our country:-
         i. The customer willing to shell out 35-50 lakhs will not mind shelling out 2-3 lakhs more              because of the hike; hence increase in revenue for the govt
         ii. An indication to these auto majors to shore up their assembly units in this country. No hike              on CKD’s; hence these companies should look to build assembly units in India. Favourable              in terms of employment and local revenue generation
4. Customs duty waived off on parts required for research on hybrid vehicles
     -> Will boost research and have a long term positive impact; but no short term impact

There goes the major impact points for the sector. Lacklustre to say the least. Nothing that will boost the sales of the vehicles. Automobile industry is considered to be a precursor to the economy movement and not a sibling of the power, infra & agri industries. Thus, the govt should have announced some favourable goodies that would have helped this sector push for growth.

With regards to companies, the Indian manufacturers neither stand to gain nor lose. The foreign carmakers do find themselves on a sticky wicket with the push to shore up their Indian assembly unit plans. Additionally, companies with big vehicles in their backyard will be hit by the selective hike in service tax rate for luxury cars.

Now, coming to minor impact points.
1. Customs duty on imported equipments for agriculture being waived off
     -> This is a boost to the agriculture sector
     -> Hence the farm equipment companies like Mahindra stand to gain. Tata Motors Commercial          Unit will benefit very marginally from this too
2. Tax on interest payments on ECB reduced from 20% to 5% for power, infra and fertilizer industries
     -> This is boost to the power and infra sector
     -> Hence Tata Motors Commercial Unit, Ashok Leyland and Eicher motors stand to gain from this
3. NSDC(National Skill Development Centre) gets more project approvals and fundings
     -> 3 sector are already functional and automobile is one of them
     -> This will help create more auto-trained manpower and thus serve the numerous existing and upcoming automobile factories
4. RRB (Regional Rural Banks) being extended till 1k and 2k population group villages
     -> Boost to credit facility penetration
     -> Hence will have a mild positive impact on auto industry. Mahindra, Tata Motors can look to          gain from this

These minor points do give a positive signal to the auto industry but when added with the major points, the impact is again miniscule.

If we analyze company wise, Mahindra looks to gain the maximum while Tata Motors and Ashok Leyland will have almost no impact. The others will face marginal heat from this budget.

Marketing Stretagy - Tata Motors

2012-02-10T10:03:00.000-08:00

It was a thing of the past that same outlets and dealerships used to sell both Passenger cars and Commercial vehicles. Not that nobody knew how to market but the industry dynamics was such that automobiles used to be "Pull" products. Nowadays, its a mix of both "push" and "pull". Hence the companies are giving more and more importance to the 4P's of marketing - product, promotion, price & place.

Lets see how Tata Motors is doing it.

Products are aplenty in the company's stable. From 1.6 lakh's Nano to a 1.1 crore Jaguar, this company boasts of the most versatile product range in the world. These products cater to various target segments and are thus projected differently. The promotions are unique for each brand and tend to focus on their targetted segment group. e.g. Safari's "Reclaim your Life" is focused more towards the adventurous-yet-successful group of people. Nano's "Khushiyon ki Chabi" focuses on value for money and family emotions. So, these ads are meant to make a space in the particular brand's target segment. Price of the product too helps ascertain the message conveyed through various ads. The company uses various pricing strategies too and that also differs across the brands. e.g. Nano's initial pricing of 1 lakh was a penetration pricing where it was more important to increase market penetration. Presently, the pricing can at best be termed as cost plus pricing, where a certain margin is added to the cost of manufacturing. Aria's pricing on the other hand can be easily branded as a creamy strategy. It is deliberately kept on the higher side so that public views it as a premium product. So pricing is a big factor in automobile industry where there's a host of models in the price bracket of 3-8 lakhs. Now lets discuss the most important P - Place. Place indicates the location where the suppliers come i.e. manufacturing plant and where the customers come i.e. dealerships.

Tata Motors has multiple manufacturing locations spread across the country. This helps in spreading the tax gains that state govt's offer to the company in exchange of investment. It also ensures that the company ties up with multiple suppliers and thus reduce its dependence on few selected suppliers. In case of dealerships, network reach is the road to success. Maruti, Hyundai has shown it. Tata Motors is following it strongly now but with a difference. Instead of opening full range dealerships, Tata Motors is opening up segment specific or Line of Business specific outlets. e.g. Nano outlets, Utility Vehicles outlets, etc. This makes sense as then the market penetration increases at a very rapid pace and dependence on large entities reduce. Within a few month's time, the company has managed to open up more than 100 such outlets across the country. Biggest positive points for these outlets are a) Low turnaround time (b) Low break even point (c)Faster service to the customer. The only negative aspect might be of customer experience and am sure the company will make policies to manage that. What a great idea indeed.

It wont be long that this unique network expansion drive will start reaping rich results for the company. Then others will surely follow suit too. And the industry will be back to BOOM once again!

Nano - the most innovative car in India

2011-11-21T18:57:00.001-08:00

Nano created a huge uproar in the auto world when it got showcased in 2008 and finally launched in 2009. But somehow, sale numbers didn't match the hype and excitement surrounding it. This was primarily because of 3 reasons:

Nano was portrayed as the cheapest car. And somehow this tagline didn't work.Indian public wanted to stay away from the "cheapest" car.
Nano, as a product, was expected to take the non-metro cities by storm. But the company's promotion was focussed on metro cities. So, Ratan Tata's dream of few 2 wheeler customers converting to Nano customers never really happened.
The few "fire" instances were not handled well by the company's PR division. Which car does not catch fire! But the company should have managed the media.

Finally, with Nano 2012, the company is making a turnaround with their strategies. Check out the new ad:

A possible turnaround of the fortunes of Nano is looking more bright now for the following 3 reasons:

Nano is being portrayed as a value for money car. This, in my sense, is the right feature to showcase
Nano specific salespoints are coming up and the company is venturing more into the smaller cities
The quality has been beefed up considerably.

Buoyed by some good sales numbers in the last 3 months, Tata Nano is making a turnaround that few brands have done in this country. Wish the team good luck and hope the brand lives up to the hype and excitement it created world over during its launch.

For more details on the car, you may refer to their website: www.tatanano.com/

Curious case of FIAT

2011-11-12T10:47:00.001-08:00

One of the biggest names in the international Auto industry - FIAT continues to the amaze the auto enthusiasts in this country. Why cant they make it large here? Inspite of having been with the Tata's for over 5 years now, they are yet to find a foothold in this auto-loving nation. Not that they dont have a great product or a brand value but just not the willpower to take the plunge.
All their products have been highly acclaimed ones - both design and technology wise. The company though lacks in their service fame and reliability name. That iota of doubt still remains with this brand - how long will they stay with the Tata's and if they separate, what next? FIAT's multijet / quadrajet engine is being used by Vista, Swift, Manza and Dzire. These 4 models are the best in their respective segments but what's happening with their own Punto?? Why isn't this model making a big impact in this industry. Yes, more than the product these days, marketing speaks. Fiat lacks marketing skills in India.

Consider their topline brand Linea. One of the most stylish products in the market. Technologically one of the most advanced in its segment. Price wise, its quite luring. Network wise, its quite good given that it has the support of Tata's showrooms. Still its sales is at rock bottom. Why!! Nobody has any clue. Moreso, the company has done nothing in the last year to boost the flagging sales. No modified versions, no facelifts.. Suprising..

The brand needs to rethink their India marketing strategies more aggressively. Else they will fall behind beyond any chances of revival.

Emission Norms - India

2011-09-29T21:45:00.000-07:00

EMISSION NORMS:

BS II vs BS III

Euro III Vs BS III

COMPOSITION OF EXHAUST:

Nox – Nitrous Oxides They are formed by a reaction between the Nitrogen and Oxygen in the air at high temperatures.
HC – Hydrocarbons They are elements of unburned fuel which have formed as a result of a low combustion temperature and/or a poor air-fuel mixture. They give diesel exhaust its characteristic smell.
CO – Carbon mono oxides They are formed at the intermediate combustion stage as a result of air deficiency, which results in incomplete oxidation from CO to CO2
PM – Particulate Matter They consists of a core of carbon (<10μm) and comes from the fuel & oil. It is primarily the result of poor A/F mixture (also excessive EGR).
SO2 – Sulphur dioxide They are formed due to reaction between Sulphur present in fuel and oxygen in air.

Tata scores another first, powers car with compressed air

2011-09-26T23:33:00.000-07:00

via http://www.vanguardngr.com/2011/09/tata-scores-another-first-powers-car-with-compressed-air/

On September 27, 2011 · In Motoring

Having introduced the world’s cheapest car and taken over the British revered car brands, Land Rover and Jaguar, Indian car maker, Tata has scored yet another first in the automobile world. This time around Tata is set to introduce a car that will run on compressed air, simply known as Tata minicat.
According to Tata, with spiralling fuel prices, it is about time we heard some breakthrough!
India’s largest automaker, Tata Motors, is set to start producing the world’s first commercial air-powered vehicle.
The Air Car, developed by ex-Formula One engineer Guy Nigre for Luxembourg-based MDI, uses compressed air, as opposed to the gas-and-oxygen explosions of internal-combustion models, to push its engine’s pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets.
The Air Car, called the “MiniCAT” could cost around $8,177.In India and would have a range of around 300 km between refuels. The cost of a refill would be about $2.00.
According to Tata Africa Services Nigeria Limited, source, representative of Tata Motors in Nigeria.
The MiniCAT which is a simple, light urban car, with a tubular chassis that is glued, not welded, and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in the car, so one tiny radio transmitter sends instructions to the lights, indicators, etc.
There are no keys – just an access card which can be read by the car from your pocket. According to the designers, it costs less than 50 rupees per 100 Km (about a tenth that of a petrol car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving), a factor which makes a perfect choice in cities where 80% of motorists drive at less than 60 Km. The car has a top speed of 105 Kmph.
Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air. In two or three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200-300 kilometers.
As a viable alternative, the car carries a small compressor which can be connected to the mains (220V or 380V) and refill the tank in 3-4 hours. Due to the absence of combustion and, consequently, of residues, changing the oil (1 litre of vegetable oil) is necessary only every 50,000 Km).
The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero, which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power.
Tata Africa Services Nigeria Ltd, provides superior customer support and dependable service through its 3-S facilities and network of Sales and services dealers in the country.

Cars below 3 lakhs

2011-09-24T21:08:00.000-07:00

If your budget for a new car is less than 3 lakhs, then this article is dedicated to you.

There are not many vehicles in this bracket in India. Sadly, amidst rising petrol costs, all the available models are petrol variants. But the good point is that few of them offer excellent fuel economy.

The major models are:

Tata Nano

Price range 1.52 – 2.11 (ex showroom - Mumbai)

Maruti 800

Price range 2.11 – 2.54 (ex showroom – Mumbai)

Maruti Omni

Price range 2.21 – 2.82 (ex showroom – Mumbai)

Maruti Alto

Price range 2.8 – 3.5 (ex showroom – Mumbai)

Hyundai Santro Xing – non AC variant

NON AC Price range 2.94 – 2.98 (ex showroom – Mumbai)

Tata Indica eV2 Xeta – base variant

Price range 3.01 (ex showroom – Mumbai)

There goes the price comparison between the models. True, Nano is significantly lower than the other models in terms of price, but there are other factors too that influence a purchase decision. Lets discuss those:

Style

Nano definitely looks the best among all, given its trendy cute look. Santro Xing Maruti Alto and Indica eV2 are also good but they are quite old models and hence doesn’t look fresh to the eyes

Features & Specs

The table seems to indicate that Santro is still the best of the lot, inspite of its age. :)

Serviceability

Nano, being the newest among the lot, has lesser parts available in the usual market. But for others, the parts are readily available in nearby stores.

Space and comfort

No doubt, Indica eV2 ranks best in this category. Though the others are not far behind.
Alto, though with low seating, can be deterrent at times especially to the older generation

Safety

Indica eV2 again with a sturdy body can be considered to be the safest among all. Nano has the lightest weight but still the safety parameters are spot on. Alto and Santro too are safe enough to brush aside any worries. But it’s the Omni that worries me. With no frontal engine compartment, this vehicle still looks extremely unsafe from outside.

Automobile Family Tree

2011-09-21T12:39:00.000-07:00

An intriguing and interesting one indeed:

Car Company / Brand Logos

2011-09-21T11:46:00.000-07:00

CARMAKERS – the century that went by

2011-09-21T00:01:00.002-07:00

The only other things which wow men apart from beautiful women are cars. And why not! The latest models boast of power, speed and are curvy, attractive and elegant too.

But how were they when they came into existence way back in the 19th century?

Invention of automobile is largely credited to Carl Benz and of production to Henry Ford. The snapshot of development of the cars along the lines of the century can be depicted as follows:
1899: FIAT formed
1902: Mercedes registered
1906: Alpha Romeo was born under the name SIAD
1908: GM was formed in USA when when William C. (Billy) Durant brought Oldsmobile and Buick together to form General Motors Company. A year later, Cadillac and Oakland (which became Pontiac in 1932) marques joined General Motors
1909: Bugatti built his first car
1913: Aston Martin found under name Bamford and Martin
1919: Bentley found
1922: Jaguar found under name of Swallow Sidecar Company
1925: Chrysler founded
1931: Bentley taken over by Rolls Royce
1937: Volkswagen formed to develop German People’s Car
1948: Porsche’s first car rolled out
1955: Suzuki’s first car rolled out
1965: VW bought Audi
1969: Ferrari joined FIAT group
1993: Maserati bought by FIAT group
1998: Bentley bought by VW
1998: Bugatti name bought by VW
2002: Bentley became fully VW and Rolls Royce become BMW

With the Audis, Mercs, RRs, Porsches filling in the automobile market, the old Ford models soon became things of stone-age and basic purpose of a car changed from “a means of transport” to “a mean power machine used for transport, race with elements of style, sexiness and power embedded in it”.

CAR PURCHASE DILEMMA

2011-09-20T20:44:00.000-07:00

Are you thinking of buying a new car? If yes, then probably you are suffering from this dilemma. After all, as experts say, a car purchase is the 2nd most emotional investment after a house deal in a person's life. In spite of the dilemma that exists behind this emotional purchase, a lot of logical reasoning also exists.

Let's see if we can simplify the dilemma a bit by gauging the parameters that usually impact the purchase decision:
1. Price
Tentatively fix your budget. It can be 5-6 lacs or 8-9 lacs. Otherwise you will likely be confused with the plethora of features & offers that are presently making rounds in the market. More importantly, fix the initial down payment that you can afford and the monthly EMI that can be borne by you.

2. Schemes & Offers
DON'T GET HITCHED BY ANY SPECIFIC SCHEME OR OFFER FROM ANY COMPANY.
This is because the schemes run throughout the year with minor variation between the peak season and off-peak season. So don't let your purchase decision get influenced by a temporary scheme. After all, it's a long term investment and don't let a few thousands of savings in short term sway your decision. An example:

3. Brand
This is quite an important element of the purchase decision. Who would like to buy a brand that has minimal presence in the market? Unless obviously you work in that company or you are supremely confident of the product. This factor basically helps you give importance to an emotional attachment / perception about a particular company / brand during the car purchase.

4. Product
This should be the most important element of the purchase decision. Everything else comes after this. Product means- car specifications, engine specifications, performance & mileage. Some of the major points to look within this are:
a. Power (@ which rpm is important; 87bhp@6000 rpm is not better than 87bhp@4000 rpm coz usually we do not drive at more than 4000 rpm)--> This gives an indication to the car's speed
b. Torque --> This gives an indication to the car's pulling power and hence the pickup effect
c. Physical dimensions --> Make a comparative study of all vehicles in your consideration set regarding the physical dimensions. This will give an overview of the space inside the cabin, ground clearance, road grip (from tyre size)
d. Weight --> Though kerb weight is not very important but heavier vehicles are definitely more safer ones on the road and give better ride comfort at higher speeds (e.g. the FIAT's. TATA's & SKODA's)
e. Mileage --> Make it a point to check the SIAM Fuel Economy Certificate and don't go by the words of the Sales Executive

5. Service Network
Believe me, this is important. If a city boasts of 1-2 service centers, then it is definitely not a great thing unless the center is right next to your home / office. You might go out of town for work or pleasure; you might even change cities. What is important then is the network of service centers across the country.

6. Car Features
Car features are important. Gone are the days when u used to get only the bland car without even a music system. Features have gone high tech these days with ABS, Airbags, ESP's, steering mounted controls, tiltable steering, adjustable seats, follow me home lamps, blue & me technology, etc etc.

7. Aesthetics
If you have a lady around you during the purchase decision, you will realize the importance of this point. From color to looks, everything that cannot be explained on paper, falls under this category.

That's it!

Don't go what you friend suggests. Think yourself. After all, it's your bloody hard earned money. Take a knowledgeable decision. All the Best!

COMMON RAIL DIRECT INJECTION

2011-09-20T19:42:00.000-07:00

COMMON RAIL DIRECT INJECTION (CRDI / DICOR / CR4 / CRDE) is one of the latest engine technologies in the diesel domain. This blog will attempt to understand its functioning and importance for everybody's benefit.

Indirect Injection is characterized by moderate Torque output, moderate Power Output, lesser Noise level and Direct Injection is characterized by Better Torque Output, Better Power Output and more Noise. Taking the better things from both the technologies, CRDI has been developed. So it can be said to possess the following characteristics:

Fully electronic control system – Fuel quantity & Injection timing controlled by ECU
Injection opening period controlled – No delivery setting or pump timing
Multiple injections per cycle
Fast response injections
Very High Pressures (upto 1600 bar)
Fault detection

Noise is a result of rapid pressure increase inside the cylinder. Hence multiple injections are provided to ease the pressure and reduce the noise levels.Injection of a Small amount of fuel in to the combustion chamber during the pilot injection phase initiates pre-combustion. This produces a slight increase in the compression pressure which shortens the ignition delay of the main fuel charge.

Why is high pressure reqd? This is to ensure precise injection of fuel thus controlling fuel quantity and emission.

The following sensors help the ECM / ECU to take more informed decision on fuel quantity and timing:

Crank Angle sensor
Cam Phase sensor
Rail Pressure sensor
Fuel Temperature sensor
Air mass flow sensor
Boost Pressure sensor
Accelerator pedal position sensor
Knock sensor
Coolant temperature sensor
Atmospheric pressure sensor
Vehicle speed sensor

Details on each of these sensors will be covered in other articles.

ABS - what is it?

2011-09-20T10:18:00.000-07:00

ABS is now a common feature in most of the vehicles around. But what is it and how is it helpful to the vehicle passengers?

If the brakes are applied too hard when driving on slippery road surfaces, they may lock up or stop the wheel. The wheel then loses frictional contact with the road and skids and the vehicle is no longer under control. Experienced drivers know that the way to prevent lock-up is to pump the brake pedal up and down rapidly. Present day cars are now equipped with an antilock brake system (ABS). The antilock brake system does the same thing as an experienced driver. It senses that a wheel is about to lock-up or skid and it rapidly interrupts the braking pressure to the brake system at that wheel.

The Benefits are:

1. Improved steer-ability

2. Improved vehicle stability

3 Optimum stopping distance

4. Reducing the uneven wear of tires and braking noise

The ABS is an additional safety feature that can be fitted to each conventional brake system.

The function of the conventional brake system is not affected even if the ABS is defective because the ABS is superimposed on the conventional brake system. Please note that the ABS cannot increase the brake fluid pressure above master cylinder level.

The ABS is equipped with an electronic control unit. It monitors the speed of each wheel to detect if a wheel approaches lock-up.The input signals for the ABS control unit are received from the wheel speed sensor.

If any wheel begins to approach lock-up and the brake switch is on the ABS control unit actuates the solenoid valves which control the brake fluid pressure applied to the wheels.The brake fluid pressure is reduced at the wheel that approaches lock-up by the corresponding solenoid valve. The wheel is released and regains traction.

Finally to visualize what has been written above is to check out the video below:

Novelty factor or Brand Pull ruling Indian Car Market?

2011-09-17T21:23:00.000-07:00

Toyota Etios launch saw an overwhelming booking response from India. So did Maruti Swift (2011), Volkswagen Vento, Tata Indica Vista (2011). Does this phenomenon hint at something big!

Yes, its the brand pull and novelty factor. These vehicles are good but so are scores of others that are their in the market and that also in the same segment. Why aren't people going for those? Gone are the days when a brand will run successfully for more than a decade and still hold its novelty factor. These days, a model / brand becomes old / jaded only after 6 months - 1 year of successful running. This is a disturbing trend indeed. Companies will then look to recover the costs in shorter period, thus hitting the price accelerator a bit hard. Old car market will revive though and contribute a lot more to the annual car sales market. Its not a fancy world as you can comfortably find 2010 models in the used car domain now in the 3rd quarter of 2011. Its good for people who need a vehicle but cannot afford a brand new vehicle. According to industry estimates, the used car market, which is currently around 18 lakh units a year, is expected to clock anywhere between 20% and 25% growth in the next five years, vrooming beyond the 40-lakh mark by 2015. Of this, the organized sector is likely to clock a 35-40% growth. This exposes one thing for the auto manufacturers - bring new models into the market as fast as possible. Else they will stay behind.

Its a situation like this that challenges the brand pull of a company. Maruti Suzuki, by virtue of a string of successful products in the past, still manages to maintain that pull in the market. New 2011 Swift, even though its not hugely different from the previous one, managed to garner some much-needed support from public. Whereas Mahindra Verito made huge waves in the market but the final response was pretty lacklustre. Technical reliability and service support are two main things that go towards building a brand. Foreign companies coming into India have high brand pull but thats entirely based on the technical reliability. Once their service support also gears up, perhaps these companies will then be a force to reckon with. Till that time, the Indian companies have opportunity to strengthen their service network and technical reliability.

So i have a feeling that the Indian Car Industry will see a new models / variant every month going forward. And the Indian companies will look to expand their network base to strengthen their foothold in this country.