Monthly Archives: August 2016
The worldwide market for trucks industry is widely divided into two sectors:
• The First: Europe, North America, Japan & other industrialized East Asian nations
• The Second: BRIC countries & other emerging markets which are highly cost conscious and experiencing faster growth.
The developed markets have always been characterised by high level of environmental regulations and increasing demand for sophisticated technological improvements.
However, with the growing competition in emerging markets, the increasing demand for quality, features & services is now playing a pivotal role in intensifying industry dynamics. The customer demands are driving the shift from merely being low-cost solutions towards higher value, heavier trucks, aftermarket sales & latest innovations.
For the global truck industry, the latest growing trend in the segment of Innovative products is “Introduction of Telematics-enabled services”.
Globally, telematics technology is expected to become a standard automotive equipment by 2020.
Till now, the Indian telematics market has grown at a steady pace owing to factors like early adoption, upgradation of infrastructure and government regulations. After 2010, companies like Ashok Leyland, Mahindra & Mahindra and TATA have ventured into the telematics business. But, in the coming years, with the increase in awareness level, the growth of Telematics industry is a necessity. It has to happen.
In India, Heavy commercial vehicles (HCVs) have accounted for majority of the market share till now. However, with the increasing need for fleet management, Medium Commercial vehicles (MCVs) are also expected to register significant growth in telematics market over the coming years.
India’s Commercial Vehicles Telematics Market will exhibit rapid growth in the coming years. Initiatives like Toyota’s “Toyota Connect” for cars, “Tata SkoolMan” for school buses, “Tata FleetMan”, Eicher Drive Telematics, JCB’s “Livelink” and Mahindra & Mahindra’s “Digisense” from the major CV players of India prove that our market is placed in the right direction for growth in the Telematics segment.
The vehicle OEMs and telematics suppliers are upbeat about the increasing demand as awareness is on the rise with government involvement on passenger safety. With policy initiatives by central and local government, a prerequisite of 400,000 new buses is required by 2017. Such Initiatives, rising fuel prices and minimal profit margins in transportation industry are forcing the fleet operators to gain an edge through adoption of features such as vehicle tracking, route calculation, checks on fuel pilferage and other telematics capabilities.
As per the experts, the Indian Vehicle Tracking Market is set to double in size by 2017 and the India Commercial Vehicles Telematics Market installed base is projected to reach 1.4 million by 2022.
With factors such as increasing awareness level, potential market & policy initiatives, market is today in the right direction for growth in all segments. OEMs are creating new products and in parallel with market consolidation through M&A taking place, the foundation for Telematics industry is strengthening.
In layman’s term, engine of a commercial vehicle is synonymous to the heart in a human body. Everybody knows that it needs to stay healthy with appropriate rest time, also considering the base load and the peak load. Yet, it is one of the most abused organ too. Similar is the case with the “engines” – irrespective of the category of commercial vehicle.
Further, engine development is a process which has never stopped since it’s existence. It’s a cult community of geeks, designers, manufacturers, integrators and testers. Process seems simple – create hypothesis, develop, validate, iterate, re-validate, test, iterate… However, professionals follow this seemingly simple process and dedicate their lives to create dent in the sky with the “ New Engine Technology”.
Trucks and buses are predominantly powered by heavy duty diesel engines. However, Modern diesel engines are lighter and more powerful, fuel efficient and environment-friendly. Today there are two proven approaches to gear up for the change when India is staring at BSIV.
• Selective Catalytic Reduction (SCR) after-treatment approach
• Exhaust Gas Recirculation (EGR) with diesel oxidation catalyst or open filter
Which approach to work upon is driven by a number of objectives “Overall cost over the service life of a vehicle and the closely related factor of efficiency in transportation.” However, most of us are aware that the later objective in India through the lens of on-ground practical efficiency was being managed by “Overloading” against OEMs recommendations.
In today’s time, the focus is also on further reduction in fuel consumption, e.g. by means of downsizing and downspeeding or evaluating alternate fuels. These changes affect component stress in the valve train system. To keep the engine affordable, components should be kept simple. Further complexity comes into play with the combustion chamber and maintenance of temperatures, charge cycles and electrification. To top it all, service life requirements need to be taken care of, considering how price sensitive the Indian market is.
So primary question is in the hands of engine R&D experts. When they begin, they first have to choose the approach to develop on. Answer comes from the market itself, which market is the engine being developed for? What is the outlook of the buyer? Has the buyer started to attach higher importance to overall cost of ownership? What is the infrastructure of the country?
In India, fuel cost is said to contribute to almost 50-60 per cent of operating costs, and SCR delivers better fuel efficiency compared to cooled EGR + DOC / open filter. This moves the needle favour of SCR in the Indian context, especially when viewed through the lens of lower risk on engine durability, emissions durability and better fuel economy. Is BSIV expected to change the game play? This is out there for industry professionals such as yourself to debate & decide and also charter the next course of action with the “Indian Automotive Heart AKA engine”
It’s not uncommon for estimates from different body shops to vary wildly. One shop might give you an estimate for $500 while another wants $2,000 for the work. What’s the difference? And when is it OK to choose the cheaper shop?
John Mallette, owner of Burke Auto Body & Paint, in Long Beach, California, knows better than most people how to choose a reliable shop. Mallette started working on cars when he was 12 years old and has been in the body shop business for 24 years. Here are some of his tips for choosing the right shop to work on your car — particularly when you’re the one paying the bills.
1) Pay Attention to Word-of-Mouth
Any business can advertise, but you’ll do better with a shop that friends, family or acquaintances recommend. It’s a business that has proven it can satisfy customers. And it might not be the biggest or best-known shop in your area.
Mallette went to a shop years ago on such recommendations and found that the owner was a “real stand-up guy…. He doesn’t advertise on the Internet; it’s a family-owned shop,” Mallette says. “But, golly, if you take your car there, you’ll get a fair price.”
In some cases, you might get a recommendation for a small shop where the owner works on the cars himself. “That’s how I like doing business,” Mallette says. “To me it seems so much more personal and then you can understand what’s really going on with your car.”
2) Consider the Operation’s Location and Overhead
“Where you get screwed in our business is labor hours,” Mallette explains. His shop charges $40 per hour for labor. But in ritzy parts of West Los Angeles, the per-hour labor charge is $60-$65. In wealthy Newport Beach, California, Mallette has heard of $90-per-hour labor charges.
Large body shops with a lot of front-office workers probably have to charge higher rates to pay their staff. While service delivered by front-desk folks, managers and foremen gives some people a feeling of confidence in the business, it can result in estimates that are padded with non-essential work. When they’re charging more labor hours at a higher rate, your bill can add up quickly.
In his shop, Mallette says he does things by the book — literally. Body shops and garages use reference guides that estimate the number of hours required to perform common repairs.
“Let’s say somebody has damage to their fender, bumper and headlight,” Mallette tells us. “I go to my book, I write an estimate and I basically go by the hours mandated by the book.”
A remanufactured part fulfills a function which is at least equivalent compared to the original part. It is restored from an existing part (CORE), using standardized industrial processes in line with specific technical specifications. A remanufactured part is given the same warranty as a new part and it clearly identifies the part as a remanufactured part and states the remanufacturer.
The common language is a landmark achievement inautomotive remanufacturing, and offers a bright future for an industrythat has already benefitted from greater awareness, among policy makers and the general public, in recent years. In 2015, the United States Congress passed legislation recognizing the federal government’s responsibility for outfitting its vehicles through remanufacture. The same year the G7 Alliance for Resource Efficiency declared its support for remanufacturing at a summit attended by representatives from business, government, organized labor, research, and science.
Despite the trend toward official recognition and support for the industry, the absence of unified and codified language to describe key terms, threatened to undermine the gains in automotive remanufacturing. The lack of cohesion led to misunderstanding and sub-optimal growth, as well as competition, rather than collaboration, among organizations representing auto remanufacturers, all with a common goal of growing the industry. Early indications suggest that this state of affairs is over.
As the Asia-Pacific partner of the APRA (Automotive Parts Remanufacturers Association), a non-profit trade association representing more than 1,000 automotive remanufacturers, Duxes has a history of engagement with and support for the automotive remanufacturing industry.With the release of the reman terminology, we will take the responsibility of promoting the terms and definitions in China and Asia Pacific area, and inform the rapidly expandingremanufacturing industryof the prospect for increased efficiency, and cooperation with international partners, offered by the new terminology, as well as the potential for futurelegal recognition.
About Duxes Reman Consulting
Duxes Reman Business was started in 2008 afterthe NDRC’sintroduction ofan automotive parts remanufacturing pilot program. Following a partnership agreement between Duxes and the Automotive Parts Remanufacturers Association (APRA) in 2015, Duxes has assumed the role of the APRA’s Asia Pacific Agency.This platform has enabled Duxes to carry forward its mission of promoting the development of the remanufacturing industry in the Asia-Pacific region, and facilitating industrial relations among remanufacturing companies and related organizations around the world.
Jointly organized by China Electroplating Association, China Surface Engineering Association Painting of Branch, Guangdong Surface Engineering Association, Guangdong Coating Industry Association and Wise Exhibition, SF EXPO is one of the worldwide most professional and influential surface finishing exhibition. It is scheduled to 17-19 May 2017 in Guangzhou Poly World Trade Center. SF EXPO formally adopted by the Global Association of the Exhibition Industry -UFI in 2012, and its organizer became the member of UFI.
SF EXPO 2015 attracted 13748 visitors and 289 exhibitors from 38 countries and regions. It was the largest and highest level of SF EXPO ever. A lot of well known brands are SF EXPO regular exhibitors, for example Atotech, UYEMURA, Surtec, Fischer, Conventya, JCU, Chemetall, Norilsk, Chuanfu, JadSF EXPO 2015 attracted 13748 visitors and 289 exhibitors from 38 countries and regions. It was echem, Huachuang, PAT, Qingfeng, Harvar, SATA, Lesta, ENECON, SPONGE, Thermoreacteur, Alutherm, GRACO, Magni, Huali, Pentatomic, ICETECH, NEHA CHEM, SHINDE CHEMICALS.
For more than a decade, SF EXPO has been committed to building a professional exhibition platform for surface finishing equipment and material suppliers and users. To maximize the exhibiting and visiting results, serial concurrent events such as conference, seminars and summit are organized in every session.
Close Interaction with Industry Elites
SF EXPO has started exhibition preparation in early July of 2016, having visited many surface finishing companies and downstream enterprises such as automobile and parts companies around Pearl River Delta region. In September, after meeting with global industry researchers, professionals and association leaders in Interfinish 2016, the organizing committee has settled cooperation with NASF and SSEA which will support SF EXPO 2017 by organizing visiting group from Southeast Asia.
In October, the 2016 annual meeting of China Surface Engineering Association Painting of Branch gave a perfect opportunities to promote SF EXPO among over 100 association members. The association has confirmed that the chairman expansion meeting will be scheduled concurrently on SF EXPO 2017.
On 13 November, SF EXPO organizing team met more than 80 aluminum surface finishing companies in the 7th Guangdong Aluminum Processing Technology (International) Seminar in Foshan, which was attended by 600 companies. Its organizer – Guangdong Provincial Nonferrous Metals Society Aluminum Processing Committee is also the co-organizer of SF EXPO 2017, to host Aluminum Surface Technology Seminar. Therefore, aluminum visiting group will also be invited to SF EXPO 2017 in May.
Surface finishing demands in South China Market
As the most prosperous city in South China and the host city of SF EXPO, Guangzhou has superior location, adjacent to Hongkong, Macao and Taiwan and ASEAN Region, together with cities Shenzhen, Zhuhai, Dongguan, Foshan, Huizhou, Zhongshan, Jiangmen and Zhaoqin, establishing a the most prosperous manufacturing center in China — Pearl River Delta , which covers a wide range of surface finishing related industries including automobile & parts, home appliance, furniture, machinery, lighting, toy, lock, digital products, telecommunication, electronic products, PCB, hardware, and aluminum.
Manufacturing giants such as Huawei, Midea, BYD, Gree, Foxconn, GAC Group, Galanz, TCL and a great number of medium and small enterprises show great demands for surface finishing technologies and products. Therefore, Guangzhou has a extremely strong industrial background to hold surface finishing exhibition.
The automotive industry has recovered from the 2008 recession, and is regaining its former strength. There are many factors to show that it is still gaining momentum, for example, General Motors has recently stated they have had their highest global sales ever this year. One industry forecast predicts global automobile production will exceed 61 million, a 7 percent growth from the previous year. Interestingly, GM sold more cars will be sold in China than the US.
Large investments have been made by automakers, this been noticed in many areas. These investments include opening new plants and refurbishing older facilities. The auto industry has long been on the cutting edge of manufacturing technology. However, industry investments don’t just include investment in high technology such as robotics, but also, literally the nuts and bolts of the auto industry. A general increase in manufacturing around the automotive sector has been noticed as well. This includes such staples as steel production, plastics and the key metal forming component. Secondary markets, such as the tier II metal forming industry have picked up over the last several years. Metal stamping, roll forming and carbide die production have increased. In the area of tool and die the auto industry has long since taken advantage of metal forming technologies such as tungsten carbide dies. Tungsten carbide is three times as hard as steel and is used to form many parts such as axles, tubing and a wide variety of other components. Of course, this includes the cold forming of nuts and bolts. One carbide die supplier has reported a six fold increase in orders for April, 2016 alone. The end result of this is an industry wide increase in manufacturing productivity and capacity.
Basically, manufactures continue to invest in their supply chains as well as design and technology. The tier II metal forming industry suppliers relationships were severely strained after the 2008 recession. When the recession hit the industry put greater demands on their suppliers for cheaper parts. Even worse, several key automotive companies were unable to payoff large debts they incurred to the vast array of suppliers forcing many suppliers to close their doors. However, these supply chains have been strengthened in recent years, to the benefit of the industry. It would be great if we could say that the tier II and tier III suppliers have been guaranteed a profitable place in manufacturing but unfortunately it is all still on a case by case bases. Supply and demand still rules the day after all. Overall demand for all of these products is still questionable but the industry remains hopeful. After all, there is a lot riding on it, everything from rubber to steel and the processes to make these raw materials into a commodity, things like tool and die, robotics and of course the labor force, all depend on it.
We have now reached the time to see how well we understand the lessons of the recession. Did we learn anything about manufacturing over the previous years and expand our knowledge?
Will the auto maker’s realize the short sided mistake of trying to eke out every penny from their supply chain or will they construct mutually beneficial relationships. It is better to depend on a pool of competitive suppliers than it is to starve suppliers or attempt to bring it all “in house”. For example, GM or Toyota isn’t going to advance tool and die as quickly as the whole tool and die industry, they need to rely on the tool and die suppliers to advance their own craft and focus on designing and manufacturing better cars and trucks. Perhaps only Ford Motors only realized this, and it allowed them to weather-the-storm. How about controlling their long term obligations to their work force while rewarding talent and hard work by their employees? Platform-based manufacturing is a growing concept that is gaining popularity in Detroit as well as their competitors in Europe and Asia. The industry is trying to create a common vehicle designs that can be modified to replace the multitude of vehicle models all over the world. This gives automakers the opportunity to standardize manufacturing procedures and parts, increase the size of their facilities, and be able to respond more quickly changes in demand from the consumers in the global market. In the end, the whole process of rolling out models from plants across many countries and supply chains gets simplified, assuming your systems can support these transitions.