Global connect in full swing at the Components Show

Of the 600 overseas exhibitors at the Auto Expo Components Show at Pragati Maidan, held from February 4-7, there were many which were housed in dedicated country pavilions. This year, there were eight of them representing Japan, China, Taiwan, South Korea, Canada, France, Germany and the UK. While most were looking to ink business ties and sign contracts, they were also here to make the most of a dynamic market and component supply chain that is India.

JAPAN’S POWERFUL JETRO-LED DISPLAY

Japan’s participation was through the Japan External Trade Organisation (JETRO) which brought 15 companies. The prominent ones included wiring harness maker Fujikura Automotive India, dry film lubricant giant STT Inc, high precision machining parts producer E&H Precision India, and Japan Magnets.

Takeshi Honjo, director general, JETRO, said the organisation has been actively promoting Japanese companies in India while also attracting investments to Japan from India. It also arranges meetings between Japanese and Indian companies to develop bi-lateral automotive trade between the two countries. According to Honjo, there are more than 1,200 Japanese companies in India across various segments like manufacturing, trading and financial. Of these, around 60 percent are in the automotive sector.

He said for JETRO, a first-time participant at Auto Expo, the visitor profile in the current Auto Expo was ideal and that Japanese exhibitors have registered a good number of enquiries, with many of them likely to be converted into  confirmed business deals in the near future. He added that the expo has also helped canvas prospective Indian investments to Japan in the automobile sector.

Fujikura, which is among the top Japanese firms to have manufacturing facilities in India, displayed its wiring harness products. According to Rakibul Hasan, general manager of Fujikura, said the company has been producing superior lightweight wiring harness products as OEMs look to reduce overall vehicle weight. At present, it supplies its made-in-India products to Volkswagen India and Skoda Auto India and is in talks with Honda Cars India, Renault Nissan and GM India.

STT Inc, which makes specialty lubricants, synthetic polymers and adhesive materials, also displayed its locally made products. According to Masashi Kayukawa of STT Inc, the company set up its lubricants production facility in Chennai last year and makes products like Solvest special lubricant. The company has bagged orders from Tier 1 Japanese component manufacturers in India like the Aisin Group, Takata and Mitsuba.

Meanwhile, Toho Industrial displayed its bearing parts like ball bearing steel cage, metal dust shield, spring steel washer, shock absorber parts, stainless steel stampings, ball bearing polyamide cage and nitride ball bearing cages.

Toho currently supplies to Tata Bearings, SKF, NSK, Yamaha, NRB, Nachi, NBC and Schaeffler in India.

SPI Engineering brought its industrial borescope solutions for passenger vehicles, commercial vehicles and two-wheelers to the Expo. Takeo Hidaka, its representative, said the company’s 1.8mm super-ultra thin industrial borescope can be used for inspecting ultra-small holes and pipes. It is the thinnest borescope in the world among videoscope-type borescopes that do not use fibres.

Koyama Precision Works’ stand in the Japanese pavilion had parts for transmission, drivetrain and engine for four-wheelers and motorcycles. Its main customers in India include India Yamaha Motor while global clients include Aisin Kiko, Asmo, NSK-Warner, NTN Corp, Kawasaki Heavy Industries and Showa Corp.

Outside of the JETRO-led Japan pavilion, Japanese companies like Denso, Aisin and Mitsuba had separate stalls, displaying their India-specific products.

In addition, a few Indian companies backed by their Japanese partners attracted much visitor interest. Maharani Innovative Paints, which has a technology tie-up with Dai Nippon Toryo Company, received a good response.

Sanjay Arora, deputy GM, Maharani, said currently the company has been implementing the Dai Nippon technology in its manufacturing process since 2014.

CHINESE SUPPLIERS MAKE THEIR PRESENCE FELT

Chinese exhibitors are regulars at the Auto Expo, showcasing both OEM and aftermarket-specific products. Prominent companies this year were tyre maker Qingdao Sentury Tire, automotive glass major Beoson, two-wheeler connecting rod maker Teho, power steering pump specialist Quanxing, wheel balancing garage equipment maker Coseng, electric three-wheeler maker Chenghang and New Energy Vehicles.

Robin Lu from Sentury Tire’s export division said the company produces passenger car tyres primarily for the aftermarket. It has production facilities in Qingdao, China and Thailand with a combined production capacity of 35 million tyres per annum and can produce aftermarket and OEM tyres suitable for Honda, Hyundai and Toyota in India. Its future growth plan will see it expanding its capacity to 50 million pieces per year by 2021and it is looking at India as a key market.

Likewise for Chenghang New Energy Vehicles, which showcased its electric three-wheeler and scooters. Chairman GuaXiyun said the company is in talks with some Indian importers to export its products to India.

Wheel balancing equipment maker Coseng already supplies its products to an undisclosed OEM in India since mid-2014. Sales director Carson Yeung said the company’s factory in China has a production capacity of 2,000 units per month and is keen to increase its India business.

Vanessa Li, general manager of Quanxing, said the company currently supplies power steering pumps and parts to Tata Motors and Ashok Leyland. It is expecting orders from Eicher, to which it has sent samples. Its global clientele includes Magna, Daimler, Guangxi Yuchai, Weichai and FAW Wuxi and it has an annual manufacturing capacity of 4.2 million units of power steering pumps and 230,000 units of steering gearboxes.

CHINA'S BEOSON IN TALKS WITH MAHINDRA

Dongguan Beoson Automobile Glass Co, located in Dongguan city, Guangdong Province in China, is in talks with Mahindra & Mahindra (M&M) to sell its automotive glass. Arthur Gray, deputy manager, Beoson, said M&M has given glass samples to them to analyse the technical parameters to be incorporated in the required product. Beoson is evaluating the samples and is preparing the prototype glass, after which it will negotiate with M&M for a supply order. Gray, however, did not disclose the details of the specific Mahindra models for which the glass samples have been provided.

Currently Beoson supplies its automotive glass to the aftermarket in India including for the Mahindra Bolero in India. Its products are also suitable for the Tata Ace, Tata Sumo, Hyundai i10 and i20. The Chinese company, which mainly produces glass for laminated windshields, tempered sidelites and deep curvature tempered backlites, has a portfolio comprising over 35,000 models. Its manufacturing facility in China produces around 150,000 pieces per year. Beoson products are exported to more than 80 countries including North America, South America, Europe, Australia, Africa and South East Asia.

Meanwhile, connecting rod manufacturer Teho has bagged a major order from Bajaj Auto for supply in India. Speaking to Autocar Professional, Mr Park, general manager of Teho, said, “We received an order from Bajaj Auto to supply 50,000 connecting rods per month last year and have already started supplying connecting rods to the company.” He also said that other Indian two-wheeler OEMs like TVS Motor and Hero MotoCorp have also shown interest in buying our products. “Both these two-wheeler OEMs have taken samples from us and we are in talks to bag orders from them,” he said. Globally, the company supplies its connecting rods to OEMs like Honda, Yamaha, Suzuki, Piaggio, Peugeot, Kymco and Lifan. It manufactures more than 500 models of connecting rods and its manufacturing facility in the Changqing region produces around 10 million units of connecting rods per annum.

TAIWAN TALKS THROUGH ITS EXHIBITORS

Notable Taiwanese Companies present at the Auto Expo included oil seal giant TCK Oil Seal Co Ltd, automotive lighting solution provider Superlee, and mould and die makers like Cobber Machine & Tool Corp, Evergreat and AVY. 

TCK Oil Seal, which has been selling its products through its sole distributor Mim Plastics, displayed its oil seal, O-ring and rubber packing for both OEMs and the aftermarket. According to Falguni Roy of Mim Plastics, TCK Oil has two manufacturing facilities, one in Taiwan and another in China. While the Taiwan plant caters to international markets including India, the Chinese plant has been supplying to China’s domestic market. Roy said TCK has over 10,000 different types of oil seals and rings. The product range in materials like NBR, natural rubber, polyacrylic, neoprene, viton, silicone rubber, EPDM and SBR ensures it meets the OEM requirements with high quality and affordable cost. The company has three major customers in the gear industry in India including Premium, Powerbuild and Elecon Engineering. TCK currently exports around 30 lakh oil seals to India per annum.

Superlee Corporation, which designs and manufactures innovative vehicular lighting products for both OEMs and the aftermarket worldwide, was present too. According to Superlee’s director Nick Lee, the company has been providing lighting solutions for diverse applications including heavy duty trucks, construction equipment, agricultural machinery, mining, marine and power sports. The company has been supplying its products to the Indian aftermarket. During the expo, top officials from Indian OEMs like Maruti Suzuki, Tata Motors and Hyundai Motor India visited its stall and checked out the products to explore the potential of future business, Lee added.

THE KOREAN CONNECT

The Korea Automotive Industry Globalization Foundation (ain Global) led a strong 27-company delegation at Auto Expo 2016. The firms which attracted business visitors included Auto Clover, Daewha Fuel Pump, Young Sung, Hanyang Advanced Materials, Halla Incorporation, Nextec, DH Lighting, Protec, ENA Industry, Sindo High Tech, Sangsin Brake, Hong Sung Brake, Dongyeoun Steel Co, Hannam, Samhwa PMI, Donga Eng, Parts-Mall Corp, World Tool, KORE International, Sensortec, Autotop and Ilshin Industrial.

HaeLck Lee, executive director of ain Global, said, “We see that the Indian automotive market is growing and for exporting our products and technology transfer, India is an important market for us.”

Lee said the overall response at the expo is encouraging for Korean companies which see the aftermarket’s growth in as an opportunity. Brake pad manufacturer Sangsin Brake, which revealed its new brake pad technology, stands as an example of Korean companies making investments in India. Sangsin said it had set up its manufacturing facility in Chennai in 2010 and supplies brake pads to Hyundai Motor India and Mahindra & Mahindra.

According to Ji-Yoon Jung from Sangsin Brake’s overseas business department, the company has been producing around 250,000 sets of brake pads at its Chennai production plant. Its global customers include Kia Motors, Tata Daewoo, Chery, Chevrolet, Nissan and Mando. Jung said the Auto Expo helped the company to promote its aftermarket products which were launched in 2015 in India.

Fuel pump and filter manufacturer Daewha has received a good number of enquiries at Auto Expo. Daewha manufactures and supplies fuel pumps (both mechanical and electric fuel pumps), precision machining components, plastic parts, diecast parts, polyurethane suspension bushes and engine mounts as well as filters (fuel/oil/air filters and cabin air filters) in Korea and exports to over 50 countries. In 1997, Daewha set up a JV, Pentadaewha Auto Parts in Chennai, which currently supplies to Hyundai Motor India as well as Tata Motors, Fiat India and Bosch.

Auto Clover, which displayed its premium chromium auto accessories, is a supplier to some global OEMs like GM, GM Daewoo, Chevrolet, Holden and Renault Samsung.

GERMANY’S POWERFUL DISPLAY

As many as 23 companies led by the Indo-German Chamber of Commerce participated in the Auto Expo. Notable companies include auto component and lubricant major Freudenberg and its subsidiaries like Chem Trend Chemicals India, Kluber Lubrication India, Freudenberg Nonwovens India and Freudenberg Filtration Technologies. Others comprised TUV Rheinland (India), ACTech GmbH, APM Technologies, DivekarWallstabe& Schneider Precision Seals and Fraunhofer, BizolGrenvoLubtech, Bollhoff Fastenings, Bremsker Friction Materials, Edscha Trailer Systems and Karcher Cleaning Systems.

Many of these companies have their units in India with multiple products in the local production. Among others, DivekarWallstabe& Schneider has its production facility in Thane. It manufactures O-rings, gaskets, profile seals and diaphragms. “All our products are in the sealing areas of automobiles,” said JuergenWallstabe, managing partner of DivekarWallstabe& Schneider Precision Seals. It primarily supplies its products to Tier 1s and its major customers in India include Continental, Bosch, MagnetiMarelli and Mann + Hummel.

CANADA BRINGS ITS TOP 6 SUPPLIERS

The North American presence was seen in Canada’s Automotive Parts Manufacturers Association (APMA) pavilion which had six top Canadian auto component makers like Linamar Corporation, Magna, Novo Plastics, tm4, Forming Technologies, and Leggett & Platt Automotive Group.

Vincent Guglielmo, vice-president, APMA, said these companies have set up operations locally to service the Indian market and are backed by strong operations in Canada, catering to the North American markets like United States and Mexico and also Europe. There are good opportunities for the Canadian auto component makers in India, he said. “We are working with Canadian trade commissioners here to promote the Canadian auto component industry in India. APMA also has a partnership agreement with ACMA to promote each other's industries in both countries.”

Olivier Bernatchez, Channel Account Manager of Canadian electric powertrain system maker tm4, said that tm4 designs and markets the industry’s most efficient, highest power density electrodynamics, conversion and power control products for electric mobility and electricity generation.

Bernatchez said the company has been manufacturing products for passenger car, light and heavy-duty commercial vehicle and foresees good demand for its products in the Indian market as the Indian government has, in recent years,  been promoting electric vehicles.

Linamar, which deals with engine, transmission and driveline components, had set up its local production facility in Pune 2014.  Linamar’s managing director for India,Amitava Sinha said the company has been manufacturing various engine-related components like connecting rods and camshafts. It carries out its own designing for the balancer shaft module for engines and transmissions.

Linamar’s Pune facility currently produces differential cases and output shafts. Globally the company has 48 manufacturing plants including one in India and 30 in North America. The company will slowly increase its product lines in the Pune manufacturing facility, Sinha added.

BRITAIN's SUPPLY CHAIN COMPANIES LOOK TO INDIA FOR BUSINESS GROWTH

UK supply chain and aftermarket companies were out in force at the Auto Expo 2016 Component Show, as part of a joint SMMT and UKTI delegation comprising 15 firms – the biggest British automotive trade outing to India of all time. UK exporters are seeking opportunities to expand their businesses in the rapidly growing Indian market, with increasing demand for both high-quality components and UK-built premium vehicles.

Speaking at the unveiling of the UK’s SMMT and UKTI pavilion at the show, Lawrence Davies MBE, Acting Chief Executive Officer, Automotive Investment Organisation, said Britain had cemented itself as the fastest growing automotive manufacturer in Europe and that meant plenty of growth potential for inward investors. “Britain is uniquely placed to return itself as a global leader in car manufacturing and we are accelerating that position with the quality of our products and our R&D into the sector,” said Davies.

“Indian companies and manufacturers are critical to our journey. Take for example Jaguar Land Rover, owned by Tata, which recently became the largest automotive manufacturer in Britain.”

United Kingdom’s Acting High Commissioner to India, Dr Alexander Evans, said that Britain said such partnerships between British and Indian companies, like that of Tata, is a true example of the power of collaboration. “Such partnerships celebrate the essence of GREAT for Collaboration, an exciting campaign launched by our two Prime Ministers to inspire new partnerships between the UK and India, and encourage greater awareness of the scale of the UK’s commitment to India,” said Dr Evans.

“We will continue to boost automotive production in the UK. That means we are looking for more companies to partner with us to satisfy the demand for our cars, and India is well placed to take advantage of this growth,” he said.

Nine British automotive manufacturers participated in this year’s Auto Expo, the biggest delegation to India of all time. TamzenIsacsson, Society of Motor Manufacturers and Traders Association, said the delegation was a collection of some of Britain’s most cutting-edge supply chain and aftermarket companies.

The exhibitors in the UK pavilion included Drive System Design, Borg & Beck, International Tool Co, Jowitt Grinding Wheel, Magal Cables, Ranger Stork, Scorpion Automotive, Southco India, and Motive Components.

“SMMT is proud to be hosting a delegation for the sixth edition in a row. The Indian and UK automotive sectors have a lot in common – putting engineering creativity, ingenuity and innovation at the forefront of everything we do,” MsIsacsson said.

“With exports of British-built cars to India up three-fold since 2010, and demand increasing in line with the country’s growing economic prosperity, we expect our already close trading relationship to strengthen further right across the industry spectrum as we work together to take advantage of mutually beneficial investment opportunities,” she concluded.

For the complete review, read Autocar Professional’s February 15, 2016 – Auto Expo Review issue