Hella plans design and R&D hub

Hella India Electronics targets design development and production of advanced body electronics and lighting products for the Indian auto market, Global electronics giant Hella has an aggressive growth strategy for India with plans to harness its global technologies and customise them for OE manufacturers in India. The company has zeroed down on body electronics and lighting as important growth areas for India and is establishing a full-fledged design and development centre as well as production facility for these products in the country. An investment of five million euros is in the pipeline for developing the electronics segment during the next financial year while the strategy for lighting is still being worked out.

Dr Naveen Gautam, managing director of Hella India Electronics, says production lines for assembly of electronics for the first level exist at its production unit at Dhankot, near Gurgaon, and an upgradation to the next level is on the anvil for producing body controllers, DC/DC converters and fuel control modules. The company is in the process of establishing this capability by mid-2012 based on customer orders. Besides, there will be a ramp up of capacity for existing products like horns and accelerator pedal sensors with additional production lines to be set up for stepping up overall electronics capability. Hella is sourcing the technologies for these products from its lead plants globally. Traditionally, technology is developed at its headquarters in Germany but for some products like the global body controller that caters to the demands of emerging economies, the lead development is being taken up at its development centre at Pune in India since the last year, with 20 engineers working on it.

In an exclusive interview with Autocar Professional, Dr Gautam, and Holger Schramm, director (sales & marketing), Hella Electronics Development Centre - India, elaborate that the current product development programme underway at the Development Center in Pune includes body electronics specifically for body control modules, car access control systems and energy management specifically for DC/DC converters. Advanced products planned for the future include passive keyless entry, driver assistance systems specifically for camera-based and radar-based systems, battery sensing and energy management systems as well as electronics for Li-Ion-based battery management systems.

Dr Gautam and Schramm say that advanced body electronics developed by Hella India will support comfort, security and energy management features like rain-sensitive auto wipe, auto headlamp including advanced tunnel detection, auto locking, relocking, multi input-based vehicle security system, power net management, and for premium vehicles they will even be able to host intelligent lighting features (adaptive front-lighting). They add that Hella’s R&D centre in India will also develop advanced body controllers for European and US trucks, and radar technology-based driver assistance systems for global markets.

The Indian market is fast catching up with body and comfort features, they feel. "The features are currently available only in the premium segment and we are rapidly propagating it in the mid- and compact car segments. Lighting is becoming a symbol of exclusivity and styling. There is an increasing trend that lighting is being used as brand signature by more and more OEMs, and in this context lighting means headlights, signal lights and interior lighting.” Hella recently changed its strategy towards lighting in India after its Group CEO met up with officials from Tata Motors and realised their requirements. The company is considering interesting solutions for LEDs in single lights and as interior lights for the Indian market. A separate plant for producing lighting products is also under consideration.

Hella India established its presence as an independent entity since 2005, though it entered India in 1959 through a joint venture. It is a 100 percent subsidiary of Hella KGaA Hueck & Co of Germany. Its electronics development centre at Pune has a manpower force of 150 with a lighting development centre located at Chennai with 73 employees and the production plant in Dhankot having an employee strength of 600. At present, Hella is an exclusive supplier of accelerator pedal sensors for Maruti Suzuki, and has recently stepped up its product line for Tata Motors. It is also in the process of acquiring more business from new customers.

Five segment drivers

Winfried Menge, Business Division Electronics vice-president market GE-PEM, Hella KGaA Hueck & Co, elaborates that five product segments are driving world electronics for Hella. They span side body electronics, ENT architecture, energy management backed by fuel efficiency and driver assistance, different types of sensors and actuators with the focus being on convenience and safety. Recently, Hella had arranged a tech show for Maruti Suzuki to showcase its product range and increase the carmaker’s awareness about Hella’s future plans with representatives from Germany, China, US and India participating. Hella is keen to redefine its boundaries with customers after exiting its Indian joint ventures. Earlier, a tech show was organised for Tata Motors which proved to be a success, according to Gautam. “We don’t bag orders immediately but the tech show opens up a discussions forum and is a door opening for both parties,” he admits. Regional development

Hella’s corporate strategy is to develop different regions for different products to serve customers. If a chance of localisation presents itself, then it would be leveraged from a part of the world where its production facilities exist like the US, China or Germany. Based on the local demand of the customer, the product would be further localised over the next few years. For instance, the US is the lead location for fuel control modules that enable fuel reduction of two to three percent. Hella is bringing this product to India and plans to later produce it at Dhankot.

Another product, the DC/DC converter, that is targeted at the Indian market, would be useful for start-stop systems. “This means when the car is cranking automatically, the radio should not blip, ECU should not go through reset, and there should not be any interruptions in the functioning of the car,” explains Menge. To enable the battery voltage to remain seamless during the cranking process, the DC/DC converter would stabilise the power electronics in the car. Gautam remarks that thus far DC/DC converters have not been deployed in the start-stop system locally but the Indian market is fast maturing and many carmakers are considering using it across all car lines.

New product potential for the Indian market

Some other components that could be successful in the Indian market, according to Matthias Schöllmann, vice-president - program management sensors GE-PCS, Hella KGaA Heuck & Co, are rain and light sensors. He says that so far India is not a big market for rain light sensors but discussions are underway for offering them to carmakers to enhance comfort and safety levels in premium cars. While the rain sensor’s function is to control the speed of the wiper during rains based on the volume of precipitation, the light function engages or disengages the vehicle lighting depending on the ambience. The recent trend, according to Schöllmann, is the integration of sensors with four different sensors and wiring contained in one unit saving space for the carmaker and enabling numerous functions. Most of Hella’s electronics products are targeted at the midsize premium and luxury segments in India.

Frank Petznick, chief technical officer Asia-Pacific, Hella Shanghai Electronics Co Ltd, remarks that the India market is similar to that of China. New aspects of energy management and comfort are combined with infotainment and entertainment features and quickly adapted in these emerging economies compared to mature markets. “Electric vehicles and hybrid vehicles are driven out of China and India tech centres. Hence, the reason why Hella is setting up its tech centres in these regions,” says Petznick.

Electronics and lighting with infotainment and entertainment features are expected to drive these markets in the future. Hella, which notched global sales of 3.6 billion euros in FY’10 with R&D contributing 8.3 percent of sales, is also evaluating bringing its vacuum pumps to India. These will be useful in delivering artificial vacuum when the engine is unable to create adequate vacuum to boost brakes. Gautam says there is a clear demand for them in the Indian market. “We will bring in the vacuum pumps and then decide on the localisation strategy depending on volumes.”

Currently, Hella supplies horns from India to its global aftermarket and is evaluating the feasibility of supplying other products as well. The aftermarket contributes 27 to 30 percent of its total sales globally and a similar situation exists in India as well. Overall, Hella has clearly studied the Indian market extensively. Expect more action from the electronics major in the near future.