Sunil Kakkar

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Automobile Perspective
Sunil Kakkar General Manager Supply Chain
Maruti Suzuki India Ltd
2
Automobile Perspective - Agenda
Indian Automotive Scenario
Emerging Technologies in Automotive Steel
Infrastructure and Logistics
Expectations from Steel Industry
3
Automobile Perspective
Indian Automotive Scenario
Emerging Technologies in Automotive Steel
Infrastructure and Logistics
Expectations from Steel Industry
4
Domestic automotive space Balanced Automotive
Investments in a competitive scenario

• 15 manufacturers of passenger cars and
  multi-utility vehicles,
• 9 manufacturers of commercial vehicles,
• 16 of two/ three wheelers and
• 14 of tractor
• 5 manufacturers of engines.

Plans to become the Global Small Car Hub, with
more and more joining the bandwagon
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Automotive Mission Plan 2016
Document prepared by Government of India in
consultation with ACMA SIAM
Automotive Industry viewed as Locomotive for
Growth
Turnover 35 Billion to 145 billion
Export 4.1 Billion to 35 billion
Employment 25 million
Will contribute 10 of the Countrys GDP and
3035 of the Industry GDP
Automotive Plan 2016
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Key drivers for the growth of Indian Auto industry
Finance Availability
Poor public transport system
Improved Infrastructure
Low car penetration
Key drivers
Rising Family Income
Exchange of Cars
Changing lifestyle

• Favorable duty structure

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Impact of infrastructure
2 key projects of strategic importance for India

• Delhi- Mumbai Freight corridor
• High speed rail connectivity between Delhi
  Mumbai for freight movement
• Impact on 6 states, 178 million people will be
  benefited i.e. 17 Indias population

• NHDP project
• Largest highway development project
• Golden quadrilateral - Connects 4 metros
• NSEW project Connecting North, South East,
  West lengths of India

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Rapid Urbanization
Urban Percentage of Total Population
Rising GDP per Capita
Per Capita GDP (US )
2010 2011E 2012E 2013E 2014E 2015E
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Indian Pockets growing Deeper
Annual Income (INR) Number of Households in 2010(million) Expected Households in 2015 (million)
More than1000000 1.2 3.3
500000-1000000 2.4 5.5
200000-500000 10.9 55.1
90000-200000 91.3 106.0
Less than 90000 101.1 74.1
TOTAL 206.9 244.0
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Indian Automotive Industry Projections
15.65 CAGR
Source SIAM Data, ACMA Projections
Steep Growth of Passenger Vehicles in Future
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Typical Material Weight in Cars
Plastic 5

• Steel Steel is major raw material in a car.
• Aluminium Due to light weight the consumption
  has increased from 3 in 1990 to 4 today.
• Plastics Due to light weight and better
  appearance, its consumption has increased from 2
  in 1980 to 5 today

Others (Rubber, castings, SS etc) 27
Weight 700800 Kg
Carbon Steel 64
Aluminium 4
For an A2 segment Car
Steel is a major raw material for a car, it forms
60-65 of Car by Weight.
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MSIL Auto Grade Flat Steel Consumption Pattern
20
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Auto Grade Steel Consumption to grow by 20 in
future
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Automobile Perspective
Indian Automotive Scenario
Emerging Technologies in Automotive Steel
Infrastructure and Logistics
Expectations from Steel Industry
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Technology Collage
Facets of future technological competitiveness
Fuel Efficiency
Emission Reduction
Safety Durability
Cost Effectiveness
Innovative Features
An interwoven web of often conflicting
requirements
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Safety Regulations
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Govt. Regulations
Upcoming Safety Regulations
Subject Standard Tentative Implementation Date
Off Set Impact AIS098 Oct 2012
Lateral Impact AIS099 Oct 2012
Rear Impact AIS100 Oct 2012
Focus will shift gradually on High Tensile Steel
Increase in usage of High Tensile Steels in
Future. Local Steel manufacturer need to upgrade
to cater for High Tensile Steel.
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High Strength Steel (HSS)
Crash Test
Improvement of Crash safety
Weight Reduction
same weight
same absorbed energy
Normal Strength t1.4mm
High Strength t1.4mm
Normal Strength t1.6mm
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Example of HSS in Automobile
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Steel Requirement of Future High Tensile
Current Usage
Future Usage
780
780
590
590
Tensile Strength, MPa
Higher Usage of High Tensile Material
Tensile Strength
440
440
340
340
270
270
Low
Low
High
High
Volume
Volume
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Steel Requirement of Future Bake Hardened
Improved Formability (ambient temp) Improved
strength (after paint baking)
Bake Hardened
CR
Improved dent resistance in Skin panel
Import lead time increases aging Requirement
for domestic supplies
SMC is currently using Bake Hardened material for
50-60 of its application for Door Outer, Hood
Outer and Fender
MSIL is evaluating for usage for Bake Hardened
Material for its current as well as new models.
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Steel Requirement of Future GA
Increasing customer expectation of
anti-perforartion
Non coated
GA
Regulatory requirement for export models
Domestic availability is very less

• Current usage for Export Vehicle
• Likely usage for domestic vehicle with increased
  customer expectation
• Approval for Local GA is under progress

GA would gradually replace CR to attain higher
anti-rust performance
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Steel requirement Fuel Tank

• Earlier only Terne coat (Lead-Tin Coated) Steel
  was in use
• With the implementation of ELV compliance, Terne
  Coat is gradually being replaced by Eco-coat
  (Tin-Zinc Coated).
• Indian Steel Makers are yet to offer a solution
  for fuel tank material.

Need for technology up-gradation by Local Steel
Manufacturers.
23
Value Added Products Tailor Welded Blank

• Tailor Welded Blanks
• Joining of sheets of different thickness
  different tensile strength by laser or
• Plasma.

• Advantages
• Different Strengths at different location by
  using different thickness
• Wt. reduction by using different thickness
• Reduction in process at Weld Shop
• Reduced no. of parts

• Applications
• Door Inners
• Main Floor
• Strength Side Sill

• Capacity Sourcing
• Current Sourcing 80 Local , 20 Import.
• Additional capacity is required in future to
  meet our increasing volumes.

1.2 mm
0.65 mm
Additional capacity required in future to cater
the increasing demand of TWB for automotive
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Automobile Perspective
Indian Automotive Scenario
Emerging Technologies in Automotive Steel
Infrastructure and Logistics
Expectations from Steel Industry
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Supply Chain Value Chain Optimisation
Existing Supply chain
Steel Suppliers
Vendor 1
Vendor 2
OEM
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Agile Supply Chain
New Supply chain
Steel Suppliers
GPS
Vendor 1
Vendor 2

• Logistics improvements -
• Tracking through GPS systems
• Milk run / JIT through centralized warehouse

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KOILTAINER
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KOILTAINER LOADING

• Benefits
• Optimal Rake Utilization Forward Journey
  Export Cars Return Journey Steel Coils
• Bulk movement of Coils minimal/no interim
  storage at port covered transportation
• minimal rejections
• Warehousing at ICD JIT delivery to OEM
  decongestion - space optimization custom
• duty on actual usage

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Automobile Perspective
Indian Automotive Scenario
Emerging Technologies in Automotive Steel
Infrastructure and Logistics
Expectations from Steel Industry
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Expectations from Indian Steel Mills - Quality

• CONSISTENCY OF RAW MATERIAL PROPERTIES IN NARROW
  
• BAND (Yield point, Elongation, r values
  n values)
• CONSISTENCY IN SURFACE QUALITY FOR SKIN PANEL
  
• APPLICATIONS
• FORMABILITY
• DENT RESISTANCE
• PAINTABILITY WELDABILITY
• DIMENSIONAL ACCURACIES TO BE MAINTAINED

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Expectations from Indian Steel Mills - Delivery

• CONTINOUS AVAILABILITY WITH LONG TERM
  COMMITMENTS
• SHORT ORDERING LEAD TIME
• 100 CONFIRMITY TO DELIVERY SCHEDULES.
• COMING CLOSER TO OUR PLANT THROUGH SERVICE
  CENTRES OR
• WAREHOUSES
• FLEXIBILITY IN SYSTEMS TO MANAGE FLUCTUATIONS IN
  MARKET
• REQUIREMENTS

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Auto industry looks forward for the support of
Indian Steel industry to meet the future ahead .
Lets Achieve Together
Thank You !
Thank You !