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Nov 13, 2013 (3 years and 9 months ago)

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©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Making India a Global
Automotive Center of Excellence
& Innovation Hub

Ninth ARC India Forum, Pune August, 2011

“Achieving Operational Excellence Through IT and Automation Solutions”

Subu D Subramanian,

MD & CEO, Defiance Technologies Limited

Aug 3, 2011

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Global Automotive Industry Trends

#
2

Source : J.D. Power and Associates


Sales reached a
record 72 million
vehicles in 2010,
growth of over
23% Vs 2009

of global light vehicle sales in
2010 were in emerging markets


In 2011 sales expected to reach a record
76.5 million new light vehicles


Market is seen climbing to 90
-

91 million
vehicles in 2013 and cross 100 million
vehicles in 2015

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Industry Innovation is focused on ‘Hi
-
tech’
& ‘Green’ Cars

#
3


Electronics constitute
~23
-

40%
of the
total product cost in automobiles


The Automotive electronics market space
is over
$100 Billion



80%
of innovations in automobiles
comes from electronics

4X Growth in Green Car Market by 2016

there

will

be

159

hybrid

and

electric

vehicle

models

available

for

purchase

in

the

US

market

a

significant

increase

from

31

hybrid

and

electric

models

in

2009


Australia's green car completes
world tour in $400

Sydney,

Feb

28

(IANS)

A

two
-
seater

renewable

energy

vehicle

crossed

the

finish

line

of

a

global

zero

emissions

race

covering

16

countries

and

30
,
000

km

in

80

days

in

only

$
400

Technology is driving innovation..

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Next Gen Cars : Top Hi
-
Tech Features

The Mercedes SE350 alerts you
to pedestrians in the road

Opel (Vauxhall) Insignia reads road signs

Mercedes Driver assistance
system detects tiredness

#
4

Driving Yourself is Like Riding A Horse Now.
Future Car Focus: Robot Cars


Made

In

Germany,

a

robotic

Passat

developed

by

Freie

Universität

Berlin,

can

be

summoned

with

an

iPad

application,

and

will

begin

testing

on

German

highways

in

March

2011

In

the

first

road

test

of

the

Sartre

system,

a

Volvo

S
60

autonomously

follows

a

human
-
driven

truck,

using

existing

active

safety

systems

and

a

vehicle
-
to
-
vehicle

communication

network

Biometrics



Owner identification



Keyless Entry



Vehicle Ignition

“Disappearing car door“ new technology from JATECH

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Besides Hi
-
Tech it will be Green Cars

#
5

Key drivers..


~800 million vehicles around the world burning nearly 250 billion gallons of fuel every year


Escalating fuel prices and environmental concerns like global warming


Gas prices have increased by over 50% in the past few years and is expected to rise further

Lexus LF
-
GH

From hybrids to hydrogen cells, the world's leading OEMs are working furiously to increase their
production of ‘Green cars’

40 MPG Hyundai Accent

4
-
cylinder Ford Taurus Turbo

All
-
Electric BMW Active E

2013 Chevrolet Malibu Eco Debuts

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011


Largest
two
-
wheeler manufacturer in the world
.


Largest
three
-
wheeler market in the world
.


2
nd

largest two
-
wheeler market in the world
.


4
th

largest CV market in the world
.


12
th

position amongst top 15 automakers in the world


4
th

position amongst the auto makers of developing countries

Exports of cars increased
52 % over 2007
-
08

India is increasingly becoming a manufacturing
hub for passenger cars

Indian Automotive Sector

8 out of top 10 global
companies have India presence

Source: SIAM) IMACS Analysis Automotive

Automotive Production
(million units)

Car exports from India
(thousand units)

#
6

7.24

11.09

14

28.5

2003-04
2006-07
2010-11
2015-16
©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

India is moving up the automotive value chain

#
7

Value Chain

Phase 1


100% import of
vehicles

Phase 2


From CKD
package to
Indigenous

Phase 3


Near 100%
Indigenous but
designs came
from abroad


Phase 4


Designed in
India, for India

Phase 5


Designed in India
for the Global
market

Nano

Indica

Rhino

Scorpio

Maruti

Swift
Dzire

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

India has a good automotive eco
-
system in
place..

#
8

Eco
-

System

Presence of
OEMs (Global
& Indian)

Auto
Component
Industry

Strong IT,
Engineering &
Embedded
Capabilities

Presence of
Leading
Technology
Vendors

Presence of
Leading
Institutions

Government
Initiatives


National Automotive Testing and
R&D Infrastructure Project
(NATRIP)
-
$ 380 million project.


Lower duties and taxes


Weighted tax deduction ~150 %
for in
-
house research and R&D
activities


Product developmental capabilities


More than 125 Fortune 500 have
R&D centres in India


Potential to grow at a CAGR of 13%
to size up to USD 40 Billion by 2015


IITs ,
IISc

and other leading
institutions

8 out of top 10 global companies
have India presence



and is emerging as a attractive market for leading Global OEMs.

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Breakthrough Innovation Leads to Dramatic Business Results…
The apple story,

#
9

Keeps innovating & re
-
inventing itself like a start
-
up


125% growth in profits


nearly 100% growth in revenues


over 200% growth in some markets


Market value > 30% of India's GDP


Cash reserves : $76.2bn > RIL's market cap

Launched a year ago, and
already the second largest
business ; 9.25 million
units sold in Apr
-

Jun

iPad

Launched 4 yrs ago, already the
largest business contributing
47% of the revenues, 20.34
million units sold in Apr
-

Jun

iPhone


55% of Fortune 500 companies testing
iPhone








Design & Innovation for Global Leadership

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Breakthrough Innovation can come through only
from ‘Basic Research’ ..

#
10

DuPont

has

entered

into

a

research

agreement

with

Affinergy

Inc
.

to

help

in

DuPont's

research

and

development

of

a

new

line

of

bio
-
based

products

GM has also begun to cooperate on research with its alliance partners. For example, research
programs have been established in Japan with Suzuki and Fuji Heavy Industries

GM

and

the

University

of

Michigan's

College

of

Engineering

had

launched

a

new

collaborative

research

laboratory

on

the

university's

Ann

Arbor

campus
.

"Mechamatronics,"

GM's

new

approach

to

designing

that

combines

mechanisms,

smart

materials

and

electronics,

is

the

research

topic

of

the

collaborators

Smart Device Technology
Innovation


Basic Research


©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

Presence of
MNC’s

Presence of Major MNCs

India has all the ingredients

While the elements are there
..

Potential Market

Strong Eco
-
system

Infrastructure

Maturing Indian OEM’s

#
11

©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

India should focus on Basic Research to become a Automotive
Center of Excellence & Innovation Hub

For Global Leadership



#
12

Need for a Cluster Approach

.


Industry to focus & take
lead to invest in ‘BASIC
RESEARCH’ for
breakthrough innovation


Government to
incentivize through
Innovation park, tax
benefits and other
means.




©
Defiance Technologies Ltd 2011

©
Defiance Technologies Ltd 2011

#
13

.

ENTERPRISE

MANUFACTURING

ENGINEERING


Founded in 1976, Acquired by Hinduja Group in 2007


Leading Provider of Integrated Engineering,
Manufacturing & Enterprise Solutions & Services


Key Offerings :


New Product Development


-

Investments in “Design & Innovation”
CoE


PLM & Digital Manufacturing


MES & Shop floor Automation and Integration


ERP, SCM, CRM & After Market Solutions


Enterprise Mobility & Cloud Solutions


Over 60 global clients including 20 of the Global 500 /
Fortune 1000 companies


One of the large independent testing facilities in North
America


Presence in USA, UK Germany, Middle East, South Africa
and India.


Development Center in Pune, Bangalore & Chennai in
India

Keen to participate in Auto Engineering Basic Research Program at the national level

Defiance Technologies Ltd