TABLE OF CONTENTS

1. SECTOR OVERVIEW ...... 3

2. AUTOMOBILE INDUSTRY SALES...... 7

2.1. ...... 7

2.2. MAHINDRA AND MAHINDRA ...... 8

2.3. ...... 8

2.4. ...... 8

2.5. HYUNDAI ...... 8

2.6. HONDA INDIA LIMITED ...... 9

2.7. FORD INDIA ...... 9

2.8. ...... 9

2.9. ...... 9

2.10. HERO MOTOCORP LTD ...... 10

2.11. TVS MOTOR COMPANY LTD ...... 10

2.12. VOLVO-EICHER COMMERCIAL VEHICLES ...... 10

3. REGULATORY UPDATES ...... 11

4. TECHNOLOGY ...... 12

5. INTERNATIONAL NEWS ...... 13

6. AUTOMOTIVE COMPONENTS SECTOR ...... 16

7. DISCLAIMER ...... 18

8. CONTACT INFORMATION ...... 18

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1. SECTOR OVERVIEW

Jaguar plans to set up a manufacturing line for engines at its Pune plant

Jaguar Land Rover is assigning fresh money in India by investing in an engine assembly and manufacturing line at the Pune plant. The company is trying to mold itself for the spot in the Indian luxury market. JLR gained double digits in the market share for the first time because of the price correction. By investing in the local engine assembly line, JLR will get an advantage on high duty structure for fully built imported engines. The company is planning to manufacture the Ingenium series of engines for the domestic market. An investment in the local market will help them compete with their German rivals like Mercedes-Benz, BMW and Audi. JLR in FY 2017-18 saw 83% growth by selling 4,609 units. The company credited the strong performance to the sustained product launch action throughout the course of the year with an expanding retail network. Speth said, “Every six months we look at India and say, there must be a breakthrough around the corner — it must come. Whenever we have a critical mass of volume, we will also expand our footprints in India. We produce already today, we are also looking at the assembly of engines, and we are assembling more models today and will look at expanding further.”1

Polaris to acquire Boat Holdings for $805 mn

Polaris Industries Inc. signs an agreement to acquire Boat Holdings, LLC in an all-cash transaction of approximately $805 million. Polaris Industries is an American manufacturer of snowmobiles, ATV, and neighbourhood electric vehicles. The company manufactures motorcycles through its Victory Motorcycles subsidiary and through the Indian Motorcycle subsidiary which it purchased in April 2011. Boat Holdings is the largest manufacturer of pontoon boats in the US, which is one of the fastest growing segments in the marine industry. The company assumes around $100 million net present value (NPV) of future net tax benefits which will accrue to the combined company. The company said, "When adjusted for the net tax benefit of $100 million, the transaction is valued at approximately $705 million." "This transaction epitomizes our disciplined growth strategy of entering attractive markets where we can establish and extend our leadership position," said Polaris Chairman and Chief Executive Officer Scott W Wine. As a trailblazer in its own right, Polaris is the perfect partner as we look to drive continued expansion and growth in this attractive segment,” said Boat Holdings Chairman Steve Vogel.2

1 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/jaguar-land-rover-to-set-up-manufacturing-line-for-engines-at-pune-plant/64757354 2 https://auto.economictimes.indiatimes.com/news/industry/polaris-to-acquire-boat-holdings-for-805-mn/64402828

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Maruti Suzuki pulls its facilities off stream for annual maintenance

Maruti Suzuki, the largest car-maker is eyeing to take three of its plants off stream in Gurugram, Manesar and Gujarat, owing to a maintenance turnaround. The company has scheduled a turnaround at its plants over the course of a week, starting from 25th June 2018. The plants of Gurugram and Manesar are capable of producing 1.5 million units. While the Suzuki owned Hansalpur plant produces 250,000 units. Maruti Suzuki manufactures 16 models including Dzire, Baleno, Alto, Swift, Wagon R and Vitara Brezza. The company is planning to expand its production capacity by 2.5 Million units, to achieve its target of selling 5 million cars a year by 2030.3

SMEV introduces five new electric mobility vehicles

Society of Manufacturers of Electric Vehicles (SMEV) has declared the introduction of five new verticals which include Heavy Commercial Vehicles segment, Electric 3 Wheelers segment, Electric 2 Wheelers segment, Electric 4 Wheelers segment and Component Drive Train segment in its 10th Annual General Meeting. SMEV has also appointed five new heads for these verticals. Sushant Nayak of Tata Motors will be handling the Heavy Commercial Vehicles segment (E-buses, trucks), Sulajja Firodia Motwani of Kinetic Green will assist the Electric 3 Wheelers segment (E-rickshaw, L-5 auto E-Karts), Manu Sharma of Hero Electric will be leading the Electric 2 Wheelers segment (E- cycles to high-speed scooter, bikes), Pawan Sachdeva of will be responsible for the Electric 4 Wheelers segment (Car, LCV on 4 wheels) and Guruprasad Pudlapur of BOSCH will look after the Component Drive Train segment (charging infra, electrical, electronic components except battery). The appointed Heads will be responsible for conducting research and meetings on category related affairs, along with this they also will be responsible for promoting and encouraging industry players to join SMEV. They have to focus on grey areas of any specific category issues as well and to embark on achieving consensus amongst the category members on any category-specific matter of the management committee and to present it on any forum/Platform.4

3 https://auto.economictimes.indiatimes.com/news/maruti-suzuki-shut-facilities-for-annual-maintenance/64730107 4https://auto.economictimes.indiatimes.com/news/industry/smev-sets-up-five-new-electric-mobility-vertical-for-fy19/64649103

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Scania plans to shut its green bus service in Nagpur

Scania Commercial Vehicles, Swedish bus maker has allegedly decided to shut down India’s first and only eco-friendly ethanol-run bus project to support the government’s efforts to cut down air pollution and also help the sugarcane cultivators at the same time. Scania, fully owned subsidiary of SST Sustainable Transport Solutions operator, served a notice of termination to the Nagpur Municipal Corporation (NMC). CEO of SST stated that the company would withdraw its ethanol-run buses and close down its depot earlier in August. The decision to discontinue the 19-month-old project of running 55 ethanol-run and 25 biogas buses Volkswagen-owned company has issued non-fulfilment of contract obligations by the civic body. Scania has already shut down its plant in Karnataka which would make ethanol-run buses and bus bodies along with its sample project in Goa which involved two ethanol-run and one biogas bus. Also in Thane, it held back its eco-friendly city bus project. In an erstwhile notice, Scania has mentioned it would withdraw 25 ethanol-run buses from its service with effect from the first half of August and also has demanded Rs 19.73 Cr. from NMC which includes Rs 9.77 Cr. in pending bills, Rs 7.50 Cr. in bank guarantee, Rs 1.50 Cr. in liquidated damages and Rs 0.96 Cr. for hiring workshop. Hence, it is clear that Scania will not be bringing in the remaining 30 ethanol-run along with 25 bio-gas buses. Scania stated the notice is clear and there is no chance of fulfilment of conditions based on the agreement to NMC. Hence, NMC is requested to arrange alternative modes of transport from the date of Scania’s termination. The Company says it shall not be held responsible for providing green buses operations anymore and also to draw all its buses provided under the agreement with effect from the date of termination. Scania requested a smooth transition for termination of the project to NMC cooperation. It has also asked for help in maintaining the operating assets and further to cease any chance of interference or any unwarranted chance of insecurity in protecting underlying assets under the project. As the project was launched in November 2016, Scania in association with the NMC and Ministry of Road Transport and Highways which was headed by the city’s MP, Nitin Gadkari had launched the trial with one ethanol-run bus in August 2014. And later on five more buses in November 2016 and other 19 buses in January this year. NMC considered this as a dream project of Gadkari but is in an indecisive state after receiving the notice from Scania. As an immediate step, NMC's transport department will reply to the notice but it is likely that the NMC office bearers and officials will try to convince Scania to continue with the project.5

5 https://auto.economictimes.indiatimes.com/news/commercial-vehicle/mhcv/scania-to-shut-citys-green-bus-service-in-two-months/64598358

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Tata Power plans to install 100 EV charging stations in Maharashtra

Tata Power in partnership with Tata Motors has finally planned to install about 100 Electric Vehicle charging stations across Maharashtra for public usage. Setting up of EV charging stations by Tata Power was a part of the MOU signed by Tata Motors with the Maharashtra Government stating the deployment of 1,000 Electric Vehicles (EV) across its range of passenger and commercial vehicles in the State. The goal of the company is to establish 100 Electric Vehicles charging stations in Maharashtra for public usage. However, there is no timeframe set for the installation of the charging stations. For setting up of EV Charging Stations in the state, Tata Motors has partnered with Tata Power. Tata Power becomes the first to establish the EV charging station in Mumbai in August 2017 and later installed two more in January 2018. With the launch of nine new EV charging stations the company announced the expansion of its EV charging network in Mumbai. Other than this the company has also identified few other locations in the state for the 100 charging stations. The stations will be installed based on the locations, vehicle population, an ease in finding a charging facility and on important routes connecting major cities. Tata Power plans to have both fast and regular chargers at these charging stations which will enable charging vehicles from both private and public state of life. The chargers are also programmed to monitor the car battery charging status and units consumed while charging a car. EV charging stations will come up in these nine new locations which include Matunga, BKC, Bhandup, Chembur, Malad and Carnac Bundar, Bandra Kurla Complex and Borivali (near Western Express Highway).6

Nissan plans to launch Electric Car in India

According to Nissan’s India president the second generation Nissan Leaf, which is one of the top-selling electric cars in the world, will make its debut in the Indian market in the current fiscal year. The Japanese automaker is eager to introduce its advanced global products to its India portfolio, by launching the Leaf 2 later this year which has been already launched everywhere around the world. Nissan wants to make it available to the public and also wants to make sure that it is used by a lot of people. It also plans to bring a bunch of leaf 2 cars for test drives in , where its 650-acre plant with Renault is located. And based on that it will see how it can scale up. The price range of the car is not yet been disclosed, however, the company’s focus is not to make it cost competitive in the initial phase. The EV will also not see a big volume launch in India as it needs to go through the homologation process. In this process, a vehicle or an auto part has to meet the regulatory standards of a particular country. Since the Leaf will be imported as a completely built-up unit, sources say that it might affect its pricing because of exorbitant taxes on such vehicles. They assume their ex-showroom price to be in the range of Rs.30-40 lakh in India. The company will be launching new products in every six months to increase its market share, at the start of the festival season later this year. The company also plans to scale up its presence in the sports utility vehicle segment with the launch of a new vehicle. The company also says that the upcoming products from the Datsun brand will provide competition to other automakers in the under 10-lakh category of cars.7

6https://auto.economictimes.indiatimes.com/news/industry/tata-power-to-install-100-ev-charging-stations-in-maharashtra/64603099 7https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/nissan-to-bring-its-electric-car-to-india-this-fiscal-year/64501790 6 | P a g e

2. AUTOMOBILE INDUSTRY SALES

The Indian automotive sector has ended the first quarter of 2018-19 with a strong double-digit growth of 18.1% across segments. Passenger vehicles clocked a strong growth of 19.91% at 873,501 units with the highest growth posted by vans at 27.29% with domestic sales of 55,078 units. Utility vehicles increased 23.22% at 234,876 units with cars registering a growth of 17.98% with sales of 583,547 units. Commercial vehicles surged up 51.55% at 230,095 units with the medium & heavy commercial vehicle segment growing 83.59% to 89,027 units with light commercial vehicles experiencing an upswing of 36.51% at 141,068 units. Growth in two-wheelers remained strong led by the motorcycle segment as the rural market was up and consumers had more disposable income in their hands. The three-wheeler segment also posted a healthy growth of 54.01% at 161,673 units. The sector this month witnessed an upsurge in domestic fuel prices, the looming threats owing to a trade war between the U.S and China and a change in taxes. But it beats all these and car sales for the month of June 2018 were higher as compared to the same time last year and the in India seems to be on an upward trajectory once again. Quarterly sales updates: Domestic Sales April-June Domestic Sales April-June 48,97,622 56,77,343 % 60,00,000 60 Segment 54.01 Change 50,00,000 51.55 50 2017-18 2018-19 40,00,000 40 Total Passenger 7,28,483 873501 19.91 30,00,000 19.91 30 Vehicle

20,00,000 873501 2,30,095 20 Change % Total Commercial UNITS SOLD 15.92 161673 1,51,831 2,30,095 51.55 7,28,483 Vehicle 10,00,000 10 1,51,831 1,04,976 Total two-wheelers 48,97,622 56,77,343 15.92 0 0 Total Passenger Total Total two- Total three- Total three-wheelers 1,04,976 161673 54.01 Vehicle Commercial wheelers wheelers Grand total of all Vehicle 58,82,912 69,42,612 18.01 categories (Source: ET Auto |July l 11, 2018) 2017-18 2018-19

Monthly sales updates: Domestic sales - June Domestic Sales April-June % 18,67,884 Segment 20,00,000 60 Change 18,00,000 15,72,509 56 16,00,000 50 2017-18 2018-19 38 14,00,000 42 40 Total Passenger 12,00,000 1,99,036 2,73,759 38 Vehicle 10,00,000 30

8,00,000 %Change Total Commercial SOLD UNIT 2,73,759 56,890 80,624 42 6,00,000 19 56,884 20 Vehicle 80,624 4,00,000 1,99,036 10 Total two-wheelers 15,72,509 18,67,884 19 2,00,000 56,890 36,491 0 0 Total three-wheelers 36,491 56,884 56 Total Passenger Total Commercial Total two- Total three- Vehicle Vehicle wheelers wheelers Grand total of all 18,19,926 22,79,151 25 categories 2017-18 2018-19 (Source: ET Auto |July l 11, 2018)

Below are the company wise sales data: 2.1. MARUTI SUZUKI

 Maruti Suzuki India Ltd.'s sales increased by 36.3% in June, compared to the year-ago period, led by the company’s compact vehicles such as Swift, Dzire, Celerio, Baleno and others.  Out of the total worldwide sales figure, 1,35,662 units were sold domestically, growth of 45.5%. Exports, however, were lower with only 9,319 units in June 2018 as compared to 13,131 units in June 2017, a sharp fall of 29%.  Its passenger cars segment saw a 46.5% rise to 1.02 lakh units in sales, while the sale of utility vehicles rose 39.2% to 19,321 units.  The more-than-normal increase could be credited to a slow sales month in June 2017 after the implementation of the Goods and Services Tax.

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2.2. MAHINDRA AND MAHINDRA

 Mahindra & Mahindra Ltd.'s sales improved by 26% in June, compared to the year-ago period, which sold 45,155 units.  Out of the total sales figure, there was a notable 12% rise in passenger vehicles to 18,137 units and a 27% rise in commercial vehicles to 19,229 units.  Sales under the medium and heavy commercial vehicles segment rose 58% to 1,108 units.  But the largest increase was seen in exports where 3,466 vehicles were shipped, 87% higher than those sent in June 2017.  The company’s farm equipment sales jumped 22% on a yearly basis last month after it sold 33,093 during the period.

2.3. TOYOTA KIRLOSKAR MOTOR

 Toyota Kirloskar Motor sold a total of 13088 units in the domestic market this month of June 2018.  The company exported 1014 units of the Etios series this month thus clocking a total of 14102 units. Compare this to 3628 units sold in June 2017.  N. Raja, Deputy Managing Director, Toyota Kirloskar Motor said, "We have achieved a triple-digit growth this month as compared to June 2017 owing to last year's GST scenario, wherein, we supplied as per the market’s demand, which was impacted due to impending GST implementation. The real scenario of June-July sales will be clear after July end compared to Jun -July 2017."

2.4. TATA MOTORS

 Tata Motors Ltd.' overall sales rose 50% last month, with domestic sales increasing by more than half to 56,773 units. Exports also rose 50 percent to 5,246 units’ year-on-year. This was mainly due to a low-base effect after the Supreme Court ruling on the switch to Bharat Stage-IV vehicles affected sales in June 2017, the company said.  Commercial Vehicles sales grew 50% to 38,560 units. While the sales of medium and heavy vehicle segment grew 50% to 11,524 units. Sales under the light commercial vehicles segment increased 69% to 4,485 units. The SCV Cargo and Pickup segment sales grew 53% to 16,857 units. The commercial passenger carrier segment rose 33% with sales at 5,732 units. Domestic sales of passenger vehicles grew 63% to 18,213 units.

2.5. HYUNDAI

 Hyundai, India's 2nd largest automaker after Maruti Suzuki has registered a positive growth of 19.5% with overall sales at 60,779 units as compared to 50,853 units in June 2017.  From the total sales, the domestic sales comprised of 45,371 units in June 2018, up 21%. Exports were up 15.9% to 15,408 units in June 2018 as compared to 13,291 in the same time period last month. The growth was led by the new facelifted Hyundai Creta with the compact SUV getting over 70,000 enquiries and over 14,000 bookings since its launch in late May.  Hyundai retains its 'largest exporter' in India title amongst automakers in India- another milestone that Hyundai achieved in June 2018 by hitting the 8 million units mark in India.

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2.6. LIMITED

 Honda Cars India Limited or HCIL has registered a total sales growth of 37.5% in the month of June 2018 as compared to the same time period last year.  The total sales figures for Honda Cars India stood at 17,602 units (domestic sales) spurred by the popularity of the likes of the new Honda Amaze that clocked an impressive figure of 9103 units sold.  The Honda Amaze had similarly sold over 9789 units in May 2018 overtaking the popular Honda City to become the largest selling offering in India.  Exports for the month of June 2018 stood at a total of just 486 units for Honda Cars India.

2.7. FORD INDIA

 Ford India registered a 37% rise in sales of its vehicles in the domestic market with 8,444 vehicles as compared to 6,149 units in the same month last year.  The company also touched the 1 million domestic wholesale milestone.  However, exports continue to shrink for Ford India. The company exported 10,386 vehicles against 14,649 units in June 2017 and that's down by a significant margin of 29%. This has had an adverse effect on the company's combined domestic wholesales and exports. The number stood at 18,830 vehicles, compared to 20,828 vehicles in June 2017 and that's a drop of almost 10%.  The company had recently launched a new model in its line-up - the Freestyle and it looks like the company has got things going its way. In the coming few months, we'll see the facelift of the Aspire as also the Figo hatchback and we expect the updated Endeavour too to make its way to India.

2.8. ASHOK LEYLAND

 Ashok Leyland Ltd. sold 15,791 units last month, an increase of 28% from June 2017, according to its stock exchange notification.  Sales of medium and heavy commercial vehicles rose 22% year-on-year to 11,257 units.  Sales of light commercial vehicles rose 45% year-on-year to 4,534 units.

2.9. BAJAJ AUTO

 Bajaj Auto Ltd.'s sales increased for the eleventh straight month in June, listing its best monthly sales growth in over eight years.  The two and three-wheeler maker sold 4.04 lakh units last month, an increase of 65% from the year-ago period.  Motorcycles sales hiked up 65% year-on-year to 3.37 lakh units.  Commercial vehicles rose 66% year-on-year to 66,677 units, registering its highest ever monthly sales.  Exports increased by 44% year-on-year to 1.69 lakh units.

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2.10. HERO MOTOCORP LTD

 Hero MotoCorp Ltd.’s sales in June grew by 13% compared to the previous year’s month to 7.04 lakh units.  “With monsoon already hitting many parts of the country, the positive consumption pattern is expected to continue in the coming months,” the country’s largest two-wheeler maker said.  The company also created a global benchmark by clocking over 2.1 million unit sales in the 1st quarter of the current fiscal. The automaker consequently raised the prices of its motorcycles and scooters with immediate effect.

2.11. TVS MOTOR COMPANY LTD

 TVS Motor Company Ltd. sold 3.13 lakh units in June, a rise of 15% from the year-ago month.  Two-wheeler sales rose 12.1% year-on-year to 3.01 lakh units.  Scooter sales increased 13.6% year-on-year to 1.02 lakh units.  Motorcycles sales hiked 14.9% year-on-year to 1.28 lakh units.  Three-wheeler sales jumped 140.9% year-on-year to 12,413 units.  Exports rose 48.6% year-on-year to 65,971 units.

2.12. VOLVO-EICHER COMMERCIAL VEHICLES

 Commercial vehicles manufacturer, Volvo-Eicher Commercial Vehicles, registered 63% growth in total sales at 6930 units in June 2018 as compared to 3921 units in June 2017.  This includes 6315 units of Eicher brand and 75 units of the Volvo brand.  In the domestic CV market, Eicher branded trucks & buses have recorded sales of 5496 units June 2018 as compared to 3382 units in June 2017, representing a growth of 62.5%.  On the Exports front, Eicher branded trucks & buses have recorded sales of 819 units in June 2018 as compared to 503 units in June 2017, posting a growth of 62.8%.  Volvo Trucks has recorded sales of 75 units in June 2018 as compared to 36 units in June 2017, a rise of over 108%.

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3. REGULATORY UPDATES

Government plans no subsidy on private electric cars

The Government plans to scrap cash incentives currently offered to buyers of electric cars despite having incentivized clean fuel technologies a few months back. This would further result in moderate sales of private electric cars. The government has now decided to give cash subsidies to electric vehicles used by shared-mobility operators such as Ola and Uber because their vehicles will run much more compared to that of private cars, says Policy-makers. The government pursues to withdraw the cash incentives for private electric cars because it neither makes a significant difference in boosting sales nor serves the purpose of a clean environment. The government currently offers a discount of up to Rs 1.3 lakh on an electric car as part of its FAME (Faster Adoption and Manufacturing of hybrid and electric vehicles) programme. This policy is being considered for its extinction by the heavy industries ministry in the new FAME Phase 2 draft policy. During its introduction, the FAME carried a budget of up to Rs 1,000 crore. But now in the second phase, the ministry has offered to raise it to over Rs 9,000 crore. The government feels that adding companies like Ola and Uber to the list of subsidy beneficiaries would encourage companies to go for electric cars, which in return offers highly-lucrative running cost as compared to conventional diesel/petrol or CNG alternatives (except for the high acquisition cost). The government says, “As pollution rises across many major cities and is difficult to control, it wants the entire car industry in India to switch to electric by the year 2030. In the previous year, around 1,500 electric passenger vehicles were sold against petrol/diesel/CNG car sales of 32 lakh. Siam and other Car companies have disagreed with the government’s deadline and have been appealing for a more easy transition for the e-switch. According to the Official sources, “Government will continue to give incentives on the purchase of electric buses and two-wheelers”. But for buses, incentives will be bought down. Currently, incentives on electric buses cover 60% of the cost of the vehicle which will be bought down to 40%.8

8 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/govt-to-scrap-subsidy-for-private-electric-cars/64691697

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4. TECHNOLOGY

Hyundai Motor Group and Audi join forces to develop fuel cell powered EVs

Hyundai Motor Group an automobile major says that it has entered into a multi-year patent cross-licensing agreement with Audi AG, covering a broad range of fuel cell electric vehicle (FCEV) components and technologies. Under the new partnership Hyundai Motor Group, the world's fifth-largest auto-making group and the German premium car producer will collaborate in developing FCEVs, to lead the automotive industry to a more sustainable future. - the Group's flagship car-making unit - and Audi have signed the cross-license agreement which also covers and benefits both companies' partners, but not limited to KIA Motors Corporation and Audi's parent company Volkswagen AG. In the years to come Hyundai and Audi, as well as their associates will equally share the patent licenses. The duration of the agreement is yet to be disclosed. Hyundai Motor Group and Audi partnership will leverage collective "R&D capabilities in fuel cell technology to promote their presence in the FCEV market". Hyundai Motor Group to grant its counterpart the access to parts that are based on Hyundai's know-how stored from the development of ix35 Fuel Cell as well as NEXO. Audi will also be able to take full advantage of Hyundai's FCEV parts supply chain as it is responsible for the development of fuel cell technology within the Volkswagen Group. Hyundai Motor Company holds the record for being the first to mass-produce fuel cell vehicles. Since 2013 it has been offering SUV-Class FCEVs.9

‘Inflatable safety helmet’ for motor-cycle riders developed by IIT-R

The three undergraduate students, Rajvardhan Singh, Sarang Nagwanshi and Mohit Siddha of Indian Institute of Technology Roorkee (IIT-R) have introduced an ‘inflatable helmet’ for motorcyclists, which provides an airbag-like safety to a bike rider. An institute officer said, “This helmet is the first to develop in India”. Nagwanshi said, “The product is equipped with sensors to measure parameters such as acceleration, lean angle of the rider to detect impact or collision and is worn around the neck as a collar”. If the acceleration of the rider’s body overtakes the permissible limit, the helmet would inflate like airbags in cars and protect the rider from fractures and severe brain injuries,” said the 22-year-old. For making the body of the helmet, Kapton Polyimide films are being used. The team is working on the lines of Hovding, an inflatable helmet manufacturer in Sweden and a big name in airbag bicycle helmet category. Upadhyay said, “We have tested the effectiveness and feasibility of the product and we are also in touch with airbag makers to make the product cost effective and user-friendly.” Singh added that in India, around 69% of accidents involve two-wheelers. “We wanted to do something to reduce the number of accidents in the country.”10

9 https://auto.economictimes.indiatimes.com/news/auto-technology/hyundai-motor-group-audi-partner-to-develop-fuel-cell-powered-evs/64677414 10 https://auto.economictimes.indiatimes.com/news/auto-technology/iit-r-develops-inflatable-safety-helmet-for-motor-cycle-riders/64742068

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Huawei launches Internet of Vehicles platform for connected cars;

Huawei is set to enter the connected vehicle era and has released its "OceanConnect IoV" (Internet of Vehicles) platform which will enable digital transformation for automobile manufacturers. Huawei announced the IoV platform at the computer expo "CeBIT 2018" and said the IoV leads to in-depth convergence of ICT and the automobile industry. The Huawei IoV platform supports hundreds of millions of connections and millions of high concurrent connections to ensure secure and reliable connectivity for vehicles. Ma Haixu, President of Huawei Cloud Core Network Product Line says that’s Huawei is dedicated to building a fully connected, intelligent world that connects people, vehicles, roads and other things. To meet their operational requirements a global Public Cloud deployment helps to give global automobile manufacturers access to intelligent services. Automobile manufacturers with the help of "OceanConnect" platform can control digital assets through the separated structure of data and business. An ecosystem integrated with third-party content and applications is to build focus on automobile manufacturers. To communicate with each other and their environment. The IoV platform will be developed in cooperation with Vehicle-to- Everything (V2X)11

5. INTERNATIONAL NEWS

Aston Martin Opens Silverstone test centre

Aston Martin continues to expand ahead of a possible stock market debut with a view to open a test and development centre at Silverstone, the home of British Formula One racing. Aston Martin is undertaking a turnaround plan designed to boost its model line-up by quadruple volumes and produce its first at a new plant in Wales. Red Bull Formula One team which is sponsored by the firm said its Silverstone site to employ 60 people and would open in October. In central England, many Formula One teams have been based near Silverstone, which leads the area to be known as “motor sports valley”. In 1950 Silverstone hosted the first Formula One championship race. With the announcement of an opening of a central London office the company is now investing for growth across the Aston Martin and brands. These new locations would help to increase the firm's total workforce by over half to 5,000 by the end of 2022. In 2017 Aston Martin swayed to a pre-tax profit after six years of losses. The company says it is considering a stock market flotation which is expected to come as soon as this year.12

11 https://auto.economictimes.indiatimes.com/news/auto-technology/huawei-debuts-internet-of-vehicles-platform-for-connected-cars/64558599 12 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/aston-martin-to-open-silverstone-test-centre/64684903

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Driving license issued to the first woman in Saudi Arabia

The first driving license issuance to women has been started in Saudi Arabia on 4th June 2018. SPA said authorities started swapping international licenses for Saudi ones in multiple locations across the kingdom, with women applicants made to undergo a "practical test". The move is a part of Crown Prince Mohammed bin Salman's far-reaching liberalization drive as he seeks to modernize the conservative petro-state. They did not mention the number of the licenses issued.13

Skoda Auto’s Vrchlabi plant now uses fully autonomous transport robot

Skoda Auto has started advancing the digitalization of its production process by using a fully autonomous, self-learning transport robot at its Vrchlabi component plant. The robot plans its route by recognizing obstacles along its path through the plant and further incorporates other information from its surroundings. In certain conditions, it also changes its course to always get to its destination as quickly as possible. And thereby further improves safety at work and also the efficiency of transport processes at the plant. Skoda Auto Board Member for Production and Logistics, Michael Oeljeklaus says that they had intended the decision to use Skoda Auto's first fully autonomous robot at the Vrchlabi plant as it would once again highlight the plant's key significance as an ultra-modern high-tech location. The transport robot is advanced enough that on a single trip it can carry a load of up to 130 kg and also chooses the correct path and is completely autonomous. The robot transport systems are so advanced that it does not require any lane guidance in the form of induction loops, magnetic strips or reflectors. - The vehicle needs to learn the route for the first time from one station to another with the help of a tablet or joystick. By doing this the vehicle captures its environment as well as changes to its surroundings all by itself and adapts to the route if necessary. Between the mechanical measuring centre and the processing machines, the robot completes around 120 trips per day and travels a total distance of 35 km. starting from June 2018 the robot is in regular use at the factory as the testing and pilot phases have been already completed.14

13 https://auto.economictimes.indiatimes.com/news/industry/first-saudi-women-get-driving-licences/64457710 14 https://auto.economictimes.indiatimes.com/news/auto-technology/skoda-auto-uses-fully-autonomous-transport-robot-at-vrchlabi-plant/64554940

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Germany to order recall of 774,000 Daimler cars in Europe over emissions

Mercedes-Benz maker Daimler was ordered by Germany to recall some 774,000 vehicles from across Europe due to illegal defeat devices designed to hide high levels of harmful emissions from regulators' tests. The recall would mostly affect Vito vans and diesel-powered versions of GLC 4x4s and C-class sedans. Based on the federal government’s orders Daimler has found out that the applications in the motor control software is faulty and will be removed at the greatest possible speed and in co-operative clearness with the authorities. Volkswagen's "diesel gate" scandal, in which the world's largest carmaker admitted to installing them in 11 million defeat vehicles worldwide. Vehicles performed in accordance with the legal emission limits for harmful substances like nitrogen oxides, however, it exceed them as much as 40 times in on-road driving. So far the scandal has cost the world's largest carmaker over 25 billion euros ($29.5 billion) in fines, buybacks and compensation, and senior executives are under investigation over their roles in the cheating. To fix manipulated software other German carmakers have also been forced to recall vehicles, even though none has so far admitted to mass cheating as Volkswagen have.15

Byton orders a place for 150,000 electric cars per year

According to German supplier Duerr Chinese parent company Future Mobility Corporation (FMC), who’s responsible for electric car start-up Byton, has placed an order for a paint shop capable of handling 150,000 cars per year. Lead by the former head of BMW's i8 programme China's Byton a newcomer has already released plans for a premium electric SUV vehicle, the latest in a series of China-backed electric autonomous prototypes. Duerr to building a paint shop for FMC's Byton brand in Nanjing for 150,000 cars per year and says that this was one of the largest orders it has ever received from an electric car manufacturer. Chinese state-owned carmaker FAW Group and the country's dominant battery producer Contemporary Amperex Technology Co. (CATL) to financially support Byton. Byton has announced it has teamed up with Aurora, an autonomous driving company founded by Chris Urumson, the former head of Google's self-driving cars programme and has opened headquarters in North America’s Silicon Valley. Along with this Byton is also working with auto suppliers Bosch and Faurecia SA on powertrains, braking systems and interiors.16

15 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/germany-orders-recall-of-774000-daimler-cars-in-europe-over-emissions/64555142

16https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/china-start-up-readies-capacity-for-150000-electric-cars-per-year/64576736

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6. AUTOMOTIVE COMPONENTS SECTOR

Omax Autos is planning to double its manufacturing capacity

Omax Autos, an auto component maker said that its board has approved a proposal for diversification and expansion of existing capacity for manufacturing products and equipment supplied to railways. The current capacity of the company is around 4,800 tonnes per annum of steel into various parts and equipment required by the railways. Omax Autos said the capacity expansion exercise would require an investment in the range of Rs 100 Cr. to Rs 120 Cr. It listed various tools including realization from the disposal of existing surplus assets, internal accruals and external borrowings to fund the proposed investment.17

JSW Steel to invest in Acero Junction Inc, US-based steel manufacturing unit

On 22nd June 2018, JSW steel announced that they will invest up to USD 500 million to acquire, upgrade and enhance Acero Junction Inc, US-based integrated steel manufacturing unit in phases Acero Junction Inc. is an integrated steel manufacturing unit located in Ohio. The company has a potential capacity of 3 MTPA (million tonnes per annum). The investment proposed by JSW will be made in two phases. The company said in a regulatory filing that, "This investment takes JSW's overall investment designed for the US market to produce American melt and manufactured steel, to up to USD 1 billion. In phase 1, JSW will refurbish and restart the electric arc furnace and the slab caster, and modernize the hot strip mill. The proposed investment, including the cost of acquisition, is expected to be approximately USD 250 million. JSW Steel said in phase 2, depending upon the economic survival and existing market conditions, the company will evaluate the possibility of adding another electric arc furnace as well as additional manufacturing equipment at the hot strip mill to make the Ohio facility a fully integrated unit with 3 MTPA capacity. The proposed investment in phase 2 could be in the range of up to USD 250 million, subject to convenience and necessary approvals, it added.18

17 https://auto.economictimes.indiatimes.com/news/auto-components/omax-autos-to-double-manufacturing-capacity-of-railway-equipment/64497507 18 https://auto.economictimes.indiatimes.com/news/auto-components/jsw-steel-to-invest-up-to-usd-500-mn-in-us-based-steel-manufacturing-unit/64694829 16 | P a g e

Acquisition of Tudor India’s Gujarat facility by Exide Industries

Exide Industries announced that they have entered into an agreement with Tudor India, which is part of US-based Exide Technologies, to acquire its Gujarat facility. Tudor India is a manufacturer and provider of lead-acid batteries for automotive, two- wheeler and home-UPS applications. The company said in a regulatory filing that, "The Company has entered into an 'Asset Purchase Agreement' with Tudor India towards the acquisition of its immovable assets and movable assets of its factory situated at Sabarkantha district in Gujarat." The company said the transaction will complete in a month without revealing the financial details of the contract.19

China’s battery producer CATL to invest in Byton EV startup

Contemporary Amperex Technology Co (CATL) China's dominant battery producer has agreed to invest in Chinese-funded electric vehicle startup Byton. Byton did not disclose the investment made by CATL's, but said the battery producer was a "sizable investor" who had also participated in Byton's $500 million Series B round of funding. Byton also listed other investors that took part in the latest rounds of funding which included China's state-owned automaker FAW Group and Tus-Holdings. Byton also believes that the diversified strategic investors will further help expand and broaden development opportunities.20

Exide Industries join hands with Lelanche SA

On 29th June 2018 Exide Industries and Leclanche SA, Swiss-based firm signed a joint venture for manufacturing lithium- ion batteries and supply energy storage system for India's electric vehicle market. The Regulatory filing said, "As part of the agreement, Exide Industries will hold a stake of 74.99% and the rest 25.01% will be held by Leclanche. It added that, Lelanche will give access to know-how and intellectual property for lithium-ion cells, modules and battery management systems, and Exide Industries will leverage its extensive sales network and brand. The plant will be situated in the state of Gujarat. A module and battery pack assembly line are expected to be operational by Q2 2019 and a lithium-ion cell production plant is expected to be in operation by mid-2020. In the intervening period, cells will be sourced from Leclanche's plant in Willstatt, Germany. The JV firm will focus on e-transport, stationary energy storage systems and specialty storage markets. In e-transport, the target segment is fleet vehicles including e-buses, e-wheelers and e-rickshaws, the filing added.21

19 https://auto.economictimes.indiatimes.com/news/auto-components/exide-industries-to-acquire-tudor-indias-gujarat-unit/64741646 20 https://auto.economictimes.indiatimes.com/news/auto-components/ev-startup-byton-says-china-battery-producer-catl-to-invest-in-it/64538828 21 https://auto.economictimes.indiatimes.com/news/auto-components/leclanche-and-exide-to-build-energy-systems-for-indias-ev-market/64787811

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7. DISCLAIMER

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and that it should be relied upon, as such Polymerupdate does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the users / transmitters / distributors of this publication. The information derived is of secondary nature and has been duly credited to the site it originates from. The views expressed in this report are one way of analysis and could differ from others viewpoints. No part of this report is to be reproduced in any form or by any means without the prior permission of Polymerupdate.

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