Vol.

-VIII , Issue-6, Nov-Dec 2018

TRACTION
A Newsletter of
Automotive Tyre Manufacturers’ Association

Editorial
Inside This Issue
l Industry Trends
m Tyre
m Auto
(Pg…2)
(Pg…3)
T h e f e r v o u r o f N e w Ye a r
celebration has been muted at
the beginning of 2019. China
which has been the driver of growth
for world economy for several years is
India Inc is set to report a decline in
both revenue as well as profit growth
numbers in the Dec quarter, says a
survey by ratings agency Crisil.
Especially Auto sector companies are
m Natural Rubber (Pg…4)
m NR Global (Pg…5) showing signs of slowdown. World expected to post lower growth in
l Country Focus (Pg…6-9) economy is likely to grow at a slower view of rise in ownership cost and
l Focus (Pg…10-11)
pace in 2019. weak finance options which hit sales
during the quarter.
l Events (Pg…12-15) While India continues to don the
l India Stats (Pg…16) mantle of being the fastest growing Fall in crude oil prices has no doubt
l Quotable Quotes (Pg…17) economy, the growth rate has brought cheer but markets are in a
l China Column (Pg... 18-19) s l a c k e n e d. I n f a c t t h e I n d i a n wait and watch mode and much will
l Globe Watch (Pg... 20) economy is still smarting after the depend upon the outcome of
l Stat-o-Sphere (Pg…21-22) jolts that shook it to the core. Shoot elections which are due in April-May
up in crude oil prices after remaining this year.
Page 13 benign for a long period led to severe
However not all is lost. In a report
depreciation of Indian currency in
titled: 'Global Economic Prospects:
the recent months. The International
Darkening Skies', the World Bank has
Monetary Fund, or IMF, has said that
stated that while most wor ld
India’s CAD is expected to widen to
economies are staring at dark times,
2.6% of GDP in 2018-19.
India will continue to remain the
Liquidity crunch in Non Banking fastest growing major economy in
Commercial Drivers Training on Tyre Safety Finance Companies (NBFCs) the world in 2018-19. India's GDP will
triggered by the crisis at IL&FS has grow at 7.3% during the ongoing
taken a heavy toll on Auto numbers. financial year. In comparison, China is
expected to register a much lower
According to a letter written by
growth rate of 6.3% in 2018-19.
S ociet y of I ndian Automobile
Manufacturers (SIAM) to the Ministry On that positive note, here is wishing
of Finance, 70% of two-wheeler sales again a Happy 2019.
and 60% of commercial vehicles
Page 15 sales are financed by NBFCs.
ATMA launches school connect for Road Safety Rajiv Budhraja
Director General
 Industry Trends - Tyre

Tyre Production - India All Figs in Lakh Nos

Apr- Sep’18 & YoY Comparison FY18 FY19

Truck & Bus tyre production continued to witnessed double digit Beginning the year with a negative
growth in H1 to meet the growing demand. growth, Motorcycle tyre production has
chartered in the positive territory.
17.93
19 (24%) 70
104.73
.
(24%) 60.12
16 (10%)
84.31 60

13 14.51 54.67
50

10
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2017-18 2018-19 40
(Apr-Sep) (Apr-Sep)
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Passenger Car tyre production remained steadily higher than Overall tyre production in India
pervious year levels in the first half. maintained a comfortable lead over
50 previous year’s curve in the first half.
180
39.16 223.93 166.22
40 (7%) (13%)
(9%)
160
205.78
36.50
30
140 147.44

20
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2017-18 2018-19 120
(Apr-Sep) (Apr-Sep) Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Tyre Exports - India

Apr - Sept’18 & YoY Comparison

Truck & Bus tyre exports from India in Apr-Sept’18 period

remained unchanged from the previous year’s level.
3.0

2.5 2.14
(1%)
11.50
2.0 11.46 (0.3%)
2.12

1.5 In number terms, overall tyre export

went up by 2% during the first half
1.0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2017-18 2018-19
(Apr-Sep) (Apr-Sep) 52.22
(2%)
51.44

Passenger car tyre export stood lower by 13% in Sept’18 taking the overall
segment exports down by 5% in H1 of FY19.
3.5 2017-18 2018-19
(Apr-Sep) (Apr-Sep)
2.96
3.0

2.5 14.55
2.58 15.32 (-5%)
2.0 (-13%)

1.5

1.0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2017-18 2018-19
(Apr-Sep) (Apr-Sep)

Note: Figs in brackets indicate % change YoY

1
2
 Industry Trends - Auto

Vehicle Production - India

Apr-Nov FY19 & YoY Comparison

M&HCV production fell sharply in Nov’18 is view of All Figs in Lakhs

laxity in demand due to liquidity crunch. FY 18 FY 19

0.4
0.33 55% LCV production has been mirroring the
(6%)
2.99 growth trend in M&HCVs.
0.3
0.31
1.93
1.0
0.2

0.8
0.1 FY18 FY19
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar (Apr-Nov) (Apr-Nov) 0.49
0.6
(1%)

0.4 0.48
Passenger Vehicle production witnessed a contraction of 21% in
Nov’18 as increase in fuel prices increased the cost of ownership, 0.2
impacting demand. Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

4 3%
3.53 27.25
26.45

2.79
(-21%)
2
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY18 FY19
(Apr-Nov) (Apr-Nov)
+ Including P. CAR, MUV/SUV/VANS.

Motorcycle production which has been witnessing a steady growth

in comparison to year-ago period nosedived in Nov’18.

16 14%
117.53
14
12.50 102.71
(1%)
12
Production in Scooters (2//3
12.31 wheelers) which has been on a
10 steady upward trend turned
downwards in Nov’18.
8
FY18 FY19 10
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
(Apr-Nov) (Apr-Nov)

8
6.92
(6%)
Tractor production continues to witness double digit growth
6 6.53
despite a sequential drop.

0.9 4
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

0.8
18%
6.45
0.70 5.45
0.7 (11%)

0.6 0.63

0.5
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY18 FY19
(Apr-Nov) (Apr-Nov)

Note: Figs in brackets indicate % change YoY Unit(s): 1 Lakh = 100,000; 10 Lakhs = 1 Million; 100 Lakhs/10 Million = 1 Crore.

3
 Industry Trends - NR India

Natural Rubber - INDIA All Figs in MT

Apr- Oct (FY19) & YoY Comparison FY 18 FY 19

Having been hit badly in view of natural calamity in Kerala, the

NR Production bounced back in the months of Sept-Oct YoY.
80000
67000
(8%)

60000
-10%
62000 382000
344000

40000

FY18 FY19
20000
(Apr-Oct) (Apr-Oct)
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

NR Consumption has maintained a steady upward trend with consumption of more than
one lakh tonnes per month in 6 out of 7 months. Overall consumption witnessed double digit
growth during Apr-Oct period.
16%
110000
102000 716040
(15%)
617960
100000

90000
89000
80000

FY18 FY19
70000 (Apr-Oct) (Apr-Oct)
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

NR Imports have stood higher than previous year to meet the demand. Sequentially
imports came down in Oct’18 as domestic availability increased.
Import Export
70000 3000

60000 62047
(63%)
2000
50000

40000
1000
38048 479
30000
0
9 (-100%)
20000 0
16
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

NR Stock at the end of Oct’18 stood lower Average NR price stood marginally lower
at 255000 tonnes. in Oct YoY.
Stock NR (RSS-4) Price
300000 (Rs/kg)
160

140
262000 130.60
255000
250000 (-3%) 127.80
120 (-2%)

100

200000 80
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Note: Figs in brackets indicate % change YoY

4
 Industry Trends - NR Global

Global NR Overview (ANRPC* Countries)

All Figs in ‘000 Tonnes
Jan - Oct’18 & YoY Comparison 2017 2018

The pace of NR Production growth in ANRPC countries has slackened lately with
a static or negative growth during Aug-Oct period. Overall production growth in
Jan-Oct period is 5%.

1300 1234 5%
11468
1222 10872
(- 1%)
1100

900

700
Jan-Oct'17 Jan-Oct'18
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

NR Consumption has remained consistently higher in comparison to previous year

with a growth of 5% during Jan-Oct period.

5%
1300 1195 11696
(7%) 11106
1100 1122

900

700 Jan-Oct'17 Jan-Oct'18

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

NR consumption went up by a robust 14% in India during Jan-

Oct’18. In the same period, the consumption went up by 4%
on a much higher base in China.

NR Consumption YoY (INDIA vs. CHINA)

India China
4%
14% 1013 4674
4483
886

Jan-Oct'17 Jan-Oct'18 Jan-Oct'17 Jan-Oct'18

Figs in brackets '()' indicates % change (YoY).

*ANRPC - Association of Natural Rubber Producing Countries
(Member countries : Cambodia, China, India, Indonesia, Malaysia,Papua New Guinea, Philippines, Singapore, Sri Lanka, Thailand & Vietnam)

5
 CountryFocus

Germany's Automotive Industry

Germany is Europe's number one automotive market in terms of vehicle production and
sales, accounting ~ 30% of all passenger vehicles manufactured in Europe and ~ 20% of
all new registrations in the region.

Germany, with ~ 40 OEM plants located within the country itself, also has the largest
concentration of OEM plants in Europe.

EUR 272 Bn
Export

945 no.
Revenue EUR 423 Bn
Industry
OEM & Suppliers
Turnover

Accounts for
1 in 5 cars
820,500 no. Germany's that roll out
workforce internationally
Auto
Industry
Accounts for
Generates
+60 % R&D
+ 20 % of
domestic Industry
growth in
revenue
Europe

Produced
78 % of cars
5.5 million manufactured
passenger in 2017
vehicles exported
in 2017

6
 CountryFocus

Production & Registrartions

Germany tops P.Car Production in Europe (2017) Germany tops P.Car Registrations in Europe (2017)
(Million Units) (Million Units)

Germany 5.5 Germany 3.4

Spain 2.3 UK 2.5

France 1.7 France 2.1

UK 1.7 Italy 2

Czechia 1.4 Spain 1.2

Slovakia 1 Belgium 0.6

Italy 0.7 Poland 0.5

Automotive Exports
Germany's Automotive Exports@ EUR 272 bn(2017) Automotive Exports account for 16% of Germany's
total Exports (2017)

(Eur. Bn)
272 Automotive
(6%) Exports, 16%

257

Other
Exports, 84%

2016 2017

l Germany's Automotive Exports @ EUR 272 bn in 2017 (6% increase YoY)

l Automotive Exports drive Germany's Automotive Industry, accounting for 64%
of the total turnover of the country's automotive sector.
l Automotive Exports, with a 16% share in Germany's total exports, accounts
for the largest share in the country's total exports (in revenue terms)

7
 CountryFocus

R&D Spend
German Automotive Sector's R&D Spend totals Eur 22 bn in 2017

Automobile R&D Spend

@ Eur 22 bn Automobile R&D
Personnel
@ 114,000 no. l Germany's automotive R&D
investment remains strong as
manufacturers seek to
maintain competitiveness in
~ 40% of Total Manufacturing R&D Spend in a fast evolving automotive
Germany accounted for by the Automotive Sector landscape (esp. on the
technology front).
(US $ Bn)
l More than 1/3rd of
Germany's manufacturing
Automotive sector R&D spend is
Sector R&D accounted for by the
Spend, 22 Automotive sector alone.
Other sectors'
R&D, 35
39% l With 114,000 research &
61% development professionals
onboard, Germany's
Automotive sector employs
more than a quarter of the
total R&D workforce in
Germany's private economy.

Premium Car Market Hub

l Germany accounts for ~40% of the

Premium Car Production by Country (2017) -
global premium car market.
Percentage Share
l Globally, the premium car market is
expected to grow at a much faster
RoW, 17% rate than the passenger car segment
in the next few decades.

Japan, 6%
l Almost all German car OEMs are
Germany, 38% focusing on the premium car
UK, 7% segment.

USA, 13%

China, 19%

8
 CountryFocus

FDI Projects in the Automotive Sector 2013-17

By Country of Origin (no. of projects) By Destination Country (no. of projects)

Germany 680 Germany 131

Japan 560 UK 118

USA 355 Poland 92

France 167 Turkey 85

China 103 Hungary 73

Germany continues to be the most attractive FDI destination in Europe and as per a
study by FDI Markets accounted for the largest no. of FDI inflows and outflows (in
terms of no. of projects) amongst major automotive markets between 2013 and 2017.

“ Germany, the automotive hub of Europe and the center of the world's premium car market,
continues to be a major player in the global automotive market. Germany also boasts of 16 of
the world's top 100 OEM suppliers (such as Bosch, Continental, ZF Friedrichshafen, etc.).

9
 Focus

J.D Power 2018 India

Sales Satisfaction Index (Luxury) Study

Luxury car buyers in India are deeply involved in the pre-purchase

shopping process, according to the J.D. Power 2018 India Sales Satisfaction
Index (Luxury) Study. The proactiveness of these buyers to be better informed
requires dealership staff to be more prepared in interacting with these
customers.

Mercedes-Benz ranks highest in sales satisfaction, with a score of 903. BMW

ranks second with 900, while Audi ranks third with 888.

The 2018 India Sales Satisfaction Index (Luxury) Study is based on responses
from 250 new-vehicle owners who purchased their vehicle from September
2017 through August 2018.

The study examines six factors that contribute to overall customer

satisfaction with their new-vehicle purchase experience in the luxury
market. In order of impact on overall sales satisfaction, those factors are
dealership facility (22%); delivery process (21%); dealer sales consultant (20%);
paperwork completion (17%); working out the deal (15%); and dealership
website (4%).

JD Power 2018 India Sales Satisfaction Index (Luxury) Study

(sales satisfaction Index rating, based on a 1000-point scale)

903

900

Luxury Average 898

888

10
 Focus

Key Findings

l Luxury car buyers rely on recommendations from friends/ relatives for

purchase decision: Nearly two-thirds (61%) of buyers rely on friends and family as
their primary source of information while deciding on the vehicle brand or model to
purchase.

l High usage of digital devices: The majority (83%) of buyers indicate that their sales
consultant used a digital device. Tablets are the most commonly used device (66%),
with overall satisfaction highest among buyers whose consultant used a tablet
during their sales' experience (910 on a 1,000-point scale).

l Problems with clear communication of pricing and paperwork: With more than
one-fourth of customers experiencing problems across specific issues, such as
clarity on pricing, paperwork and additional item purchases—dealerships need to
train their staff to provide clear and correct information regarding such topics.

l Advocacy and loyalty improve with sales satisfaction: Among highly satisfied
customers (overall sales satisfaction scores of 976 and higher), 97% say they
“definitely will” recommend their purchase dealer to family and friends, compared
with only 62% of highly dissatisfied customers (score of 848 or lower).

l Internet as the key source of information: More than one-fourth (28%) of luxury
car buyers shopped around for other models before making a purchase decision,
with 65% of them using the internet as one of their key information sources.

“
Strengthened engagement during the shopping process from luxury car
buyers brings with it the need to transform the role of the traditional sales
consultant from being solely transactional to one of being advisory.
Dealerships that are able to drive this change among their teams will likely be
able to create a more engaging experience, thereby influencing word-of-
mouth recommendations and brand loyalty.

- Kaustav Roy, Regional Director Automotive Practice at J.D. Power

11
 Event

AT
MA-ITTAC ISRPL Drivers Training
def'kZ;y Mªkboj Vªsfuax izksxzke
14 December 2018
Panipat Re nery, Panipat
on Tyre Safety

H aving undertaken several campaigns aimed at sensitizing

Passenger Vehicle (PV) owners on tyre safety, ATMA has
sharpened focus on Tyre Care & Road Safety awareness amongst
Commercial Vehicle (CV) drivers.

Commencing the drive in right earnest, Automotive Tyre Manufacturers

Association (ATMA) has joined hands with Indian Synthetic Rubber P
Ltd (ISRPL), a joint venture of Indian Oil Corporation & TSRC- Taiwan
for increasing tyre safety awareness amongst a large number of
transporters and supply chain drivers associated with ISRPL.

A day-long session was held at Panipat Re nery campus of Indian Oil

attended by drivers, logistics in-charge, eet owners and top
management of ISRPL. The session was held by ATMA in association with
its technical partner Indian Tyre Technical Advisory Committee (ITTAC).

12
 Event

Specially designed training

modules were prepared in
vernacular languages for ease
of training to CV drivers.
Booklets on tyre care in
vernacular languages were also
distributed on the occasion.

Showing commitment to the

cause, top management of
ISRPL including Mr Joe Cheng (
Chief Operating Officer), Mr
Bishwajeet Bose ( GM
Marketing) , Mr Bibhuti
Chowdhury (Head-Materials)
and Mr Lalit Sharma (Dy GM
–Materials) participated in the
Tyre safety session as a morale
booster for the drivers.

13
 Event

ATMA launches school connect for Road

& Tyre Safety awareness
Heralding the New Year on the theme of Safer India, Automotive Tyre Manufacturers
Association (ATMA) launched a major exercise by engaging school students on Road
& Tyre Safety. The day-long event was held at TDI International School at Kundli
Sonepat (Haryana) and witnessed participation of around 250 students.

The event provided a platform to young participants to unleash their potential by

participating in a coloring competition on road safety. A jury checked the posters
and winners in three age groups were awarded amid applause.

While the children were engaged in a coloring competition on the theme of Road
safety, assembled parents were briefed about Tyre safety through distribution of Tyre
Safety booklets.

“Children can be instrumental in spreading awareness on road safety in the society.

Children travelling with families can insist on road safety in a way that no regulation
can match. United Nations is also of the view that children in India can help in
improving road safety by spreading awareness on the same”, said Mr Rajiv Budhraja,
Director General ATMA.

14
 Event

“Catch them young should be the motto.

The children need to be sensitised on
road safety from a young age so that
they realize that they have a
responsibility for safety of themselves
and their families”, added Mr. Budhraja.

ATMA has released an animation

lm in which a family is seen going
on a vacation. A caring husband has
got the car checked thoroughly but
draws a blank when the kid asks him
if the tyres were checked too since
tyre is a safety component.

Speaking on the occasion Mr Ravinder Taneja, Chairman

TDI International School said, “Spreading awareness on
road safety needs to be at the top of the agenda for every
corporate in India. We are privileged to join hands with
national
industry bodies
ATMA and
ITTAC in this
laudable cause.
The children
participated in
Road safety
colouring
activity with
great
enthusiasm.

The event saw participation of several school

principals from Sonepat besides Principal of TDI
International School.

15
 India Stats

India Stats

Share of workforce employed in Agriculture: Select Countries

49% Of India’s total workforce of about 52 crore, agriculture

employed nearly 49% while contributing only 15% of the
GVA. Comprehensive modernization of agriculture and
29% allied sectors are needed urgently. In contrast, only about
29% of China’s workforce was employed in agriculture.
15%
Industry and services accounted for 13.7% and 37.5% of
5% employment while making up for 23% and 62% of GVA,
respectively.
India China Brazil South Africa

(%) Share of Manufacturing in India's GDP

16.8% Manufacturing as a percentage of the gross domestic

16.7%
16.6% product has remained at about 16 per cent. Improvements
are evident in recent quarters, where manufacturing growth
16.1% 16.1%
at 6.9 per cent, 8.1 per cent and 9.1 per cent in Q2, Q3 and
16.0% Q4 2017-18 (year-on-year as compared to 2016-17)
15.9%
outpaced GDP growth.

FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18

Workforce that has undergone formal Skill Training

The National Skill Development Policy estimates that only

96% 5.4 per cent of the workforce in India has undergone formal
75% 80% skill training as compared to 68 per cent in the UK, 75 per
68%
52% cent in Germany and 96 per cent in South Korea. The India
Skill Report 2018 states that only 47 per cent of those
coming out of higher educational institutions are
5.4%
employable. Given that 83 per cent of the workforce is
India USA UK Germany Japan South Korea engaged in the unorganized sector with limited training
facilities, upgrading of skills, both in manufacturing and
services sectors remains a challenge.

16
 Quotable Quotes

Quotable Quotes

I have been talking about seaplanes. If it starts, in India November 2018 was a challenging month for the
we have the potential of starting 10,000 seaplanes. We industry due to low consumer sentiments as a result
have 3 to 4 lakh ponds in India, plenty of dams, 2,000 of liquidity tightening in the market, higher interest
river ports, 200 small ports and 12 major ports. It will rates and rising fuel costs. In certain cases, small
cost less. Seaplanes can land in one-foot water and operators' profitability was impacted due to reduced
require only 300-meter runway. It has a huge potential freights on account of the benefits passed by large
and runs at a speed of 400 km per hour. operators from the GST-related credit.
-Nitin Gadkari -Girish Wagh
Union Minister, MoRTH President, CV Business Unit, Tata Motors

There is no market, which is exciting as India...This

is a new phase in India's growth story. The
government has to invest more than 10 per cent
on infrastructure year after year. That is because we India is definitely evolving. Income is increasing, more
failed to do it in the past. We created, for the first enthusiasts are coming in and becoming consumers
time, a five -year plan of USD 144 billion of two-wheelers. In a growing economy, there is
investments. There was phenomenal change in always a sub-segmentation in any industry, whether it
the infrastructure after that. is two-wheeler or automobile. More multinational
companies have come in and IT infrastructure has
-Suresh Prabhu
Commerce and Industry Minister evolved. The five-day week culture is also starting and
we are even seeing higher disposable income. So the
two-wheelers are now not only being used for your
daily commuting needs, but they are also used for fun
and adventure.
Start-ups don't know what doesn't work and not
-Yadvinder Singh Guleria
knowing what doesn't work leads to inventions.
Sr. VP, HMSIL
Large organisations know what has failed in the past
and will never try it again, whereas start-ups don't
know what techniques failed in the past. In a sense
the industry (auto) is moving towards an era of start-
ups and there are many start-up companies waiting
to pounce on this momentum.

-Pawan Goenka India under the government of Prime Minister

MD, Mahindra & Mahindra Narendra Modi has carried out some really
fundamental reforms. These include the Goods and
Services Tax (GST), the Insolvency and Bankruptcy
Code...A lot of what they have done on financial
inclusion has been really important. India's growth
It's not that we aren't confident of upgrading a small performance has been very solid. There are important
diesel engine to meet BS-VI norms. We can fully meet vulnerabilities, so it is important for the reform
all the future requirements. But there are costs momentum to be maintained even as an election
involved. Whether the customer would be willing to comes up and for the path of fiscal adjustment to be
pay Rs 2 or 3 lakh more for a selective catalytic maintained.
reduction (SCR)-equipped diesel in the MPV segment -Maurice Obstfeld
is a question mark , Chief Economist (retired), IMF

-CV Raman
Sr. Executive Director (Engineering)
Maruti Suzuki
17
 China Column

Across the Great Wall

China's foreign trade up 11.1% in first 11 months

China's goods trade rose 11.1 percent year on year to 27.88
China's Foreign Trade continues to remain Robust
trillion yuan (about $4 trillion) in the first 11 months of 2018.
(trillion yuan)
27.88 Exports rose 8.2 percent year on year to 14.92 trillion
(11.1%)
25.10 yuan in the January-November period while imports grew
14.6 percent to 12.96 trillion yuan, resulting in a trade
14.92
(8.2%) 12.96 surplus of 1.96 trillion yuan, which narrowed by 21.1
13.79 (14.6%)
11.31 percent.
In the first 11 months, exports and imports of products under
the general trade category surged 13.9 percent year on year
Jan-Nov Jan-Nov Jan-Nov Jan-Nov Jan-Nov Jan-Nov to 16.13 trillion yuan, accounting for 57.9 percent of the total
2017 2018 2017 2018 2017 2018
Exports Imports Overall Trade
foreign trade, 1.4 percentage points higher than the same
period last year.
Figs. in () indicate % change YoY.

China's Trade with the world: Region-wise share

China's trade with the European Union rose 8.7 percent to 4.1 (trillion yuan)
trillion yuan, accounting for 14.7 percent of China's total
trade volume. Trade with the United States increased 7.2
European Eunion
percent to 3.83 trillion yuan, or 13.7 percent of the total. 4.1
14.7%
Trade with the ASEAN countries reached 3.55 trillion yuan, up
12.9 percent, accounting for 12.7 percent of the total. Trade with USA
Other Countries 3.83
Japan rose 6.1 percent to 1.98 trillion yuan, or 7.1 percent of the 13.7%
14.42
total. Trade with countries along the Belt and Road registered 51.7%
faster-than-average growth, with the trade volume standing at ASEAN
3.55
7.62 trillion yuan, up 14.4 percent year on year. 12.7%
Japan
Chinese private enterprises played a bigger role in trade by 1.98
contributing 39.6 percent to total trade, up 1.2 percentage 7.1%
points compared with the same period last year.

China's digital economy hits $2.3 trillion in H1

China's digital economy reached 16 trillion yuan ($2.3 trillion) in the first six months of
2018, accounting for 38.2 percent of the country's overall GDP growth, according to the China's Digital Economy
(trillion yuan)
China Academy of Information and Communications Technology. Despite booming 27.2
growth, China's digital economy suffers from unbalanced and inadequate (32.9%)

development. Data shows that in 2017 the province with the biggest digital
16
economy was 64 times the size of the most underdeveloped province. The service
(38.2%)
sector has undergone the biggest digital transformation in China, but that the industrial
and agricultural sectors have been less affected by the inevitable trend.
Development of the digital economy is listed as an important task for building a modern
economic system in China and achieving high-quality development. In 2017, the
country's digital economy hit 27.2 trillion yuan, 32.9 percent of the country's total GDP 2017 H1, 2018
growth. Figs. in () indicate % contribution to China's GDP.

The academy's research showed that the United States is far ahead of other G20
countries in digital economy development, with the second tier comprised of China, Japan, Germany, the United
Kingdom, France and South Korea, followed by third-tier countries including India, Brazil, Canada, Italy, Mexico, Russia,
Australia, Indonesia, and South Africa.

18
 China Column

Trips made by China-Europe freight trains surge in 2018

China-Europe freight trains made 5,611 trips in the first 11 months of 2018, surging
China-Europe Freight Train Trips
72 percent compared with the same period last year.
(no. of trips made)
5611
(72%) In 2017, more than 3,000 trips were made via the China-Europe freight trains
3262
between cities on the two continents. The number is expected to reach 6,000 in
2018.
As of November 2018, the trains connect 56 Chinese cities with 49 European
cities in 15 European countries. The number of trips from Europe to China has
increased and accounted for 71 percent of the trips to Europe.
Jan-Nov, 2017 Jan-Nov, 2018
In late August, the trains marked their 10,000th trip since beginning operations in
Figs. In () indicate YoY% Change
March 2011. The China-Europe freight rail services have pushed forward China's
opening-up and boosted economic and trade cooperation with countries along
the Belt and Road, as per China Railway Corporation.
This year marks the fifth anniversary of the Belt and Road Initiative, a transnational network connecting Asia with Europe, Africa
and beyond. Over the past five years, China's trade in goods with countries along the Belt and Road exceeded $5.5 trillion.
Chinese direct investment in the non-financial sectors of these countries reached $80 billion during the same period.

China's transport investment remains stable in Jan-Oct 2018

China's Transport Investment (Jan-Oct,2018) China's fixed-asset investment (FAI) in transport posted steady
growth in the first 10 months of this year.
(trillion yuan)
FAI increased 0.7 percent year-on-year to reach 2.6 trillion yuan
($375 billion) in transport in the period, as per the Ministry of
Transport (MOT).
Other transport
Investments Investment in the country's roads reached 1.76 trillion yuan in
0.84
32% the first 10 months. MOT data shows that FAI in expressways and
rural roads expanded 11.6 percent and 1.5 percent year-on-
Investment on Roads year in the period, respectively.
1.76
68% By 2020, China aims to have a modern transportation system
that is safe, convenient, efficient and green. The country planned
to spend around 2.6 trillion yuan on transport infrastructure in 2018,
with goals to further expand railway and road networks, especially
in poverty-stricken areas.

Quickly...

AIIB approves $400m loan for India's drinking water project

About 3.3 million people in Andhra Pradesh of India will have access to safe drinking
water following the approval of a loan of $400 million by the Asian Infrastructure
Investment Bank's (AIIB). The project aims to provide safe drinking water through a piped
water supply, which is expected to have a positive impact on women and girls in affected
communities as hauling water from communal taps is mainly carried out by women and
girls.
The project is part of an integrated approach to water and sanitation improvement in
India. Funding will come from AIIB as well as from programs by the Government of India
and the Government of Andhra Pradesh. With more than 80 approved members, the AIIB
is a multilateral development bank with a mission to improve social and economic
outcomes in Asia. Headquartered in Beijing, it began operations in January 2016.

19
 Globe Watch

Globe Watch
Smart Highways Focus On Illuminating Roads with Sustainable Designs
An innovative project tested in the Netherlands called “Smart Highway”
is an interactive system of roadways being developed to push the
limits of existing infrastructure.
This project combines interactive and sustainable roadway designs to
improve public safety and give drivers additional information as they
travel along roads at night or in dark environments.
In many cases, Smart Highways refers to the Internet of Things or
other connected devices. However, this innovative initiative is based on
providing drivers with valuable feedback without requiring additional
electronics or onboard systems that can be costly and reduce the performance of vehicles.
One piece of the Smart Highway movement includes an innovation called Glowing Lines and this innovative approach
to highways safety is being applied to a broader range of projects to improve public safety and advance the future of smart
cities.
The glowing markers are used on existing roadways by applying a special paint to roadway surfaces. This paint is
unlike traditional roadway paints that are used on highways and city roadways because this paint contains a photo-
illuminating powder that “charges up” during the day. Each glowing strip can be up to 1600 feet long and glows up to 10
hours when it gets dark.
This roadway marking system is being implemented in several miles of roadway tests across the Netherlands to find
ways to standardize the application process and improve the consistency of light emitted from the glowing strips.
The technology will need to continue testing before it can be implemented on a broad scale.

The world's first 3D-printed bicycle tyre

BigRep, a Berlin maker of super-sized 3D printers, has introduced what it's
calling a "world-first 3D-printed airless bicycle tyre”.
The tyre looks a bit like some airless automotive prototypes where you
can see right through to the other side. As per BigRep, the idea is to be
able to customize the tyres according to one's needs.
So it gives the user an option to print a tyre with a different internal
pattern or tread to accommodate mountain riding versus road riding, or
to handle different weather conditions.
Test bicyclist Marco Mattia Cristofori, who also designed the tyres, took
them for a spin around Berlin and reported a "very smooth ride."
The main goal of the design is to inspire and explore the endless possibilities of large scale 3D printing.
The prototype tyres are designed to test BigRep's new Pro Flex filament. The filament's flexible nature is what makes it
work for the bike tyres. As per BigRep, Pro Flex can be used for rapid prototyping for a variety of objects, including
skateboard wheels, ski tips and automotive gear knobs.
This isn't BigRep's first foray into things that roll. The company recently created a 3D-printed custom wheel rim for a car, and a
group of engineers used a BigRep machine to print out a functional bicycle frame.
Small changes to the infill percentage or pattern can lead to different results in terms of weight and performance. The
rigidity and the internal pattern can be controlled and customized to suit different weather conditions or terrain.
Users may check the weather and then print out a couple of bike tyres designed to handle monsoon rains or any other
weather condition.

20
 Stat-O-Sphere

Stat-O-Sphere

Almost 80% of all Indians rely on the informal Riding on increased smartphone penetration and
dirt-cheap 4G data access, India accounted for
sector to make a living -- a large chunk of them are
still dependent on farming, the contribution of nearly 58 billion of the world's 175 billion app

which to the economy has shrunk from 50% at downloads in 2017. Only China, the world's largest

internet market, is ahead with approximately 65

the time of independence to 15-16% now.
billion downloads. Brazil and Russia were the
other growth drivers.

Developing nations are now driving the world's

gradual shift towards renewable energy, and India
has become one of the leaders in renewable
Following the lead of Chinese smart phone
energy. India ranks 2nd after Chile in the 2018 makers like Xiaomi and Oppo, which have
Climatescope report by energy researcher dominated mobile sales in India for some time, the
BloombergNEF. India's second position represents content behind the touchscreen glass in India is
increasingly now from China, too. That's according
a climb of three spots from the 5th position it held
to a report from Factor Daily, which found that 44
in 2017. In comparison, China ranked 7th, down
from the top position in 2017. of the top 100 Android apps in India were
developed by Chinese companies, up from just

18 one year prior.

India, which is the world's largest consumer of sugar, is

set to produce a record yield of sugarcane in the
current financial year. As per Indian Sugar Mills India is home to 30% of the total organic producers

Association, India is set to produce 35.5 million in the world, but accounts for just 2.6% (1.5
tonnes of sugar between October 2018 and million hectares) of the total organic cultivation

September 2019, a 10% jump from the previous year, area of 57.8 million hectares, according to the
thereby unseating Brazil as the world's largest World of Organic Agriculture 2018 report.

producer of sugar.

Unit(s): 1 Lakh = 100,000; 10 Lakhs = 1 Million; 100 Lakhs/10 Million = 1 Crore.

21
 Stat-O-Sphere

Stat-O-Sphere

India's new unified Goods and Services Tax, which India has the 3rd largest number of family-run
subsumed a web of central and state levies to
businesses in the world after the US and China,
make life easier for businesses, is one of the most
according to a report by Credit Suisse. The country
complex and has the second highest rate in the
has 111 family-owned business with a combined
world. There are only 5 countries in the world
market capitalisation of $839 billion.
including India which have four or more tax rates
of GST, according to the World Bank's bi-annual
India Development Update. Most countries have
either a one or two rates. Other countries with four Around 48% of the India's bank accounts have
or more rates are Italy, Luxemborg, Pakistan and seen no transactions in the last one year, the World

Ghana. Not only that, Indian GST's top slab of 28% Bank reports in its Global Findex database. India

is the second highest of the 115 countries that has the world's highest share of inactive accounts,

World Bank compared. about twice the average of 25% for developing
economies.

The Indian government has launched one of the

world's largest publicly funded health insurance
Fueled largely by the release of Tesla’s “mass
scheme, set to cover some 500 million poor market” Model 3, electric vehicle sales in the
people. The Ayushman Bharat programme,
United States jumped 81% in 2018 compared to
dubbed "Modicare" after Prime Minister Narendra
the previous year. Plug-in electric vehicle sales
Modi promised health cover worth 500,000
amounted to 361,307 in the U.S. last year, up from
rupees ($6,900) to every poor family to treat 199,826 in 2017. While that is by far the biggest
serious ailments. jump in EV sales ever recorded in this still nascent
market, it still isn’t enough to put electric cars
anywhere near mass adoption. Electric vehicles
Tesla’s vehicle output has improved significantly
throughout the first nine months of 2018. The accounted for just 2.1% of the 17.2 million light

electric car maker produced a total of 80,142 vehicles sold in the U.S. over the past twelve
months.
vehicles in the Sept quarter alone, nearly beating
its annual production total for 2016 and more than
tripling its output compared to last year’s Sept
quarter.

Unit(s): 1 Lakh = 100,000; 10 Lakhs = 1 Million; 100 Lakhs/10 Million = 1 Crore.

22
Source : ANRPC, (GTAI) Germany Trade and Investment 2018, JD Power 2018 India Sales Satisfaction Index (Luxury) Study, World Bank,
MoSPI, National Skill Development Policy, China Daily, trafficsafetystore.com, mbr.co.uk

About ATMA
Headquartered in New Delhi (India), Automotive Tyre Manufacturers’ Association (ATMA) is amongst the most active and well known
national industry bodies in the country. Being a representative body of eleven large tyre companies in India accounting for over 90% of tyre
production, ATMA has been accorded status as the true voice of the Indian tyre industry.
ATMA works towards promoting and safeguarding the interests of the tyre industry in India primarily by acting as conduit between the
Government and the industry. The Association strives to be an active participant in policy making process and holds frequent meetings with
the Government departments to discuss the challenges being faced by the industry in the ever-changing economic environment.
The Association acts as the industry’s interface with the media, opinion leaders, NGOs and other Industry associations around the world so
as to present the perspective of Indian tyre industry on different issues.
ATMA Research
ATMA Research is a specialized in-house resource of Automotive Tyre Manufacturers’ Association that aims at compiling, and analyzing
information on automotive tyres as well as upstream (Natural Rubber and other raw materials) and downstream (Automobile) sectors in
India. The information for analysis is sourced from authentic and reliable sources including tyre majors, Government departments,
regulatory bodies, other industry associations and apex industry chambers.

Disclaimer:
Automotive Tyre Manufacturers’ Association (ATMA), has taken due care and caution in preparing this Report based on the information/data obtained by ATMA
from sources which it considers authentic and reliable. However, ATMA does not guarantee the accuracy, adequacy or completeness of the Data / Report and is
not responsible for any errors or omissions or for the results obtained from the use of Data / Report. This Report is not a recommendation to invest / disinvest in
any company or sector covered in the Report. No part of this Report may be published / reproduced in any form without ATMA’s prior written approval.

ATMA Research
Automotive Tyre Manufacturers’ Association
Jan. 2019
 Automotive Tyre Manufacturers’ Association (ATMA)
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