Fast growing markets / Special focus Asia
• Market update
• Key market drivers
• Manufacturing footprint
• Engineering footprint
• Successful business
© SKF Group
Ulrich Selig
Director,
Automotive
Asia
Passenger car production - Asia
Passenger Car Production
120000000
25%
22.5%
100000000
20%
80000000
15%
10.3%
60000000
10%
5.4%
40000000
20000000
5%
0%
0
-5%
2012
2013
2014
• Asia ~ 50% of global car production
• Out of top 15, six are Japanese manufacturers
• Foreign JVs market leadership in China
Source: IHS August 2014
© SKF Group
CMD 2014
World Total
YOY Asia
4.6%
-0.3%
2011
Asia
2020
YOY World
Heavy and medium truck production - Asia
Heavy & Medium Truck Production
4,500,000
70%
4,000,000
56.7%
60%
3,500,000
50%
3,000,000
40%
2,500,000
30%
2,000,000
20%
1,500,000
3.6%
10%
2.6%
1,000,000
0%
500,000
-10%
-10.9%
0
-20%
2011
2012
2013
2014
• Asia ~ 60% of global truck production
• Top 5 heavy truck manufacturers come from China
Source: LMC Report Q2 2014
© SKF Group
CMD 2014
2020
Asia
World Total
YOY Asia
YOY World
Key drivers to impact the Asian automotive market
• Urbanization
• Disposable income growth
• Infrastructure development
• Rapid growth in small cars
• Electric vehicles
• Total cost of ownership
© SKF Group
CMD 2014
Manufacturing and engineering footprint - Asia
• New factories established
₋ ACTII factory, Shanghai, China - production started 2014
₋ Jinan factory, China - production started 2012
₋ Mysore factory, India - production started 2012
• SKF Global Technical Centres expanding
• 13 production sites
Jinan
Haridwar
Wuhu
Taegu
Busan
Shanghai
ATC I + SSBC
Shanghai
ATC II
Pune
Bangalore
Mysore
Singpore
Jakarta
© SKF Group
CMD 2014
Global Technical Centres in Asia
Global Technical Centre
China
Shanghai (Jiading Campus)
Employees：~400 (to 2016)
Opened：2013 Q4
Automotive Testing
Centre Japan, Chino
Global Technical Centre
India
Bengaluru
Employees： ~400 (to 2016)
Opened：2012
© SKF Group
CMD 2014
Product engineering centre - Asia
•
•
•
•
Meet local customer specific challenges
Quicker answers
Truck
Specialized and dedicated engineering teams
Global product development and design process to ensure
worldwide quality standards
Global Technical Centre India
Two
wheelers
Global Technical Centre China
Trucks
Light
vehicles
Seals
Trucks
© SKF Group
CMD 2014
Key automotive customers in Asia
Passenger cars
© SKF Group
CMD 2014
Commercial vehicles
Customer technical days
2013
2014 - YTD
• 18 OEM customer days
• 4 OEM customer days
• 25 VSM distributor days
• 21 VSM distributor days
• 50 locations 4,000 visitors
• 10 Truck Fleet customer days
2014.05.23 SAGW Tech Day
2014.03.12 Sweden Innovation Day
© SKF Group
CMD 2014
2014.04.29 Hande Axle Tech Day
2013.11.20 GAC Tech Day
2014.04.23 VSM Distributor Day
2013.09.21 Volvo China Tech Day
Great Wall - China
Strategic partnership agreement
“Focus Dedication Specialization”
Solutions
• Wheel hub bearing unit (HBU)
• Transmission bearing
• Engine and driveshaft seals
Great Wall
Leading local car brand in China
Strong growth plans
Sales target 2015:
Russia
Italy
‘000 units
Chile
South Africa
Source: Great Wall
© SKF Group
CMD 2014
Australia
Great Wall
To grow our business in China and globally we need
high quality suppliers with advanced engineering
capabilities, close to us locally and a solid footprint
globally.
Great Wall wants SKF, as our strategic partner, to
support us to reach global fame with the aim of
building the best Chinese vehicles.
© SKF Group
Geely - China
Solutions
• Transmission bearings
(deep groove ball bearing,
bearing retainer)
Transmission seal
(low friction bonded piston seal)
Engine seal
•
•
Geely
Mission:
Build the safest, most
environmentally-friendly and most
energy-efficient cars, and bring
Geely cars to the world!
In 2013,GEELY Holding Group
revenue achieved 24.55 Billion US
dollars, listed as the 477th company
of world fortune 500
© SKF Group
CMD 2014
“Happy life, Geely drive.”
Dongfeng Commercial Vehicle - China
Solutions
• Engine idler bearing
• Tapered roller bearing for transmission
• Maintenance-free universal joint bearing
and hanger bearing for propeller shaft
Tapered roller bearing for axle
•
Dongfeng
Leading heavy and medium duty trucks
manufacturer in China
Sold over 172,000 heavy and medium
duty trucks in year 2013
A strategic alliance established with AB
Volvo to build Dongfeng into a global
brand
© SKF Group
CMD 2014
“Chinese Dongfeng Global Dongfeng”
Dongfeng Commercial Vehicle
Mr. Huang Gang, General Manager
● Competence, technology and quality products
● Deepen and widen cooperation
● Support to improve trucks for global customers
© SKF Group
Mazda - Japan
Solutions
Transmission seal
(low friction bonded piston seal)
Robust MacPherson
supspension bearing unit
Mazda
Sold 1.3M vehicles worldwide in 2013
Over 80% sold outside Japan
New plant in Mexico for Mazda 2 and
Mazda 3 started operation in 2014
Forecast 1.5M vehicles worldwide in
2015
© SKF Group
CMD 2014
”Zoom Zoom”
Isuzu – Japan
Solution
• Tapered roller bearing
Isuzu
• Global truck manufacturer
• Aims to be a leader in
transportation, commercial vehicles
and diesel engines, supporting
customers and respecting the
environment
• More than 70% of Isuzu turnover
comes from overseas countries
© SKF Group
CMD 2014
Hyundai/Kia - Korea
Solutions
• Wheel hub bearing unit
• Robust MacPherson
“New thinking
New possibilities”
suspension bearing unit
Hyundai/Kia
• Overseas production expected to
grow slightly to exceed domestic
• Hyundai-Kia 5th largest automotive
OEM group
• Global footprint:
© SKF Group
CMD 2014
“The power to surprise”
Hyundai Motors
Mr. Byeong-Jun, Kim, Purchasing Director
“ Working with SKF, we know we get the advanced
and highest performing solutions we need for our
vehicles to reach the world best level of the cars.
Hyundai & Kia have grown tremendously over the last
years globally, and we recognize that SKF’s global
engineering and manufacturing footprint are a highly
valuable support to us in our continued growth.
We are pleased to work with SKF as we also have
their timely and skilled support close to us in Korea
and we look forward to continued growth with SKF. “
© SKF Group
Honda - Indonesia
Solution
• Wheel hub bearing unit (HBU)
Honda
• Leading car manufacturer in
Indonesia
• Opening for further HBU business
also with other car manufacturer
Indonesia
• Fast growth of small cars due to
economical development transition
from TW
• Local Indonesia manufactured parts
will enable customer to meet
government requirement for
incentive scheme
© SKF Group
CMD 2014
“The Power of Dreams”
Key message for Automotive Asia
• Increasing engineering
capacity close to the customer
• Utilizing manufacturing
capacity including new factory
to grow with our customers
• Signing strategic partnership
agreements strengthens
growth for future market share
• Continue building strong
relationship with customers;
recognition with quality and
business awards
© SKF Group
SKF Automotive strategy
Robust
supplier
base
Productivity
Cost and
capital
efficiency
Cost reductions
© SKF Group
CMD 2014