NGK India is fast emerging as a leading supplier of spark plugs and ignition-related products among two-wheeler and passenger car makers in the country, along with a vast retailer network and customer base in the aftermarket.
Three things that a petrol engine requires in order to stay functionally alive are air, fuel and a spark. The spark plug keeps its operation simple – generate an electric spark to ignite fuel and air mixture in the combustion chamber, thus generating power. Developed in 1900s, the modern high-voltage spark plugs as part of a magneto-based ignition system solved what Karl Benz once pointed out as the ‘most fundamental obstacle’ to early motoring. They ensured the rapid evolution of petrol IC engines in the 20th century, although their fundamental function remains largely the same even today.
A spark plug is of significant importance to a petrol engine, partly determining its clean and effective combustion, fuel efficiency, smooth and reliable operation, and the efficacy of catalytic convertors. It has to spark around 100 times per second or 20 million sparks in its effective lifetime, that too, at precise timing at the end of every second stroke in a 4-stroke engine.
Yet, the requirements for emissions and service life of spark plugs have changed significantly over the century. The advent of unleaded petrol and compact MPFi engines have prompted changes in its design and heat range, so as to reach the self-cleaning temperature at lower loads and to avoid overheating at higher loads. Further, the plug has to perform consistently to prevent damaging of catalytic convertors.
“Technology and quality performance commands the development of spark plugs at present, making the entire engine operations safer, efficient and more sophisticated”, claims Mr. Keisuke Makino, MD, NGK Spark Plugs India. “The competitive landscape in this market is defined by constant R&D on increasing efficiency, durability and life-span, and there lies the future as well”. Adding value in the defined operation and customer expectations of spark plugs through innovation makes all the difference, he adds.
Today, users are aware of the importance of spark plugs and their timely replacement in their vehicles. A typical plug lasts for over 10,000 km for bikes and 40,000 km for cars, therefore, becoming a key consumable in long-term maintenance of vehicles. Even DIY (Do-it-yourself) buyers constitute a huge customer base for aftermarket spark plug sales globally, it’s easy to replace as all you need is a socket wrench with an extension and a plug socket. Unlike in India though. Here the awareness to replace spark plugs at the right time and DIY market is nascent, but is gradually improving.
Do the Double
Yet, the market in the country is still huge and largely untapped, observes NGK Spark Plugs India, thanks to the growing domestic auto market and improving vehicle penetration. “It is dominated by two-wheelers in terms of numbers, while the aspiration of the young middle class population to own cars in pushing the horizons of this industry further”, feels Mr. Makino.
NGK India was incorporated in 2006 as a wholly-owned subsidiary of NGK Spark Plugs, Japan, to leverage the rising demand for high-quality spark plugs in the domestic market. Encashing on its parent company’s rich technological expertise and global marketing experience, the company overcame the entry barriers of poor awareness on selecting right spark plugs for the vehicles, low margins, and conservative mindset of trading channels, etc.
Today, the Rs. 300-crore company boasts a wide network of distributors and retailers covering all the major regions in the country in the replacement market, while also supplying spark plugs to leading OEMs, including Maruti Suzuki, Honda Cars, Ford India, Fiat India, Toyota Kirloskar Motors, Volkswagen, Mahindra and Mahindra, Renault-Nissan, Honda Two-Wheelers India, Hero MotoCorp, India Yamaha, TVS and Royal Enfield. Its product portfolio caters to two-wheeler, three-wheeler, passenger car segments, and general-purpose engines and marine applications. It includes glow plugs (for diesel engines), plug caps, oxygen sensors and knock sensors as well, although the company’s prime impetus so far was on spark plugs sales.
Aftermarket business operations contribute to a huge chunk of NGK India’s revenue by gaining a respectable market share despite heavy competition and existence of cheaper and spurious alternatives. “Our goal is ‘DO THE DOUBLE by 2020’… i.e., double the current sales. An aggressive target of capturing an aftermarket share of over 45 per cent by 2020 has been set, and the company is increasing its distribution and market presence in newer semi-urban and rural India as well”, comments Mr. Sourav Biswas, Manager – Corporate Marketing.
The company claims to have achieved its targeted growth in 2017-18, in spite of dampening effects set out by the demonetization and the GST regime. “Our average annual growth remains constantly increasing every year in recent times, with a minimum forecasted rate of over 30 per cent assured in the years to come”, says the Managing Director, while acknowledging that NGK’s superior technology, quality and innovation is being recognized in the domestic market.
“Apart from our marketing campaigns to reach mechanics and workshop technicians in the country, who are the major influencers as far as spark plug sales are concerned, we are now pondering on using digital space to connect to end users as well. Younger population is quite aware of automotive consumables, are keen on investing in quality and high-performance auto products”, says Mr. Biswas while revealing the company’s immediate plans to come up with NGK TVC ad films to reach out to larger chunk of audience.
Innovation for future
Asked on what NGK India holds for future in terms of technology and innovation, Mr. Keisuke Makino points out to the BS-VI norms set to roll out in 2020. “With stringent emission norms, the market is expected to tilt towards high quality products that can assure trustworthy performance. An era of ‘conscious consumption’ based on technological strength will emerge”.
NGK India is betting high on hi-ignitibility special metal alloy spark plugs for newer generation vehicles that promises longer life and better ignitability, along with anti-spark erosion characters. It is already offering a full range of spark plugs in the market, including conventional plugs with nickel metal (alloy), ‘G-power’ plugs with platinum, and high-performance iridium plugs.
The company is also determined to expand its focus on other products in India. An investment of around Rs. 100 crores in its local assembly has been realized to increase production capacity, especially for oxygen sensors that are mandated for BS-VI engines. It is already collaborating with many OEMs to promote its oxygen sensors. An aggressive strategy is also being devised for promoting diesel glow plugs and sensors in the upcoming years, according to the company.