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Robust growth enables polypropylene compounds to grow in the Indian passenger vehicles segment

Robust growth enables polypropylene compounds to grow in the Indian passenger vehicles segment

Robust growth in the passenger vehicles sector has enabled the polypropylene compounds market in the Indian passenger vehicles segment to grow in leaps and bounds as per Frost and Sullivan. This, coupled with the provisional anti-dumping duties levied on polypropylene imports, has led to emergence of new participants in the PP market in India. The Indian passenger vehicles market has grown from 0.2 mln units in 2001 to 2 mln units in 2009, at an average annual growth rate of 13.6%. The market is expected to continue on its high growth trajectory, with the rollout of new low cost passenger vehicles from Tata and Bajaj. India is slowly emerging as a hub for the export of small passenger cars. Tata has been exporting small passenger cars since 2005. Hyundai Motor Company and Nissan have also joined the bandwagon, exporting small passenger cars manufactured in India to a host of other countries. Compared to global standards, the amount of polypropylene used in Indian passenger vehicles is low. However, with the entry of global auto manufacturers such as Volkswagen in India, this trend is set to change. India will soon attain the global standard of roughly 55 kilograms of polypropylene per passenger vehicle from the current 35 kilograms. Though the prospects for the market look upbeat, there are some challenges restraining its progression. Escalating crude oil price poses a major impediment. Price of PP is directly dependant on the price of oil, which is one of its key raw materials. If polypropylene loses its cost advantage, then automotive OEMs are likely to opt for the most economical material available for manufacturing automotive components. The price of crude oil has remained volatile since the economic downturn in mid 2008. For instance, in 2010, the price per barrel of crude increased from US$74 in January to US$85 in April and decreased to US$76 in July. It started to climb again in August. Global companies such as Volkswagen, GM and BMW use higher grades of polypropylene, to abide by the stringent safety and environmental policies of their companies, says the analyst. This has contributed to the uptrend in material costs. Although these regulations have not been enforced in India, they are expected to come into effect in the future and participants will have to utilize high-grade polypropylene. This is likely to further push the cost per unit for polypropylene used in Indian passenger vehicles in the future. New advances in polypropylene technology are revving up its attraction quotient. A Japanese car maker is in the process of developing a second-generation bio-plastic based on polypropylene, using non-edible cellulose-rich plants. Others are experimenting with self-reinforced polymers, which eliminate the need for a filler. These new materials could prove to be a boon for the polypropylene market. Polypropylene resin manufacturers in India must step up collaborative efforts with automotive OEMs to provide the requisite polypropylene grades, as a variety of grades are imported into India, despite the heavy anti-dumping duties levied on them.
According to KK Chandan of TechnoVinyl Polymers, the automotive industry today is faced by a number of challenges. Global market, newer designs at shorter span, at the same time there are legislative pressures to optimize the safety and environmental aspects of the industry�s products, while consumer expectations of comforts and performance are becoming increasingly sophisticated. The industry trends are towards increasingly high performance products, particularly in the realm of weight reduction and zero gap design. Increasing performance requirements in the automotive industry like dimensional stability, impact stiffness balance and the ability to fit together with parts produced in different locations are particularly challenging for large automotive parts. Classical PP Compounds do not fulfill customers critical high end requirements for high aesthetics, bright colour options, balance of impact & stiffness, scratch resistance, shrinkage and warpage. Minerals, typically a platy mineral like talc & mica help control warpage while needle shaped mineral like wollostonite control shrinkage. MOH�s hardness of wollostonite is 5 as compared to 1 of talc. Glass fiber reinforcement has good machine direction properties but prone to warpage. Talc & mica improves transverse direction properties & minimizes warpage. Spherical calcium carbonate particles give improved stiffness impact balance. The stiffness / impact strength property balance of mineral reinforced Polypropylene is directly linked to the particle shape, size of the mineral and how it disperses in the matrix. High lamellerity for optimum reinforcement is key to its reinforcing efficiency. Nano Engineered binary re-inforced next generation polypropylene compounds offer excellent stiffness impact balance and superior scratch resistance. The art of innovative compounding helps to meet challenges of the automotive industry. The compounder proposes and customizes cost effective solution that contributes significantly to the performance and success of the customers end products.
As per Borealis, Polypropylene (PP) resins contribute to vehicle weight reduction, implying a dramatic savings for today's fuel-conscious consumer. A European Commission proposal to limit CO2 emissions has led to heated debate in the automotive industry, dividing small car manufacturers from their luxury car counterparts. This draft regulation will compel the automotive industry to respect a limit value curve of permitted CO2 emissions based on a vehicle�s weight. The current goal is to cut average emissions from new cars from current levels of around 160 gms/km of CO2 to 130gms/km by 2012 through vehicle-technology improvements. While the final details of this proposal are yet to be approved by Parliament and member states, the Commission is envisaging CO2 caps proportional to vehicles' weight, with fines of up to EUR 95 per excess gram of carbon dioxide that is emitted. PP resins are lightweight materials that provide high performance solutions for interior, exterior and under the bonnet car parts and can contribute up to 130 kg in vehicle weight reduction. The uptake of PP as alternative materials in car parts implies not only a fuel savings, which in today�s market means direct value to the end consumer, but also a weight savings that will help manufacturers live up to the requirements of any future legislation. Usage of polypropylene compounds for exterior body panels which can reduce 25% of the weight of the body panels. When considering that other car parts and modules can be plastics based, a further weight savings potential of approximately 30% can be achieved. PP compounds hold an added weight savings potential in the range of 15-20% versus other plastics materials.
 
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