AVL is the world’s largest independent company for development, simulation and testing in the automotive industry and in other sectors. As a global technology leader, AVL provides concepts, solutions and methodologies in the fields of e-mobility ADAS and autonomous driving, vehicle integration, digitalisation, virtualisation, big data and much more.

In an interview with Sharad P Matade, Urs Gerspach, Executive Vice President of Test Systems and Global Operations, Instrumentation and Test Systems at AVL, shares his thoughts on the growth enablers and the company’s capabilities to cater to a wide range of demand in the automotive testing business.

What is the impact of the Covid pandemic on AVL’s testing business?

There is an impact, no doubt about it. The effect was much stronger last year; the customers constantly postponed their decisions about the orders of lab projects. However, this year, we are seeing a sudden improvement in the situation. In the first quarter of this year, we received massive orders of over 180 test systems for battery test labs. The situation is improving very fast, and the investments are being released by the OEMs. Until last year, the trends were not clear. Now we see a fast and strong growth of the passenger car industry towards electrification business. We are also witnessing the growing focus on fuel cells in the commercial truck segment. AVL is very well on track regarding its turnover and our margins for this year.

What is the reason for the increased demand of battery test labs?

In the past, many OEMs bought their battery cells from cell manufacturers like Panasonic, LG, CATL etc. and used these third party cells to build their own batteries. Several passenger car OEMs changed their strategy and decided to develop their own battery cells. Increased range, reduced charging time and lower costs are important key factors to convince customers to buy electric cars. Not just the development of the battery, but the combination of Battery, Inverter, E-Motor and Charging Infrastructure is important to develop a successful electric car. For this development, you need new test equipment such as battery cell cyclers, conditioning systems, climate chambers, automation and lab management software. The entire car is tested on High Voltage Powertrain Test Beds and Chassis Dynos where AVL has been the market leader for many years.

Europe is gearing up for Euro-7. What is it? How will it influence the testing business?

EU-7 will set stricter limits for CO2 and particle emissions. We expect PM10 (particulate matter with a size of 10 μm) will be introduced for Euro-7 and we have therefore developed measurement systems which can measure PM10.

It is also important to measure the CO2 emissions of combustion engines as precisely as possible. It is not just about compliance with environmental standards, but also about fuel consumption. We also deliver Portable Emission Measurement (PEM) systems for measuring emissions in real-time conditions on the street. While driving the car under real conditions, you might not execute a certified test run under predefined environmental conditions, therefore, other emissions will occur that need to be measured and analysed. AVL offers a wide range of in-vehicle measurement systems and software to determine what is actually coming out of the exhaust - in real driving conditions.

But there will also be a focus on non-exhaust emissions, particularly brake dust. Electric vehicles don’t emit exhaust emissions, but there is still brake and tyre dust. We have developed entire test systems to test real brakes under real-time conditions.

What would be the significant growth drivers in the traditional combustion engine business for AVL testing divisions?

As mentioned, the Euro-7 regulation will be one of the main drivers for AVL in the future. Besides all the other technologies like ADAS, every engine will be partly electrified either as a pure Hybrid, Plug In- or mild Hybrid. The technology of an Integrated Combustion Engine (ICE) can also be used to run with pure hydrogen. AVL is developing several engines for various customers that convert existing ICE technologies in new concepts.

We are also working on measurement technologies for synthetic fuel. AVL is working closely with Formula One teams as they will soon run their engines with synthetic fuels.

AVL has played a significant role in the development of the diesel engine in Europe. However, many OEMs are talking about discontinuing diesel engine vehicles in the near future. Do you see this as a challenge?

This trend will not have a great impact on our testing division. It will have a larger influence on the powertrain development division for diesel engines. If you take a look at the share of electrified cars in Europe - especially in Germany - they only account for 10 percent of the total vehicles; the remaining share of cars are still powered by combustion engines.

The combustion engine will still remain relevant for a while. However, increasingly in the form of a hybrid powertrain. AVL is therefore converting existing test beds for the car manufacturers so that they can be used to test hybrid vehicles. There are several customers who request pure electrical test benches. Some of our customers come to us with the requirement to completely convert existing combustion engine test fields to electrification test systems.

Between electric vehicles and hybrid vehicles, which one holds more promise in India in the near term and the long term?

I believe, in countries where the electricity network is not yet fully developed, hybrid cars will provide more flexibility, combining the possibility to run with fuel for an overland trip and electrified within the city.

In India, two-wheelers might have a faster increase in electrification similar to the development in China. ICE engines might keep dominating for a while, especially for the commercial vehicle. The introduction of pure battery electric vehicles mainly depends on how fast India is able to provide the necessary high-voltage charging infrastructure.

What about the AVL Tech Centre in India?

Our Tech Centre in India is one of our strongest Competence Centre for turnkey projects. AVL India is a very strong and reliable partner when it comes to planning of entire test fields including plant facilities. In the field of Powertrain Development, our India Tech Centre focuses on all three technologies – ICE, electrification and hybridisation – equally in all segments. AVL is an engineering company assisting customers with all types of mobility technologies. We recently got one of the first orders for fuel cell test systems from an Indian customer. So there is something exciting happening in our Tech Centre in India.

What about the revenues? How much does your testing division contribute to the whole company?

In 2020, the company generated a turnover of EUR 1.7 billion, of which 12 percent was invested in R&D activities. The testing division contributes with around 50 percent of the turnover.

What are the challenges in the business?

One of the biggest challenges is definitely to cover the growing bandwidth of technologies. A couple of years ago, we were only talking about ICE vehicles. Today, we are talking about ICE vehicles, hybrid vehicles, electric vehicles, batteries, ADAS and autonomous driving, digitalisation, cybersecurity and big data. AVL has built comprehensive competences to accelerate the vision of smart and connected mobility.

If you are an engineer, you have a wide range of technologies to specialise in. So one of the challenges is to find the right engineers to work on these different technologies.

What is the latest on safety by AVL?

One of the issues that is yet to gain the industry’s attention is fire safety in electric vehicles. AVL has been associated with fire marshals in Europe. Fire brigades realised an increase in accidents with Battery Electric Vehicles (BEV). Not only accidents but also burning BEVs in parking garages are a big challenge. These vehicles are very difficult to extinguish due to the chemistry of the lithium-ion battery.

AVL has developed a firefighting system which can extinguish a lithium-ion battery fire on the testbed or for fire brigade usage. It is a unique patented system that runs on liquids such as water or gases like nitrogen to extinguish battery fires. We conducted a couple of test series with hybrid batteries. A burning battery with 18 metres of flame height and temperatures of up to 1,500 degrees Celsius could be extinguished in one minute. (MT)

As automobiles prices in India go over the roof with not a decent set of four wheels to be found anywhere below INR 10,00,000 on-road, the auto industry – not only in India but the world over seems to adjust for a significant shift in technology, manufacturing, costs, expectations of buyers and the demand of the governments.

The shift in the world over for the auto industry isn’t charming to say the least with global giants like General Motors announcing huge layoffs ahead of potential turmoil. This is despite the automaker acknowledging earlier on the need to invest in alternative fuel technology and offering electric passenger vehicles.

With a market share of about 10 percent, it is behind Tesla in its home market. Tesla commands a market share of 48.2 percent as per the latest data published by Cox Automotive and Kelley Blue Book.

At the centre of the worry among automakers with a legacy the world over seems to be of the uptake in electric vehicles. It is slower than expected besides bringing competition from destinations that were until now least considered.

Besides inflation a big leading factor in markets like US and India, which has driven vehicle prices over the roof, automakers are also grappling with the geopolitical situations that could potentially disrupt the supply chains and drastically alter the prices of crude oil.

With many alternative fuel technologies such as bio-fuels, gaseous fuels and hydrogen still away from enjoying the popularity fossil fuels are, and to some extent electric/hybrid, the shifting world order for the auto industry is made complicated by the rush of various governments to tighten the regulations.

The considerable and quick elevation in prices in automobiles this factor is contributing too, has ensured that automakers address a demand trend that is not something that they were very successful at anticipating.

In India, the passenger vehicle market leader Maruti Suzuki moved away from diesel engines as the BS VI emission norms kicked in. This action seems to reflected through the sales of its Jimny lifestyle SUV as compared to that of the Mahindra Thar SUV, which is available with a petrol as well as a diesel engine.

The fact that a supplier like Cummins continues to invest in IC engines – diesel in particular – in indicative of the fact that the transition to alternative fuel technologies will still take a long time to come through.

When its does come through, it will not be just two fuels such as petrol or diesel, but a range of technologies that will have a higher bearing on costs, sustainability and convenience.

The cost to environment is a factor that seems to be not clear yet in the case of each alternative fuel technology. The gap between ‘green’ and ‘grey’ energy source is yet a considerable one to overcome.  

As it happens, a good number of jobs and enterprises in the auto industry – the world over – will be subject to greater scrutiny in terms of how they are able to navigate past the headwinds and best leverage the tailwinds.

Auto majors like General Motors and Stellantis are coming to face that scrutiny. In India too, the situation isn’t very different.  

The risk where people stop back and continue using their existing vehicles is likely to ensure a rethinking of strategy by the government regarding the route to a greener future that it would want to take without economically jeopardising the future of its people.  

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Bengaluru-based Tijil Rao from Dark Don Racing capped a brilliant run to his entire season, sealing the drivers’ championship in the LGB Formula 4 category in the 27th edition of the JK Tyre FMSCI National Racing Championship recently. 
At a race on the Kari Motor Speedway, Tijil opened a massive lead even before the last round was held. This was despite Saran Vikram – a seasoned racer – of Momentum Racing surprising one and all by winning the first and second races at the sporting event.  
Rao took it easy as Vikram pushed hard with him and Mehul Agarwal not very far behind. While Vikram timed 21:24.212 minutes, Mehul Agarwal timed 21: 25.349 minutes and Rao timed 21: 25.545 minutes. 
Back behind the wheel for the next round, Vikram again won the LGB Formula 4 race lapping well ahead of the field at 28:12.441 minutes. The difference in timing from the morning round was because of an increase in laps from 15 to 20 in the last race. 
In second position, Dhruvh Goswami put up a time of 28:15.943 minutes and Bala Prasath, 28:17. 392 minutes.
In the overall LGB Formula 4 standings, Rao topped with 87 points. Second place went to Bala Prasath with 45 points. Mehul Agarwal was third with 44 points. Vikram clinched the fourth position with 43 points. 
In the thrilling Royal Enfield Continental GT Cup presented by JK Tyre race, Navaneeth Kumar from Pondicherry pushed as hard as he could to win the 10-lap race in 13:01.601 minutes. He was followed by Anish Shetty who clocked a race time of 13:02.411 minutes and Manvith Reddy who managed to clock a time of 13:02.503 minutes. 
Navaneeth sealed the championship for the first time. Behind him, an interesting fight for the second and third places was evident as Anish Shetty and Rohan R were tied at 36 points each. Rohan took the lead of the two as he had won two races in comparison to one by Anish. Rohan was declared overall second.
 

The Supreme Court announced on 6 November 2026 that a person holding a driving license for a Light Motor Vehicle (LMV) can, without any specific endorsement, drive a transport vehicle having an unladen weight of less than 7500 kg.
The five judge Constitution Bench noted that no empirical data has been brought before it to show that LMV license holders driving transport vehicles are a significant cause of road accidents.
The additional eligibility requirement to drive transport vehicles will apply to only those transport vehicles which weigh more than 7500 kgs, the judges noted in their order. 
Adopting a harmonious interpretation of the provisions of the Motor Vehicles Act, 1988, the Court endorsed the decision in Mukund Dewangan v. Oriental Insurance Company Limited (2017) 14 SCC 663. The Court also approached the issue from the perspective of livelihood issues of transport vehicle drivers.
The order mentioned that, for licensing purposes, LMVs and transport vehicles are not entirely separate classes. An overlap exists between the two. The special eligibility requirement will however continue to apply to, inter-alia, e-carts, e-rickshaws and vehicles carrying hazardous goods.
The additional eligibility criteria specified in the MV Act and MV Rules generally for driving transport vehicles would apply only to those intending to operate transport vehicles exceeding 7,500 kgs – which is medium goods vehicle, medium passenger vehicle, heavy goods vehicle and heavy passenger vehicle.
The Court overruled the decision in National Insurance Co. Ltd v. Annappa Irappa Nesaria to the extent it held that after the 1994 amendment, a separate endorsement is necessary for an LMV license holder to drive a transport vehicle.
The Court said that its authoritative pronouncement would prevent insurance companies from taking a technical plea to defeat a legitimate claim for compensation involving an insured vehicle weighing below 7,500 kgs driven by a person holding a driving license of a 'Light Motor Vehicle' class.

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Ajay Gabhane of Nagpur purchased a Kia Sonet on the eve of Diwali. He mentioned that his family found it right to replace their aging sedan with an exciting compact SUV during the festive season.

Like Gabhane, Tushar Deshpande chose the festive season to purchase a new passenger car during the Diwali festive season in Pune.

It were the individuals like Gabhane and Deshpande who contributed towards a cheerful festive season and Diwali for the Indian passenger vehicle and two-wheeler industry.

After witnessing a slowdown in sales performance during the first and second quarter of FY2023-24, it was the festive season that saw the auto industry uplift its spirit on the back of higher passenger vehicle and two-wheeler sales, albeit asking the underlying challenges that saw dealers and their association go to town stating that inventory levels were at an all-time high.

Until 29 October 2024, passenger vehicle registrations reached a record 4,25,000 units, according to the Vahan data. The previous peak was in January 2024 at 3,99,112 units.

With the Diwali festival spreading into early November, it is expected that that the passenger vehicle registrations will bridge the 4,50,000 milestone. This would mean that almost 15,000 units were registered every day.  

Starting at a slower pace, the festive sales picked up pace only close to Diwali this calendar year with two-wheelers registrations marking the most surge. Inside of the two-wheeler domain, it was the electric two-wheelers that contributed wholesomely to the sales surge. Among India's top electric two-wheeler OEMs, Ola Electric lead the pack with TVS Motors a close second and Bajaj Auto a close third.

Contributing handsomely to what is already considered as the record sales year (FY2024-25) for electric two-wheeler sales stood at 109,643 units as on 28 October 2024, as per the Vahan portal data.

This electric two-wheeler sales performance in the country should provide an interesting insight into how the Indian EV market is progressing and shaping up as well. 

With the main celebratory period of Diwali falling during the last days of October made for an interesting trend in terms of October 2024 sales and November 2024 sales.

With a sale of no less than 115,000 units expected by the time Diwali gets over in early November 2024, a significant uptake in sales performance would have been written in the financial books as compared to the sale of 88,156 units in September 2024.

The superior performance of two-wheeler sales overall as compared to passenger cars during the festive season could be attributed to the uptake in rural markets of the country, read a report by Motilal Oswal Financial Services. During the festive season, the commuter two-wheelers experienced the highest traction among the ICE models and electric powered ones, the report mentioned.

In his LinkedIn post, Ravi Bhatia, President and Director, Jato Dynamics, averred, “India's automotive sector experienced a classic relief rally in October 2024, driven by festive sentiment and aggressive discounting. However, with the impending Vehicle Identification Number (VIN) year change requiring sustained discounts, questions arise about the rally's sustainability.”

The challenges, he said, were the sub-INR 10,00,000 passenger vehicle segment continuing to be under pressure, the upcoming VIN year change necessitating continued discounts and the question of demand sustaining post the festive season.
 

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