Automotive Industry
On Fast Track
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
India - An Introduction
Population
States/UTs
Geographical Area
Languages recognised
Business language
Per Capita Income**
GDP**
Over 1 bn
35
3.3 mn sq kms
22
English
US$ 534
US$ 650 bn**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)Source:CSO Statistics
India - Fast pace Growth
Largest democracy
4th largest economy by PPP index
6th largest energy consumer
ForEx reserves skyrocket from USD 42 bn (2001) to
USD 123 bn (2004)
GDP growth to continue between 6-8%
3rd largest economy by 2050: Goldman Sachs
Leading in IT & BPO
Oil & Gas and Biotechnology sunrise industries
India - Leading the world
Hero Honda - largest manufacturer of motorcycles
Moser Baer - 3rd largest optical media
manufacturer in the world
Pharmaceutical Industry - 4th largest in the world
Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Passenger Car Market
Projected CAGR 12.3%
Compact55%
Mid-size17% Mini
26%
Premium & Luxury
2%Executive
0%
Compact56%
Mid-size20%
Mini19%
Premium & Luxury
3%Executive
2%
2002-03 (A)
Total Units - 547,083
2007-08 (P)
Total Units - 975,703
Two Wheeler Market
Present estimated size 5.4 mn units per year CAGR (last 5 years) 10%
Average two-wheelers per 1000 people
India 27China 08
Auto Component Market
Estimated market size US$ 6.7 bn
Estimated market size (2012) US$ 17 bn
Projected CAGR 15%
16 Cos
237 Cos1 ~ 5 Mill US $
5 ~ 50 Mill US $
50 ~ 500 Mill US
$
149 Cos
Auto Component Industry Structure
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Home to global players
Product PlayersCars/SUVs Suzuki, Honda, Toyota,
Mitsubishi, GM, Ford, Daimler-Chrysler, Skoda, Fiat, Hyundai, Tata, M&M
Two-wheelers TVS, Hero Honda, Bajaj, Yamaha, Kinetic, LML
CVs Tata, Ashok Leyland, Tatra, Eicher- Mitsubishi, Swaraj-Mazda, M&M, Volvo
Tractors Escorts, M&M, L&T, Punjab Tractors, New Holland, ITL-
Renault, John-Deere, Steyr
Manufacturing Hub for Vehicles
Hyundai - Export Base for Small Cars
Mitsubishi & Yamaha - Hub for 125 cc Motorcycles
HMSI - Hub for Two Wheelers Exports
Ford exporting CKDs of Ikon to South Africa &other countries
Maruti Suzuki- Exports cars to EU
Skoda - Hub for exports of Cars to neighbouring countries
Hyundai Motors India
Second largest player in passenger car market
Market Share 20%
Santro & Accent - Run away success stories
Made India its global sourcing base for small cars
Turnover (approx.) US$ 1 billion
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Invest in India
Excellent Source for IT based Engineering Solutions - for Product &
Process Integration
Scaling Costs
Optimising Resources
Twin Indian Advantages…
India - Manufacturing Hub for Components
Fiat sourcing components
Ford full fledged component sourcing team
Toyota Motors Global Hub for Transmissions
Daimler Chrysler sourcing > 70 million Euro
Export from India
0
5000
10000
15000
20000
25000
30000
35000
40000
HyundaiSantro
FordIkon
TataIndica
HyndaiAccent
Maruti800
(Suzuki)
No
. of
Un
its
FY 2003
FY 2004
Passenger Cars
Europe28%
Asia27%
America28%Australia
2%
Africa11%
Others4%
Export from India
Auto Components expand markets abroad
Buy from India
General Motors, USA - Global Purchasing Team (Halol)
Volvo, Sweden - Global Buying Team (Bangalore )
International Truck & Engine Co - Global Purchasing
Cummins, USA - Global Purchase Team (Pune)
Caterpillar, USA - Global purchase staff (Delhi)
Delphi, USA - International Purchase Office
Motorola Automotive Electronics Division, USA
Visteon exporting India-made components worldwide
Major OEMs/ Tier 1 suppliers buying auto-components from India for their global requirements
Sell to India
Low car penetration ratio 5 per thousand persons
This ratio projected to double by 2007-08
Large latent demand as…
Partner with India
OEMs leverage local manufacturers for
Contract Manufacturing
Mitsubishi and Ford tie-up with Hindustan Motors Kawasaki ties-up with Bajaj
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Advantage India
5th Largest Commercial Vehicle Manufacturer in the World
4th Largest Car Market in Asia - crossed the 1 million mark
# 1 Global Motorcycle Manufacturer is in India
Largest Two-Wheeler Manufacturer in the World
2nd Largest Tractor Manufacturer in the World
Industry Milestones 2003-04
Car production crosses 1 million mark
Car exports cross US$ 1 million mark
Auto component exports cross US$ 1 bn mark
The Cost & Skills Advantage
USD per Month India ChinaIndia’s
Advantage(%Difference)
Middle Management (> 5yrs) 1400 2500 -44%
Supervisor (5 yrs)300 800 -63%
Skilled Worker (1 yr) 61 125 -51%
Skilled Worker 42 65 -35%42
The Market Advantage
Fast paced urbanisationto rise from 28% to 40% by 2020
Middle class expanding by 30 - 40 million every year
Growing working population
Upward migration of household income levels
The Quality & Productivity Advantage
Auto Companies achieving high productivity through best practices:
T Q M T P M Six Sigma Toyota Production Systems / Lean
Companies growing in ranks can offer PPM levels of quality
The Policy Advantage
Auto Policy 2002 promotes an
integrated automotive sector
2001- Quantitative Restrictions were
removed
Incentives for R & D
Stringent environmental controls
Emission Compliance
From April 1, 2010
From April 1, 2010
Bharat Stage IV
From April 1, 2005
From April 1, 2008
From April 1, 2005
Bharat Stage III
Already introduced in Metros: Mini-Metros from Sept, 2003
From April 1, 2005
Already introduced in Metros:Mini-Metros, from Sept, 2003
Bharat Stage II
C V’sTwo WheelersCars
Emission Standards Status
Bharat Stage II, III, IV (Euro II, III and IV equivalent)
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Contact in India
Society of Indian Automobile Manufacturers (SIAM)
Core 4B, 5th Floor, India Habitat CentreLodi RoadNew Delhi - 110 003.India
Tel: 0091 11 24647810- 12, 24648555Fax: 0091 11 24648222
Contact in India
Automotive Component Manufacturers Association of India (ACMA)
6th FloorThe Capital Court,Olof Palme Marg, Munirka,New Delhi - 110 067
Tel.: 0091 11 2616 0315, 2617 5873, 2618 4479Fax: 0091 11 2616 0317E-mail: [email protected]: www.acmainfo.com