Transcript Indian Automotive Industry

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
Over 1 bn
States/UTs
35
Geographical Area
3.3 mn sq kms
Languages recognised
22
Business language
English
Per Capita Income**
US$ 534
GDP**
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
2002-03 (A)
Total Units - 547,083
Premium &
Executive Luxury
Mid-size
2%
0%
17%
Mini
26%
2007-08 (P)
Total Units - 975,703
Mid-size
20%
Executive
2%
Premium &
Luxury
3%
Compact
56%
Compact
55%
Projected CAGR
12.3%
Mini
19%
Two Wheeler Market
 Present estimated size
 CAGR (last 5 years)
5.4 mn units per year
10%
Average two-wheelers per 1000 people
India
China
27
08
Auto Component Market
Estimated market size
US$ 6.7 bn
Estimated market size (2012) US$ 17 bn
Projected CAGR
15%
Auto Component Industry Structure
50 ~ 500
Mill US $
5 ~ 50 Mill US $
1 ~ 5 Mill US $
16 Cos
149 Cos
237 Cos
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Home to global players
Product
Cars/SUVs
Players
Suzuki, Honda, Toyota,
Mitsubishi, GM, Ford, DaimlerChrysler, Skoda, Fiat, Hyundai,
Tata, M&M
Two-wheelers TVS, Hero Honda, Bajaj, Yamaha,
Kinetic, LML
CVs
Tata, Ashok Leyland, Tatra, EicherMitsubishi, Swaraj-Mazda, M&M,
Volvo
Tractors
Escorts, M&M, L&T, Punjab
Tractors, New Holland, ITLRenault, John-Deere, Steyr
Manufacturing Hub for Vehicles
Hyundai - Export Base for Small Cars
Skoda - Hub for exports of Cars to neighbouring
countries
Ford exporting CKDs of Ikon to South Africa &
other countries
Mitsubishi & Yamaha - Hub for 125 cc Motorcycles
Maruti Suzuki- Exports cars to EU
HMSI - Hub for Two Wheelers Exports
Hyundai Motors India
 Made India its global sourcing base for small cars
 Second largest player in passenger car market
 Market Share
20%
 Turnover (approx.)
US$ 1 billion
 Santro & Accent - Run away success stories
Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
Invest in India
Twin Indian
Advantages…
Scaling Costs
Optimising Resources
Excellent Source for IT based
Engineering Solutions - for Product &
Process Integration
India - Manufacturing Hub for Components
Toyota Motors Global Hub for Transmissions
Daimler Chrysler sourcing > 70 million Euro
Ford full fledged component sourcing team
Fiat sourcing components
Export from India
Passenger Cars
No. of Units
40000
35000
30000
25000
20000
15000
FY 2003
FY 2004
10000
5000
0
Hyundai
Santro
Ford
Ikon
Tata
Indica
Hyndai
Accent
Maruti
800
(Suzuki)
Export from India
Auto Components expand markets abroad
Australia
2%
Africa
11%
Others
4%
America
28%
Asia
27%
Europe
28%
Buy from India
Major OEMs/ Tier 1 suppliers buying
auto-components from India for their global requirements

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
Sell to India
Large latent demand as…
Low car penetration ratio
5 per thousand persons
This ratio projected to
double by 2007-08
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
 Largest Two-Wheeler Manufacturer in the World
 2nd Largest Tractor Manufacturer in the World
 5th Largest Commercial Vehicle Manufacturer in
the World
 # 1 Global Motorcycle Manufacturer is in India
 4th Largest Car Market in Asia - crossed the 1 million
mark
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
India
China
India’s
Advantage
(%Difference)
1400
2500
-44%
300
800
-63%
Skilled Worker (1 yr)
61
125
-51%
Skilled Worker
42
65
-35%
USD per Month
Middle Management (> 5yrs)
Supervisor (5 yrs)
42
The Market Advantage
Fast paced urbanisation
to rise from 28% to 40% by 2020
Upward migration of
household income levels
Middle class expanding by
30 - 40 million every year
Growing working population
The Quality & Productivity Advantage
Auto Companies achieving high
productivity through best practices:
TQM
TPM
 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
Emission Standards Status
Cars
Two Wheelers
Already
introduced in
Metros:MiniMetros, from
Sept, 2003
From April 1,
2005
Bharat Stage III From April 1,
From April 1,
2008
Bharat Stage II
2005
Bharat Stage IV From April 1,
2010
Bharat Stage II, III, IV (Euro II, III and IV equivalent)
C V’s
Already
introduced in
Metros: MiniMetros from
Sept, 2003
From April 1,
2005
From April 1,
2010
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 Centre
Lodi Road
New Delhi - 110 003.India
Tel: 0091 11 24647810- 12, 24648555
Fax: 0091 11 24648222
Contact in India
Automotive Component Manufacturers Association of
India (ACMA)
6th Floor
The Capital Court,
Olof Palme Marg, Munirka,
New Delhi - 110 067
Tel.: 0091 11 2616 0315, 2617 5873, 2618 4479
Fax: 0091 11 2616 0317
E-mail: [email protected]
Website: www.acmainfo.com