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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** **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005) Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn 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 US$ 133 bn ((February, 2005) 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
- among the top three media manufacturers 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
Mid-size 17% Executive 0% Premium & Luxury 2% Mini 26%
2007-08 (P) Total Units - 975,703
Mid-size 20% Executive 2% Premium & Luxury 3% Mini 19% Compact 55%
Projected CAGR 12.3%
Compact 56%
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
16 Cos 50 ~ 500 Mill US $ 5 ~ 50 Mill US $ 149 Cos 1 ~ 5 Mill US $ 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, Daimler Chrysler, Skoda, Fiat, Hyundai, Tata, M&M Two-wheelers TVS, Hero Honda, Bajaj, Yamaha, CVs Tractors Kinetic, LML Tata, Ashok Leyland, Tatra, Eicher Mitsubishi, Swaraj-Mazda, M&M, Volvo Escorts, M&M, L&T, Punjab Tractors, New Holland, ITL Renault, John-Deere, Steyr
Manufacturing Hub for Vehicles
Hyundai - Export Base for Small Cars Skoda countries - Hub for exports of Cars to neighbouring 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
40000 35000 30000 25000 20000 15000 10000 5000 0 Hyundai Santro Ford Ikon Tata Indica Hyndai Accent Maruti 800 (Suzuki) FY 2003 FY 2004
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 mark 1 million
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
Middle Management (> 5yrs) Supervisor (5 yrs) Skilled Worker (1 yr) Skilled Worker
India China
1400 300 2500 800
India’s Advantage (%Difference)
-44% -63% 61 42 42 125 65 -51% -35%
The Market Advantage
Fast paced urbanisation to rise from 28% to 40% by 2020 Middle class expanding by 30 - 40 million every year Upward migration of household income levels Growing working population
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
Emission Standards Status Cars Two Wheelers Bharat Stage II Already introduced in Metros:Mini Metros, from Sept, 2003 From April 1, 2005 C V’s Already introduced in Metros: Mini Metros from Sept, 2003 Bharat Stage III From April 1, 2005 Bharat Stage IV From April 1, 2010
Bharat Stage II, III, IV (Euro II, III and IV equivalent)
From April 1, 2008 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