Automotive Industry On Fast Track Indian Automotive Industry

Automotive Industry On Fast Track

Indian Automotive Industry ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India

India - An Introduction ØPopulation Over 1 bn ØStates/UTs 35 ØGeographical Area 3. 3 mn sq kms ØLanguages recognised 22 ØBusiness language English ØPer Capita Income** US$ 534 ØGDP** US$ 650 bn **(at factor cost & at current prices) 1 USD=43. 54 INR (as on July 4, 2005) Source: CSO Statistics

India - Fast pace Growth Ø Largest democracy Ø 4 th largest economy by PPP index Ø 6 th largest energy consumer Ø For. Ex reserves skyrocket from USD 42 bn (2001) to US$ 133 bn ((February, 2005) Ø GDP growth to continue between 6 -8% Ø 3 rd largest economy by 2050: Goldman Sachs Ø Leading in IT & BPO Ø Oil & Gas and Biotechnology sunrise industries

India - Leading the world Ø Hero Honda - largest manufacturer of motorcycles Ø Moser Baer - among the top three media manufacturers in the world Ø Pharmaceutical Industry - 4 th largest in the world Ø Walmart, GAP, Hilfiger sources more than USD 1 bn worth apparel from India Ø 100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler

Indian Automotive Industry ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India

Passenger Car Market 2002 -03 (A) Total Units - 547, 083 2007 -08 (P) Total Units - 975, 703 Projected CAGR 12. 3%

Two Wheeler Market Ø Present estimated size Ø 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 ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact 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, Kinetic, LML CVs Tata, Ashok Leyland, Tatra, Eicher. Mitsubishi, Swaraj-Mazda, M&M, Volvo Tractors Escorts, M&M, L&T, Punjab Tractors, New Holland, ITLRenault, John-Deere, Steyr

Manufacturing Hub for Vehicles ØHyundai - Export Base for Small Cars ØSkoda - Hub for exports of Cars to neighbouring countries ØFord exporting CKDs of Ikon to South Africa & other countries ØMitsubishi & Yamaha - Hub for 125 cc Motorcycles ØMaruti Suzuki- Exports cars to EU ØHMSI - Hub for Two Wheelers Exports

Hyundai Motors India Ø Made India its global sourcing base for small cars Ø Second largest player in passenger car market Ø Market Share 20% Ø Turnover (approx. ) US$ 1 billion Ø Santro & Accent - Run away success stories

Indian Automotive Industry ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact 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

Export from India Auto Components expand markets abroad

Buy from India Major OEMs/ Tier 1 suppliers buying auto-components from India for their global requirements Ø General Motors, USA - Global Purchasing Team (Halol) Ø Volvo, Sweden - Global Buying Team (Bangalore ) Ø International Truck & Engine Co - Global Purchasing Ø Cummins, USA - Global Purchase Team (Pune) Ø Caterpillar, USA - Global purchase staff (Delhi) Ø Delphi, USA - International Purchase Office Ø Motorola Automotive Electronics Division, USA Ø 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 Ø Mitsubishi and Ford tie-up with Hindustan Motors Ø Kawasaki ties-up with Bajaj

Indian Automotive Industry ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India

Advantage India Ø Largest Two-Wheeler Manufacturer in the World Ø 2 nd Largest Tractor Manufacturer in the World Ø 5 th Largest Commercial Vehicle Manufacturer in the World Ø # 1 Global Motorcycle Manufacturer is in India Ø 4 th Largest Car Market in Asia - crossed the 1 million mark

Industry Milestones 2003 -04 Ø Car production crosses 1 million mark Ø Car exports cross US$ 1 million mark Ø Auto component exports cross US$ 1 bn mark

The Cost & Skills Advantage

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: üTQM üTPM ü Six Sigma ü Toyota Production Systems / Lean Companies growing in ranks can offer PPM levels of quality

The Policy Advantage Ø Auto Policy 2002 promotes an integrated automotive sector Ø 2001 - Quantitative Restrictions were removed ØIncentives for R & D Ø Stringent environmental controls

Emission Compliance Emission Standards Status Cars Two Wheelers Already introduced in Metros: Mini. Metros, from Sept, 2003 From April 1, 2005 Bharat Stage III From April 1, 2008 Bharat Stage II 2005 Bharat Stage IV From April 1, 2010 Bharat Stage II, IV (Euro II, III and IV equivalent) C V’s Already introduced in Metros: Mini. Metros from Sept, 2003 From April 1, 2005 From April 1, 2010

Indian Automotive Industry ØIndia - An Overview ØMarket and Growth Potential ØPlayers ØOpportunities ØWhy India? ØContact in India

Contact in India Society of Indian Automobile Manufacturers (SIAM) Core 4 B, 5 th 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) 6 th 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: acma@vsnl. com Website: www. acmainfo. com