AUTO

COMPONENT
INDUSTRY
Presented by,
Blessy
Varghese
S3, MBA
 ABOUT THE INDUSTRY
 Close relation with the auto mobile industry
 Emerged in the post liberalization period

Market includes:-
i. OEM (Original Equipment Manufacturers) segment
ii. Replacement market (after market)
 GLOBAL SCENARIO
Leading position in the global economy
Major countries producing auto components :- China, Italy
and Taiwan
Key industry drivers:-
 Provides support to other industries(iron, steel, plastic,
glass)
 Huge investments in developing countries
 Investment in R&D
 Increased standard of living
 Infrastructural developments
Contd….
Key trends in the industry
Global car sales in the road to recovery
Auto production bases are shifting to Asia
Profitability of auto makers is under
pressure; innovation still not sacrificed
“green imperative” for components
Welcoming new players in the industry
Long term partnerships
The industry size, investments, exports etc.,
are showing an increasing CAGR
The future of this sector shows tremendous
growth opportunities …(ASEAN Treaty)
 INDIAN SCENARIO
Global hub of auto components
Why India?
developing country
low cost advantage (25-30%)
skilled labour
developing markets
Problems
FTA, RTA
Tax, raw materials, poor infrastructure
 MAJOR PLAYERS &
COMPETITIVE ANALYSIS
AMTEK AUTO
Forgings and castings
Front-end capacities to USA and Europe
Labour intensive operations to India
Mainly into OEM’s
APOLLO TYRES
Replacement tyre market
 leaders in truck and bus tyres
Dunlop acquisition – radial tyre technology
BALAKRISHNA INDUSTRIES LIMITED
Competitive product pricing
OTR tyre manufacturing
MICO
Diesel engines
CRDI based diesel systems
Collaboration with Bosch
OMAX AUTO
Chassis manufacturing
Reduced operation costs (OMAX steel)
SONA KOYO
Power steering systems
C-EPS systems
CLUTCH AUTO
India’s largest clutch manufacturer and exporter
OEM and replacement markets
TATA, Mitsubishi, Mahindra etc…. Are the clients
 BIBLIOGRAPHY
 Auto components : difficult times, Dr. I. Sathya Sundaram, Facts For You, January
2010
 key-trends-in-global-auto-component-industry.pdf, A Whitepaper by Frost & Sullivan,
April 2010
 http://www.ibef.org/industry/autocomponents.aspx
 http://www.ibef.org/artdispview.aspx?in=3&art_id=26288&cat_id=115&page=2
 http://www.autofocusasia.com/automotive_components/indian_auto_components.ht
m
 http://www.allbusiness.com/automotive/automotive-overview/13684525-1.html
 http://www.autofocusasia.com/automotive_components/indian_auto_components.ht
m
 http://www.automotive-online.com/auto-industry.html
 http://www.virtusglobal.com/Indian Auto Components Investment Oppurtunities.pdf,
January 2008
 http://www.scribd.com/competitive+growth+ of+ Indian+auto+component+industry
 http://www.fadaweb.com/autocomponentsindustry.htm,
 Auto Components Industry: On Its Journey To Being Global, Executive Summary of
ICRA Report (May 2003)