KPIT Cummins

Indian Automotive Research

2009 KPIT Cummins Infosystems Limited

Checklist
S No. 1. 2. 3. 4. Activities Survey Execution : 1000 respondents (as per segmentation) Media Research (rumor, internet (WEB), magazine, TV, etc.) Local research in Cities (Existing Dealers, Internet Marketing Companies, Social Networking Study, Car Purchase Loan Providers (Banks)) Identify Govt Bodies and other agencies from where data can be procured - Reports and Primary research -Department of Road Transport & Highways -Municipal Corporation deptt of planning & development -Department of Traffic Control, Traffic police, RTO -Municipal corporation Transport Department: Public transport facilities -Municipal Corporation's Underground Parking Plan -Meteorological Deptt.: Geography & Weather Info Region peculiarities photographs & Videos -Altitude & Vehicle Usage -Traffic Signals of Sampled Areas, road conditions, expressways -Sampled Corporate Offices and Malls Parking Plan Focus Group discussions: Customer Intention, Vehicle Usage segment wise Industry Expert Interviews: Competition Information - OEMs/Tier1s in resp cities

5.

6. 7.

City Statistics

<Weather Map to be pasted here>

Altitude: 310 meters above sea level Climate:  Tropical and extreme climate  Typical temperature in Summer (March-June) is between 42 to 48C, while in winter (November February), it is 5 to 15C. Nagpur Statistics (Generic):  7th Biggest City in India (2006)  Total Area of the city is around 220 sq. Km.  The most Cleanest and 2nd Greenest city in India  Population is 3.6 million (2010)
3

Nagpur City
11 Cities to be covered N E W S Tier1
Delhi-NCR, Kanpur Kolkota, Guwahati Mumbai, Pune, Nagpur Chennai, Bangalore, Hyderabad, Cochin

Tier2

Tier3

City Statistics
Automotive OEMs and Tier1s in the city

OEMs: M&M (tractor), Bajaj Auto.

TIER1s: NECO, International Combustions.

OTHERS: Indo Rama Synthetics, KEC, Hyundai Unitech, ACC Nikon Casting, Candico, Ajanta Toothbrushes, Sanvijay Group, 4 FMCGs and 2 Thermal Power Plants.

Demography

Population

1991

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Nagpur 2.2 (Million) India (Billion)

2.5 1.02

2.73

2.81

2.94

3.1 1.09

3.16

3.20

3.42

3.55

3.6 1.18

Demography

- Population pyramid for the city

Source : CANCER INCIDENCE AND PATTERNS IN URBAN MAHARASHTRA

Demography ward wise sex ratio

Demography

Per Capita Income

1993-94

2004-05 At current prices

2008-09

2009-10

Nagpur India

7690

23241 At fixed prices

40141

44345

Nagpur India

7690

12416

31821

33588

Market Size

2000

2005

2006

2007

2008

20092010

No of cars registered (segment , OEM, diesel/petrol break-up) Car ownership per 1000 -

21966

21121

10463

No. of registered vehicles (thousands/year)

City

1995 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Nagpur

10

Environment
Pollutants India average ( g/cu.m)
Industrial Residential Sensitive

Nagpur average ( g/cu.m)

Industrial Residential

SO2 NO2 RSPM CO Pb

80 80 360 500 1

60 60 140 200 0.75

15 15 70 100 0.5

10 34.94 39.94

10 33.65 41.89

Nagpur typically is high only on SPM level. For others, it is on Low level
11

Maps

1. Weather Map 2. Roads, traffic signals, roundabouts map 3. Contour Map (Geographical features)

12

Politics & Law

1. Environmental Incentive for manufacturing units (OEMs/Tier1s) No incentives as per Goods and Services Tax Act to be implemented from 1st April 2012. Currently, tax incentives are given if the plant is located in SEZ (Special Economic Zone). But this incentive will go after 2012. 2. Environmental incentive on cars (tax/insurance reduction, discounts on tolls, etc) No incentives 3. Environmental incentive on fuels (price, tax reduction, etc) No incentives 4. State specific regulations for Foreign OEMs -

13

Traffic Infrastructure
Parking Space Sudama Theatre, Dharampeth Mahajan Market, Sitabuldi Behind Moonlight, Sitabuldi Behind Ganagor, Sitabuldi Lotus Complex, Dharampeth Store One Complex, Dharampeth Pantaloons Complex, Civil Lines Near Bank of Maharashtra, Sitabuldi Type Open Open Open Open Underground Underground Underground Open Capacity ~ 5000 sq. feet ~ 20000 sq feet Any peculiarities Narrow Entrance 1 car at a time Risk of safety lot of theft cases

~ 5000 sq feet Too crowded ~ 5000 sq feet Muddy floor, issue in monsoon ~ 15000 sq feet ~ 10000 sq feet ~ 20000 sq feet Clean Clean Clean

~ 7000 sq feet Too crowded

14

Traffic Infrastructure
Parking Space W&G Complex, Residency Road Cinemax Complex, Sitabuldi INOX Complex, Central Avenue Road Jaswant Complex, Central Avenue Road Wardaman Nagar Type Underground Underground Underground Underground Underground Capacity ~ 15000 sq feet ~ 20000 sq feet ~ 20000 sq feet ~ 20000 sq feet ~ 10000 sq feet Nearby area too congested, many 2 wheelers Any peculiarities Good entrance, exit Nearby area too congested

15

Traffic Infrastructure
Parking Space Kothari Complex, Itwari Type Underground Capacity Any peculiarities

~ 10000 sq feet Nearby area too congested, many 2 wheelers ~ 15000 sq feet Nearby area too congested, entryexit too narrow, steep slope ~ 10000 sq feet ~ 15000 sq feet Lot of road side hawkers selling food. People park and eat in cars 2,42,000 sq feet available

Big Bazar, Wardha Road

Underground

Talwalkars Complex Near Yashwant Stadium Sitabuldi

Underground Open

Total Parking space in the Underground + city Open

16

Traffic Infrastructure
Car Segment Car Price < 10 Lakh Car Price 10 20 Lakh Car Price > 20 Lakh Road Tax 7% 8% 9% Insurance Premium

Fuel Type

Fuel price

Excise Duty 13.75

(central excise duty Rs 5.35/l, special additional excise duty- Rs 6/l, Road cess Rs2/l)

Customs Duty 0.46 (2.5%)

VAT 7.44 (12.5%)

Petrol 44.63

17

Traffic Infrastructure
Type of Vehicles Passenger Cars Taxi, Tempo, Tata-407 and such type of other Commercial vehicles
Bus, Truck Nissan, Tata 709/ Canter and such type of other Commercial vehicles 06 Wheels Truck (multi-axle) 10 Wheels Truck 14 Wheels Truck

Toll Posts Central MIDC Road Katol Road Urmed Road Hingana Road Wadi Katol Road ROB on Kanhan river on Khaperkheda - Parshivani Road SH No. 267 at Km. 11/030 in Nagpur District

Toll Tax Per Entry (Rs.) 15-18 20

45-55

55-85

18

Traffic Density

Signals

Vehicles/min

Segment break-up

19

Traffic Infrastructure

Road Network (km)

Expressways

National Highways (60-90m)

State Highways

Major District Roads

Rural & Other roads

Total

Nagpur India 200 70548 131899 467763 2650000 33 Lakh

20

Traffic Infrastructure
Express ways Road length Pavement Rate & Type of pavement No of signals (Any signal peculiarities) No of roundabouts Volumecapacity Ratio Traffic decongestion peculiarities
21

National Highway

State Highway

Major District Roads

Arterial Roads

Collector Roads

Local Streets

Rural Roads

Any other

Traffic Infrastructure

Mode Rail Buses Auto Rickshaw 2W 3W 4W

% Traffic Volume Share

% Traffic Load Share

22

Traffic Infrastructure: Motor vehicles split

Motor Vehicles on road (000) 2W Cars/SUVs Auto rickshaw Taxi Buses Freight Total Motor vehicles

1990 1077 327 45 5 11 82 1547

2000 1568 852 45 8 18 94 2584

2010 2958 1472 55 (capped) 14 39 223 4809

2020 (Projected) 6849 2760 28 73 420 10339

23

Traffic Infrastructure

Fuel station

Company

Location

Fuels available & Cost

-Power -Premium -ULP -Speed -Speed97 -Diesel -XtraMile -TurboJet -HSD -CNG -Auto LPG

Facilities available
-Service Station -Car Wash -Pollution Check -Car Wash -Puncture shop

24

Traffic Infrastructure Fuel cost Trend

Fuel costs (Rs/ l )
Power Premium ULP Speed Speed 97 Xtra Mile Diesel TurboJet HSD CNG Auto LPG
25

2005

2006

2007

2008

2009

2010

% Share in FY10

Traffic Infrastructure
Fuel costs (Rs/ l )
Power Premium ULP Speed Speed 97 Xtra Mile Diesel TurboJet HSD CNG Auto LPG 27.50 30.51 30.60 30.80

Delhi
53.95 53.7 51.55 53.85 61.0 39.37 37.70 39.54

Ghaziabad
57.36

Gurgaon
55.02

Noida

54.96

52.33

39.48 41.15

36.67 38.41

26

Vehicle Usage

Motor ized 1990 travel(billion passenger kms) 2W Cars/SUVs Auto rickshaw Taxi Buses Rail Transit Total 8 (17%) 8.6 (18%) 3.4 (7%) 0.3 (<1%) 27.2 (57%) 0 (-) 47.5 (100%)

2000

2010

2020 (Projected) 102.6 153.3 15.8 1.3 220 10.4 503.4

14.8 29 3.5 0.4 46.8 0 94.4

33.8(15%) 61.6 (28%) 7.6 (3%) 0.6 (<1%) 105.0 (48%) 10.4 (5%) 219.1 (100%)

27

Public Transport
Route map for buses, metro Average distance between stops

28

Traffic Infrastructure Public Transportation fare

Auto-Rickshaw Night Charges Waiting Charges Luggage Rs.10 for first Kilometer (upon downing the meter) and thereafter Rs.4.50 per Kilometer for every additional Kilometers 25% of the Fare(11.00PM to 5.00 AM) Rs.25 per hour or part thereof (subject to minimum of 15 min stay) Rs.5 per piece except for shopping bags or a small attach case

Taxis(Black & Yellow Top) Night Charges Waiting Charges Luggage

Rs.15/- for first Kilometer (upon downing the meter) and thereafter Rs.8.50/- per Kilometer for every additional Kilometers 25% of the Fare(11.00PM to 5.00 AM) Rs.25 per hour or part thereof (subject to minimum of 15 min stay) Rs.10/- per piece except for shopping bags or a small attach case

29

Public Transport

DTC Buses Total Fleet Avg. No of busses on road Fleet utilization Trips operated daily Kms. operated daily K.M. Efficiency Earning per Bus daily Passengers carried daily

2005-06 3470 3010 83.98% 22049 6.91 lakh 80.59% Rs 3463 28.95 lakh

2009-10

30

Customer Intention - Accessory Usage rate

Accessory

% OEM fitment

% Dealer fitment

% Local fitment

31

OEM (Competitor) Information

SWOT for OEMs in the city Technology/Production/Sales/service/Branding/Strategy Future technology introduction plans Method of projecting fuel efficiency of different vehicles

32

For Reference Types of Roads

33

For reference- Types of pavement

34