Você está na página 1de 23

www.imacs.

in

Automotive
September 2006

www.imacs.in

AUTOMOTIVE

Contents
Market Overview Government regulations & policy India Advantage and business opportunities

www.imacs.in

AUTOMOTIVE

Market Overview
Market Overview Government regulations & policy India Advantage and business opportunities

www.imacs.in

AUTOMOTIVE

Market Overview

Profile: Indian Automotive Industry


The industry has grown at a CAGR of 14% p.a over the last 5 years,
with sales of 9 million vehicles in 2005-06

With the potential to emerge as one of the largest in the world. Presently, India is 2nd largest two wheeler market in the world 4th largest commercial vehicle market in the world 11th largest passenger car in the world and is expected to be the 7th largest market by 2016 The industry has emerged as a key contributor to the Indian economy
Vehicle sales in India in 2005 - 06 ( in mil)

0.36 7.05 0.35 1.14

Size of around US$ 34 billion in 2006

0
Cars

2
CVs

4
Two wheelers

6
Three Wheelers

Source : SIAM

www.imacs.in

AUTOMOTIVE

Market Overview

Auto components industry has also grown at a rapid pace ...


Size of Component Industry (US$ mn)
10000

The Indian auto components


industry has grown at 17% CAGR over the last few years to reach a size of around US$ 10 billion in 2005-06

17%
6730 3849 3965 4470 5430

8700

Market breakup: OEM demand


~ 54%, replacement market ~30%, exports ~16%

FY00

FY01

FY02

FY03

FY04

FY05

FY 06

FY refers to Financial Year April to March

Source : ACMA

www.imacs.in

AUTOMOTIVE

Market Overview

Players: Indian auto industry



GM Toyota Ford Hyundai Maruti Suzuki Honda Skoda Volvo Mercedes
Indian Auto Industry

Global OEM

Indian OEM

Tata Motors Mahindra & Mahindra Bajaj Auto TVS Motors Hero Honda Bajaj Tempo Ashok Leyland

Delphi Visteon Bosch Denso Valeo Thyssen Krupp

Global Suppliers

Indian Suppliers

Engineering & Development Companies

Bharat Forge Sundram Fasteners Rane Group Shriram Pistons RICO Auto Sono Koyo Steering

The Indian auto industry is highly competitive with a number of global and Indian auto companies present

www.imacs.in

AUTOMOTIVE

Market Overview

Automotive clusters in India


North / Central
Delhi-Gurgaon-NoidaGhaziabad Ludhiana Haridwar
Ashok Leyland Force Motors Hindustan Motors Honda SIEL Kinetic Majestic Piaggio Swaraj Mazda Eicher Hero Honda Honda ICML LML Maruti Suzuki Yamaha Tata Motors

South
Ashok Leyland Ford Hindustan Motors Mahindra & Mahindra Toyota Kirloskar Volvo Enfield Greaves Hyundai Tatra TVS Motors

Pitampur Jamshedpur Rajkot-Halol Kolkata

East
Hindustan Motors Tata Motors

West
Ashok Leyland Atul Auto Bajaj Auto Daimler Chrysler FIATForce Motors GM Greaves Kinetic M&M Premier Skoda Tata Motors

Mumbai-Pune-Nasik Aurangabad

Hyderabad

Chennai Bangalore Hosur

Major automotive clusters - Mumbai-Pune-NasikAurangabad (West), Chennai -Bangalore-Hosur (South) and Delhi-Gurgaon-Faridabad (North)

Source: SIAM, IMaCS analysis

www.imacs.in

AUTOMOTIVE

Market Overview

Exports are rising - India has the potential to become the global outsourcing hub
Vehicle Exports from India
600000 500000 400000 300000 60 50 40 30 20 10 0 CV Cars Exports (2005-06) 2 Wheelers 3 Wheelers %

Export of auto components (USD million )


1,800

25%
456 625 578 760

1400 1020

Units
200000 100000 0

FY00

FY01

FY02

FY03

FY04

FY05

FY06

Growth rate ( 4 year CAGR)

Indian vehicle exports have grown at a scorching rate of over 40 % over the last few years, while component exports have grown at around 25 % per annum. Key exporters include:

Maruti, Tata Motors, M & M and Hyundai for Passenger Cars and MUVs Tata Motors and Ashok Leyland for LCV / M & HCVs B Bajaj, TVS Motors and Hero Honda for 2 wheelers

www.imacs.in

AUTOMOTIVE

Market Overview

Growth drivers for the Indian automotive industry

Government Policies

Overall economic growth Lower duties & taxes

Contemporary products Shorter life cycle

New product launches

Indian Automotive Industry

Increasing consumer demand

Growth in Income levels Easier financing

Export Competitiveness Reduced cost to consumer India emerging as a manufacturing hub

Cost Competitiveness

www.imacs.in

AUTOMOTIVE

Market Overview

Growth potential of the Indian automotive industry


Projected size of Auto Components industry - 2015
Potential Vehicle sales in India in 2015 - 06 ( in mn)

0.87
Domestic Components

USD 13 - 15 bn

2015-16

27.8 0.64 2.65

Components Exports

USD 20 - 25 bn
0
0 5 10 $ Billion 15 20 25

10
Cars CVs Two wheelers

20
Three Wheelers

30

The Indian auto component industry is


well positioned to capitalise on the growth in outsourcing to low cost countries

The size of the Indian automotive industry is


expected to grow at 13% p.a over the next decade to reach around USD 120 - 159 bn by 2016.

Exports would lead the growth in the


component industry, which is expected to be around USD 33- 40 bn by 2015

The total investments required to support the


growth is estimated at around USD 35 - 40 bn

Source: AMP Vision, ACMA Vision

www.imacs.in

AUTOMOTIVE

Government regulations and policy


Market Overview Government regulations & policy
India Advantage

and business opportunities

www.imacs.in

AUTOMOTIVE

Government regulations & policy

Policies relating to the sector: Auto Policy


In 2002, the Indian government formulated an auto policy that aimed at promoting
integrated, phased, enduring and self-sustained growth of the Indian automotive industry

allows automatic approval for foreign equity investment upto 100%


in the automotive sector and does not lay down any minimum investment criteria.

lays emphasis on R & D activities carried out by companies in India Weighted tax deduction of upto 150% for in-house research and R & D activities Formulation of an appropriate auto fuel policy to ensure availability of adequate amount
of appropriate fuel to meet emission norms

confirms the governments intention on harmonising the regulatory standards


with the rest of the world

www.imacs.in

AUTOMOTIVE

Government regulations & policy

Automotive regulations in India


Indian automotive regulations are closely aligned to the ECE regulations. The table below shows the level of alignment of the Indian regulations with the ECE regulations

Status of Indian Regulation


Fully / Partially aligned In process of being aligned Items / Regulations to be covered Total

Number of regulations
43 32 39 114

The key regulations that are likely to impact the auto industry in the future are:

Crash Related Regulations Introduction of Bharat Stage IV norms

Source: IMaCS Analysis

www.imacs.in

AUTOMOTIVE

Government regulations & policy

Trends in future regulations Safety and Emission related


Regulation Road Map Targets Industry challenges to development Better vehicles: safer and more environment friendly Approach

Harmonization with ECE standards Homologation and Certification testing


agencies and centres

2004

2005

200 6

200 7

200 8

2009

2010

Crash requirements aligned with EU Mandatory Airbags Bharat Stage IV in Metros and Bharat Stage
III in rest of the country

India is expected to align its crash requirements and emission standards with European standards in the 2008 / 09 timeframe Presently Bharat Stage III ( Equivalent to Euro III) is mandated in Metros and other large cities and Bharat Stage II ( Equivalent to Euro II) for the rest of the country Bharat Stage IV ( equivalent to Euro IV) is expected to be introduced in the large Indian metros around 2009 and Bharat Stage III in the rest of the country

www.imacs.in

AUTOMOTIVE

Government regulations & policy

State-of-the-art test facilities will support the growth of the auto industry
The Government of India is promoting
National Automotive Testing and R&D Infrastructure Project (NATRIP) to support the growth of the auto industry in India
New testing & homologation center at MANESAR New testing center for tractors & off-road vehicles, accident data analysis and specialised driving training at RAE BAREILLY Up-gradation of VRDE at AHMEDNAGAR Up-gradation of ARAI at PUNE New complete proving ground at INDORE Hill Area driving training center and Regional In-Use vehicle management center at SILCHAR

NATRIP envisages setting up of five

independent and up gradation of existing test centres Testing centres at Manesar (Haryana), Chennai
(Tamil Nadu), Pune (Maharashtra) Proving ground at Indore (MP) Tractor testing facility at Rae Bareilly (UP)

Hill Driving Training Centre at Silchar (Assam)

New test & homologation center near CHENNAI

www.imacs.in

AUTOMOTIVE

India Advantage and business opportunities


Market Overview Government regulations & policy
India Advantage and

business opportunities

www.imacs.in
India Advantage

AUTOMOTIVE

and business opportunities

Attractiveness of the Indian automotive industry


Large and growing domestic demand Demand growth expected to be around 10 % CAGR making India one of the fastest growing markets Export Potential Increased outsourcing has led to a large potential to export components and vehicles to other markets

Proven product Development capabilities

Capabilities to develop complete vehicles and


systems

More than 125 Fortune 500 (including large


auto companies) have R&D centres in India acknowledged leadership in the IT industry

Companies can leverage Indias

Indian Auto Industry

High quality standards 12 Indian component manufacturers have won the Deming Prize for quality Most leading component manufacturers are QS and ISO certified

Stable economic policies Continuity in reforms and policies India targets to emerge as the manufacturing hub for small cars

Competitive manufacturing cost Implementation of VAT, has positioned India as one of the leading low cost manufacturing sources

www.imacs.in
India Advantage

AUTOMOTIVE

and business opportunities

Opportunities in the Indian automotive sector


Domestic Opportunities Indian Automotive Sector Global outsourcing Opportunities

Participate in domestic growth


opportunities

Exports of vehicles Exports of components Engineering and Design


Services

Potential investors can capitalise on opportunities both in the domestic


and export oriented segments

Investment potential of upto USD 35 - 40 bn in this sector over the next 10 years Investments in the Indian automotive industry can be in various forms 100 % subsidiary - 100 % FDI through automatic route allowed in this sector JVs with local firms Technology support or sharing agreements

www.imacs.in
India Advantage

AUTOMOTIVE

and business opportunities

Key players in the Indian auto industry Passenger Cars and CVs
The largest player in the Indian industry. Plans to launch new and exciting products in the Indian markets, including the 100,000 car Suzukis JV in India and the largest passenger car manufacturer in India

The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Has established India as one of its manufacturing bases in the world. Is planning to invest heavily to boost exports from India

Has vision of capturing 10 % share of the Indian passenger car market by 2010

One of the leading players in the Indian premium cars segment

One of the leading players in the Indian premium cars segment

www.imacs.in
India Advantage

AUTOMOTIVE

and business opportunities

Key players in the Indian auto industry - Passenger Cars and CVs
One of the leading players in the Indian premium cars segment. Plans to enter the small car segment by re-launching the Matiz

One of the largest players in the UV / MUV segment

The 2nd largest CV manufacturer in India

Other global players who are in India / have plans for India include Volvo, Daimler Chrysler, BMW and Nissan Motors

www.imacs.in
India Advantage

AUTOMOTIVE

and business opportunities

Key players in the Indian auto industry - Two wheelers


The largest 2 wheeler manufacturer in the world

The 2nd largest 2- wheeler manufacturer in India and the largest 3 wheeler manufacturer. Has plans for establishing a manufacturing facility in Indonesia The third largest 2 wheeler manufacturer in India. Has plans for establishing a manufacturing facility in Indonesia

Has recently entered the Indian market through its direct subsidiary ( in addition to its JV Hero Honda) Has recently entered the Indian market through its direct subsidiary

www.imacs.in

AUTOMOTIVE

The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce & Industry, Government of India and the Confederation of Indian Industry. The Foundations primary objective is to build positive economic perceptions of India globally India Brand Equity Foundation c/o Confederation of Indian Industry 249-F Sector 18, Udyog Vihar Phase IV Gurgaon 122015, Haryana, INDIA Tel +91 124 401 4087, 4060 - 67 Fax +91 124 401 3873 Email j.bhuyan@ciionline.org Web www.ibef.org

www.imacs.in

AUTOMOTIVE

ICRA Management Consulting Services Limited

Disclaimer
This publication has been prepared by ICRA Management Consulting Services (IMaCS) for the India Brand Equity Foundation (IBEF). All rights reserved. All copyright in this publication and related works are jointly owned by IBEF and IMaCS. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication), modified or in any manner communicated to any third party except with the written approval of IBEF. This publication is for information purposes only. While due care has been taken during the compilation of this publication to ensure that the information is accurate to the best of knowledge and belief of IBEF and IMaCS, the content is not to be construed in any manner whatsoever as a substitute for professional advice. IBEF and IMaCS neither recommend nor endorse any specific products or services that may have been mentioned in this publication and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this publication. IBEF or IMaCS shall in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this publication.

Você também pode gostar