auto component industry in india · auto component industry in india. 2 contents ... research...
TRANSCRIPT
1
Automotive Component Manufacturers Association of IndiaAutomotive Component Manufacturers Association of India
Auto Component Industry in India
2
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
3
• Largest Democracy in the world with a population of 1,166 mln.•
Age structure:0-14 years: 31.1% 15-64 years: 63.6% 65-over: 5.3% Sex ratio : At birth: 1 : 1.06 male(s)/female
Life expectancy: 69.89 years male67.46 years female
1,562 11,698 140 13 101 216 20 INDIA
StateCentral
Engg., Tech., & Arch.,
Colleges#
Arts, Science & Commerce Colleges
Research Institution
s
Institutions of National
Importance*
Deemed Univers
ity*
University*States/U
Ts
Total no. of telephone connection as on Feb 2009 was 413million (14million subscriber added every month last year)
Indian IT Companies played a vital role in the development of the Airbus A380 and Boeing 787 Dreamlines
IndiaIndia--At a GlanceAt a Glance
4
Chandrayaan-1 a fantastic success: European scientist
National Aeronautics and Space Administration (NASA) astronaut Edward Michael Fincke said on Friday (September 11, 2009) the Chandrayaan Mission of the Indian Space Research Organisation (ISRO) was a success, with 95 per cent of the mission being accomplished.
Taj Mahal it's one of the 7 wonders
IndiaIndia--At a GlanceAt a Glance
Hyundai i-10, Foreign Made vehicle, 1st Launched in India then rest of the world
5
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
6
After decades of low growth, the economy After decades of low growth, the economy moved into a highmoved into a high--growth phasegrowth phase……..
2.9
5.1
7.3
3.64.0
5.6 5.2
7.9
9.2 9.8 9.3
5.75.4
5.9 5.8
4.3
0
2
4
6
8
10
1950's 1960's 1970's 1980's 1990's 2001-03 2004 2005 2006 2007 2008
Gro
wth
(%)
IndiaWorld
Slow growing closed economy Fast growing open economy
Transformation
Real GDP growth rate: India vs. World
Source: IMF Apr’09, Economic Survey 2008-09 & RBI Bulletin
Manufacturing27%
Agriculture21%
Services52%
Composition of GDPAverage Real GDP growth in last 5 years was 8.5%Projected GDP growth in 2009-10 is 6.1%
GDP Per Capita is US $ 680
7
111.5
253
291
252
181.3
149.2
61.4
78.2
182.6163
124.6
103.183.5
63.852.7 27.324.57
15.75.52.63.14.2
281
173.1
142136
107
75.4
0
50
100
150
200
250
300
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Imports(US $ bln)
Exports(US $ Bln)
FDI(US $ bln)
FE Reserves ( US $ bln)
India’s Trade, FDI and Foreign Exchange Reserves
The Indian EconomyThe Indian Economy
Source: Economic Survey 2008-09 & RBI Bulletin
8
48.4
25
46.0
20
44.9
15
44.3
12.5 10
39.5
8.5 7.5
45.549.0
Exchange Rate Import Tariff2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Source: Economic Survey 2007-08
Exchange Rate is Market Driven Continued Import Tariff Reduction
* As on March 31, 2009* As on March 31, 2009
Indian EconomyIndian Economy
Exchange Rate is Market Driven Continued Import Tariff Reduction
11
Low cost of Skilled Manpower & Rapidly growing Design Capability
Easy access to capital although interest rate is high (There is a Credit Squeeze in Short Term)
Continuously Improving Quality resulting in Export of Automobiles and Auto components
Low penetration rate of Cars (7-8/1000)
According to McKinsey, the middle class will grow from 50 million to 550 million by 2025
Infrastructure development ($500 billion in the next 5-6 years)
Long TermShort TermThe Demand DriversThe Demand Drivers
What does this mean for us?What does this mean for us?
12
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
14
16201532
132311131028
842
608564218
246222196182146114105
18381778
15451309
1210988
722669
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Cars MUVs Total Pass Veh
Source: SIAM & ACMA-McKinsey Report
2014-15
2654
277
2001-2008 CAGRCars =16.3%MUV’s = 11%Overall=15.5%
PROJECTED CAGR2008-2014Cars = 8.6%MUV’s = 4%
Overall=8.5%
3.0m
Passenger Vehicle ProductionPassenger Vehicle Production(Qty in (Qty in ‘‘000 Nos.)000 Nos.)
15
Others1.9%
Ford 1.7%
GM3.0%Honda Siel
3.2%
Tata Motors10.7%
SkodaAuto 0.9%
Maruti45.5%
Hyundai 32.1%
M.- Renault 1.0%
2007-08(Apl-Mar)
2008-09(Apl-Mar)
Market Share- Passenger Cars
Ford 2.4%
GM3.2%Honda Siel
4.2%
Tata Motors12.7%
Others2.9%
Maruti47.4%Hyundai
25.5%
M.- Renault 1.6, 2%
16
95
64
121
81
166
109
211
139
219
172
294
226
295
254
193
224
0
50
100
150
200
250
300
350
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
M&HCVs LCVs
159
202
275
350 391
5202001-2008 CAGRM & HCVs =10.7%LCV’s = 19.6%Overall=14.8%
Commercial Vehicles ProductionCommercial Vehicles Production(Qty in (Qty in ‘‘000 Nos.)000 Nos.)
549
417
17
8.48.08.47.66.55.65.14.3
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
22.0
24.0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-092009-10 2014-15
13 ?
??
CAGR2001-200810%
22--Wheeler ProductionWheeler Production
(Qty in million Nos.)(Qty in million Nos.)
18
Expectation AheadExpectation AheadFuture Numbers : 2016Future Numbers : 2016
3.00
0.50
0.08
1.10
Exports TotalDomestic Sales
Segments
35.0032.0Two Wheelers
1.470.97Three Wheelers
0.780.70Commercial Vehicles
4.103.00Passenger Vehicles
(Numbers in millions)
Global Position
Source : SIAM
7
4
12
Current Global
Position
9
11
12
19
““INDIAINDIA”” –– A Base for Compact CarsA Base for Compact Cars
Maruti Suzuki :• New car plant• Capacity 250K
Hyundai :• Increase capacity to 600K cars.
Tata Motors :• New plant to manufacture Nano Car,• Selling price USD 2000• investment US $ 240 million.• Capacity 500K
Toyota :• New Capacity 200K cars by 2008
General Motors :• New plant capacity 140K.• SOP Q3 2008.
Nissan-Renault : • 50:50 JV, • Capacity 400K• Investment USD 1 Billion
VW :
• New plant Investment Euro 400 millionSOP Q3 2009.
Honda :
• New Capacity 60K Investment $ 250 SOP Q1 2009.
Ford :
• New Investment US$ 500 million
20
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
21
Auto Component Industry Auto Component Industry
41
42
84
206
211
> 100 Million US $
> 50 ~ 100 Million US $
> 25 ~ 50 Million US $
> 5 ~ 25 Million US $
< 1 ~ 5 Million US $
Annual Turnover in Million US $
AC
MA
’sm
embe
rsh
ip c
ompr
ises
584
com
pan
ies.
Number of Companies
TS 16949TS 16949TS 16949TS 16949
OHSAS 18001
Suppliers Embracing Modern Shop-FloorPractices:
- 5-S, 7-W- Kaizen- TQM- TPM- 6-Sigma- Lean Manufacturing
Deming Award
TPM Awards 151160
18656397564
151160
18656397564
The Industry is graduating to worldThe Industry is graduating to world--classclass
22
Turnover 6.730 8.700 12.0 15.0 18.0 19.1
Exports
Investment 3.100 3.750 4.400 5.400 7.200 7.70 7%
Export as % of 18.9% 19.5% 20.5% 19.2% 19.6%Turnover
2004-05 2005-06 2006-07 2007-08
(Value in US $ Billion)
1.274 1.692 2.469 2.673 3.520
2003-04
24.6% 29% 38% 25% 20% 6%
37% 34% 47% 16% 32%
Auto Component Industry - Statistics
Imports 1.428 1.902 2.482 3.600 5.220
2008-09
3.808%
6.80
19.9%
40% 33% 30% 31% 45% 30%
Estimated
23
Electrical Parts9%
Equipments10%
Suspension & Braking Parts
12%
Body & Chassis12%
Drive Transmission & Steering Parts
19%
Engine Parts31%
Others7%
Comprehensive Product RangeComprehensive Product Range
24
18
5.46.7
8.7
15
12
19.1
0
5
10
15
20
25
2002 2003 2004 2005 2006 2007 2008
Source : MOHI Automotive Mission Plan (AMP)
2009
20
40
2016
In US$ Billion
Auto Component TurnoverAuto Component Turnover
2002 – 2008 CAGR 23.4%
POTENTIAL CAGR 2008 – 2015
11%
25
3.83.6
1.21.7
2.5 2.9
2003 2004 2005 2006 2007 2008
POTENTIAL EXPORT CAGR
2008-201527%
2009
20-22
2016
CAGR2003-2008
Exports : 26%
Projected
Auto Component Industry Auto Component Industry –– ExportsExports
5.9
(in US$ billion)
26
Aftermarket20%
OEM/TIER 180%OEM/TIER 1
35%
Aftermarket65%
1990s 2008
COMPOSITION OF EXPORTS
CONTINENT-WISE EXPORT OF AUTO COMPONENT 2007-08
Direction of Exports Direction of Exports
Middle East7%
North America22%
Africa7% Europe
44%
South America4%
Oceania1%
Asia15%
30
Auto Component Import by Major Countries
2006 2007 2008United States 100.98 97.72 91.27 -6.60
EU(27 Members) 47.24 54.93 61.13 11.29China 25.99 28.05 32.35 15.32Japan 17.75 17.53 19.81 13.00South Korea 10.92 10.32 11.48 11.28India 3.60 5.34 7.43 39.00
% Share
% Change
2006 2007 2008 20082008/200
7
World 47.24 54.93 61.13 100.00 11.3Japan 10.52 11.65 12.45 20.36 6.8United States 8.43 8.37 8.88 14.52 6.1China 5.28 6.65 8.39 13.72 26.2Turkey 3.57 4.84 5.53 9.04 14.3South Africa 2.81 3.50 3.80 6.21 8.6Switzerland 2.79 3.13 3.33 5.44 6.1Korea South 1.33 2.27 2.62 4.28 15.3India 1.24 1.69 2.22 3.62 31.2Taiwan 1.48 1.72 1.95 3.19 13.7
Auto Component Import by European Union(27 Members) Year To Date: January - December
Partner CountryValue in US $ Billion
Auto Component Import by Major Countries
Year To Date: January - December
Reporting Country Value in US $ Billion % Change
31
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
32
Increase export revenueTo $ 35 billion by 2016 from
$ 4.1 billion at present
On 29.01.07, the Prime Minister released Automobile Plan 2006 -2016 to give a road
map to Indian Automobile Industry
Automotive Mission Plan 2016Automotive Mission Plan 2016
Increase turnover to$145 billion by 2016
from $ 35 billionat present
Provide employment toadditional 25 million people
by 2016
Automotive Plan 2016
By 2016, the Automotive sector is expected to contribute
10% of the country’s GDP and 30~35% of the Industry
Government of IndiaSIAMACMA
33
2020
11
2020
Achieve $20 billion in Domestic SalesAchieve $20 billion in Domestic Sales
Achieve $20 billion in Exports SalesAchieve $20 billion in Exports Sales
Create 1 million additional JobsCreate 1 million additional Jobs
20:20:120:20:1
ACMA Vision for 2016ACMA Vision for 201620 : 20 : 120 : 20 : 1
Growth of the Automotive Component Industry directly linked with the growth of Automobile Industry.
Over 70% sales to the OEM
34
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
35
Hybrid Scorpio: First in SE Asia!Hybrid Scorpio: First in SE Asia!
• It is Diesel Electric • Parallel, Full Hybrid Vehicle• Offers
• Start – Stop• Electric Launch• Torque Augmentation• Regenerative Braking
• Seamless, enhanced driving experience
Capacity 500K
• The Price Rs 100,000~($ 2000)
Tata Tata NanoNano: The Low Cost Car of The World: The Low Cost Car of The WorldCapability of Indian ManufacturersCapability of Indian Manufacturers
36
Capability of Indian Capability of Indian Component SuppliersComponent Suppliers
1. Conversant in all Global Automotive Standards
2. Investments in R&D to meet OE Customer requirements
3. Flexibility in small-batch production.
4. Growing IT Capability for Design, Development & Simulation.
5. Respect for Intellectual Property
38
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
39
The Way Forward
1. Auto-Component Sector needs US $ 1.5 billion of new investments every year for next 8 years.
2. Overseas auto-component manufacturers, especially SMEsshould invest more in capacity enhancements and green-field manufacturing in India – to meet growing domestic demand for auto-components.
3. Investments in Auto-IT sector is a high potential area.
4. To encourage new wave of partnerships at the Tier 2/3 level covering the entire automotive supply chain to address not only product technology, but also “Process Technology”.
40
• Manufacturing
• Technology
• Research & Development
• Quality
• Environment
Areas of Cooperation
41
The Addressable Opportunity…
• Establish Partners/JV in India for
- Safety Components
- Auto Electronics, Electromechanical Sub assemblies
- Embedded Systems
- Informatics & Telematics
- New Material
- Simulation Technology
• Collaboration for Manufacturing Excellence and Process Design
• Production Sharing in India & Germany for a Holistic Service Capability
• Partnering for Global Requirements
• Merger & Acquisition •
42
ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Growing Capabilities of the Indian IndustryGrowing Capabilities of the Indian Industry
The Way ForwardThe Way Forward
IndiaIndia--At a GlanceAt a Glance
ACMA & Its ServicesACMA & Its Services
Automotive Mission PlanAutomotive Mission Plan
Supply Industry of India & Global ExperiencesSupply Industry of India & Global Experiences
43
Introduction
Automotive Component Manufacturers Association of India
Role
Members
Quality System
Re-Christened
Inception
An apex agency of the Indian Automotive Industry
570+ companies forming majority of the auto component output in the organized sector
ACMA operates on Quality System basedon ISO 9001:2000
In the year 1959 as The All India Automobile & Ancillary IndustriesAssociation (AIA & AIA)
As Automotive Component Manufacturers Association of India in the year 1982
44
Collection &Dissemination of
Information
QualityEnhancement
TechnologyUp-gradation
Promotes IndianAutomotive Component Industry
Vital Catalyst for Industrial Development
Trade Promotion
ACMA and Its ServicesACMA and Its Services
45
Promote India as a Brand
Promote India as a Brand
Organize Business Development Delegation
Overseas
Organize Business Development Delegation
Overseas
Undertake ExportPromotional
Projects
Undertake ExportPromotional
Projects
Organize Participation in Overseas Automobile
Exhibitions & Fairs
Organize Participation in Overseas Automobile
Exhibitions & Fairs
Global Interaction through
Counterpart Association
Global Interaction through
Counterpart Association
Dissemination of Export Enquiries
Dissemination of Export Enquiries
Organize Private Exhibitions &
Suppliers Conference
Organize Private Exhibitions &
Suppliers Conference
Facilitate potentialBusiness Partnership of
JV / Strategic Alliance
Facilitate potentialBusiness Partnership of
JV / Strategic Alliance
Providing International
Sourcing Forums
Providing International
Sourcing Forums
Working closelywith IPOs in IndiaWorking closely
with IPOs in India
International Business DevelopmentInternational Business Development
47
ACMA OfficeThe Capital Court, 6th Floor, Olof Palme Marg, Munirka,
New Delhi – 110 067Tel: 011-26160315, 26175873, 74
Fax: 011-26160317E-mail: [email protected],
Website: www.acmainfo.com