ACMA Presentation

About ACMA

2

About ACMA

• Established in 1959

• Apex body of Auto Component Industry in India

• Over 700+ members from the Organized sector

• Represents 85% of the Industry by turnover

• Represented on all Government and Industry bodies –

Strategic to the Auto Sector

• Offices across all Regions in the Country

• An ISO 9001-2008 Institution

ACMA – Excellence in Service Delivery

3

Collection &

Dissemination of

Information

Quality

Enhancement

Technology

Up-gradation

Promotes IndianAutomotive Component Industry

Vital Catalyst for Industrial

Development

Trade Promotion

ACMA Services

4

ACMA Centre for Technology (ACT)

• ACT focuses on providing technical services to ACMA

members for improving process and quality capabilities

through Cluster Programmes

- ACT SME Cluster

- ACT UNIDO Partnership Program

- ACT SME Advance Cluster

- ACT Foundation Cluster

- ACT Advance Cluster

- ACT Engineering Excellence Cluster

• ACT Clusters Programs

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India: A Vibrant Economy

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1. Largest Democracy – 1.2 billion people, Growing Middle Class

2. 3th largest GDP (PPP) and 10th largest GDP (Nominal, USD 2 trillion)

3. One of the fastest growing economies – 2014-15: ~ 7.5% (E)

• India’s average GDP growth rate for the last five year: over 7%

4. 3rd Largest Investor base in the World

5. Robust Legal and Banking Infrastructure

6. Demographics Advantage – Youth driven economy

7. Suburbanization & Rural to Urban Migration – 140 million by 2020; 700 million

by 2050

8. 2nd largest pool of Certified Professionals and highest number of Qualified

Engineers in the world

9. Investment in Infrastructure

India: A Vibrant Economy

7

Infrastructure Development – A Special Thrust

Railways

USD 117 bn

Roads

USD 172 bn

Total planned

infrastructure

investments of

USD 1 Trillion*

from 2012-17

Airports

USD 16 bn

Energy

USD 331 bn

Ports

USD 36 bnTelecommunication

USD 172 bn

8USD 10 bn for 100 smart cities

Automotive Industry in India

9

Automotive Clusters in India

West

Tata Motors

North

Significant Manufacturing base of OEMs – Indian & Global

Ashok Leyland

BMW

Caterpillar

Daimler

Ford

Hyundai

Nissan

Renault

Royal Enfield

Same Deutz

TAFE

Tata Motors

Toyota Kirloskar

TVS

Volvo Buses

East

South

Eicher

Escorts

Hero Moto Corp

Honda Motorcycle

Honda SIELCars

ICML

JCB

Maruti Suzuki

New Holland

Mahindra

Suzuki Motorcycles

Swaraj Mazda

Tata Motors

Yamaha

Bajaj Auto

Fiat

Force Motors

GM

John Deere

Mahindra

Man Force

Mercedes Benz

PSA

Skoda

Tata Hitachi

Tata Motors

Volkswagen

Volvo Eicher

(Illustrative List)

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*New Hub: Sanand

Tata Motors, Maruti, Ford India,

Source: SIAM

Where does India stand?

Largest TRACTOR manufacturer

2nd Largest TWO WHEELER manufacturer

2nd Largest BUS manufacturer

5th Largest HEAVY TRUCK manufacturer

6th Largest CAR manufacturer

8th Largest COMMERCIAL VEHICLE manufacturer

Vehicles Exported From India

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Hyundai - i10

Maruti - Alto

Hyundai - EON

Tata - Indica Mahindra - Bolero

Volkswagon - Polo

Maruti - A Star

Nissan - Micra

(Illustrative List)

Hyundai - i20

Bajaj Auto - Pulsar Hero MotoCorp – Splendor

13Ashok Leyland

Piaggio - Ape Tata - Magic

Tata Mahindra

Bajaj - Auto

Mahindra - Alfa Mahindra - GioMahindra - Maxx

Vehicles Exported From India

(Illustrative List)

(’000 units)

CAGR 2011-15: 2%

Passenger Vehicles Production

Figures for financial year – April to March

14

Source: SIAM

29873146

32343087

3220

1000

1500

2000

2500

3000

3500

2010-11 2011-12 2012-13 2013-14 2014-15

545

640579

697

613

0

200

400

600

800

2010-11 2011-12 2012-13 2013-14 2014-15

Figures for financial year – April to March

( ’000 units)

Commercial Vehicles Tractors( ’000 units)

CAGR 2011-15: 3%

Two & Three Wheelers(In ’000 units)

Commercial Vehicles include:

• Small Commercial Vehicles (SCV) < 1 ton

• Light Commercial Vehicles (LCV) > 1 ton but < 7.5 tons• Medium Commercial Vehicles (MCV) > 7.5 tons but <16 tons

• Heavy Commercial Vehicles (HCV) > 16 tons

Construction Vehicles*

( ’000 units) CAGR 2011-15: -2.6%

CAGR 2011-15: -2%

CAGR 2011-15: 8%

Other Vehicles Production

Source: SIAM

753

929833

699 697

0

200

400

600

800

1000

2010-11 2011-12 2012-13 2013-14 2014-15

1417616330 16584

1771319449

0

5000

10000

15000

20000

25000

2010-11 2011-12 2012-13 2013-14 2014-15

62.369.2

50.5 5256

10

30

50

70

90

2010-11 2011-12 2012-13 2013-14 2014-15

* E&Y Estimates

Auto Component Industry in India

16

25.3%

35.9%

8.7%

5.6%

-2.0%

11.1%

-10%

0%

10%

20%

30%

40%

0

500

1000

1500

2000

2500

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

17

Turnover - Auto Component Industry: 2010-15

Gro

wth

Rate

in R

up

ee

Te

rms

(Turnover includes supplies to OEMs, aftermarket sales and exports)

1386 (30.8)

2160 (39.7)

1883 (41.3)

2046 (42.2)2117 (35.1)

Tu

rno

ve

r in

IN

R’

00

Cro

re (

US

D B

illi

on

)

CAGR: 11%

2348 (38.5)

18

Product Range - Auto Component Industry

The Industry produces High Quality – Cost Competitive

Components in all product segments.

Engine Parts; 31%

Drive Transmission & Steering Parts;

19%

Body & Chassis; 12%

Suspension & Braking Parts; 12%

Equipments; 10%

Electical Parts; 9%

Others; 7%

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Auto Components Supply to OEMs

OEMs consumption includes locally produced Components and Imports

SCV Less than 2 T

LCV 2 to 7.5 T

MCV 7.5 to 16 T

HCV More than 16 T

PVs, 45%

SCV , 1%LCV , 4%

MCV , 5%

HCV, 8%

Three-Wheeler, 4%

Two-wheelers, 22%

Backhoe Loaders, 2%

Others, 2%Tractors, 8%

-19.3%

60.7%40.7%

23.3%16.7%

11.4%

-40%

0%

40%

80%

0

300

600

900

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

189 (4.2)

614 (10.2)

526 (9.7)

427 (8.8)

303 (6.7)

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Exports - Auto Component Industry: 2010-15

Exports Destinations: Top 10 Countries

USA 22.35 Thailand 3.38

Germany 7.51 Brazil 3.37

Turkey 6.49 China 3.07

UK 5.43 UAE 2.95

Italy 4.79 France 2.92

Tu

rno

ve

r in

IN

R’ 0

0 C

rore

(U

SD

Billi

on

)G

row

th R

ate

in R

up

ee

Te

rms

CAGR: 29%

Africa7.28%

Latin America and the

Caribbean7.04%

North America23.25%

Asia25.29%

Europe36.39%

Oceania 0.75%

685 (11.2)

21

725 754

2194

2605

3866

86

817 789

26092839

4084

840

1000

2000

3000

4000

5000

Africa Latin Americaand the

Caribbean

North America Asia Europe Oceania

2013-2014 2014-2015

12.6% 4.6%

18.9%9.0%

5.6%

2.0%

Fig

ure

s i

n U

SD

Mil

lio

n

Exports by Region

India’s Export Growth Rate: -1.2%

Auto Component Export Growth Rate: 10%

2100

831

525627

499

344412

314 288 337

2508

843728

610537

379 379 344 331 327

0

500

1000

1500

2000

2500

3000

USA Germany Turkey UK Italy Thailand Brazil China UAE France

2013-2014 2014-2015

22

Fig

ure

s i

n U

SD

Mil

lio

n

Exports: Top 10 countries

19%

1%39%

8% 10% 10%15%

3%

8% 3%

23

Exp

ort

sHydraulic Power Steering Systems & Steering Gear Systems and Parts

Gear boxes and parts

Parts of Diesel Engines

Parts for automobiles and earth moving Equipment

Drive-axles and parts

Spark Ignition and parts

Suspension systems and parts

Crank shaft for engines

Toothed wheels, other transmission parts

Brakes and servo-brakes; parts

Key Auto Components Exported

(Illustrative list/ Products in random order)

-4.4%

38.1%

34.3%

11.6%3.6%

7.5%

-40%

0%

40%

80%

0

300

600

900

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

24

Imports - Auto Component Industry: 2010-15

Origin of Imports: Share of Top 10 in %

China 23.94 USA 6.96

Germany 14.57 Italy 3.75

Japan 11.53 UK 2.67

South Korea 10.66 France 2.01

Thailand 8.27 Spain 1.40

Tu

rno

ve

r in

IN

R’ 0

0 C

rore

(U

SD

Billi

on

)G

row

th R

ate

in R

up

ee

Te

rms

CAGR: 18%

360 (8.0)

744 (13.7)771 ( 12.8)

829 (13.58)

Africa; 1.04% Latin America &

Caribbean; 1.21%North

America; 7.21%

Asia; 57.97%

Europe; 32.45%

Oceania ; 0.12%

497 (10.9)

667 (13.8)

114152

812

75054218

18

142 164

979

78744408

16

1

10

100

1000

10000

Africa Latin Americaand the

Caribbean

North America Asia Europe Oceania

2013-2014 2014-15

25

Fig

ure

s i

n U

SD

Mil

lio

n

Imports by Region

India’s Import Growth Rate: - 0.4%

Auto Components Import Growth Rate: 6 %

19%8%

17%

5%4%

11%

2671

1929

1593 1527

941821

483

293 315 276

3170

1979

15661448

1123945

510363

273191

0

1000

2000

3000

4000

China Germany Japan SouthKorea

Thailand USA Italy UK France Spain

2013-2014 2014-15

19%

5%

15%19%

3%

24% 31%13%

5%2%

26

Fig

ure

s i

n U

SD

Mil

lio

n

Imports: Top 10 countries

0

0.5

1

1.5

2

2.5

3

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

27

0.33-0.46 ( 20-28 )

1.7 ( 77 )

2.0 - 2.5 ( 91-102 )

1.6 – 1.9 ( 77-92 )

1.26-1.75 (69-95)

Capital Investment - Auto Component Industry: 2010-15

US

D B

illi

on

( ‘

00

Cro

re )

0.53-0.73 ( 32-44 )

28

Aspiration 2020

Indian auto component industry to cross USD 100 billion mark

With Export of USD 35 - 40 billion

5 suppliers in global 100

USD 20-22 billion in revenue from overseas assets

Favorable Policy Regime

Auto Policy 2002 and Auto Mission Plan 2006-16 – framework for Automotive

Manufacturing in India

• Manufacturing and Imports Free from Licensing and Approvals

• WTO compliant policies (no import restrictions and reduced

tariff levels)

• Robust Legal system and stable Foreign Exchange regime

• Joined UN-ECE WP 29 for Global Standard in Technology

• Increased budgets for R&D activities

• 100% FDI permitted without prior Govt. approval

Robust Indian

Automotive

Industry

29

Capabilities & Challenges of Indian Component

Suppliers

30

Indian Suppliers’ Focus – Global Best Practices

Industry fast embracing modern

shop-floor practices:

5-S; 7-W

Kaizen

TQM

TPM

6 Sigma

Lean Manufacturing651

546

287

162

ISO 9001

TS 16949

ISO 14001

OHSAS…

Deming

Award - 14

Japan Quality

Medal - 5JIPM - 3Shingo Silver

Medallion - 2

TPM Award

- 15

Largest no. of Deming Award winning companies outside Japan

Focus on Quality

31

Increasing focus on Innovation and Research

• AMD

• Boeing

• Bosch

• Caterpillar

• Continental

• Cummins

• Ford

• GM

• GE

• Honda

• Honeywell

• Hyundai

• Intel

• Magna

• Mercedes Benz

• Microsoft

• Renault Nissan

• Suzuki

• Valeo

Design & Research Centers of leading Global companies in India

(Illustrative List)

32

33

Challenges

Ch

alle

ng

es

High Cost of Capital

Capacity Utilization

Infrastructure Challenges & Cost

Roads

Ports

PowerImports - higher than exports

Combating Counterfeit Parts

Skilled Manpower

Building R&D Competence & Ecosystem

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Summary

Figures in INR’ 00 Crs

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Turnover 1,386 1,883 2,046 2,160 2,117 2,348

Growth rate(%) 25.3 35.9 8.7 5.6 -2.0% 11.1%

Export 189 303 427 526 614 685

Growth rate(%) -19.2% 60.3% 40.9% 23.2% 16.7% 11.4%

Import 360 497 667 744 771 829

Growth rate(%) -4.3% 38.1% 34.2% 11.5% 3.6% 7.5%

Investment 77 91-102 72-92 69-95 32-44 20-28

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Summary

Figures in USD Billion

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Turnover 30.8 41.3 42.2 39.7 35.1 38.5

Growth rate(%) 27.8 34.1 2.2 -5.9 -11.5 9.6

Export 4.2 6.6 8.8 9.7 10.2 11.2

Growth rate(%) -17.6 58.6 32.3 9.9 5.4 10.0

Imports 8 10.9 13.8 13.7 12.8 13.5

Growth rate(%) -2.4 36.3 26.2 -0.6 -6.3 6.1

Investment 1.7 2-2.5 1.6-1.9 1.2-1.7 0.53-0.73 0.33-0.46

ACMA

The Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – 110 067

Tel: 011-26160315, Fax: 011-26160317

E-mail: acma@acma.in, Website: www.acma.in

Thank You

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