HIGHLIGHTS OF INDIAN AUTO ANCILLARY INDUSTRYbig-consultants.com/images/Auto Ancillary.pdf · The Automobile Industry Auto Ancillary Industry of ... The major exports of the Auto Components

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HIGHLIGHTS OF

INDIAN AUTO ANCILLARY INDUSTRY

http://www.big-consultants.com/



BIG Strategic Management Consultants

Indian Economy Scenario

• The Automobile Industry

• Auto Ancillary Industry of India

• Growth Drivers of Auto Industry in India

• Key Players in the Auto Ancillary Industry

• How can BIG Help?

2

CONTENTS


Source: International Monetary Fund (IMF)

INDIAN ECONOMIC SCENARIO

India is among the top 15 countries in the global economy in terms of GDP at current prices.

After several consecutive years of strong growth, the world economy entered into the worst recession which started in

third quarter of 2008.

All the advanced economies faced deep economic crisis , as the world GDP dropped by 1.3% in 2009.

The signs of recovery shall be visible from fourth quarter of 2010.

The Indian economy which has also been impacted by the global turmoil, posted a growth of 6.7% in FY 2009.

4,950 6,364 7,260 8,957 9,523 10,142 5,893 9,617 11,550 14,803 10,324 16,704 11,173 18,763 20,696

26,588 36,064 32,811

0

10000

20000

30000

40000

50000

60000

70000

2003-04 2005-06 2006-07 2007-08 2008-09 2009-10

INR

Bill

ion

(at C

urre

nt P

rice

s)

INDIA- GDP

Primary Secondary Tertiary

Agriculture 17%

Industry 20% Services

63%

GDP Composition 2009

3


INDIAN ECONOMIC SCENARIO

9.2 9.8 9.3 6.7 7.2

5.4 5.9 5.8 4.3

-2.2

-5

0

5

10

15

2006 2007 2008 2009 2010

Gro

wth

Rat

e (in

%)

Real GDP Growth Rate: India vs. World

INDIA WORLD

8,547

11,927 13,718 13,153 13,436

5,874 7,684 8,608 8,344 8,721

740 1,158 1,287 1,556 1,674

02000400060008000

10000120001400016000

2006 2007 2008 2009 2010*

INR

Bill

ion

INDIA - Growing Trade and Investments

Imports Exports FDI

Transformation

Average Real GDP growth in

last 5 year was 8.5%.

GDP Per Capita is INR 48,000

Projected GDP growth in

2010-11 is 8.2%

Indian Economy is expected to grow at the rate of 7.2% in the year 2010 and the growth for the second quarter of 2010 was 8.5%.

Source: Automotive Components Manufacturers Association of India (ACMA)


4


• Indian Economy Scenario

The Automobile Industry





CONTENTS

5


1,545 1,778 1,838 2,351 520 549 417 566

8,400 8,000 8,400 10,500

353 346 340

433

0

2000

4000

6000

8000

10000

12000

14000

16000

2006-07 2007-08 2008-09 2009-10

Num

ber (

in ‘0

00)

Manufacturing of Automobiles in India

Passenger Vehicles (in '000) Commercial Vehicles (in '000)Two Wheelers (in '000) Tractors (in '000)

INDIAN AUTOMOBILE INDUSTRY MARKET


The Indian Automobile Industry is expected to reach the Market size of INR 2684 Billion by the end of 2010 from INR 2324 Billion in

2009.

The total number of Automobiles on the Indian roads has reached a mark of 2.6 Million in 2009.

The Indian Automobile Industry contributes nearly 7.5% to the GDP.

The Automobile industry in India is the seventh largest in the world

68.21%

31.79%

Indian Automobile Industry (INR 2324 Billion as of 2009)

Automotive Auto Ancillary

6

Source: Market Forecast and Indicators


Players: Indian auto industry

Global OEM

Indian OEM

Indian Suppliers

Global Suppliers

Engineering &

Development Companies

Indian Auto

Industry

INTERNATIONAL AUTOMOBILE BRANDS GM Toyota Ford Hyundai Maruti Suzuki Honda Skoda Volvo Mercedes

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

INDIAN AUTO ANCILLARY BRANDS Bharat Forge Sundram Fasteners Rane Group Shriram Pistons RICO Auto Sono Koyo Steering

INTERNATIONAL AUTO ANCILLARY BRANDS Delphi Visteon Bosch Denso Valeo Thyssen Krupp

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

INDIAN AUTOMOBILE INDUSTRY OVERVIEW

According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the

expansion of manufacturing facilities of several automobile companies

7


CONTENTS



Auto Ancillary Industry of India

• Growth Drivers of Auto and it’s Ancillary Industry in India



8



-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2006 2007 2008 2009

42,780 51,336

61,603

73,924

Market Size (Value in INR Crores)

The Indian Auto Ancillary Industry grew at a CAGR 20% for past couple of years.

Having gained the global recognition, the Indian Auto Ancillary Industry exports are placed at around INR 16,000 crores.

The sector is composed of 500 medium and large players, besides over 5,000 units in the small scale sector.

Owing to Improved performance by the auto industry in the domestic market as well as on the export front, the overall production

jumped to INR 70,000 crores in 2009.

There are more than 25,000

items and parts that are

produced in Indian Auto

Ancillary Industry every

year.

The Indian Auto Ancillary Industry has been navigating through a period of rapid changes with great élan.

INDIAN AUTO ANCILLARY INDUSTRY MARKET

9



Engine Parts 31%

Electrical Parts 9% Drive &

Transmission & Steering Parts

19%

Suspension & Braking Parts

12%

Body & Chases 12%

Equipment & Others

17%

Auto Ancillary Product Segments in India

The Market Segmentation in

India region wise in terms of

Auto Ancillary Industry is as

follows:

North- 35%,

East- 10%,

West- 25%,

South- 30%

An interesting insight provided by a study conducted by the National Council of Applied Economic Research revealed

that the market segments for auto components included OEMs constituting 33%, local components having 25% with the

balance 42% comprising of spurious market including re-conditioned parts. A large part of the spurious or grey market

companies are in the unorganised sector.

Around 4% of the companies operating in the Auto Ancillary segment cater to 80% of the demand emanating from OEMs

INDIAN AUTO ANCILLARY INDUSTRY OVERVIEW

10


AUTO ANCILLARY

Pistons and Piston rings

Engine valves and

parts

Fuel-injection

systems & carburetors

Cooling system and

parts

Power train components

Gears

Wheels

Steering systems

Axles

Clutches

Brake and brake

assemblies

Brake linings

Shock absorbers

Leaf springs

Headlights

Halogen Bulbs

Wiper motors

Dashboard instruments

Other panel instruments

Starter motors

Spark plugs

Electric ignition systems

Flywheel magnetos

Other equipments

Sheet metal parts

Body and chassis

Fan belts

Pressure die castings

Hydraulic pneumatic

instruments

Engines and Engine Parts

Transmission and steering

parts Others Electrical

parts

Suspension and braking

parts Equipments

TYPES OF AUTO ANCILLARY

According to Bloomberg in 2009 India surpassed China as Asia's fourth largest exporter of cars.

11


CONTENTS




Growth Drivers of Auto Industry in India



12

BIG Strategic Management Consultants 13

GROWTH

DRIVERS

OF INDIAN

AUTOMOBILE

INDUSTRY

Availability of Low Cost

Skilled Labour

Increasing demand for

vehicles

Policy initiatives to

promote growth in the

sector

Low-cost and high-quality

standards

GROWTH DRIVERS OF INDIAN AUTOMOBILE INDUSTRY

It is estimated that the total turnover of the automotive industry in India would be in the order of USD 122-159 Billion by 2016.


The major exports of the Auto Components from India are to North America and Europe which is in tune of 27% and 39% respectively.

Investments announced by global

and domestic automobile

manufacturers promises the

emergence of India as a global hub

for auto components.

Prominent Investments by

Government & FDI policy for the

sector

Increase in Contract Manufacturing

and OEM Manufacturing.

Technology Upgradation and

Innovation

GROWTH OF

INDIAN

AUTO

ANCILLARY

SECTOR

GROWTH DRIVERS OF INDIAN AUTO ANCILLARY INDUSTRY

14


CONTENTS





Key Players in the Auto Ancillary Industry


15


N

E W

S

KEY PLAYERS IN THE INDIAN AUTO ANCILLARY INDUSTRY

16


CONTENTS

17






How can BIG Help?

BIG Strategic Management Consultants 18

HOW CAN HELP?

GR

OW

TH

Analyzing the Current Automobile Industry in India.

Market Research for foraying into new Business Segments and Financial Management

Techno-Economic Analysis of New Business Segments & Leveraging Traditional approach with Modern Technology.

Competitive Positioning and Acquiring Larger Market Share and Brand Image Building

Documents

HIGHLIGHTS OF INDIAN AUTO ANCILLARY INDUSTRYbig-consultants.com/images/Auto Ancillary.pdf · The Automobile Industry Auto Ancillary Industry of ... The major exports of the Auto Components