Current scenario in auto industry 1 sep. 2010 tce
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Transcript of Current scenario in auto industry 1 sep. 2010 tce
SELVA 1
CURRENT SCENARIO IN AUTO INDUSTRY
Presentation by SELVA
(M.SELVARATHINAM)
1 September 2010
Thiagarajar College of Engineering, Madurai
2
1,000
2,000
3,000
4,000
5,000
6,000
9,000
12,00015,000
18,000
21,000
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
S KOREA
CANADA
MEXICO
FRANCE
UK
INDIA @8%
CHINA
JAPAN
US
USD BILLIONS
Real GDP *
INDIA HAS THE POTENTIAL TO BECOME ONE OF THE TOP 5 ECONOMIES BY 2025…
INDIA WOULD BE THE THIRD LARGEST ECONOMY (AFTER CHINA & US) by 2050 “GOLDMAN SACHS REPORT)
3
RANGE OF VEHICLES MADE IN INDIA
Indian Automobile Industry
Light Pass. Vehicle Commercial vehicle Tractors Two Wheelers Three Wheelers
PCs / MUVs / SUVs LCVs / M&HCVs
/ Buses
Farm/Earthmoving & Construction Equipments
Motorcycles/ Scooters / Mopeds
Passenger Carriers / Good Carriers
SELVA
COST PRESSURE ON GLOBAL OEM WILL DRIVE DEVELOPED COUNTRIES TO OUTSOURCE FROM LOW COST
COUNTRIES
4
EUROPEAN COMPACT CAR EXAMPLE
Price squeeze on global OEMs
‘000 Euro/Vehicle
11 4
15
12
3
Car cost2002
Added cost of innovation, mostly from electronics, emission and safety regulations
Total expected cost in 2015
Car cost that market can bear in 2015
Target cost reduction, mostly in mechanical parts
Source : McKINSEY Report
INDIAN SMALL CAR: $ 2000 US., INDIAN TWO WHEELER:$ 400 US
SELVA
COMPONENT PRODUCTION RANGE
Suspension & Braking parts,
12%
Drive Transmittion & Steering parts,
19%
Electrical Parts, 9%
Body & Chassis, 12%
Others, 7%
Engine Parts, 31%
Equipments, 10%
5
6
AUTOMOTIVE CLUSTERS
NORTH
SOUTH
WEST
EAST
N
W E
S
7
THANK YOU FOR YOUR ATTNETION
. ANY QUESTIONS?