HIGHLIGHTS OF INDIAN AUTO ANCILLARY INDUSTRY Ancillary.pdfTransformation Average Real GDP ... Two...
Transcript of HIGHLIGHTS OF INDIAN AUTO ANCILLARY INDUSTRY Ancillary.pdfTransformation Average Real GDP ... Two...
BIG STRATEGIC MANAGEMENT CONSULTANTS
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HIGHLIGHTS OF
INDIAN AUTO ANCILLARY INDUSTRY
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
BIG Strategic Management Consultants
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
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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)
Source: Automotive Components Manufacturers Association of India (ACMA)
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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?
CONTENTS
5
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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
Source: Automotive Components Manufacturers Association of India (ACMA)
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
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Source: Market Forecast and Indicators
BIG Strategic Management Consultants
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
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CONTENTS
• Indian Economy Scenario
• The Automobile Industry
Auto Ancillary Industry of India
• Growth Drivers of Auto and it’s Ancillary Industry in India
• Key Players in the Auto Ancillary Industry
• How can BIG Help?
8
BIG Strategic Management Consultants
Source: Automotive Components Manufacturers Association of India (ACMA)
-
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
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Source: Automotive Components Manufacturers Association of India (ACMA)
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
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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.
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CONTENTS
• 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?
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.
BIG Strategic Management Consultants
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
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BIG Strategic Management Consultants
CONTENTS
• 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?
15
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CONTENTS
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• 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?
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