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Indian Auto Industry

In: Business and Management

Submitted By abhipune23
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INDIAN AUTO INDUSTRY
…. the way forward

Presentation bySunil Kakkar
General Manager (SupplyChain)
Maruti Suzuki India Ltd

Indian auto industry : Among the top 10 in world
Two Wheelers

Small Cars

Commercial Vehicles

2nd

3rd
5th

Automobile Industry – A Global Hub








15 manufacturers of passenger cars and multi-utility vehicles,
9 manufacturers of commercial vehicles,
16 manufacturers two/ three wheelers,
14 manufacturers tractors,
5 manufacturers of engines.

Key drivers for the growth of Indian Auto industry

Finance Availability

Poor public transport system

Improved Infrastructure

Low car penetration

Key drivers Rising Family Income

Exchange of Cars

Favorable duty structure

Changing lifestyle

Impact of infrastructure
2 key projects of strategic importance for India

NHDP project:
• Largest highway development project
• Golden quadrilateral - Connects 4 metros • NSEW project – Connecting North,
South & East, West lengths of India

Rapid Urbanization
Urban Percentage of Total Population

Rising GDP per Capita
Per Capita GDP (US $)

2010

2011

2012 2013 2014 2015

Accelerated overall growth of other industrial segments

…..a key enabler to fuel auto demand

Indian Pockets growing Deeper
Annual Income (INR)

Number of Households in
2010(million)

Expected Households in
2015 (million)

More than1000000

1.2

3.3

500000-1000000

2.4

5.5

200000-500000

10.9

55.1

90000-200000

91.3

106.0

Less than 90000

101.1

74.1

TOTAL

206.9

244.0

Indian Car Buyer getting Younger

40
35
30
25

39

2000

Average Age
36

2005

33

2010

?
2015

Passenger car penetration

Passenger car penetration (Cars / 1000 population)
India 15,
China 40, Europe 400 ~ 700

Some growth forecasts for Indian auto industry
• The Passenger Vehicle market of India will even cross Japan by selling about
5 million Vehicles by 2017-18.
• The Indian auto exports will be upto $5.62 billion in the year ending
March 2011 and the same will grow to $17.64 billion in 2015-16.
• India’s share in global auto exports may also triple by 2016.
• India’s passenger vehicle production projections :
In 2010 – 2.6 million Vehicles
By 2015 – 5.1 million Vehicles
By 2020 – 9.7 million Vehicles
Sources : -SIAM, ACMA & FICCI

AUTOMOTIVE MISSION PLAN 2016

Document prepared by
Government of India in consultation with
ACMA & SIAM
Automotive Industry viewed as “Locomotive for Growth”
Turnover

Export
Employment

$ 35 Billion to $145 billion
Automotive Plan
2016

$ 4.1 Billion to $35 billion

+ 25 million

Will contribute 10% of the Country’s GDP and
30~35% of the Industry GDP

Segment wise vehicle production in India & Future projections for 2015 & 2020

Indian Auto Components Industry

Indian Auto component Industry size & Growth

Growth projections for Domestic auto components demand

Growth projections of Exports by Indian auto component industry

Investment plan of automobile industry
Auto Industry is expected to invest up to Rs 80,000 crore in fresh capacity in the next four years.

• Major investments will be done by :A.) Tata motors - Rs 8,000 Crore.
B.) Maruti Suzuki – Rs 3800 Crores
C.) Daimler India - Rs 3,500 Crore.
D.) Toyota

- Rs 3200 Crores.

These investments by automakers is set to trigger expansion of capacities by component suppliers and the components industry will also invest Rs 54000 crores up to the end of
2011.

Technology Collage
Future technological demands

Fuel
Efficiency

Emission
Reduction

Cost
Effectiveness

Safety &
Durability

Innovative
Features

An interwoven web of often conflicting requirements

Technology Collage

Fuel Efficiency and Emission Control
CNG, LPG,
Ethanol

Fuel Cell

EV
Hybrids

Technology Collage
Innovative Features

Key less entry

Electrically controlled mechanisms Soft feel Interiors

Enhanced driving comfort

Long life components

Composites

Plastic Fuel Tank

Technology Collage
Cost effectiveness

Foam injected plastic parts
Bi Fuel ECUs

In-mould decoration

Aluminium wiring harness

Safety and Durability

Technology Collage

Special Steel e.g. HSS,
Galvannealed

High Strength Steel (HSS)
Crash Test

Improvement of Crash safety Weight
Reduction

same weight Normal
Normal
Strength
Strength
t=1.4mm t=1.4mm same absorbed energy
High
High
Strength
Strength t=1.4mm t=1.4mm

Normal
Normal
Strength
Strength

t=1.6mm t=1.6mm Example of HSS in Automobile

Soft Steel Sheet

590TRIP
590 high-burring

590TRIP, high-burring

780
780DP

690TRIP

780 high-burring 780

Ratio of Average raw material used in a typical car
% Used in Car

Others, 6%
Cast Iron, 3%
Steel

Fluids, 13%

Plastics
Aluminium
Glass

Elastomers, 4%
Steel, 53%

Glass, 2%

Elastomers
Fluids

Aluminium, 5%

Cast Iron
Others

Plastics, 14%

Raw material

Steel

% Used in Car

53%

Plastics Aluminium
14%

5%

Glass

Elastomers

Fluids

Cast Iron

Others

2%

4%

13%

3%

6%

Challenges that Indian auto industry has to address
Scale up Capacities &
Absorbing newer technologies Infrastructure development

Favorable and predictable business environment

Availability of raw material commensurate with growth

Cost competitiveness

Improve productivity of both labour and capital

Availability of cost effective capital Availability of auto grade technically advanced material Auto industry looks forward for the support of Indian raw material industry to meet the
Let’s
future ahead ….

Achieve Together

Thank You !
Thank You !…...

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