status indian auto industry
TRANSCRIPT
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INDIAN AUTO COMPONENT INDUSTRY
AN OVERVIEW
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ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Capabilities & Challenges of Component SuppliersCapabilities & Challenges of Component Suppliers
The Way ForwardThe Way Forward
About ACMAAbout ACMA
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
Introduction
Automotive Component Manufacturers Association of India
Role
Members
Quality System
Re-Christened
Inception
An apex agency of the Indian Automotive Industry
588+ companies forming majority of the auto component output in the organized sector
ACMA operates on Quality System basedon ISO 9001:2000. Getting upgraded to
ISO 9001 : 2008 version by end June 2010
In the year 1959 as The All India Automobile & Ancillary IndustriesAssociation (AIA & AIA)
As Automotive Component Manufacturers Association of India in the year 1982
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Collection &Dissemination of
Information
QualityEnhancement
TechnologyUp-gradation
Promotes IndianAutomotive Component Industry
Vital Catalyst for Industrial Development
Trade Promotion
ACMA and Its ServicesACMA and Its Services
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ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Capabilities & Challenges of Component SuppliersCapabilities & Challenges of Component Suppliers
The Way ForwardThe Way Forward
About ACMAAbout ACMA
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
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The Indian economy poised for Growth...
2.9
5.1
6.77.2
8.2
-2.2
2.7
3.6 4.05.6 5.2
7.99.2 9.8 9.3
5.7 5.45.9 5.8
4.3
-4
-2
0
2
4
6
8
10
1950's 1960's 1970's 1980's 1990's 2001-03 2004 2005 2006 2007 2008 2009 2010
Gro
wth
(%)
IndiaWorld
Slow growing closed economy Fast growing open economy
Transformation
Real GDP growth rate: India vs. World
Source: IMF Apr’09, Economic Survey 2008-09 & RBI Bulletin
Manufacturing27%
Agriculture21%
Services52%
Composition of GDPAverage Real GDP growth in last 5 year was 8.5%.
GDP Per Capita is US $ 1018
Projected GDP growth in 2010-11 is 8.2%
Estimated
7
111.5
279
177
33
291
253
78.2
61.4
149.2
181.3
52.763.8
83.5103.1
124.6
163
182.6
4.2 3.1 2.6 5.5 15.724.57 27.3
274
75.4
107136
142173.1
281
252
0
50
100
150
200
250
300
350
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Imports(US $ bln)
Exports(US $ Bln)
FDI(US $ bln)#
FE Reserves* ( US $ bln)
# Partly Estimated * As on May 19, 2010
Growing trade, Investments & Forex reserves…
8
47.0
49.044.9
44.3
45.5
39.5
44.4
7.5*7.5*7.5*8.51015 12.5
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Exchange Rate Import Tariff
Source: Economic Survey 2007-08
Exchange Rate is Market Driven & Continued Import Tariff Reduction
* As on April 20, 2010* As on April 20, 2010
Indian Indian Economy
* Peak rate 10%
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Low cost of Skilled Manpower & Rapidly growing Design Capability
Easy access to capital although interest rate is high
Continuously Improving Quality resulting in Export of Automobiles and Auto components
Low penetration rate of Cars (8/1000)
According to McKinsey, the middle class will grow from 50 million to 550 million by 2025
Infrastructure development (US $750 billion investment between 2007 – 2015*)
Long TermShort Term
Demand Drivers and their Impact…
*Source :CII( IECIAL)
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ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Capabilities & Challenges of Component SuppliersCapabilities & Challenges of Component Suppliers
The Way ForwardThe Way Forward
About ACMAAbout ACMA
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
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Auto Investments & Their Spread
Large number of Indian & Global OEMs across the CountryLarge number of Indian & Global OEMs across the CountryLarge number of Indian & Global OEMs across the Country
WEST EAST
NORTH
SOUTH
12Source: SIAM & ACMA-McKinsey Report
608842
1028 11131323
1532 1620
2078
114 146 182 196 222 246 218 273
722
988
12101309
1545
17781838
2351
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10Cars MUVs Total Pass Veh
2014-15
2654
277
2002-2009 CAGRCars - 19.2%MUV’s - 13%Overall - 18.4%
3.0m
Passenger Vehicle Production (Qty in ’000 Nos.)
PROJECTED CAGR 2009-2014
Cars - 6.3%
MUV’s - 0.4%
Overall- 6.3%
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2009-10(Apl-Mar)
Market Share- Passenger Cars
Tata10.5%
Others1.9%
Maruti46.3%
SkodaAuto0.9%
Hyundai30.5%
Ford 1.8% Fiat
1.3%
Honda 3.1%
GM3.6%
14
391
549
417
192
295294
219211
166
121
250225254
226
172139
10981
316
202
275
350
566520
0
100
200
300
400
500
600
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
M&HCVs
LCVs
CVs
2002-2009 CAGRM & HCVs = 11%
LCV’s = 21.5%Overall = 15.9%
Commercial Vehicles Commercial Vehicles Production(Qty in (Qty in ’’000 units)000 units)
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Tractors Production(in Nos)
167
346
433
353
340
192
249
296
-
50
100
150
200
250
300
350
400
450
500
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
CARG 11.1%
16
5.1 5.66.5
7.6 8.4 8.0 8.410.5
-
5.0
10.0
15.0
20.0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2014-15
??
CAGR2002-2009
11%
22--Wheeler ProductionWheeler Production(Qty in million Nos.)(Qty in million Nos.)
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The Future of Auto in India: The Future of Auto in India: 2016
35.003.0032.0Two Wheelers
.70.05.65Tractors
Segments Domestic Sales
Exports Total
Passenger Vehicles
3.00 1.10 4.10
Commercial Vehicles
0.70 0.08 0.78
Three Wheelers 0.97 0.50 1.47
(million units)Global
Position
Source : SIAM
7
4
1
2
Current Global
Position
7
8
2
Already achieved and now revise target has to be set
1
21
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“INDIA” – A Global hub for Compact Cars
Maruti Suzuki :Capacity 250,000 Investment US$ 380 million.
Hyundai :Capacity Increased to 600,000Investment US$ 1 billion
Tata Motors :Capacity 500,000Investment US$ 240 million.
Toyota :Capacity 200,000Investment US$ 310 million.
Ford :Capacity 200,000Investment US$ 500 million.
General Motors :Capacity 140,000Investment US$ 650 million.
Nissan-Renault : Capacity 400,000Investment US$ 1 Billion
VW : Capacity 110,000Investment US$ 750 million.
Honda :Capacity 60,000 Investment US$ 250 million.
Increased local content - Creating Global CompetenceIncreased local content Increased local content -- Creating Global CompetenceCreating Global Competence
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ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Capabilities & Challenges of Component SuppliersCapabilities & Challenges of Component Suppliers
The Way ForwardThe Way Forward
About ACMAAbout ACMA
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
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Indian Auto Indian Auto Component Component Industry Focus: Global Industry Focus: Global Best Practices Best Practices
Industry fast embracing modern shop-floor practices:
• 5-S; 7-W
• Kaizen
• TQM
• TPM
• 6 Sigma
• Lean Manufacturing
AC
MA
mem
bers
hip
Significant number of companies with Quality certifications &
recognition:
• ISO 9000 : 562
• TS 16949 : 397
• QS 9000 : 56
• ISO 14001 : 186
• OHSAS 18001: 60
• Deming Award : 11
• TPM Award : 15
• Japan Quality Medal : 1
• Shingo Silver Medallion : 1
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3.23.83.5
2.72.51.7
1.2
2.51.9
3.6
6.8
5.2
1.4
5.9
0
1
2
3
4
5
6
7
8
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
ExportsImports
Auto Component Industry Auto Component Industry –– Exports & ImportsExports & Imports
(US$ billion)
Europe 40.4%
N. America 22.6%
Africa 8.0%
Asia 23.8%
Australia 1.3% S. America 3.7%
Profile of Exports:
•OEM/Trier-1: 80%
•Aftermarket: 20%
CAGR:
Exports 18%
Imports 27%
22
6.78.7
12.0
15.0
18.0 18.419.2
0
5
10
15
20
25
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Source : MOHI Automotive Mission Plan (AMP)
US$ Billion
Auto Component Industry: Size & Product RangeAuto Component Industry: Size & Product Range
E ng ine P arts31%
Drive T ransmis s ion & S teering
P arts19%
B ody & C has s is12%
S us pens ion & B raking
P arts12%
E quipments10%
E lec tric al P arts9%
Others7%
CAGR : 19.2%
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3.13.8
4.4
5.4
7.2 7.37.4
0.0
2.0
4.0
6.0
8.0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Auto Component Industry InvestmentsAuto Component Industry Investments(In US $ Billion) CAGR: 15 %
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Increased Component Outsourcing Increased Component Outsourcing from Indiafrom India
Indian Components already Driving on your Roads…Indian Components already Driving on your RoadsIndian Components already Driving on your Roads……
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ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Capabilities & Challenges of Component SuppliersCapabilities & Challenges of Component Suppliers
The Way ForwardThe Way Forward
About ACMAAbout ACMA
Automotive Mission Plan : ACMA VisionAutomotive Mission Plan : ACMA Vision
Auto Component Industry of IndiaAuto Component Industry of India
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Increase export revenueTo $ 35 billion by 2016 from
$ 4.1 billion at present
On 29.01.07, the Prime Minister released Automobile Plan 2006 -2016 to give a road map to
Indian Automobile Industry
Automotive Mission Plan 2016Automotive Mission Plan 2016
Increase turnover to$145 billion by 2016
from $ 35 billionat present
Provide employment toadditional 25 million people
by 2016
Automotive Plan 2016
By 2016, the Automotive sector is expected to contribute 10% of the country’s GDP and 30~35% of the Industry
Government of IndiaSIAMACMA
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2020
11
2020
Achieve $20 billion in Domestic SalesAchieve $20 billion in Domestic Sales
Achieve $20 billion in Exports SalesAchieve $20 billion in Exports Sales
Create 1 million additional JobsCreate 1 million additional Jobs
20:20:120:20:1
ACMA Vision for 2016ACMA Vision for 201620 : 20 : 120 : 20 : 1
Growth of the Automotive Component Industry directly linked with the growth of Automobile Industry.
Over 70% sales to the OEM
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ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Capabilities & Challenges of Component SuppliersCapabilities & Challenges of Component Suppliers
The Way ForwardThe Way Forward
About ACMAAbout ACMA
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
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1. Conversant in all Global Automotive Standards
2. Investments in R&D to meet OE Customer requirements
3. Maintain quality in large volume production
4. Flexibility in small-batch production.
5. Build to Print (B to P) and Art to Print (A to P)
6. Respect for Intellectual Property
7. Growing IT Capability for Design, Development & Simulation.
Capability of Indian Component SuppliersCapability of Indian Component Suppliers
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Indian Component Industry Development Capability
During the development process, Tata Motors asked suppliers to think out of the box and innovate products and process design.
This approach has resulted in 37 patents being filed to cover innovations in the car and has given Indian Engineers a canvas to showcase their skills and capabilities.
“Hyundai i20, Made in India with European Design feel”
Indigenization levels for high volume cars are at 80-90%
Hyundai exported 286K cars last year with a focus on Europe
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Some Design & Research Some Design & Research CentresCentres in Indiain India
Challenges India is Committed to Address
1. Infrastructure Deficit
2. Talent Crunch
3. Scaling-Up the industry
4. Access to World-class Technology and Quality Practices
5. Remaining cost competitive
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ContentsContents
The Indian EconomyThe Indian Economy
The Automotive IndustryThe Automotive Industry
Capabilities & Challenges of Component SuppliersCapabilities & Challenges of Component Suppliers
The Way ForwardThe Way Forward
About ACMAAbout ACMA
Automotive Mission PlanAutomotive Mission Plan
Auto Component Industry of IndiaAuto Component Industry of India
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• Manufacturing
• Technology
• Research & Development
• Quality
• Environment
Areas of Cooperation
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Areas of Cooperation
1. Global SMEs can invest in green-field manufacturing in India to meet growing domestic demand for auto-components.
2. Opportunities for Partnerships with Indian SMEs at Tier 2/3 level –the Next Wave - covering the entire automotive supply chain to address not only product technology, but also “Process Technology”.
3. Opportunity for supply base discovery.
4. Opportunity for Strategic Alliance to cover Global customers
5. Joint R&D with Indian companies for new product development and designing is also an attractive proposition.
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The Addressable Opportunity…
• Establish Partners/JV in India for
- Safety Components
- Auto Electronics, Electromechanical Sub assemblies
- Embedded Systems
- Informatics & Telematics
- New Material
- Simulation Technology
• Collaboration for Manufacturing Excellence and Process Design
• Production Sharing in India & abroad for a Holistic Service Capability
• Partnering for Global Requirements
• Merger & Acquisition
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ACMA OfficeThe Capital Court, 6th Floor, Olof Palme Marg, Munirka,
New Delhi – 110 067Tel: 011-26160315, 26175873, 74
Fax: 011-26160317E-mail: [email protected],
Website: www.acmainfo.com