Auto industry ppt

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Auto industry ppt

  1. 1. • INTRODUCTION• Global Auto Industry – An Analysis• Indian Auto Industry Two Wheelers Three Wheelers Passenger Cars Commercial Vehicles• Indian Auto Component Industry• Emerging Opportunities
  2. 2. World Vehicle Production Trends (in 000s)70000600005000040000300002000010000 0 1997 1998 1999 2000 2001 2002 2003 2004 Year North America South America European Union Other Europe Japan Asia-other than Japan
  3. 3. Automobile production in India has doubled in 4 years, with growth seen across all fourmajor segments.. Automobile Production in India (Nos.) By numbers, two wheelers are the 9,000,000 dominant segment of 350,033 8,000,000 the Indian 275,040 1,209,654 7,000,000 Automotive market 374,414 203,697 989,560 6,000,000 723,330 356,223 162,508 276,719 156,706 669,719 5,000,000 640,934 212,748 203,234 4,000,000 6,526,547 5,622,741 3,000,000 5,076,221 4,271,327 3,758,518 2,000,000 1,000,000 0 2000-01 2001-02 2002-03 2003-04 2004-05 Year Two Wheelers Three Wheelers Passenger Vehicles Commercial Vehicles
  4. 4. India is expected to achieve mass motorization status in 2014 Vehicle Density vs. GDP/capita India in Developing Markets Mature Markets 2002 Inhabitants/VehicleInhabitants/Vehicle 100 ‘02 China in 2002 India 100 50 India in 2014 China 82 China in 2014 Germany 10 Mexico Belgium Brazil South Korea Canada Austria Poland UK Sweden Argentina Czech Spain Australia Japan USA Republic Italy France 0 2 15 20 25 30 35 40 $1,000 Per Capita Income (US$ 000) Note: The above includes both Passenger Vehicles and Commercial Vehicles Sources: Ward’s Auto Yearbook 2002, EIU, Goldman Sachs BRICs report, DRI 2002, A.T. Kearney analysis
  5. 5. 2-Wheeler Production & Market Sub-Segments (Nos.) CAGR – Within 2-Wheelers, 15%8,000,000 Motorcycles contribute 80%7,000,000 of the segment size 1,209,6546,000,000 989,560 986,208 723,3305,000,000 935,279 669,719 848,4344,000,000 640,934 937,5063,000,000 879,759 5,193,752 4,355,168 3,876,1752,000,000 2,906,323 2,183,7851,000,000 0 2000-01 2001-02 2002-03 2003-04 2004-05 Year Motorcycles Scooters Moped
  6. 6. Indian 2-Wheeler Market Competitive Scenario Motorcycle 50% 30% 13% 4% 1% 2% <1% - <1% - 15% 28% - 2% 46% 9% <1% - - - 82% - - - 8% 10% -Figures denote Mkt Share (Apr-Oct 05) India is now the second largest two-wheeler market in the world
  7. 7. 3-Wheeler Production (Nos.) CAGR – Predominantly used for 17%400,000 commercial purposes, for both Goods Transport (40%)350,000 and Passenger Transport (60%).300,000250,000200,000 374,414 356,223150,000 276,719 203,234 212,748100,000 50,000 0 2000-01 2001-02 2002-03 2003-04 2004-05 Year Three Wheeler
  8. 8. Indian 3-Wheeler Market Sub-segments and Competitive Scenario Sub Segments Scooters India 60% 68% 24% 2% 1% 3% 3% Passenger 40% 23% 40% 12% 13% 7% 6% GoodsFigures denote Mkt Share (Apr- India is the largest three-wheelerOct 05) market in the world
  9. 9. Passenger Vehicle Production & Market Sub-Segments (Nos.) CAGR – 17% 1,400,000 Unlike the USA, the Indian Passenger Vehicle market is 1,200,000 dominated by Cars (79%) 67,371 181,778 1,000,000 60,673 146,325 800,000 51,441 0 63,751 114,479 600,000 127,519 105,667 960,505 782,562 400,000 513,415 557,410 500,301 200,000 (*) 0 2000-01 2001-02 2002-03 2003-04 2004-05(*) MPVs were part of Passenger Car segment till 2000-01 Year Passenger Cars Utility Vehicles Multi-Purpose Vehicles
  10. 10. Indian Passenger Vehicle Market – Competitive ScenarioPassengerCars 52% 17% 19% - 1% 5% 2% 2% 2% 1% - <1% <1%UtilityVehicles 2% 18% 1% 42% 21% 1% 10% 1% <1% - 4% - <1%MultiPurpose 100% - - - - - - - - - - - <1%Vehicles Figures denote Mkt Share (Apr- 4th largest Passenger Vehicle Oct 05) Market in Asia
  11. 11. Commercial Vehicle Production & Market Sub-Segments (Nos.) CAGR – Unlike most developed 22%400,000 markets, Indian Market has350,000 seen dominance by Medium Commercial vehicles300,000 138,890250,000 108,917200,000 83,195150,000 65,756 68,922 211,143100,000 166,123 120,502 87,784 96,752 50,000 0 2000-01 2001-02 2002-03 2003-04 2004-05 Year Medium & Heavy Commercial Vehicles Light Commercial Vehicles
  12. 12. Indian Commercial Vehicle Market – Competitive ScenarioMedium &Heavy CV - 64% 24% - 8% - 3% - <1% <1%TrucksBuses – L, M& HCV 40% 30% 7% 5% 10% 6% 1% 1% -Light & SmallComm Veh – 59% <1% 32% 4% 3% 3% <1% - -TrucksFigures denote Mkt Share (Apr-Oct 05) TATA Motors dominates over 60% of the Indian Commercial Vehicle Market. It is also the World’s fifth largest Medium & Heavy commercial vehicle manufacturer.
  13. 13. Road network development in IndiaBetween 2003-04 to 2007-08 each year ~2000 Kms of 4-laned highways will be added Golden Year-wise completion schedule of NHDP Quadrilate Planned length – 14,000 km ral 2004 2003 21% NSEW 12% Corridors Completed Feeder 15% 2005-07 Roads 52% Source: CrisInfac, NHAI Impact on Domestic CV Industry  Faster turnaround  Increased freight movement  Lower operating cost of vehicles  Replacement demand Between 1997 - 2002, Highway length in China increased by around 15,000 km and CV volumes nearly doubled from 1.2 mn to 2.1mn … ….. Indicative of future likely directions in Indian market
  14. 14. CAGR Automobile Exports from India (Nos.) Overall – 22% Passenger Veh –700,000 57% International Business 2-Wheelers – 35% 29,949 growth presents a huge600,000 opportunity, as well as a challenge for the Indian 166,413500,000 Automotive Industry 17,432 129,291 66,801400,000 12,255 68,144300,000 72,005 11,870 43,366200,000 13,770 366,724 27,112 53,165 265,052 16,263 15,462100,000 179,682 111,138 104,183 0 2000-01 2001-02 2002-03 2003-04 2004-05 Year Two Wheelers Three Wheelers Passenger Vehicles Commercial Vehicles
  15. 15. OpportunitiesManufacturing: Engineering Services:  Emerging World hub:  Indian IT Majors offering on-shore and off-  Small Cars (Suzuki, Hyundai) shore engineering services to Global IT  Castings & Forgings players. (e.g. TCS, TATA Technologies, Infosys, Satyam)  Regional Sourcing base  Aggregates for Entire Vehicle Programs (e.g. Transmissions for Toyota IMV)  Global Auto & Auto component majors putting up Development Centres in  Globalisation opportunities for Indian India, either on their own or in partnership Manufacturers with local players  Increasing exports of “Made In India” (e.g. General Motors, Daimler Chyrsler, Johnson vehicles Controls, Delphi, Bosch)  Establishing manufacturing facilities at foreign locations (e.g. TVS Indonesia)  Independent Indian OEMs focusing on  Contract Manufacturing (e.g. Sub-150cc Bajaj motor cycles for Kawasaki) upgrading their design & engineering capabilities.  Growth through Mergers & Acquisitions (TATA Motors acquisition of Daewoo (e.g. TATA Motors European Development Centre Commercial Veh, Korea & Hispano, Spain & Acquisition of INCAT plc, UK)
  16. 16.  Increase in input prices  Ferrous & Non-Ferrous Metals  Crude oil & derivatives  Natural rubber  Rising Customer Expectations  Product featuresTHREATS  Quality & reliability  Integration with Global Markets  Lowering product life cycles  Reducing time-to-market for new products  Threat of new competition
  17. 17. WEAKNESSHarsher operating conditions pose unique challenges for product conceptualization, design and development:  Road inadequacy and quality  High Traffic density  Poor Fuel quality & variety (Gasoline, Diesel, CNG & LPG)

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