3. About ACMA
• Established in 1959
• Apex body of Auto Component Industry in India
• Over 750+ members from the Organized sector
• Represents 85% of the Industry by turnover
• Represented on all Government and Industry bodies –
Strategic to the Auto Sector
• Offices across all Regions in the Country
• An ISO 9001-2008 Institution
ACMA – Excellence in Service Delivery
3
6. 1. Largest Democracy – 1.2 billion people, Growing Middle Class
2. 3rd largest GDP (PPP) and 10th largest GDP (Nominal, USD 2 trillion)
3. One of the fastest growing economies - 2015-16: 7.6%; Estimates for 2016-17: ~7%
• India’s average GDP growth rate: 7% over past 5 years
4. Emerging as the top FDI destination
5. Robust Legal and Banking Infrastructure
6. Demographics Advantage – Youth driven economy
7. Suburbanization & Rural to Urban Migration – 140 million by 2020; 700 million by 2050
8. 2nd largest pool of Certified Professionals and highest number of Qualified Engineers in the world
9. Growing Investment in Infrastructure
India: A Vibrant Economy
6
7. Infrastructure Development – A Special Thrust
Railways
USD 117 bn
Roads
USD 172 bn
Total planned
infrastructure
investments of
USD 1 Trillion*
from 2012-17
Airports
USD 16 bn
Energy
USD 331 bn
Ports
USD 36 bn
Telecommunication
USD 172 bn
7
USD 10 bn for 100 smart cities
Robust Infrastructure key for attracting manufacturing investments
8. New initiatives by Government
8
Government
Initatives
Make in
India
Facilitate
Investment
and
Technology
Flow
Infrastruct
ure
Developme
nt
Labour
Law
ReformsEase of
Doing
Business &
Regulatory
Complianc
e
Startup
India
Digital
India
Smart
Cities
Illustrative List
10. Automotive Clusters in India
West
Tata Cummins
Tata Motors
North
Significant Manufacturing base of OEMs – Indian & Global
Ashok Leyland
BMW
Caterpillar
Daimler
Ford
Hyundai
Nissan
Renault
Royal Enfield
Same Deutz
TAFE
Tata Motors
Toyota Kirloskar
TVS
Volvo Buses
East
South
Eicher
Escorts
Hero Moto Corp
Honda Motorcycle
Honda Cars
ICML
JCB
Maruti Suzuki
Mahindra
Mazda
New Holland
Suzuki Motorcycles
Tata Motors
Yamaha
Bajaj Auto
Fiat
Force Motors
GM
John Deere
Mahindra
Mercedes Benz
Skoda
Tata Hitachi
Tata Motors
Volkswagen
Volvo Eicher
(Illustrative List)
10
*New Hub: Sanand
Tata Motors, Suzuki, Ford,
Honda Motorcycle
11. Source: SIAM
Where does India stand?
Largest TRACTOR manufacturer
2nd Largest TWO WHEELER manufacturer
2nd Largest BUS manufacturer
3rd Largest HEAVY TRUCK manufacturer
6th Largest CAR manufacturer
6th Largest COMMERCIAL VEHICLE manufacturer
12. (’000 units)
Passenger Vehicles Production
Figures for financial year – April to March
12
Source: SIAM
2,987
3,146
3,234
3,087
3,221
3,414
2,750
3,000
3,250
3,500
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
CAGR 2011-15: 2%
13. Figures for financial year – April to March
( ’000 units)
Commercial Vehicles Tractors Production
( ’000 units)
Two & Three Wheelers
(’000 units)
Construction Vehicles*
( ’000 units)
Other Vehicles Production
Source: SIAM
62.3
69.2
50.5 52
56
10
30
50
70
90
2010-11 2011-12 2012-13 2013-14 2014-15
* E&Y Estimates
753
929
833
699 697 698
0
200
400
600
800
1000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
14176
16330 16584
17713
19439 19764
0
5000
10000
15000
20000
25000
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
** 2015-16 Figures Awaited
545
640
579
697
613
572
0
200
400
600
800
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
14. (million units)
14
Source: Automotive Mission Plan: 2016-26
3.2 0.7
18.5
0.95 0.6
23.4
9.4
2.0
50.6
2.8 1.5
66.3
13.4
3.9
55.5
3.0 1.7
75.8
0
20
40
60
80
Passenger
Vehicles
Commercial
Vehicles
Two
wheelers
Three
wheelers
Tractors Total
2015 FY
2026 ( Base
case)
FY
2026 (Optimistic
case)
Automotive Mission Plan 2026: Aspirations for Vehicle
Industry
18. 18
Auto Components Supply to OEMs
OEMs consumption includes locally produced Components and Imports
PVs
44%
SCV
1%
LCV
4%
MCV
5%
HCV
10%
Three-Wheeler
4%
Two-wheelers
21%
Backhoe Loaders
2%
Others
2%
Tractors
7%
SCV Less than 2 T
LCV 2 to 7.5 T
MCV 7.5 to 16 T
HCV More than 16 T
19. 60.7%
40.7%
23.3%
16.7%
11.4%
3.5%
0%
20%
40%
60%
80%
0
200
400
600
800
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
19
Exports - Auto Component Industry: 2015-16
TurnoverinINR’00Crore
(USDBillion)
GrowthRateinRupeeTerms
CAGR: 18%
685 (11.2)
615 (10.2)
527 (9.7)
427 (8.8)
303 (6.7)
709 (10.8)
Africa, 6%
Asia, 25%
Central
America,
3%
Europe,
36%
New
Zealand &
Australia,
1%
North
America,
25%
South
America,
4%
Exports Destinations: Top 10 Countries in %
USA 23.59 Thailand 3.18
Germany 6.96 UAE 3.15
Turkey 6.22 France 2.99
UK 5.43 Brazil 2.62
Italy 3.86 Mexico 2.59
20. Increased Component Outsourcing
Tier 1 Component Manufacturers
• Bosch
• Continental
• Cummins
• DANA
• Delphi
• Denso
• Eaton
• Getrag
• GE
• Kohler
• Kolbenschmidt
• Magna
• Meritor
• TRW
• Valeo
OEMs
• BMW
• Caterpillar
• Ford
• FIAT
• GM
• John Deere
• MAN
• Mercedes-Benz
• Nissan
• Peugeot
• Renault
• Toyota
• Volkswagen
Over 35 IPOs of Global OEMs & Tier 1 Procuring from India
Indian Auto components already driving on international roads
(Illustrative List)
20
22. Indian Suppliers’ Focus – Global Best Practices
Industry fast embracing modern
shop-floor practices:
5-S; 7-W
Kaizen
TQM
TPM
6 Sigma
Lean Manufacturing651
546
287
162
ISO 9001
TS 16949
ISO 14001
OHSAS…
Deming
Award - 16
Japan Quality
Medal - 5
JIPM - 3Shingo Silver
Medallion - 2
TPM Award
- 15
Largest no. of Deming Award winning companies outside Japan
Focus on Quality
22
23. Increasing focus on Innovation and Research
• Bosch
• Caterpillar
• Continental
• Cummins
• Ford
• GM
• Honda
• Honeywell
• Hyundai
• Magna
• Mercedes Benz
• Renault Nissan
• Suzuki
• Valeo
Design & Research Centers of leading Global companies in India
(Illustrative List)
23
24. Growing capabilities of the Indian auto component Industry
(Illustrative List)
24
Indian Auto
component
manufacturers
Frugal
engineering
Cost
Effective
High quality
products
Established
manufacturing
systems
Global
clients
• Recognised for designing high value
added, safety critical yet durable and less
complex products
• Proven capabilities in delivering desired
products for emerging and matured
markets
• Competitive pricing
• Stable pricing of products due to low
cost of labour, raw materials, etc
• Established capabilities in designing and
delivering high technology intensive, high
precision products like drive transmissions,
forging castings etc.
• Known for adopting world class
standards like 6 sigma, TQM, TPM
and Lean manufacturing
• Most players in the organised
sector are certified with ISO 9001,
ISO 14001, TS 16949
• Largest Deming prize winner
outside Japan
• Leading auto manufacturers
already made India hub for
sourcing components – Toyota,
GM, Fiat, Volkswagen, Renault &
Daimler etc
1
34
5
2
25. 25Source: IMaCS analysis
India has significant advantage in labour & logistics costs but
higher power cost and tax rate adversely impact competitiveness
26. 26
Tables indicate to what extent the India is more competitive with the given countries
Source: IMaCS Analysis
The cost competitiveness of India has improved significantly
over the last decade
27. 27
Challenges
Challenges
High Cost of Capital
Capacity Utilization
Infrastructure Challenges & Cost
Roads
Ports
PowerImports - higher than exports
Combating Counterfeit Parts
Skilled Manpower
Building R&D Competence & Ecosystem
Changes in regulatory environment
31. Conclusion
• Vibrant Indian Economy
• 2026: USD 200 billion Auto Component Industry
• Growing Engineering and IT capability for Designing &
Manufacturing
• Respect for IPR
• Indian Opportunity - invest, source and partner with Indian suppliers
for servicing the Global and Domestic Markets
India: The Gateway to Growth
31
32. ACMA
The Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – 110 067
Tel: 011-26160315, Fax: 011-26160317
E-mail: acma@acma.in, Website: www.acma.in
Thank You
for any assistance contact
32
