A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YProject report onautomobile industrywww.alicongroup.co.in
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YContents1) Indian Automobile industry2) Indian Automobile industry Bifurcation3) Analysis of Two wheeler industry4) Objective5) Analysis of Four Wheelers industry6) Finding7) Recomendation8) References
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YAtlas Castalloy Limited - Chinchwad, Pune,IndiaAlicon Castalloy Limited. , Pune, India Alicon Castalloy Limited. - Binola, IndiaAlicon group facilities, India & EuropeIllichmann Castalloy,GmbH & s.r.o3
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y‣India Group Sales USD 137 million .‣One of the largest aluminum foundry in India & having manufacturing facilities inAustria and Slovakia also for Global Customers.‣ Joint Venture with Enkei Corporation (Japan)‣ Technical Collaboration with Hekikai Koki (Japan)‣Core Competence: Rapid Prototyping Designing (CAD/CAM/CAE/Simulation) In house Tool Manufacturing Die Casting (Sand Casting/GDC/LPDC) Machining, Assembly & Painting.‣Casting for Automotive, Locomotive, Medical, Energy and Agricultural segments.alicon group is a consortium of companies involved in Design, Engineering and Casting, Machining &Assembly of Aluminum Components with global foot prints.alicon group of companies4
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YGlobal Presence•Atlas Castalloy Ltd (1969)•Alicon Castalloy Ltd, Pune (1995)•Silicon Meadows Design Ltd.(1996)•Alicon Castalloy Ltd, Binola (2006)•Silicon Meadows Engineering Services Ltd. (2009)USAEUROPEINDIA•Silicon Meadows EngineeringServices, Nashua, USA•Illichmann Castalloy GmbH, Austria•Illichmann Castalloy s.r.o. Slovakia5
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R Yalicon presence in IndiaProposedAlicon Castalloy Limited Pantnagar -Uttaranchal.Atlas Castalloy Limited, Chinchwad, Pune(1969)Silicon Meadows Design Limited, Chinchwad,Pune (1996)Alicon Castalloy Limited, Shikrapur, Pune.(1995)Silicon Meadows Engineering Services Limited,Viman Nagar, Pune. (2009)Alicon Castalloy Limited Binola,Haryana. (2006)6
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YFULL SYSTEM SOLUTIONSSystem Solution Capabilities : alicon group7
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YCompany ProfileDate of Establishment: 1990Revenue: 288.67 Cr.Market Cap: 67 Cr.Group CEO: Rajeev SikandNature of Business: ManufactureLegal status of firm Limited liability/corporation(listedcompany)BackgroundALICON GROUP is a union of Alicon Castalloy Ltd (formerly known as EnkeiCastalloy), Atlas Castalloy Ltd., Silicon Meadows Design Ltd, SiliconMeadows Engineering Services Ltd & Illichmann Castalloy,GmbH & S.R.Ogrouped under one umbrella. The name for the group company ‘Alicon’ iscoined from the words ‘Aluminum’ and ‘Consortium’. Alicon is aconglomerate that reflects a group of companies coming together to form alarge, trusted and respectable entity with the vision and passion to go with it.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YIndia: A Vibrant Economy Scope1. Largest Democracy – 1.2 billion people, Growing Middle Class2. 4th largest GDP (PPP) and 10th largest GDP (Nominal, USD 1.8 trillion)3. One of the fastest growing economies - Estimates for 2011-12: 7.6%• India’s average GDP growth rate: 7.3% over past 10 years• Expected to outpace China in the next decade4. 3rd Largest Investor base in the World5. Robust Legal and Banking Infrastructure6. Demographics Advantage – Youth driven economy7. Suburbanization & Rural to Urban Migration –• 140 million by 2020; 700 million by 20508. 2nd largest pool of Certified Professionals and highest number of Qualified Engineersin the world9
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YLandmark of Indian automobile industry1897: First Person to own a car in India - Mr Foster of M/s Crompton Greaves Company, Mumbai1901: First Indian to own a car in India - JamshedjiTata—1905: First Woman to drive a car in India - Mrs. Suzanne RD Tata—1911: First Taxiin India—1924: Formation of traffic police—1944: Premier Automobiles Limited—1945: Tata Motors—1947: Mahindra & Mahindra Limited1981: MarutiSuzuki—1994: Mercedes-Benz launched in India—1995: REVA Electric Car Company—2005: BMW launched india2009: Land Rover and Jaguar
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YAutomotive market scenario in India1• The automotive industry in India is one of the largest in the world and one of the fastest growingglobally over 18 millions vehicles (including 2 wheeler and 4 wheeler ) and exports more than 2.3million every year.• At present the dominant products of the automobile industry are Two wheeler with market shareof over 76.49 % and passenger cars with market share of about 16%,commerical vehicles andthree wheelers share about 9% of the market between them.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YOBJECTIVE OF THE PROJECT• The objective of this project is analyzing deeply our Indian Automobile Industry forinvestment purpose by monitoring the growth rate and performance on the basis ofhistorical data.The main objectives of the Project study are:• Detailed analysis of Automobile industry which is gearing towards Internationalstandards• Analyze the impact of qualitative factors on industry’s and company’s• Prospects• Comparative analysis of 2 Wheelers and 4 Wheelers
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YPrint master
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R Y
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YMotorcycle Scooters Scooterettes MopedsL.C.V M.C.V H.C.VHatchbackUtilityVehicle
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YMarket Share of OEM
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YMarket Share Vehicle wiseMarket Share of Vehicle 2011-12Motor cycles 12,006,950Passenger Cars 5,637,518Scooter/Scooterettee 2,660,916Commercial Vehicles 911,574Three Wheelers 877,711Mopeds 785,753Utility Vehicles(UVs) 372,648Motor cycles52%PassengerCars24%Scooter/Scooterettee11%CommercialVehicles4%ThreeWheelers4% Mopeds3%UtilityVehicles(UVs)2%2011-12
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YAnalysis of Two wheelers
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YMajor Two wheeler OEM
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YTrends For Last 2 yearsOEMs Total 2-Wheeler Volumes in 2010-11 Total 2-Wheeler Volume in 2011-12Hero MotoCorp Ltd 5405789 6274118Bajaj Auto Ltd. 3404103 3849163TVS Motor Co. 1994036 2134565HMSIL 1651160 2111724Yamaha Motor India Pvt.Ltd. 362345 498350Suzuki Motor Corporation 282366 347188Mahindra 173135 140789Royal Enfield Motors India Ltd. 57351 83254Others 54 85324%20%15%12%8%7%4%0%-10%2010-11, 2011-12Royal Enfield MotorsIndia Ltd.Yamaha Motor IndiaPvt.Ltd.HMSILSuzuki MotorCorporationHero MotoCorp LtdBajaj Auto Ltd.TVS Motor Co.OthersMahindra
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YResearch MethodologyTwo Wheelers Primary Data is collected from Factory. Secondary Data collected from factory as wells from AliconCastalloy Data with help of ACMA. Forecasting done on the Basis of 10% growth estimated in anysegment, at least 5% if decreasesFour Wheelers After budget session due to increase in petrol price. Petrol car sales volumedecreases and Shift in Diesel Cars so Forecasting 2-3 % growth in Petrol and 7% growth in Overall Estimation of5.25% in passenger vehicle.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YForecasting of Two wheeler VolumeOEMs Total 2-Wheeler Volumes in 2010-11 Total 2-Wheeler Volume in 2011-12 Total 2-Wheeler Volume in 2012-13 Total 2-Wheeler Volume in 2013-14Hero MotoCorp Ltd 5405789 6274118 6745767 7280158Bajaj Auto Ltd. 3404103 3849163 4234079 4657487TVS Motor Co. 1994036 2134565 2246503 2430830HMSIL 1651160 2111724 2286997 2483388Yamaha Motor India Pvt.Ltd. 362345 498350 548185 603004Suzuki Motor Corporation 282366 347188 381907 420098Mahindra 173135 140789 154868 170355Royal Enfield Motors India Ltd. 57351 83254 91579 100737Others 54 853 938 1032010000002000000300000040000005000000600000070000008000000Total 2-Wheeler Volumes in 2010-11Total 2-Wheeler Volume in 2011-12Total 2-Wheeler Volume in 2012-13Total 2-Wheeler Volume in 2013-14
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YMotorcycle and Scooter / Mopeds sales volume
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YSales Trends of Motorcycle for FY 2010-11, 2011-12OEMs Total 2-Wheeler Volumes- Motorcycles in 2010-11 Total 2-Wheeler Volumes- Motorcycles in 2011-12Hero MotoCorp Ltd 5044970 5811162Bajaj Auto Ltd. 3404103 3849163HMSIL 744836 864871TVS Motor Co. 844935 841773Yamaha Motor India Pvt.Ltd. 362345 498350Royal Enfield Motors India Ltd. 57351 83254Suzuki Motor Corporation 51648 57585Others 54 85341%26%15%12%3%2%1%0%Total Market share of Motorcycle in 2010-11Hero MotoCorp LtdBajaj Auto Ltd.TVS Motor Co.HMSILYamaha Motor India Pvt.Ltd.Suzuki Motor CorporationMahindraRoyal Enfield Motors India Ltd.41%25%14%14%3%2%1%0%Total Market share of Motorcycle in2011-12Hero MotoCorp LtdBajaj Auto Ltd.TVS Motor Co.HMSILYamaha Motor IndiaPvt.Ltd.Suzuki Motor CorporationMahindraRoyal Enfield MotorsIndia Ltd.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YSales Trend of Scooters/Mopeds for FY2010-11, 2011-12OEMs Total 2-Wheelers Volumes- Scooters/Mopeds in 2010-11 Total 2-WheelerVolumes- Scooters/Mopeds in 2011-12TVS MotorCo. 1149101 1292792HMSIL 906324 1246853Hero MotoCorp Ltd 360819 462956Suzuki MotorCorporation 230718 289603Mahindra 173135 14078941%32%13%8%6%Total 2-Wheelers Volumes-Scooters/Mopeds in 2010-11TVS Motor Co.HMSILHero MotoCorp LtdSuzuki MotorCorporationMahindra38%36%14%8%4%Total 2-Wheeler Volumes-Scooters/Mopeds in 2011-12TVS Motor Co.HMSILHero MotoCorp LtdSuzuki MotorCorporationMahindra
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YSales Forecast for motorcycles forthe FY of 2012-13, 2013-14Total 2-Wheeler Volumes- Motorcycles in 2012-13623651642340799154598715115481859157963344938OEMsHero MotoCorp LtdBajaj Auto Ltd.HMSILTVS Motor Co.Yamaha Motor India Pvt.Ltd.Royal Enfield Motors India Ltd.Suzuki Motor CorporationOthersTotal 2-Wheeler Volumes- Motorcycles in 2013-1467199814657487974696918339603004100737696781032010000002000000300000040000005000000600000070000008000000Total 2-Wheeler Volumes-Motorcycles in 2010-11Total 2-Wheeler Volumes-Motorcycles in 2011-12Total 2-Wheeler Volumes-Motorcycles in 2012-13Total 2-Wheeler Volumes-Motorcycles in 2013-14
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YOEMsTVS Motor Co.HMSILHero MotoCorp LtdSuzuki Motor CorporationMahindraSales Forecast for Scooters / Mopeds forthe FY of 2012-13, 2013-14Total 2-Wheeler Volumes- Scooters/Mopeds in 2013-1413749921371538509252318563154868Total 2-Wheeler Volumes- Scooters/Mopeds in2013-141512491150869256017735042017035502000004000006000008000001000000120000014000001600000Total 2-Wheelers Volumes-Scooters/Mopeds in 2010-11Total 2-Wheeler Volumes-Scooters/Mopeds in 2011-12Total 2-Wheeler Volumes-Scooters/Mopeds in 2012-13Total 2-Wheeler Volumes-Scooters/Mopeds in 2013-14
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YTrends of FY 2010-11, 2011-12OEMs Total2-WheelerVolumes-Motorcyclesin2010-11 Total2-WheelerVolumes-Motorcyclesin2011-12Motorcycles 10510242 12007011Scooters/Mopeds 2820097 343299379%21%Market Share of 2- Wheelers 2010-11Motorcycles Scooters/Mopeds78%22%Market Share of 2-Wheelers 2011-12Motorcycles Scooters/Mopeds
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YForecasting for coming FY 2012-13, 2013-14OEM 2010-11Volumes 2011-12 Volumes 2012-13volumes 2013-14VolumesMotorcycles 10510242 12007011 12961611 14044954Scooters/Mopeds 2810097 3432993 3729213 410213502000000400000060000008000000100000001200000014000000160000002010-11Volumes2011-12Volumes2012-13volumes2013-14VolumesMotorcyclesScooters/Mopeds
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YCapaCity Engines
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YGrowth of Engines capacitiesOEMs Domestic Growth of Engines on 2010-11 Domestic Growth of Engines on 2011-1275-125 CC 19064603 21662093125-250 CC 57364 100576250 CC above 3016308.665 351568886%0% 14%Domestic Growth of Engines on2011-1275-125 CC 125-250 CC 250 CC above86%0% 14%Domestic Growth of Engines on2010-1175-125 CC 125-250 CC 250 CC above
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YForecasting of Engine capacityEngine Sales Volumes of Engine on 2010-11 Sales Volumes of Engine on 2011-12 Sales Volumes of Engine on 2010-11 Sales Volumes of Engine on 2013-1475-125CC 19064603 21662093 23146835 25265383125-250CC 57364 100576 110633 121696250CC above 3016309 3515688 3834836 4189140050000001000000015000000200000002500000030000000SalesVolumes ofEngine on2010-11SalesVolumes ofEngine on2011-12SalesVolumes ofEngine on2010-11SalesVolumes ofEngine on2013-14AxisTitleAxis Title75-125 CC125-250 CC250 CC above
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YFour Wheeler Sales Volume
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YMajor Four wheeler OEM
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YTrends of FY 2010-11, FY 2011-12OEMs Volumes in 2010-11 Volume in 2011-12MSI L 1273331 1133935Hyunda i 595078 630715Ta ta 321660 322761M&M 183231 226760Ford 112615 119440Che vrol e t 109455 110244Toyota 83753 161125Ni s s a n 74512 128926HSCIL 60484 49459Vol ks wa ge n 52977 79772Skoda 23426 36338Fi a t 21896 16035Mi ts ubi s hi 3248 2413Re na ul t 0 4769Me rce de s Be nz 2502 3468
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YTrends Shows increasing volume, -veindicates decrease in Volume-33%18%13%10%9%6%-3%3%1%2%0%0% 0%0%0%Volumes in FY 2010-11- FY2011-12MSILToyotaNissanM&MHyundaiVolkswagenHSCILSkodaRenaultFordFiatTataMercedes BenzMitsubishiChevrolet
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YForecasting of 4-wheelers VolumeOEMs Volumes in 2010-11 Volume in 2011-12 Volume in 2012-13 Volume in 2013-14 Volume in 2014-15MSIL 1273331 1133935 1172394 1289640 1418597Hyundai 595078 630715 653671 719038 790941Tata 321660 322761 327838 360623 396683M&M 183231 226760 242309 266540 293196Ford 112615 119440 125638 138202 152026Chevrolet 109455 110244 115243 126767 139443Toyota 83753 161125 169440 186384 205023Nissan 74512 128926 135330 148863 163749HSCIL 60484 49459 50967 124945 61670Volkswagen 52977 79772 83578 91937 101129Skoda 23426 36338 38194 42012 46213Fiat 21896 16035 16829 18513 20363Mitsubishi 3248 2413 2547 2802 3082Renault 0 4769 5014 5516 6067Mercedes Benz 2502 3468 3817 4197 4615OEMs
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YGreen bar line indicates increase ingrowth in bar graph02000004000006000008000001000000120000014000001600000Volumes in 2010-11Volume in 2011-12Volume in 2012-13Volume in 2013-14Volume in 2014-15
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YFindingTwo Wheelers• Hero Moto corps is the leader the whole market followed by Bajaj, Honda, TVS thenYamaha then Royal Enfield• Royal Enfield is the leader of the emerging market as compared to Honda(HMSIL), then others (including Harley Davidson) in 250 cc above engines.• Bajaj is becoming a market leader in this segment, followed by Honda, Yamaha, TVSthen Hero Moto corp. in 125-250 cc Engines• Customer is shifting from cars to Motorcycle or Scooters.Four Wheelers• As Fuel price increases specially in Petrol there is a big changes comes in market i,eCustomers are preparing to buy Diesel Cars as Compare to Petrol cars.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YFactors affecting the demand andgrowth of the auto sector in India4
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YGovernment Policy for AutomobileIndustry in India4• The Indian government has introduced several industry. The Indian Auto Policy of2002, introduced measures like low entry barriers and investment incentives by the local stategovernments. To encourage in-house research and development activities, Government hasintroduced policies that allow weighted tax deduction up to 150%.• National Automotive Testing and R&D Infrastructure Project (NATRIP) has been set up n in RaeBareilly, Ahmednagar, Pune, Manesa, Silchar, Indore and Chennai for strengthening the R&Dinfrastructure.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YGlobal Scenario of Two wheeler Industry4• Two wheeler Industry in Europe in first quarter 2012:The European market reported 8,2%decline confirms the crisis suffered by the European Motorcycle sector, now officially entering itsfifth year.• Only the United Kingdom and Germany have performed positively, respectively with a growth of2,7% and 1,5%.• Every other main European market reports a negative trend: France -8,8%, Italy -14,8%, Spain -17,9%, The Netherlands -7,9%.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YTwo wheeler Industry in Asia: FAMI (federation of Asian Motorcycle industries) currentlycomprising of seven motorcycle associations in Asia as follows:1.ASASIASI INDUSTRI SEPEDA MOTOR INDONESIA(Indonesian Motorcycles IndustryAssociation)2.JAMA (Japan Automobile Manufacturers Association Inc)3.MASAAM(Malaysia Motorcycle and Scooter Assemblers and Distributors)4. Motorcycle Development Program Participants Association, Inc.(Philippine Motor VehicleDevelopment Program)5.SMCTA(Singapore Motor Cycle Trade Association)6.TAIA(Thai Automobile Industry Association)7.TTVMA(Taiwan Transportation Vehicle Manufacturers Association)• FAMI is also member of International Motorcycle Manufacturers Association (IMMA), theGeneva-based body that represents the motorcycle industry worldwide.4
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YProduction trend of FAMI (federation ofAsian Motorcycle industries) in 2011-1240100,000200,000300,000400,000500,000600,000700,000800,000IndonesiaMalaysiaJapanPhilippineSingaporeThaiTaiwan
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YRecommendations:• Due to hike in Petrol Price the Customers are shifting Petrol cars toDiesel. The growth in diesel car increases.• In 2-wheelers segment the Customer is getting attracted towardsScooters more than Motorcycle.• 4-wheelers demand is decreasing as compare to 2-wheelers• People is preferring Diesel cars.
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YUseful links for Global Coverage ofAutomobile and Auto component Industry• International Motorcycle Manufacturers Association(IMMA).• ACEM (Association for Motorcycle Industry in Europe(www.acem.eu).• FAMI (federation of Asian Motorcycle industries) (www.fami-motorcylce.org).• Automotive Industry Development Centre(www.aidc.co.za).• National Association of Automotive Component and alliedmanufacturers(www.naacam.co.za).• National Association of Automobile Manufacturers ofSA(www.naamsa.co.za).4
A N A L Y S I S O F I N D I A N A U T O M O B I L E I N D U S T R YSpecial Thanks to:1) Inmantec Institutions2) Alicon Castalloy Ltd