The automotive industry in India is growing rapidly, with an expected compound annual growth rate of 12.3% for passenger cars and 10% for two-wheelers. India has emerged as a major manufacturing hub for global automakers due to its low costs and skilled workforce. The market is dominated by compact cars and motorcycles, though demand is growing across segments. Government policies aim to further develop the integrated automotive sector and encourage research and development. India presents a significant opportunity for automakers and auto component manufacturers.

1. Automotive Industry
On Fast Track

2. Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India

3. India - An Introduction
Population
States/UTs
Geographical Area
Languages recognised
Business language
Per Capita Income**
GDP**
Over 1 bn
35
3.3 mn sq kms
22
English
US$ 534
US$ 650 bn
**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
Source:CSO Statistics

4. India - Fast pace Growth
 Largest democracy
 4th largest economy by PPP index
 6th largest energy consumer
 ForEx reserves skyrocket from USD 42 bn (2001) to
US$ 133 bn ((February, 2005)
 GDP growth to continue between 6-8%
 3rd largest economy by 2050: Goldman Sachs
 Leading in IT & BPO
 Oil & Gas and Biotechnology sunrise industries

5. India - Leading the world
 Hero Honda - largest manufacturer of motorcycles
 Moser Baer - among the top three media manufacturers
in the world
 Pharmaceutical Industry - 4th largest in the world
 Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
 100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler

6. Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India

7. Passenger Car Market
Projected CAGR 12.3%
Compact
55%
Mid-size
17%
Mini
26%
Premium&
Luxury
2%
Executive
0%
Compact
56%
Mid-size
20%
Mini
19%
Premium&
Luxury
3%
Executive
2%
2002-03 (A)
Total Units - 547,083
2007-08 (P)
Total Units - 975,703

8. Two Wheeler Market
 Present estimated size 5.4 mn units per year
 CAGR (last 5 years) 10%
Average two-wheelers per 1000 people
India 27
China 08

9. Auto Component Market
Estimated market size US$ 6.7 bn
Estimated market size (2012) US$ 17 bn
Projected CAGR 15%

10. 16 Cos
237 Cos
1 ~ 5 Mill US $
5 ~ 50 Mill US $
50 ~ 500
Mill US $
149 Cos
Auto Component Industry Structure

11. Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India

12. Home to global players
Product Players
Cars/SUVs Suzuki, Honda, Toyota,
Mitsubishi, GM, Ford, Daimler-
Chrysler, Skoda, Fiat, Hyundai,
Tata, M&M
Two-wheelers TVS, Hero Honda, Bajaj, Yamaha,
Kinetic, LML
CVs Tata, Ashok Leyland, Tatra, Eicher-
Mitsubishi, Swaraj-Mazda, M&M,
Volvo
Tractors Escorts, M&M, L&T, Punjab
Tractors, New Holland, ITL-
Renault, John-Deere, Steyr

13. Manufacturing Hub for Vehicles
Hyundai - Export Base for Small Cars
Mitsubishi & Yamaha - Hub for 125 cc Motorcycles
HMSI - Hub for Two Wheelers Exports
Ford exporting CKDs of Ikon to South Africa &
other countries
Maruti Suzuki- Exports cars to EU
Skoda - Hub for exports of Cars to neighbouring
countries

14. Hyundai Motors India
 Second largest player in passenger car market
 Market Share 20%
 Santro & Accent - Run away success stories
 Made India its global sourcing base for small cars
 Turnover (approx.) US$ 1 billion

15. Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India

16. Invest in India
Excellent Source for IT based
Engineering Solutions - for Product &
Process Integration
Scaling Costs
Optimising Resources
Twin Indian
Advantages…

17. India - Manufacturing Hub for Components
Fiat sourcing components
Ford full fledged component sourcing team
Toyota Motors Global Hub for Transmissions
Daimler Chrysler sourcing > 70 million Euro

18. Export from India
0
5000
10000
15000
20000
25000
30000
35000
40000
Hyundai
Santro
Ford
Ikon
Tata
Indica
Hyndai
Accent
Maruti
800
(Suzuki)
No.
of
Units
FY2003
FY2004
Passenger Cars

19. Europe
28%
Asia
27%
America
28%
Australia
2%
Africa
11%
Others
4%
Export from India
Auto Components expand markets abroad

20. Buy from India
 General Motors, USA - Global Purchasing Team (Halol)
 Volvo, Sweden - Global Buying Team (Bangalore )
 International Truck & Engine Co - Global Purchasing
 Cummins, USA - Global Purchase Team (Pune)
 Caterpillar, USA - Global purchase staff (Delhi)
 Delphi, USA - International Purchase Office
 Motorola Automotive Electronics Division, USA
 Visteon exporting India-made components worldwide
Major OEMs/ Tier 1 suppliers buying
auto-components from India for their global requirements

21. Sell to India
Low car penetration ratio
5 per thousand persons
This ratio projected to
double by 2007-08
Large latent demand as…

22. Partner with India
OEMs leverage local manufacturers for
Contract Manufacturing
 Mitsubishi and Ford tie-up with
Hindustan Motors
 Kawasaki ties-up with Bajaj

23. Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India

24. Advantage India
 5th Largest Commercial Vehicle Manufacturer in
the World
 4th Largest Car Market in Asia - crossed the 1 million
mark
 # 1 Global Motorcycle Manufacturer is in India
 Largest Two-Wheeler Manufacturer in the World
 2nd Largest Tractor Manufacturer in the World

25. Industry Milestones 2003-04
 Car production crosses 1 million mark
 Car exports cross US$ 1 million mark
 Auto component exports cross US$ 1 bn mark

26. The Cost & Skills Advantage
USD per Month India China
India’s
Advantage
(%Difference)
Middle Management (> 5yrs) 1400 2500 -44%
Supervisor (5 yrs)
300 800 -63%
Skilled Worker (1 yr) 61 125 -51%
Skilled Worker 42 65 -35%
42

27. The Market Advantage
Fast paced urbanisation
to rise from 28% to 40% by 2020
Middle class expanding by
30 - 40 million every year
Growing working population
Upward migration of
household income levels

28. The Quality & Productivity Advantage
Auto Companies achieving high
productivity through best practices:
 T Q M
 T P M
 Six Sigma
 Toyota Production Systems / Lean
Companies growing in ranks can offer
PPM levels of quality

29. The Policy Advantage
 Auto Policy 2002 promotes an
integrated automotive sector
 2001- Quantitative Restrictions were
removed
Incentives for R & D
 Stringent environmental controls

30. Emission Compliance
From April 1,
2010
From April 1,
2010
Bharat Stage IV
From April 1,
2005
From April 1,
2008
From April 1,
2005
Bharat Stage III
Already
introduced in
Metros: Mini-
Metros from
Sept, 2003
From April 1,
2005
Already
introduced in
Metros:Mini-
Metros, from
Sept, 2003
Bharat Stage II
C V’s
Two Wheelers
Cars
Emission Standards Status
Bharat Stage II, III, IV (Euro II, III and IV equivalent)

31. Indian Automotive Industry
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India

32. Contact in India
Society of Indian Automobile Manufacturers
(SIAM)
Core 4B, 5th Floor, India Habitat Centre
Lodi Road
New Delhi - 110 003.India
Tel: 0091 11 24647810- 12, 24648555
Fax: 0091 11 24648222

33. Contact in India
Automotive Component Manufacturers Association of
India (ACMA)
6th Floor
The Capital Court,
Olof Palme Marg, Munirka,
New Delhi - 110 067
Tel.: 0091 11 2616 0315, 2617 5873, 2618 4479
Fax: 0091 11 2616 0317
E-mail: acma@vsnl.com
Website: www.acmainfo.com