For the benefit of students community

1. CURRENT SCENARIO IN
AUTO INDUSTRY
Presentation by SELVA
(M.SELVARATHINAM)
1 September 2010
Thiagarajar College of Engineering, Madurai
SELVA 1

2. INDIA HAS THE POTENTIAL TO
USD BILLIONS
Real GDP *
BECOME ONE OF THE TOP 5
21,000
18,000
ECONOMIES BY 2025…
15,000
US
12,000
9,000
INDIA WOULD BE THE THIRD
LARGEST ECONOMY (AFTER
6,000 CHINA & US) by 2050
“GOLDMAN SACHS REPORT)
5,000
JAPAN
4,000
CHINA
3,000
INDIA @8%
UK
2,000
FRANCE
MEXICO
1,000
CANADA
S KOREA
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
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3. RANGE OF VEHICLES MADE IN INDIA
Indian Automobile Industry
Light Pass. Vehicle Commercial vehicle Tractors Two Wheelers Three Wheelers
PCs / MUVs / SUVs LCVs / M&HCVs Farm/Earthmoving & Motorcycles/ Passenger
Construction Scooters / Carriers / Good
/ Buses
Equipments Mopeds Carriers
3

4. COST PRESSURE ON GLOBAL OEM WILL DRIVE
DEVELOPED COUNTRIES TO OUTSOURCE FROM LOW
COST COUNTRIES
EUROPEAN
COMPACT CAR Price squeeze on global OEMs
EXAMPLE
‘000 Euro/Vehicle
15
11 4
12
3
Car cost Added cost of Total expected Car cost that Target cost
2002 innovation, mostly cost in 2015 market can bear reduction,
from electronics, in 2015 mostly in
emission and safety mechanical parts
regulations
INDIAN SMALL CAR: $ 2000 US., INDIAN TWO WHEELER:$ 400 US
4
SELVA
Source : McKINSEY Report

5. COMPONENT PRODUCTION RANGE
Body &
Others, 7%
Chassis, 12%
Electrical Parts,
Engine Parts,
9%
31%
Drive
Transmittion &
Equipments, Steering parts,
Suspension &
10% 19%
Braking parts,
12%
5 ELVA
S

6. AUTOMOTIVE CLUSTERS
N
W E
NORTH
S
EAST
WEST
SOUTH
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7. THANK YOU FOR
YOUR ATTNETION
. ANY QUESTIONS?
7