Auto industry ppt
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Transcript of Auto industry ppt
• Global Auto Industry – An Analysis
• Indian Auto IndustryTwo WheelersThree WheelersPassenger Cars Commercial Vehicles
• Indian Auto Component Industry
• Emerging Opportunities
• INTRODUCTION
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10000
20000
30000
40000
50000
60000
70000
1997 1998 1999 2000 2001 2002 2003 2004
Year
World Vehicle Production Trends (in '000s)
North America South America European Union Other Europe Japan Asia-other than Japan
3,758,518
203,234640,934
156,706
4,271,327
212,748
669,719
162,508
5,076,221
276,719
723,330
203,697
5,622,741
356,223
989,560
275,040
6,526,547
374,414
1,209,654
350,033
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
2000-01 2001-02 2002-03 2003-04 2004-05
Year
Automobile Production in India (Nos.)
Two Wheelers Three Wheelers Passenger Vehicles Commercial Vehicles
Automobile production in India has doubled in 4 years, with growth seen across all four major segments..
By numbers, two wheelers are the dominant segment of the Indian Automotive market
India is expected to achieve mass motorization status in 2014
Vehicle Density vs. GDP/capitaVehicle Density vs. GDP/capita
Note: The above includes both Passenger Vehicles and Commercial VehiclesSources: Ward’s Auto Yearbook 2002, EIU, Goldman Sachs BRICs report, DRI 2002, A.T. Kearney analysis
Inha
bita
nts/
Vehi
cle
10
Per Capita Income (US$ 000)
50
100
Mature MarketsDeveloping Markets
USAItaly
BrazilMexico
South Korea
CzechRepublic
Spain
China in 2002
India in 2014
UKAustralia Sweden
Germany
Japan
Belgium
France
AustriaCanadaPoland
India in 2002
Argentina
2 20 25 30 3515
$1,000
0 40
China in 2014
Inhabitants/Vehicle
‘02
India 100
China 82
2,183,785
879,759
640,934
2,906,323
937,506
669,719
3,876,175
848,434
723,330
4,355,168
935,279
989,560
5,193,752
986,208
1,209,654
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2000-01 2001-02 2002-03 2003-04 2004-05
Year
2-Wheeler Production & Market Sub-Segments (Nos.)
Motorcycles Scooters Moped
Within 2-Wheelers, Motorcycles contribute 80% of the segment size
CAGR – 15%
Indian 2-Wheeler Market Competitive Scenario
Motorcycle 50% 30% 13% 4% 1% 2% <1% - <1%
- 15% 28% - 2% 46% 9% <1% -
- - 82% - - - 8% 10% -
India is now the second largest two-wheeler market in the world
Figures denote Mkt Share (Apr-Oct 05)
203,234 212,748
276,719
356,223374,414
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2000-01 2001-02 2002-03 2003-04 2004-05
Year
3-Wheeler Production (Nos.)
Three Wheeler
Predominantly used for commercial purposes, for both Goods Transport (40%) and Passenger Transport (60%).
CAGR – 17%
Indian 3-Wheeler Market Sub-segments and Competitive Scenario
68% 24% 2% 1% 3% 3%
23% 40% 12% 13% 7% 6%
India is the largest three-wheeler market in the world
Passenger
Goods
Scooters India
60%
40%
Sub Segments
Figures denote Mkt Share (Apr-Oct 05)
513,415
127,519
0
500,301
105,667
63,751
557,410
114,479
51,441
782,562
146,325
60,673
960,505
181,778
67,371
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2000-01 2001-02 2002-03 2003-04 2004-05
Year
Passenger Vehicle Production & Market Sub-Segments (Nos.)
Passenger Cars Utility Vehicles Multi-Purpose Vehicles
Unlike the USA, the Indian Passenger Vehicle market is dominated by Cars (79%)
CAGR – 17%
(*)
(*) MPVs were part of Passenger Car segment till 2000-01
Indian Passenger Vehicle Market – Competitive Scenario
Passenger Cars
52% 17% 19% - 1% 5% 2% 2% 2% 1% - <1% <1%
Utility Vehicles
2% 18% 1% 42% 21% 1% 10% 1% <1% - 4% - <1%
Multi Purpose Vehicles
100% - - - - - - - - - - - <1%
4th largest Passenger Vehicle Market in Asia
Figures denote Mkt Share (Apr-Oct 05)
87,784
68,922
96,752
65,756
120,502
83,195
166,123
108,917
211,143
138,890
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2000-01 2001-02 2002-03 2003-04 2004-05
Year
Commercial Vehicle Production & Market Sub-Segments (Nos.)
Medium & Heavy Commercial Vehicles Light Commercial Vehicles
Unlike most developed markets, Indian Market has seen dominance by Medium Commercial vehicles
CAGR – 22%
Indian Commercial Vehicle Market – Competitive Scenario
Medium & Heavy CV - Trucks
64% 24% - 8% - 3% - <1% <1%
Buses – L, M & HCV
40% 30% 7% 5% 10% 6% 1% 1% -
Light & Small Comm Veh – Trucks
59% <1% 32% 4% 3% 3% <1% - -
TATA Motors dominates over 60% of the Indian Commercial Vehicle Market. It is also the World’s fifth largest Medium & Heavy commercial vehicle manufacturer.
Figures denote Mkt Share (Apr-Oct 05)
Road network development in India
Golden Quadrilateral
N S E W Corridors
Feeder Roads
Source: CrisInfac, NHAI
Year-wise completion schedule of NHDPPlanned length – 14,000 km
2005-0752%
Completed15%
200421%2003
12%
Between 2003-04 to 2007-08 each year ~2000 Kms of 4-laned highways will be added
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
111,138
16,26327,112
13,770
104,183
15,462
53,165
11,870
179,682
43,366
72,005
12,255
265,052
68,144
129,291
17,432
366,724
66,801
166,413
29,949
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2000-01 2001-02 2002-03 2003-04 2004-05Year
Automobile Exports from India (Nos.)
Two Wheelers Three Wheelers Passenger Vehicles Commercial Vehicles
CAGR Overall – 22%Passenger Veh – 57%2-Wheelers – 35%International Business
growth presents a huge opportunity, as well as a challenge for the Indian Automotive Industry
Opportunities Manufacturing:
Emerging World hub: Small Cars (Suzuki, Hyundai) Castings & Forgings
Regional Sourcing base Aggregates for Entire Vehicle Programs (e.g.
Transmissions for Toyota IMV)
Globalisation opportunities for Indian Manufacturers Increasing exports of “Made In India”
vehicles Establishing manufacturing facilities at
foreign locations (e.g. TVS Indonesia) Contract Manufacturing (e.g. Sub-150cc Bajaj
motor cycles for Kawasaki) Growth through Mergers & Acquisitions
(TATA Motors acquisition of Daewoo Commercial Veh, Korea & Hispano, Spain
Engineering Services:
Indian IT Majors offering on-shore and off-shore engineering services to Global IT players.
(e.g. TCS, TATA Technologies, Infosys, Satyam)
Global Auto & Auto component majors putting up Development Centres in India, either on their own or in partnership with local players
(e.g. General Motors, Daimler Chyrsler, Johnson Controls, Delphi, Bosch)
Independent Indian OEMs focusing on upgrading their design & engineering capabilities.(e.g. TATA Motors European Development Centre & Acquisition of INCAT plc, UK)
THREATS
Increase in input prices Ferrous & Non-Ferrous Metals Crude oil & derivatives Natural rubber
Rising Customer Expectations Product features Quality & reliability
Integration with Global Markets Lowering product life cycles Reducing time-to-market for
new products Threat of new competition
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)