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India: Automotive Light-weighting & Fuel

Economy: Preparing for SIAT 2015

Nov 2014

Avnish Malhotra India Lead - Automotive Head, British Trade Office, Pune

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Agenda of webinar

11:00 - 11:25 Presentation: Avnish Malhotra

11:25 – 11:30 Arrangement for SIAT 2015: Sarah Thevenet, Avnish

Malhotra & John Bunter

11:30 – 11:45 Q & A

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Flow of presentation • Why India

• Automotive Map of India

• Automotive Market Size

• Light Weighting

• Fuel Economy

• Other opportunities

• Major Events

• Do’s & Dont’s

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Why India?

• Demographic dividend

• Auto sector growing at over 10% since past three years

• Presence of major global OEM’s & supply chain companies

• Automotive Clusters – Delhi, Chennai & Pune

• Emerging locations – Indore, Bangalore, Jamshedpur & Gujarat

(Sanand)

• Auto sector contributes 6.5% of the GDP

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Why India – Continued

• Largest 3-W Market in the world

• 2nd largest 2-W Market in the world

• 4th Largest passenger vehicle market

• Largest small car manufacturing base

• 4th Largest tractor market in the world

• Largest motorcycle manufacturing base

• 2nd Largest Agricultural Eq manufacturer

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Automotive Map

OEM’s

•Hero Motocorp

•Honda SIEL

•Honda Motorcycle &

Scooter

•Maruti Suzuki

•Suzuki 2 Wheelers

•Tata Motors

•Bajaj Auto

•Mahindra & Mahindra

TIER I’s

•Delphi Auto

•JBM

•Sona Koyo

•Asahi India

•Denso India

•Lumax

•Johnson Matthey

•Subros

•Rasandik

Major cluster: North/Central

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Major cluster: West

OEM’s

•Mercedes Benz

•GM

•Skoda & Audi

•Bajaj Auto

•Mahindra &

Mahindra

•Tata Motors

•Volkswagen

•Force Motors

•Mahindra Navistar

•Fiat

TIER I’s

•Bharat Forge

•DGP Hinoday

•Kirloskar Oil Engines

•TACO Group

•SKF Bearings

•Supreme Industries

•Bright Brothers

•Bosch

•Johnson Controls

•Varroc Engg

•Endurance Tech

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Major cluster: South

OEM’s

• Ashok Leyland

• Ford

• TVS Motors

• Hyundai

• Toyota Kirloskar

Motor

• Royal Enfield

• Volvo

• BMW

• Bharat Benz

• Nissan/ Renault

TIER I’s

•Brakes India

•Fenner

•RaneGroup

•Visteon

•Sundaram Fasteners

•Delphi TVS

India Nippon

•TI Group

•Lucas-TVS

•UCAL

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Minor cluster: East

OEM’s

• Tata Motors

• Hindustan

Motors

TIER I’s

• Simpson & Co

•International Auto

Forgings

•Ramkrishna

Forgings

• JMT

•Exide

•TIL Ltd

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Major OEM’s

Two Wheelers

Hero Motocorp

Honda Motorcycles

Bajaj Auto

Mahindra 2 Wheelers

Yamaha

TVS

Suzuki 2 Wheeler

Four Wheelers

Maruti Suzuki

Tata Motors

Hyundai India

Mahindra & Mahindra

Ashok Leyland

Honda

Toyota

Ford

GM

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Market Size-Automotive (2013-14)

Two Wheelers 14.82 Million

Three Wheelers 479,634

Commercial Vehicles 832,738

Passenger Cars 2.50 Million

TOTAL 18.42 MILLION

2014-15: Low single digit growth expected

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Market Size – Electric Vehicles

Two wheelers : Aprox 40,000

Passenger Cars : Aprox 1000

3 Wheelers : Aprox 2000

Total Market: Aprox 43,000 Units

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Light Weighting Key Drivers:

• Efficiency Ratings (BEE: Bureau of Energy Efficiency)

• Possible future legislation: PCRA had recently released a tender for

“Development of Draft Fuel Economy Norms for Diesel & CNG Heavy

Duty Vehicles”

• Increased ability to carry more goods, for volume limited applications –

Eg: Long Haul truck, Urban delivery, RMC truck etc.

• For weight limited applications, lightweighting aids powertrain

downsizing and optimisation – Eg: Water bowsers, Fuel tankers, City

buses

• Reduced emissions

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Fuel Economy Key Drivers

• Efficiency Ratings (BEE: Bureau of Energy Efficiency)

• End user economic consideration

• Limited focus on performance

• Possible future legislation

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Opportunities (Low Carbon)

• Technologies supporting alternative fuels - CNG and LPG. Vehicles operating on combined fuels like Hydrogen-CNG blend & CNG-Diesel – Changes in legislation

• Diesel Electric Hybrids

• Plug in hybrids

• Low weight high capacity batteries and Lithium Ion battery technology

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Opportunities Cont..

• Battery recycling technology

• Rapid battery charging technologies

• Advanced light weight materials/ light weighting technologies and joining technologies.

• Turbo charge and super charge technology

• Regenerative braking

• Automotive Skills, especially PG and Doctoral courses.

• Development of new infrastructure for automotive testing and R & D facilities (www.natrip.in)

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Opportunities (Others)

• Supply chain: HVAC Compressors, automotive electronics/ embedded systems like sensors, automatic transmissions, wiring harness, Hot stampings for BIW(Light weighting), foundation brakes, Thin Wall castings etc

• Low cost automation

• Vehicle testing, certification and homologation: Roll out of 20,000 I & M Centres

• City Transport Buses – JNNURM, Stimulus Package

• Design engineering – Aggressive time scales

• 34 Seater mono cock bus

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Major Events

Siat 2015(Jan 2015), Pune – Automotive Technology Show

ACMA Automechanika(Feb 2015), Delhi – After Market Show

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UK Companies in India

• JLR

• JCB

• Helical Technologies

• Romax Technologies

• Johnson Matthey

• VCA

• GKN

• TWI

• Scorpion Automotive

MIRA

Ricardo

Delcam

CAEPro

Powerpac

Caparo

Intelligent energy

Polycast

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Market Entry Assistance

• UKTI India: Extended arm of your business development efforts

• OMIS: Tailored market information

• Consultancy Assignments

• IP Advise

Contact: Avnish Malhotra

Email: Avnish.Malhotra@btopune.org/

Avnish.Malhotra@mobile.ukti.gov.uk

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Do’s & Don’t

• Use your A team for India

• Local presence helps reduce sales cycle and win business

• Employ a local director

• IP regulations are continuously upgraded to keep pace with industry needs, but there is still room for improvement.

• SIAT 2015: Maximise your presence, schedule meetings in advance, present if relevant on UK @ SIAT 2015. Couple up travel to other automotive centres like Delhi & Chennai.

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