ACMA Presentation
About ACMA
2
About ACMA
• Established in 1959
• Apex body of Auto Component Industry in India
• Over 700+ members from the Organized sector
• Represents 85% of the Industry by turnover
• Represented on all Government and Industry bodies –
Strategic to the Auto Sector
• Offices across all Regions in the Country
• An ISO 9001-2008 Institution
ACMA – Excellence in Service Delivery
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Collection &
Dissemination of
Information
Quality
Enhancement
Technology
Up-gradation
Promotes IndianAutomotive Component Industry
Vital Catalyst for Industrial
Development
Trade Promotion
ACMA Services
4
ACMA Centre for Technology (ACT)
• ACT focuses on providing technical services to ACMA
members for improving process and quality capabilities
through Cluster Programmes
- ACT SME Cluster
- ACT UNIDO Partnership Program
- ACT SME Advance Cluster
- ACT Foundation Cluster
- ACT Advance Cluster
- ACT Engineering Excellence Cluster
• ACT Clusters Programs
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India: A Vibrant Economy
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1. Largest Democracy – 1.2 billion people, Growing Middle Class
2. 3th largest GDP (PPP) and 10th largest GDP (Nominal, USD 2 trillion)
3. One of the fastest growing economies – 2014-15: ~ 7.5% (E)
• India’s average GDP growth rate for the last five year: over 7%
4. 3rd Largest Investor base in the World
5. Robust Legal and Banking Infrastructure
6. Demographics Advantage – Youth driven economy
7. Suburbanization & Rural to Urban Migration – 140 million by 2020; 700 million
by 2050
8. 2nd largest pool of Certified Professionals and highest number of Qualified
Engineers in the world
9. Investment in Infrastructure
India: A Vibrant Economy
7
Infrastructure Development – A Special Thrust
Railways
USD 117 bn
Roads
USD 172 bn
Total planned
infrastructure
investments of
USD 1 Trillion*
from 2012-17
Airports
USD 16 bn
Energy
USD 331 bn
Ports
USD 36 bnTelecommunication
USD 172 bn
8USD 10 bn for 100 smart cities
Automotive Industry in India
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Automotive Clusters in India
West
Tata Motors
North
Significant Manufacturing base of OEMs – Indian & Global
Ashok Leyland
BMW
Caterpillar
Daimler
Ford
Hyundai
Nissan
Renault
Royal Enfield
Same Deutz
TAFE
Tata Motors
Toyota Kirloskar
TVS
Volvo Buses
East
South
Eicher
Escorts
Hero Moto Corp
Honda Motorcycle
Honda SIELCars
ICML
JCB
Maruti Suzuki
New Holland
Mahindra
Suzuki Motorcycles
Swaraj Mazda
Tata Motors
Yamaha
Bajaj Auto
Fiat
Force Motors
GM
John Deere
Mahindra
Man Force
Mercedes Benz
PSA
Skoda
Tata Hitachi
Tata Motors
Volkswagen
Volvo Eicher
(Illustrative List)
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*New Hub: Sanand
Tata Motors, Maruti, Ford India,
Source: SIAM
Where does India stand?
Largest TRACTOR manufacturer
2nd Largest TWO WHEELER manufacturer
2nd Largest BUS manufacturer
5th Largest HEAVY TRUCK manufacturer
6th Largest CAR manufacturer
8th Largest COMMERCIAL VEHICLE manufacturer
Vehicles Exported From India
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Hyundai - i10
Maruti - Alto
Hyundai - EON
Tata - Indica Mahindra - Bolero
Volkswagon - Polo
Maruti - A Star
Nissan - Micra
(Illustrative List)
Hyundai - i20
Bajaj Auto - Pulsar Hero MotoCorp – Splendor
13Ashok Leyland
Piaggio - Ape Tata - Magic
Tata Mahindra
Bajaj - Auto
Mahindra - Alfa Mahindra - GioMahindra - Maxx
Vehicles Exported From India
(Illustrative List)
(’000 units)
CAGR 2011-15: 2%
Passenger Vehicles Production
Figures for financial year – April to March
14
Source: SIAM
29873146
32343087
3220
1000
1500
2000
2500
3000
3500
2010-11 2011-12 2012-13 2013-14 2014-15
545
640579
697
613
0
200
400
600
800
2010-11 2011-12 2012-13 2013-14 2014-15
Figures for financial year – April to March
( ’000 units)
Commercial Vehicles Tractors( ’000 units)
CAGR 2011-15: 3%
Two & Three Wheelers(In ’000 units)
Commercial Vehicles include:
• Small Commercial Vehicles (SCV) < 1 ton
• Light Commercial Vehicles (LCV) > 1 ton but < 7.5 tons• Medium Commercial Vehicles (MCV) > 7.5 tons but <16 tons
• Heavy Commercial Vehicles (HCV) > 16 tons
Construction Vehicles*
( ’000 units) CAGR 2011-15: -2.6%
CAGR 2011-15: -2%
CAGR 2011-15: 8%
Other Vehicles Production
Source: SIAM
753
929833
699 697
0
200
400
600
800
1000
2010-11 2011-12 2012-13 2013-14 2014-15
1417616330 16584
1771319449
0
5000
10000
15000
20000
25000
2010-11 2011-12 2012-13 2013-14 2014-15
62.369.2
50.5 5256
10
30
50
70
90
2010-11 2011-12 2012-13 2013-14 2014-15
* E&Y Estimates
Auto Component Industry in India
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25.3%
35.9%
8.7%
5.6%
-2.0%
11.1%
-10%
0%
10%
20%
30%
40%
0
500
1000
1500
2000
2500
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
17
Turnover - Auto Component Industry: 2010-15
Gro
wth
Rate
in R
up
ee
Te
rms
(Turnover includes supplies to OEMs, aftermarket sales and exports)
1386 (30.8)
2160 (39.7)
1883 (41.3)
2046 (42.2)2117 (35.1)
Tu
rno
ve
r in
IN
R’
00
Cro
re (
US
D B
illi
on
)
CAGR: 11%
2348 (38.5)
18
Product Range - Auto Component Industry
The Industry produces High Quality – Cost Competitive
Components in all product segments.
Engine Parts; 31%
Drive Transmission & Steering Parts;
19%
Body & Chassis; 12%
Suspension & Braking Parts; 12%
Equipments; 10%
Electical Parts; 9%
Others; 7%
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Auto Components Supply to OEMs
OEMs consumption includes locally produced Components and Imports
SCV Less than 2 T
LCV 2 to 7.5 T
MCV 7.5 to 16 T
HCV More than 16 T
PVs, 45%
SCV , 1%LCV , 4%
MCV , 5%
HCV, 8%
Three-Wheeler, 4%
Two-wheelers, 22%
Backhoe Loaders, 2%
Others, 2%Tractors, 8%
-19.3%
60.7%40.7%
23.3%16.7%
11.4%
-40%
0%
40%
80%
0
300
600
900
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
189 (4.2)
614 (10.2)
526 (9.7)
427 (8.8)
303 (6.7)
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Exports - Auto Component Industry: 2010-15
Exports Destinations: Top 10 Countries
USA 22.35 Thailand 3.38
Germany 7.51 Brazil 3.37
Turkey 6.49 China 3.07
UK 5.43 UAE 2.95
Italy 4.79 France 2.92
Tu
rno
ve
r in
IN
R’ 0
0 C
rore
(U
SD
Billi
on
)G
row
th R
ate
in R
up
ee
Te
rms
CAGR: 29%
Africa7.28%
Latin America and the
Caribbean7.04%
North America23.25%
Asia25.29%
Europe36.39%
Oceania 0.75%
685 (11.2)
21
725 754
2194
2605
3866
86
817 789
26092839
4084
840
1000
2000
3000
4000
5000
Africa Latin Americaand the
Caribbean
North America Asia Europe Oceania
2013-2014 2014-2015
12.6% 4.6%
18.9%9.0%
5.6%
2.0%
Fig
ure
s i
n U
SD
Mil
lio
n
Exports by Region
India’s Export Growth Rate: -1.2%
Auto Component Export Growth Rate: 10%
2100
831
525627
499
344412
314 288 337
2508
843728
610537
379 379 344 331 327
0
500
1000
1500
2000
2500
3000
USA Germany Turkey UK Italy Thailand Brazil China UAE France
2013-2014 2014-2015
22
Fig
ure
s i
n U
SD
Mil
lio
n
Exports: Top 10 countries
19%
1%39%
8% 10% 10%15%
3%
8% 3%
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Exp
ort
sHydraulic Power Steering Systems & Steering Gear Systems and Parts
Gear boxes and parts
Parts of Diesel Engines
Parts for automobiles and earth moving Equipment
Drive-axles and parts
Spark Ignition and parts
Suspension systems and parts
Crank shaft for engines
Toothed wheels, other transmission parts
Brakes and servo-brakes; parts
Key Auto Components Exported
(Illustrative list/ Products in random order)
-4.4%
38.1%
34.3%
11.6%3.6%
7.5%
-40%
0%
40%
80%
0
300
600
900
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
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Imports - Auto Component Industry: 2010-15
Origin of Imports: Share of Top 10 in %
China 23.94 USA 6.96
Germany 14.57 Italy 3.75
Japan 11.53 UK 2.67
South Korea 10.66 France 2.01
Thailand 8.27 Spain 1.40
Tu
rno
ve
r in
IN
R’ 0
0 C
rore
(U
SD
Billi
on
)G
row
th R
ate
in R
up
ee
Te
rms
CAGR: 18%
360 (8.0)
744 (13.7)771 ( 12.8)
829 (13.58)
Africa; 1.04% Latin America &
Caribbean; 1.21%North
America; 7.21%
Asia; 57.97%
Europe; 32.45%
Oceania ; 0.12%
497 (10.9)
667 (13.8)
114152
812
75054218
18
142 164
979
78744408
16
1
10
100
1000
10000
Africa Latin Americaand the
Caribbean
North America Asia Europe Oceania
2013-2014 2014-15
25
Fig
ure
s i
n U
SD
Mil
lio
n
Imports by Region
India’s Import Growth Rate: - 0.4%
Auto Components Import Growth Rate: 6 %
19%8%
17%
5%4%
11%
2671
1929
1593 1527
941821
483
293 315 276
3170
1979
15661448
1123945
510363
273191
0
1000
2000
3000
4000
China Germany Japan SouthKorea
Thailand USA Italy UK France Spain
2013-2014 2014-15
19%
5%
15%19%
3%
24% 31%13%
5%2%
26
Fig
ure
s i
n U
SD
Mil
lio
n
Imports: Top 10 countries
0
0.5
1
1.5
2
2.5
3
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
27
0.33-0.46 ( 20-28 )
1.7 ( 77 )
2.0 - 2.5 ( 91-102 )
1.6 – 1.9 ( 77-92 )
1.26-1.75 (69-95)
Capital Investment - Auto Component Industry: 2010-15
US
D B
illi
on
( ‘
00
Cro
re )
0.53-0.73 ( 32-44 )
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Aspiration 2020
Indian auto component industry to cross USD 100 billion mark
With Export of USD 35 - 40 billion
5 suppliers in global 100
USD 20-22 billion in revenue from overseas assets
Favorable Policy Regime
Auto Policy 2002 and Auto Mission Plan 2006-16 – framework for Automotive
Manufacturing in India
• Manufacturing and Imports Free from Licensing and Approvals
• WTO compliant policies (no import restrictions and reduced
tariff levels)
• Robust Legal system and stable Foreign Exchange regime
• Joined UN-ECE WP 29 for Global Standard in Technology
• Increased budgets for R&D activities
• 100% FDI permitted without prior Govt. approval
Robust Indian
Automotive
Industry
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Capabilities & Challenges of Indian Component
Suppliers
30
Indian Suppliers’ Focus – Global Best Practices
Industry fast embracing modern
shop-floor practices:
5-S; 7-W
Kaizen
TQM
TPM
6 Sigma
Lean Manufacturing651
546
287
162
ISO 9001
TS 16949
ISO 14001
OHSAS…
Deming
Award - 14
Japan Quality
Medal - 5JIPM - 3Shingo Silver
Medallion - 2
TPM Award
- 15
Largest no. of Deming Award winning companies outside Japan
Focus on Quality
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Increasing focus on Innovation and Research
• AMD
• Boeing
• Bosch
• Caterpillar
• Continental
• Cummins
• Ford
• GM
• GE
• Honda
• Honeywell
• Hyundai
• Intel
• Magna
• Mercedes Benz
• Microsoft
• Renault Nissan
• Suzuki
• Valeo
Design & Research Centers of leading Global companies in India
(Illustrative List)
32
33
Challenges
Ch
alle
ng
es
High Cost of Capital
Capacity Utilization
Infrastructure Challenges & Cost
Roads
Ports
PowerImports - higher than exports
Combating Counterfeit Parts
Skilled Manpower
Building R&D Competence & Ecosystem
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Summary
Figures in INR’ 00 Crs
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Turnover 1,386 1,883 2,046 2,160 2,117 2,348
Growth rate(%) 25.3 35.9 8.7 5.6 -2.0% 11.1%
Export 189 303 427 526 614 685
Growth rate(%) -19.2% 60.3% 40.9% 23.2% 16.7% 11.4%
Import 360 497 667 744 771 829
Growth rate(%) -4.3% 38.1% 34.2% 11.5% 3.6% 7.5%
Investment 77 91-102 72-92 69-95 32-44 20-28
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Summary
Figures in USD Billion
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Turnover 30.8 41.3 42.2 39.7 35.1 38.5
Growth rate(%) 27.8 34.1 2.2 -5.9 -11.5 9.6
Export 4.2 6.6 8.8 9.7 10.2 11.2
Growth rate(%) -17.6 58.6 32.3 9.9 5.4 10.0
Imports 8 10.9 13.8 13.7 12.8 13.5
Growth rate(%) -2.4 36.3 26.2 -0.6 -6.3 6.1
Investment 1.7 2-2.5 1.6-1.9 1.2-1.7 0.53-0.73 0.33-0.46
ACMA
The Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – 110 067
Tel: 011-26160315, Fax: 011-26160317
E-mail: [email protected], Website: www.acma.in
Thank You
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