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Presentation on Automobile

Industry in India
Indian Auto Industry – Size and
Composition
•The Indian automotive components industry’s annual turnover
(for FY 2003) was US$ 6.73 billion (global industry of US $737
billion)

•Compounded growth rate of 20-25 %, the growth in India’s auto


components exports is much faster than that of the domestic
market (10-14%).

•The auto ancillary industry caters to three broad categories of


the market:

• Original equipment manufacturers (OEM) or vehicle


manufacturers, that comprises of 25% total demand
• Replacement market, that comprises 65% of the total demand
• Export Market, that comprises primarily of international Tier I
suppliers and constitutes 10% of total demand
Evolution of Automobile Industry

Initial Years
Early to mid 90s
Manufacturing was licensed
•Seller’s market and long
•High Customs duty on import Mid 90s – Early 2000s
waiting periods
•Steep excise duties & •Buyers market
•Delicensing in 1993
•sales tax
•Increase in Indigenization
•Removal of capacity
•2 Major players:
restrictions
Premier Automobiles Ltd •Easy Auto finance
& Hindustan Motors
•Decrease in customs &
•Manufactures diversifying
excise
1980s into related activities:
finance lease, fleet
•Auto finance boom- more
•Entry of MUL, better product, management, insurance
players (foreign banks &
with government support and used car market
non banking companies,
better schemes.
•Seller’s Market

•Long Waiting Periods


AUTOMOBILE

PASSENGER COMMERCIAL
2 WHEELER 3 WHEELER
VEHICLE VEHICLE

I.C.V. M.C.V. H.C.V.

MOTORCYCLE SCOOTERS SCOOTERETTES MOPEDS


Production
Standardised

Mass Luxury
Production Cars

Dedicated

Generic

Sports cars Niche


Motorsport Vehicles

Specialised
Indian Automotive Industry

Domestic Sales and Exports

800,000 754,700
700,000 608,663
548,181
600,000 542,35
499,301
500,000
400,000
300,000
200,000
100,000
0
1999 2000 2001 2002 2003
Indian 2-Wheeler Market
Competitive Scenario

<1
50% 30% 13% 4% 1% 2% - <1%
%
<1
- 15% 28% - 2% 46% 9% -
%

10
- - 82% - - - 8% -
%

India is now the second


largest two-wheeler market
in the world
Advantage India

 Largest Two-Wheeler Manufacturer in the World

 2nd Largest Tractor Manufacturer in the World

 5th Largest Commercial Vehicle Manufacturer in


the World

 # 1 Global Motorcycle Manufacturer is in India

 4th Largest Car Market in Asia - crossed the 1 million


mark

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