Automotive Industry On Fast Track

Indian Automotive Industry

India - An Overview
Market and Growth Potential Players Opportunities Why India? Contact in India

India - An Introduction
Population States/UTs Geographical Area Languages recognised Business language Per Capita Income** GDP**
**(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005)

Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn

Source:CSO Statistics

India - Fast pace Growth

Largest democracy 4th largest economy by PPP index 6th largest energy consumer ForEx reserves skyrocket from USD 42 bn (2001) to

US$ 133 bn ((February, 2005)

GDP growth to continue between 6-8% 3rd largest economy by 2050: Goldman Sachs Leading in IT & BPO Oil & Gas and Biotechnology sunrise industries

India - Leading the world

Hero Honda - largest manufacturer of motorcycles Moser Baer - among the top three media manufacturers

in the world
Pharmaceutical Industry - 4th largest in the world Walmart, GAP, Hilfiger sources more than USD 1bn worth apparel from India 100 Fortune 500 have set R&D facilities in India

including GE, Delphi, Eli Lilly, HP, Heinz and Daimler

Chrysler

Indian Automotive Industry

India - An Overview
Market and Growth Potential Players Opportunities Why India? Contact in India

Passenger Car Market

2002-03 (A) Total Units - 547,083
Premium & Executive Luxury Mid-size 2% 0% 17%

2007-08 (P) Total Units - 975,703

Executive 2% Premium & Luxury 3%

Mini 26%

Mid-size 20%

Mini 19%

Compact 55%

Compact 56%

Projected CAGR

12.3%

Two Wheeler Market

Present estimated size CAGR (last 5 years)

5.4 mn units per year 10%

Average two-wheelers per 1000 people

India China

27 08

Auto Component Market

Estimated market size

US$ 6.7 bn

Estimated market size (2012) US$ 17 bn

Projected CAGR

15%

Auto Component Industry Structure

50 ~ 500 Mill US $

16 Cos

5 ~ 50 Mill US $

149 Cos

1 ~ 5 Mill US $

237 Cos

Indian Automotive Industry

India - An Overview
Market and Growth Potential Players Opportunities Why India? Contact in India

Home to global players

Product Cars/SUVs

Players Suzuki, Honda, Toyota, Mitsubishi, GM, Ford, DaimlerChrysler, Skoda, Fiat, Hyundai, Tata, M&M Two-wheelers TVS, Hero Honda, Bajaj, Yamaha, Kinetic, LML CVs Tata, Ashok Leyland, Tatra, EicherMitsubishi, Swaraj-Mazda, M&M, Volvo Tractors Escorts, M&M, L&T, Punjab Tractors, New Holland, ITLRenault, John-Deere, Steyr

Manufacturing Hub for Vehicles

Hyundai - Export Base for Small Cars

Skoda - Hub for exports of Cars to neighbouring countries

Ford exporting CKDs of Ikon to South Africa & other countries Mitsubishi & Yamaha - Hub for 125 cc Motorcycles Maruti Suzuki- Exports cars to EU HMSI - Hub for Two Wheelers Exports

Hyundai Motors India

Made India its global sourcing base for small cars

Second largest player in passenger car market

Market Share
Turnover (approx.)

20%
US$ 1 billion

Santro & Accent - Run away success stories

Indian Automotive Industry

India - An Overview
Market and Growth Potential Players Opportunities Why India? Contact in India

Invest in India
Twin Indian Advantages Scaling Costs Optimising Resources

Excellent Source for IT based Engineering Solutions - for Product & Process Integration

India - Manufacturing Hub for Components

Toyota Motors Global Hub for Transmissions

Daimler Chrysler sourcing > 70 million Euro

Ford full fledged component sourcing team

Fiat sourcing components

Export from India

Passenger Cars
40000 35000

No. of Units

30000 25000 20000 15000 10000 5000 0 Hyundai Santro Ford Ikon Tata Indica Hyndai Accent Maruti 800 (Suzuki)

FY 2003 FY 2004

Export from India

Auto Components expand markets abroad
Africa 11% Others 4%

Australia 2%

America 28%

Asia 27% Europe 28%

Buy from India

Major OEMs/ Tier 1 suppliers buying auto-components from India for their global requirements

General Motors, USA - Global Purchasing Team (Halol) Volvo, Sweden - Global Buying Team (Bangalore ) International Truck & Engine Co - Global Purchasing Cummins, USA - Global Purchase Team (Pune) Caterpillar, USA - Global purchase staff (Delhi)

Delphi, USA - International Purchase Office

Motorola Automotive Electronics Division, USA Visteon exporting India-made components worldwide

Sell to India
Large latent demand as

Low car penetration ratio 5 per thousand persons This ratio projected to double by 2007-08

Partner with India

OEMs leverage local manufacturers for

Contract Manufacturing

Mitsubishi and Ford tie-up with Hindustan Motors Kawasaki ties-up with Bajaj

Indian Automotive Industry

India - An Overview
Market and Growth Potential Players Opportunities Why India? Contact in India

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

Industry Milestones 2003-04

Car production crosses 1 million mark

Car exports cross US$ 1 million mark

Auto component exports cross US$ 1 bn mark

The Cost & Skills Advantage

USD per Month Middle Management (> 5yrs) Supervisor (5 yrs) Skilled Worker (1 yr) Skilled Worker

India 1400 300 61 42

42

China 2500 800 125 65

Indias Advantage (%Difference) -44% -63% -51% -35%

The Market Advantage

Fast paced urbanisation to rise from 28% to 40% by 2020 Upward migration of household income levels Middle class expanding by 30 - 40 million every year

Growing working population

The Quality & Productivity Advantage

Auto Companies achieving high productivity through best practices: TQM TPM Six Sigma Toyota Production Systems / Lean

Companies growing in ranks can offer PPM levels of quality

The Policy Advantage

Auto Policy 2002 promotes an

integrated automotive sector

2001- Quantitative Restrictions were

removed
Incentives for R & D Stringent environmental controls

Emission Compliance
Emission Standards Status
Cars
Bharat Stage II
Already introduced in Metros:MiniMetros, from Sept, 2003

Two Wheelers
From April 1, 2005

C Vs
Already introduced in Metros: MiniMetros from Sept, 2003

Bharat Stage III From April 1,

2005

From April 1, 2008

From April 1, 2005 From April 1, 2010

Bharat Stage IV From April 1,

2010
Bharat Stage II, III, IV (Euro II, III and IV equivalent)

Indian Automotive Industry

India - An Overview
Market and Growth Potential Players Opportunities Why India? Contact in India

Contact in India

Society of Indian Automobile Manufacturers (SIAM) Core 4B, 5th Floor, India Habitat Centre Lodi Road New Delhi - 110 003.India Tel: 0091 11 24647810- 12, 24648555 Fax: 0091 11 24648222

Contact in India

Automotive Component Manufacturers Association of India (ACMA) 6th Floor The Capital Court, Olof Palme Marg, Munirka, New Delhi - 110 067 Tel.: 0091 11 2616 0315, 2617 5873, 2618 4479 Fax: 0091 11 2616 0317 E-mail: acma@vsnl.com Website: www.acmainfo.com