BMS Auto Platform

Automobile Industry-Key Market Trends

Page 1
Breakthrough future trends
OEM
key
Focus
Alternate fuel (Bio fuel, electricity) - Environment friendly green
engines
Cost of ownership savings (life cycle cost) - Fuel efficiency &
Thermal management
Rising purchasing power-Focus on SUVs & Premium car segment
Investment in developing new products & up gradation
References ACMA, Mckinsey, Reuters, The Hindu
India (2020) - Automotive hub led by small cars & SUVs
Export to ASEAN,BRIC,EU and USA for OEMs as well as Aftermarket
Increased deployment of IT-enabled Automobile support systems like GPS,ABS,ASR and Safety
systems
Quality Certification (Deming, Six Sigma, TQM etc) amongst suppliers have attained
critical mass
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Industry Forces
Auto v/s Material solutions
Industry
Rivalry
High
New
entrants
Threat-
High
Buyer
Bargaining
Power -
High
Threat of
substitutes
- High
Supplier
Bargaining
Power
Medium-Low
Industry
Rivalry
High
New
entrants
Threat-
High
Buyer
Bargaining
Power -
High
Threat of
substitutes
- Medium-
High
Supplier
Bargaining
Power
High
Automobile Industry Material Solutions Provider
Key
change in
trend
High supplier bargaining power for Material Solutions industry while lower supplier bargaining power for OEMS
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India : A Developing Hub
Tata Motors
Large scale update of
their product lineup
Face lifted Indigo
sedan, facelift of the
Sumo Gold imminent
End of Year plan -
Revamp Aria , Tata
Grande & Safari Storm
Focus on exports to
Indonesia
New product focus-
Undisclosed
Hyundai
USD300 million investment
in a flexible engine plant to
manufacture both petrol
and diesel engines
Business focus- compact
SUV, a multi-purpose
vehicle and a sub 4-metre
sedan
Product focus- product
features, technology &
design
Next gen i10 2014
Rural sales focus a core
part of our strategy
Will continue to launch 2-3
products every year for the
next 5 years
Maruti Suzuki
Total investment ( 3
year horizon ) worth
6,000 Cr.
Investment focus-
SUVs and crossovers
Cut Diesel Engine
Output by One-Third
due to narrowing
differential between
petrol & diesel
Mahindra & Mahindra
Launched E20 - March
2013
Working on introducing
new refreshments to its
existing UVs- S101 and a
sub 4 meter SUV
To set up a new
manufacturing unit,
involving an investment of
about Rs 4,000 crore.
Product Focus - fully
automatic climate control,
intelligent reverse park
assist system voice
commands, cruise, audio
control on steering wheel,
laptop and mobile charging
points, inbuilt laptop holder,
individual reading lamps
and many more.
4
India : A Developing Hub
Ford
Launched EcoSport compact
sports utility vehicle (SUV)
Plans to export the EcoSport
from Chennai to Europe later
this year (2013 Dec)
Invested $2 billion to build
manufacturing facilities in
India - Sanand Plant
operational by 2014
Expects to manufacture
450,000 cars by 2015
Honda
Rs 2,500 crore in India by
2014- Increase capacity,
upgrade plant activities,
quality etc
Set up a car assembly line, a
diesel engine component
unit and a forging plant at its
Tapukara facility in
Rajasthan
Will launch diesel variant of
all its future models in India
Renault Nissan
Unveiled Datsun ( within 4
Lakh price tag)
Intends to double its
investment in India to nearly
$5 billion - Targeting a 15 per
cent market share (Renault-
Nissan + Datsun)
Captured 15% Market share
in UV market ( FY 2013).
CMF- Production begins
after two years in Chennai,
and the first car will hit the
market by 2015.
CMF will generate an
average 30-40% cost per
model
5
Passenger Vehicle (PVs)
Production
Source : SIAM
The production of PVs in India is expected to grow at CAGR of 13% during 2012-21, as per
data published by ACMA.

36%
20%
10%
10%
6%
4%
3% 11%
Maruti
Nissan
Ford
Others
Toyota
M&M
Tata
Hyundai
April-March
(%)
Production Numbers by OEMs
2012-2013
Maruti
1,168,909 36%
Hyundai
638,963 20%
Tata
324,034 10%
M&M
321,061 10%
Toyota
187,826 6%
Nissan
138,549 4%
Ford
109,796 3%
Others
344,423 11%
Total Passenger Vehicles
(PVs) 3,233,561 100%
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-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Maruti Hyundai Tata M&M Toyota Nissan Ford GM Honda VW Renault Skoda Others
FY 2011-12 FY 2012-13
OEM Production Comparison

Source : SIAM

Renault Fiat
Honda Tata
M&M GM
Toyota VW
Nissan Skoda
3%
1%
-18%
27%
17% 7%
-8% -18%
50%
-16%
++100%
-17%
-36%
Overall 3% Growth
Page 7
Company Maruti Hyundai M&M Tata
Motors
Ford Honda
Cars
Renault
Nissan
Toyota VW
Overall
Capacity
FY 2012-13
( units )
12,60,000 700,000* ^^^ 600,000* 2,00,000 1,20,000 4,00,000 2,10,000 1,10,000
Production 11,68,909 638,963 321,061 323,518 1,09,796 74,026 1,93,944 1,87,826 66,699
Utilization 92.77% 91% 50%* 53% 54.90% 61.69% 48.49% 89.44% 60%
Fresh Capacity
being added
2,50,000 300,000 Undisclosed Undisclosed 2,40,000 1,20,000 3,00,000 1,00,000 20,000
Planned
Investment
(INR)
3000 Cr
75%
product
dev.
1600 Cr
Jan 2013
5,000 Cr +
4000 Cr for
new plant
6,000 Cr in
4 years
4500cr 2500cr
1500-
2500cr
900cr
Invested
2000 Cr
to ramp
up
capacity
OEM Capacity Utilization

* : Approximate
By FY16, industry passenger vehicle capacity to reach 6.5-6.7 million units

Sources:-SIAM, Business Standard, Reuters, The Hindu
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