Professional Documents
Culture Documents
AN OVERVIEW
1
Contents
1 About ACMA
2 Indian Economy
3 Automotive Industry
5 Vision 2020
2
Introduction
Inception
In the year 1959 as The All India Automobile & Ancillary Industries
Association (AIA & AIA)
3
ACMA and Its Services
Promotes Indian
Automotive Component Industry
Collection &
Technology Quality
Trade Promotion Dissemination of
Up-gradation Enhancement
Information
4
International Business Development
Organize
Organize Business
Business
Promote
Promote India
India Development
Development Delegation
Delegation
as a Brand
as a Brand Overseas
Overseas
Organize
Organize Participation
Participation
Undertake
Undertake Export
Export in Overseas
in Overseas
Promotional
Promotional Automobile
Automobile
Projects
Projects Exhibitions
Exhibitions &
& Fairs
Fairs
Global
Global Interaction
Interaction Facilitate
Facilitate potential
potential
through
through Business
Business Partnership of
Partnership of
Counterpart
Counterpart Association
Association JV / Strategic Alliance
JV / Strategic Alliance
Organize
Organize Private
Private Providing
Providing Working
Working closely
closely Dissemination
Dissemination of
of
Exhibitions
Exhibitions &
& International
International with
with IPOs in
IPOs in India
India Export Enquiries
Export Enquiries
Suppliers Conference
Suppliers Conference Sourcing
Sourcing Forums
Forums
5
Contents
1 About ACMA
2 Indian Economy
3 Automotive Industry
5 Vision 2020
6
The Indian economy poised for Growth...
Real GDP growth rate: India vs. World
9.2 9.8 9.3
10 India
7.9
World 8.2
8
5.6 7.2
5.2 6.7
6 4.0
3.6 5.1
Growth (%)
0
1950's 1960's 1970's 1980's 1990's 2001-03 2004 2005 2006 2007 2008 2009 2010
-2 -2.2 Estimated
-4
27% 21%
In US $ bn
200 120 124.6 20%
181.3 103.1
149.2 20%
100 83.5 15%
150 15%
111.5 80 12%
10% 63.8 10%
100 78.2 60 52.7
61.4 5%
50 -4% 0% 40
20 0%
-3%
0 -10%
0 -5%
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
100% 27%
20 30%
142
56% 150
15 15.7 22% 20%
50% 107 136
9%
21% 100 75.4 10%
10 4%
11% 0%
-16% 5.5 0%
4.2 50
5 3.1 2.6 -10% -10%
-26%
0 -50% 0 -20%
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
50 45.5 24% 47
44.9 44.3 44.4 20%
39.5
40
10%
30 -1% 3%
0%
20
-6%
-4%
-10%
10
-13%
0 -20%
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(E)
Import Tariff
16 15 0% 0%
0%
14 12.5
Import Tariff (%)
-5%
12
10 *
7.5 * *
10 8.5 7.5 -10%
7.5
8 -12%
-17% -15%
6 -15%
4 -20%
-20%
2
* Peak rate 10% 0 -25%
* As on April 20, 2010
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(E)
10
Contents
1 About ACMA
2 Indian Economy
3 Automotive Industry
5 Vision 2020
11
Auto Investments & Their Spread
New Hub : NORTH
WEST Uttaranchal
EAST
SOUTH
Large
Largenumber
numberof
ofIndian
Indian&&Global
GlobalOEMs
OEMsacross
acrossthe
thecountry
country 12
Vehicle production in India
30,000 –
33,500
3,000 22,100
8,700 –
9,700 10,230
2,500
5,100
2,200
2,000
In ‘000 units
1,500 1,100–
1,220 940 –
1,050
1,000 710
540 –
670 470 –
600 170 –
530
500 360 420 190
*Includes backhoes, track excavators, wheeled loading shovels, vibratory rollers and lif tall
13
Vehicle production in India – Segment wise market share
Market share: 2009
SCVs
Passenger Vehicle 1%
Const. Equip. 17%
Tractors
0%
3% LCVs
1%
M&HCV
2%
Hyundai Nissan-Renault
¾ Capacity Increased to 600K cars ¾ Capacity 400K
¾ Investment US $ 1 billion ¾ Investment USD 1 billion
Tata Motors VW
¾ Capacity 500K ¾ Capacity 110K
Toyota Honda
¾ Capacity 200K ¾ Capacity 60K
Ford
¾ Capacity 200K
¾ Investment US$ 500 mln
Increased
Increasedlocal
localcontent
content--Creating
CreatingGlobal
GlobalCompetence
Competence 15
Indian Automobile Industry-High Growth in
all Segments
April-July 2010
(Unit in Nos.)
Category Production Exports Sales (Domestic+Exports)
Segm/Subsgmt April-July April-July April-July
2009-10 2010-11 % Gr. 2009-10 2010-11 % Gr. 2009-10 2010-11 % Gr.
Passenger Vehicles ( PVs ) 682,287 898,429 32% 131,308 143,136 9% 696,890 899,795 29%
M&HCVs 57,324 105,446 84% 5,329 7,492 41% 60,318 103,276 71%
LCVs 88,484 118,484 34% 4,858 12,404 155% 84,316 117,976 40%
Commercial Vehicles (CVs) 145,808 223,930 54% 10,187 19,896 95% 144,634 221,252 53%
Three Wheelers 162,721 234,581 44% 37,044 89,637 142% 164,517 240,163 46%
Two wheelers 3,209,740 4,213,454 31% 327,381 528,794 62% 3,182,891 4,192,634 32%
Grand Total 4,200,556 5,570,394 33% 505,920 781,463 54% 4,188,932 5,553,844 33%
16
Contents
1 About ACMA
2 Indian Economy
3 Automotive Industry
5 Vision 2020
17
Indian Auto Component Industry Focus: Global
Best Practices
Significant number of companies
with Quality certifications &
recognition:
Industry fast embracing modern
• ISO 9000 : 552 shop-floor practices:
• TS 16949 : 438 • 5-S; 7-W
• QS 9000 : 33
• Kaizen
• ISO 14001 : 204
• TQM
• OHSAS 18001: 95
• TPM
• JIPM: 3
• 6 Sigma
• Deming Award : 11
• Lean Manufacturing
• TPM Award : 15
• Japan Quality Medal : 1
• Shingo Silver Medallion : 1 Annual Turnover
in Million US $
ACMA membership
82 > 25 ~ 50 Million US $
30 40%
38% CAGR: 21% 26
Turnover (US $ bn)
25
22
29% 30%
20 25% 18 18.4
15
15 20% 20% 20%
12 18%
10 8.7
6.7
10%
5
2%
0 0%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Growth rate(%)
20
Auto Component Industry: Product Range
Product Range- 2009
Transm ission &
Steering
Suspension & 10%
Braking
10% Body & structural
40%
Interior
10%
Interior Interior
9% 8%
Electronics & Engine & Electronics &
Engine & Exhaust
electrical Exhaust electrical
17%
13% 18% 16%
21
Source: ACMA - EY Vision 2020
Auto Component Industry – Exports & Exports Markets
Exports market size (In US $ bln)
6.0 50%
42% 47% CAGR: 21% 5
Exports (US $ bn)
5.0 40%
3.8 3.8
4.0 3.5 32%
30% 30%
3.0 2.5 2.7
1.7 20%
2.0
1.2
1.0 8% 9% 10%
0%
0.0 0%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(E)
Exports market
S.America Africa
2.5% 7.4%
Profile of Exports N.America
24.0%
Asia
¾ OEM/Trier-1: 80% 28.1%
¾ Aftermarket: 20%
Australia
Source: ACMA - EY Vision 2020 Europe 1.1%
36.9% 22
Auto Component Industry – Imports & Imports Markets
Imports market size (In US $ bln)
10.0 50%
45%
Imports (US $ bn)
0.0 0%
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Imports Growth rate(% )
Imports market
S.America
0.92% Africa
N.America 0.20%
8.28%
Europe Asia
36.03% 54.34%
Australia
0.22%
23
Auto Component Industry Investments
30%
10.0 9.0
21% 7.2 7.3 23%
8.0 23%
4.4
17% 20%
17% 5.4
6.0
3.8
4.0 3.1
2.7 10%
2.0 1%
0.0 0%
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(E)
Indian
IndianComponents
Componentsalready
alreadyDriving
Drivingon
onyour
yourRoads…
Roads… 25
Contents
1 About ACMA
2 Indian Economy
3 Automotive Industry
5 Vision 2020
26
Vision 2020: Domestic Auto Component demand
$ 108 -119 bn
120.0
Component wise Category wise
100.0
4.3
17.1 6.4
80.0
$ 69 bn 10.7 21.3
In $ bn
6.4
60.0 100.2
12.8
25.6 4.3
$ 30 bn 4.3
40.0 60.6
17.1
20.0 25.7 46.9
12.8 23.5
4.3 8.4
0.0
2009 2015(E) 2020(E) 2020(E) 2020(E)
Transm ission & Steering
Aftermarket OE Construction Equipments
Suspension & Braking
Farm Equipments
Interior
2 & 3 Wheelers
Engine & Exhaust
HCV
Electronics & electrical
Body & structural LCV
SCV
Passengers cars
27
Source: ACMA - EY Vision 2020
Vision 2020: Domestic market potential for Indian
Component Manufacturer
8.42
In US $ bn
60.0 60.00
$ 49 bn $ 49 bn
In US $ bn
6.32
28
Source: ACMA - EY Vision 2020
Vision 2020: India’s Exports Potential
25.00 4.02
25.00 5.21
0.00
20.00 2.71
20.00
12.90
In $ bn
In $ bn
15.00 15.00
12.50
$ 9.4 bn $ 9.4 bn
10.00 10.00 1.92
1.7 $ 3.8 bn 0.00
0.85
$ 3.8 bn 4.2 5.00
5.00 10.58 0.80 4.27 5.00
0.42 0.40 0.00
2.32 1.60 1.50
3.6 0.60 2.08
0.00 0.40 0.85
0.00 1.06
2009 2015(E) 2020(E)
2009 2015(E) 2020(E)
Body & structural Electronics & electrical
North America Western Europe Other markets
Engine & Exhaust Interior
Suspension & Braking Transmission & Steering
29
Source: ACMA - EY Vision 2020
India’s Auto Component Exports potential to North
America and Western Europe in 2020
30
Source: ACMA - EY Vision 2020
Auto Component Industry’s contribution to employment
generation and to India’s GDP
Employment in Auto-Component industry
Auto-Component industry contribution to GDP
2500
4.00%
1 to 1.2 million 1,950 – 2,160
additional jobs
2000
3.00%
1,460
1500
‘000 persons
1470
2.00%
920 3.60%
1000
1040 2.90%
1.00% 2.10%
660
500
590
420
260
0 0.00%
2009 2015(E) 2020(E) 2009 2015(E) 2020(E)
Direct Indirect
31
Source: ACMA - EY Vision 2020
Contents
1 About ACMA
2 Indian Economy
3 Automotive Industry
5 Vision 2020
32
Indian Component Industry Development Capability
34
Challenges India is Committed to Address
1 Infrastructure Deficit
2 Talent Crunch
7 Trade Policy
35
Capabilities of successful niche Component
Manufacturers
Design, engineering & validation Manufacturing Sales & marketing
Core Capabilities
36
Source: ACMA - EY Vision 2020
Contents
1 About ACMA
2 Indian Economy
3 Automotive Industry
5 Vision 2020
37
Areas of Cooperation
• Manufacturing
• Technology
• Quality
• Environment
38
Areas of Cooperation
2. Opportunities for Partnerships with Indian SMEs at Tier 2/3 level – the
Next Wave - covering the entire automotive supply chain to address
not only product technology, but also “Process Technology”.
5. Joint R&D with Indian companies for new product development and
designing is also an attractive proposition.
39
The Addressable Opportunity…
• India becoming Global and Regional hub or lead country for vehicle
programmes
• Vision 2020
India
India::AAGateway
Gatewayto
toGrowth
Growth 41
ACMA Head Office
The Capital Court, 6th Floor, Olof Palme Marg, Munirka,
New Delhi – 110 067
Tel: 011-26160315, 26175873, 74
Fax: 011-26160317
E-mail: acma@acma.in
Website: www.acmainfo.com
42