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Revving The Growth Engine: India's Automotive Industry Is On A Fast Track
Revving The Growth Engine: India's Automotive Industry Is On A Fast Track
Matthew Ericksen
Sunil Sachan
Revving the
Growth Engine
Indias Automotive
Industry Is on a
Fast Track
Contact Information
Beirut
Ramez Shehadi
Partner
+961-1-336433
ramez.shehadi@booz.com
Chicago
Vikas Sehgal
Partner
+1-312-578-4828
vikas.sehgal@booz.com
Matthew Ericksen
Partner
+1-312-578-4610
matt.ericksen@booz.com
Sunil Sachan
Senior Associate
+1-312-578-4859
sunil.sachan@booz.com
Munich
Joerg Krings
Partner
+49-89-54525-574
joerg.krings@booz.com
Tokyo
Kazutoshi Tominaga
Principal
+81-3-3436-8598
kazutoshi.tominaga@booz.com
Exhibit 1
GDP Growth of China and India
$3,500 China
$3,000
$2,500
GDP ($ Bn)
$2,000
$1,500
India
$1,000
$500
$0
1 3 5 7 9 11 13 15 17 19 21 23 25 27
Years Since Liberalization
Source: IMF
Exhibit 2
Automotive Economic Ladder From 2-Wheelers to Cars
$60,000
55,000
$50,000
157%
$40,000
35,000
Prices ($)
NANOS ENTRY
$30,000
175%
20,000
$20,000
100%
10,000
$10,000
5,022 100%
1,111 450%
$0
New 2-W New A Segment New B Segment New C Segment New D Segment New E Segment
(Hero Honda) (Maruti 800) (Tata Indica) (Honda City) (Honda Accord) (Audi A4)
Note: Percentages indicate increase in price from one segment to the next
Exhibit 3
Four Wheel Passenger Vehicle Sales Projections (20012015)
2.4 Growth
Conservative
Million Units/Year
1.2
0.8
0.4
0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: Global Insight; Economist Intelligence Unit; Booz & Company analysis
Matthew Ericksen is a
Booz & Company partner in
Chicago. For over 20 years he
has been working with industrial
companies to define winning
strategies and the organizational
and transformational programs
required for success.
Printed in USA
2009 Booz & Company Inc.