Indian

 Auto  Component  Industry  

Performance  FY  19  
Indian  Auto  Component  Industry  Snapshot:  2018-­‐19

Turnover:
USD  57  Billion Contribution  to  GDP:
INR  3,95,902  crore 2.3%

Exports:
Share  in  India’s  Exports:
USD  15.16  Billion  
4%  
INR  1,06,048  crore

Domestic  Aftermarket:
Employment:
USD  10.1  Billion
50  Lakh  (  Approx )
INR  67,491  crore
Turnover  – Auto  Component  Industry:  2018-­‐19 Growth  
rate  in  INR  

CAGR:  13%
400000 395902  (57.0)
345635 (51.2)
Turnover  in  INR’  Crore  (USD  Billion)

292184 (43.5)
300000
255635 (39.0)
234869 (38.5) 14.5  %
211765 (35.1)
18.3  %
200000
14.3  %

8.8%

100000 11.1  %
-­‐2.0%

0
2013-­‐14   2014-­‐15 2015-­‐16 2016-­‐17 2017-­‐18 2018-­‐2019  

(Turnover  includes  supplies  to  OEMs,  aftermarket  sales  and  exports)  

 Size  of  the  Industry   Growth  
rate  in  INR  

5,19,590  (74.7) 15  %
Size  of  the  Industry  in  INR’  Crore  (USD  Billion)

4,52,308  (67.4)
1,06,048  (15.2) 17.0  %

90,571  (13.5)
67,491  (10.1) 9.5  %

61,601 (9.2)

15.2  %
3,46,052  (49.5)
3,00,136  (44.7)

2017-­‐18 2018-­‐19
Supply  to  OEMs Aftermarket Export
 Product  Range  and  Auto  Components  Supply  to  OEMs
Cooling  
Consumables  &   3  Wheelers,  3.0% EME,  2.0%
System,  0.9% Rubber  Components,  0.8%
Misc.,  6.3% Tractors,  6.1%
Interiors  (non-­‐electronic),  
M  &  HCV,  10.4%
10.5%
Engine  Components,  25.9%
Electricals  &   PV,  43.1%
Electronics,  
12.4% LCV,  14.8%
Suspension  &  
Drive  Transmission  &   Braking,  16.0% 2  Wheelers,  
Steering,  13.3% Body  /  Chassis   20.5%
/  BiW,  14.0%

PV Passenger  Cars,  Utility  Vehicles,  Vans

2Wh Scooters,  Motorcycles,  Mopeds

The  Industry  is  capable  of  producing  High  Quality  – LCV All  Commercial  Vehicles <  7.5  T
M  &  HCVs All  Commercial  Vehicles >  7.5  T
Low  Cost    Components 3Wh   Goods  and  Passenger  3  wheelers
Tractors Tractors
*OEMs    consumption  includes  locally  produced  Components  and  Imports EME Earth  Moving  Equipment
 Exports  – Auto  Component  Industry:  2018-­‐19 Growth  
rate  in  INR  

120000 CAGR:11%  
106048  (15.16)
Exports  in  INR’  Crore  (USD  Billion)

90571 (13.4)
90000
68522 (11.2) 70916 (10.9) 73128 (10.9)
62090 (10.3) 17.1%
60000 23.9%
3.1%
3.5%
30000 10.4%
17.8%

0
2013-­‐14   2014-­‐15 2015-­‐16 2016-­‐17 2017-­‐18 2018-­‐2019  
Africa Lat  AM
6% 6%
CIS Export  Destinations:  Top  10  Countries  in  %
2%
Europe USA 25% Turkey 4%
33%
Asia
Germany 7% Brazil 3%
26%
UK 5% Bangladesh 3% 61%
North  
America Thailand 4% UAE 3%
29%
Italy 4% Mexico 3%
 Segmentation  by  Product  type:  Exports
6 30%
5.03 2017-­‐2018 2018-­‐2019 Growth  Rate
24%
4.58
Figures  in  USD  Billion

22% 20%
12%
4 16%
17%
2.96
10% 2.65 10%
2.09 2.15
2 1.72
3% 1.47 1.38
1.13 -­‐4% -­‐6% 0%
0.59 0.73 0.55 0.64
0.25 0.24 0.17 0.16
0 -­‐10%
Drive  Transmission   Engine   Body/Chassis/BiW Suspension  &   Electricals  &   Interiors  (  Non   Consumables  &   Rubber   Cooling  System
&  Steering Components Braking Electronics Electronic) Misc. Components

Consumables  &  Misc.,  Rubber  Components,  

Interiors  (non-­‐ Cooling  System,  2%
4% 2%
electronic),  5%
Electricals  &  
Drive  Transmission  &   Ø Engine,  Transmission  and  Steering  parts  
Electronics,  9%
Steering,  33% continue  to  account  for  more  than  half  
of  all  components  (  53%)  exports  from  
Suspension  &  Braking,  11%
India.  

Body  /  Chassis  /  BiW,   Engine  Components,   Ø Electrical  &  Electronics  and  Interiors  are  
14% 20%
2  segments  that  have  registered  above  
20%  y-­‐o-­‐y  growth
 Region  wise  and  country  wise  exports
6 25%

5 4.664.89 21%
4.36 20% Ø While  Europe  still  remains  the  highest  
Figures  in  USD  Billion

3.70 18% 3.86

4 3.42 value  exports  destination,  increase  in  
15%
3 13% exports  to  N  America  has  been  
2 9%
10% substantial  for  the  second  year  in  row.  In  
8%
0.770.84
terms  of  values  of  exports,  Africa  is  now  
1 5% 0.690.83 5%
0.210.23 at  par  with  Lat America.  
0 0%
Europe North  America Asia Lat  America Africa CIS&Baltics

2017-­‐2018 2018-­‐2019 Growth  Rate

4 3.72 40%
37%
3.16
30%
Figures  in  USD  Billion

3 24% 23% 25%

18% 19% 20%
2 10%
3.8% 4%
0.93 1.11 2.2% 0%
1 0.66 0.68 0.69 0.57
0.47 0.58 0.57 0.58 0.50 0.52 0.39 0.48 0.35 0.48 0.35 0.44 -­‐10%
-­‐17%
0 -­‐20%
USA Germany UK Thailand Italy Turkey Brazil Bangladesh UAE Mexioc

2017-­‐2018 2018-­‐2019 Growth  Rate

 Imports  – Auto  Component  Industry:  2018-­‐19
150000 CAGR:10%  
Imports  in  INR’  Crore  (USD  Billion)

123688  (17.6)
120000 106672 (15.9) Growth  
90662 (13.8) 90571 (13.5) rate  
90000 82931 (13.5)
77160 (12.8) 14.4%

60000 17.8%
9.3%
7.5% -­‐0.1%
30000 3.6%

0
2013-­‐14   2014-­‐15 2015-­‐16 2016-­‐17 2017-­‐18 2018-­‐2019  
Africa Lat  AM
1% 1% Origin  of  Imports:  Top  10  Countries  in  %
Europe China 27% Thailand 5%
29%
Germany 14% Singapore 5%

Asia South  Korea 10% Italy   4% 85%

61%
Japan 9% UK 3%
North  
America USA 7% France 2%
8%
 Segmentation  by  Product  type:  Imports
6 5.29 2017-­‐2018 2018-­‐2019 Growth  Rate 30%
4.92
Figures  in  USD  Billion

25% 25%
4 20%
2.76 3.00
2.22 2.41 1.43
1.57 1.74 12%
2 1.39 10% 10%
8% 8% 9% 10% 1.08 1.14 1.05 1.31
6% 0.73 0.83
0.36 0.39
0 0%
Drive  Transmission   Engine   Electricals  &   Suspension  &   Body/Chassis/BiW Consumables  &   Interiors  (  Non-­‐ Cooling  System Rubber  
&  Steering Components Electronics Braking Misc. Electronic) Components

Interiors  (  Non-­‐ Cooling  System,   Rubber  

Electronic),  7% 5% Components,  2%
Consumables  &  
Misc.,  6% Drive  Transmission  &  
Steering,  30%
Body/Chassis/BiW,  
10%

Suspension  &   Engine  Components,  17%

Braking,  9%
Electricals  &  
Electronics,  14%
 Region  wise  and  country  wise  Imports
12 10.83 2017-­‐2018 2018-­‐2019 Growth  Rate 30%
10
9.53
20%
Ø Auto  components  imports  from  Asia  
19%
Figures  in  USD  Billion

14%
11%
continued  to  rise  for  second  year  in  row  
8 8% 9% 10%
with  Asian  markets,  accounting  for  61%  
6 4.75 5.13 0%
of  all  components  imports  from  India
4 -­‐10%
2 1.32 1.43 -­‐21%
0.17 0.13 0.1 0.12 0.04 0.04 -­‐20% Ø Imports  from  Singapore  recorded  almost    
0 -­‐30%
Asia Europe North  America Africa Lat  America CIS  &  Baltics
8  fold  increase  (  650%  )  in  FY  19
5,000 4,609 2000%
4,304
17
4,000 1500%
Figures  in  USD  Billion

2017-­‐2018 2018-­‐2019
3,000 2,505 1000%
2,202
647%
2,000 1,775 1,759 1,634 500%
1,607
1,152 1,209 962
1,035 925
1,000 7% 14% 10% -­‐7% 5% -­‐7% 538 628 17% 5% 0%
390 458 257 269
124
0 -­‐500%
China Germany South  Korea Japan USA Thailand Singapore Italy UK France
 Indian  Automotive  Aftermarket:  2018-­‐19 Growth  
rate  in  INR  

80000
CAGR:  14%
67491 (10.1)
61601(9.2)
60000 56096(8.4)
Turnover  in  INR’  Crore  (USD  Billion)

44660 (6.8)
39875 (6.5) 9.6%
40000 35603 (5.9)
9.8%
25.6%
12%
20000
12.%
11%

0
2013-­‐14   2014-­‐15 2015-­‐16 2016-­‐17 2017-­‐18 2018-­‐2019
Aftermarket  Revenue:  Segmentation  by  product  category

LCV,  4% 3w,  2% Rubber  

Consumables   Components,  
Tractor,  10%
&  Misc.,  10% 3%
Engine  Components,  
PV,  35%
19%

2w,  20% Electricals  &  

Electronics,  18% Suspension  &  
Braking,  15%

CV,  28% Cooling  

Systems,  14% Drive  
Transmission  
and  Steering,  
21%

Aftermarket  Segment-­‐wise

Aftermarket  Product-­‐wise
Headwinds

Policy
Research  &  Development
-­‐Dual  GST  rates  – 18%  &  28%
-­‐No  clear  roadmap  for  EV  
manufacturing  &  adoption Demand  side  -­‐ vehicle  market  
-­‐Roadmap  for  adoption  of  fuel  mix slump

Regulations
-­‐BSIV  to  BSVI Increasing  Electronic  Content
-­‐Safety  
-­‐No  regulatory  framework  for  
Supply  side  – volatility  in  raw  
aftermarket/need  for  standards
materials  – especially  steel
Trade
-­‐Increasing  Trade  deficit Technology  Adoption  for  
-­‐Trade  Agreements  – RCEP,  EU Manufacturing  -­‐Iot/Digitisation/  
Skilling
Recommendations  for  sustaining  growth

1. Uniform  GST  rate  of  18%  on  all  auto  components

2. Technology  development  &  acquisition  fund
3. Incentivising R&D  
4. Changing  the  definition  of  MSME
5. Well  defined  technology  – agnostic  road-­‐map  for  xEVs
 Thank You

for  any  assistance  contact

ACMA
The  Capital  Court,  6th  Floor,  Olof  Palme  Marg,  Munirka,  New  Delhi  – 110  067
Tel:  011-­26160315,  Fax:  011-­26160317
E-­mail:  acma@acma.in,  Website:  www.acma.in
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