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Overview and historical aspect Current status of automotive industry Auto component market Global standing Investments made in India Growth potential Government initiatives conclusion

Initially, the Indian Auto Component Industry was not competitive enough for the global market due to its:

High cost of raw materials Inferior quality Lower labour productivity Limited demand from vehicle manufacturers Protectionist policies of Indian government

a change came after the liberalization of the India economy in 1991 with:   Abolition of licensing  Approval given to up to 100 % foreign investment. .However.

Growing at a compound annual growth rate (CAGR) of 28. market expansion and efficiency improvement to achieve this status Around 500 organised players and more than 600 unorganised players .9 per cent between 2002-03 and 2007-08. Adopted strategy of product portfolio enhancement.


5 % and export 21. . which contributes to 60 % of sales.Estimated 600 companies (FY 2008). µafter market¶ (Replacement market) 18. Exporting goods worth US $ 2 billion The Indian Auto component industry is largely dependent on OEM¶s.000 persons. giving direct employment to more than 300.5 %. ` .


Engine parts Drive transmission and steering Body/ chasis Suspension and braking equipment electrical others 31% 19% 12 % 12 % 10 % 9% 4% .

Visteon. India is also becoming a global hub for R&D.5% by 2015 Many international players including Delphi. India shared 0. Exports projected to grow at over 30% p. India¶s share in world auto components could grow from 0. .9% of the global Auto Components Industry in 2005-06. Over 60% exports are to Europe and USA.9% in 2005-06 to over 2.Indian manufacturers are gaining recognition as ³global quality´ players.a. Bosch and Meritor have set up operations in India.

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

Hub for Two Wheelers Exports . Hyundai - Export Base for Small Cars Skoda .Hub for 125 cc Motorcycles Maruti Suzuki.Hub for exports of Cars to neighbouring countries Ford exporting CKDs of Ikon to South Africa & other countries  Yamaha .Exports cars to EU HMSI .

Australia 2% Africa 11% Others 4% America 28% Asia 27% Europe 28% .




India's GDP is set to double over the next decade In percentage terms. the automotive industry's contribution should also double In dollar terms. the sector's contribution is set to quadruple to some $145bn The consequence is a remarkable transformation of India's entire economic landscape .

Hi-tech components: electronic fuel injectors. Skilled labour-intensive components: machining. . especially: Metal intensive components: forgings.castings. Potential of over US$5 billion for investment in India. wiringharness etc.stampings. Opportunity to address the global Auto Components market while leveraging India¶s large and growing domestic market Opportunity to set up R&D centres in India Indian technical skills is acknowledged as among the best in the world High level of sourcing of auto components from low cost countries (LCC¶s) to act as a driver for growth.` ` ` ` ` India amongst the most competitive manufacturers of auto components.

083 2007-08 (P) Total Units .2002-03 (A) Total Units .547.703 Mi i 17% Premi m & Luxury Executi e 2% 0% M ie i 20% Mi i 26% E xecuti e 2% P ium& rem Luxury 3% Mi i 19% Compact 55% C pact om 56% .975.

4 mn units per year 10% Average two-wheelers per 1000 people India China 27 08 . Present estimated size  CAGR (last 5 years) 5.

Reduction of tariffs on import . Relaxation of regulation.Increase in income Increase in standard of living.

 India is fourth largest passenger car market in Asia.  India among the lowest cost producers of steel in the world.  .Technological. cost and manpower advantage.  Established R&D centers.

door trims Has firmed up plans to source components and aggregates US$ 150 million Renault-Nissan US$ 125 million in next 2 years First phase to source low end tech for low end models. horns. Fiat US$ 4 million Ford Motors Castings and forgings. Expects the volume to grow to US$ 400 .000 gear boxes . High-end in second phase. leaf springs. forgings. crankshafts. gearbox and engine components & others Engines. DaimlerChrysler Toyota Auto components and IT services R-type manual transmission ± gear boxes ± global supply. To source components for the Grande Punto as well as Linea Models.10 per cent. propeller shafts Etc US$ 125 million 140. To invest US$ 1 billion. gearboxes. Growing at 20% CAGR Expected to go up by 5 .US$700 million. exhaust manifold. others Value US$ 90 million Comments India is the single sourcing unit FM12 (8 X 4) model sold in South Korea.Manufacture r Volvo Component Machine and painted castings. dashboard.

steering. AC systems. Common Rail Systems US$ 250 million (2007 Plan) Planning further investments in the software wing Visteon US$ 56 million in 2002 US$100 million NA Bosch Planning for further investments of US$430 million Plans to increase it to US$ 500 million by 2010 NA Plans to procure US$ 1. dsystemsrive shafts etc. panel instrument Assembly FIPs. alternators.000 million worth of components from Low Cost Countries including India Cummins Engines and components US$ 150 million Tenneco Automotive Deutz Forgings Engine components US$ 60 million US$ 70 million . piston rods.Manufacturer Component Value Comments Delphi Catalytic convertors.

Domestic Private Players: Bharat Forge Limited Tata Auto Component Systems Sundaram Fasteners Brakes India International Private Players: MICO Visteon Delphi .

. axle housing. Oil Filters Denso : Auto electric components. alternators. DANA : Clutch.‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Delphi : Steering System and Wiring harness Bosch : Spark plugs. engine cooling systems. fuel pumps and Radiators Lear : Electronic and Auto electrical components. Braking system and auto electric components Siemens VDO: Automotive dashboard instruments and accessories. T RW : Engine valves and steering system. Fuel Injection equipments. Johnson Controls: Seating Systems and Controls Visteon : Air conditioning. Piston rings.

China El Forge Ltd : Shakespeare Forging UK T V S Autolec Ltd: RBI Autoparts SND BHD.Tata Motors : Daewoo Commercial Vehicle Plant M & M : Jianging Motors Co. SAR Auto Products Ltd China Bharat Forge Ltd: Carl Dan Peddnghaus Germany Fedara Forge U S A Imatra Kilsta AB Sweeden . Sona Koyo: Fuji Autotec ± France.Germany UCAL Fuel System: Amtec precision Products Inc USA SFL: Bliesthal Products GMBH for valve guide & valve seat inserts. Malaysia. Precision forging unit of Dana Spicer (UK) Camlington Forge ±UK Greenfield Plant in Zhejiang.China .Scottish Stampings Ltd Scottland Amtec Auto : G K W UK. New Smith Jones Inc of USA . . Zelter.

European Standards etc. Growing IT Capability for Design. Appropriate Automation leading to economic production costs Flexibility in small-batch production. Development & Simulation Respect for Intellectual Property . Japanese.` ` ` ` ` Proficiency in Understanding Technical Drawings and well conversant in all Global Automotive Standards : American. Korean.

[FOREIGN DIRECT INVESTMENT] [DUTY ENTITLEMENT PASSBOOK SCHEMES] .5% from the earlier 10%.100% FDI allowed for automobiles and autocomponent industry Reduction in the duty of raw material to 5-7. Setting up of R&D Infrastructure Project. Incentives provided to the exporters in terms of Drawbacks and DEPB .

India's labor intensive car industry has become a tremendous job creator and as such a crucial driver of economic growth . Favorable destination for foreign companies to establish their facilities and form alliances with domestic companies. Has a huge scope of investment.` ` ` ` Indian auto component industry is one of the largest growing industries in the world.