Auto Component Industry in India:

Growing Capabilities & Strengths

Agenda
India: A Vibrant Economy
Automotive Industry in India
Auto Component Industry in India
Policy Environment
Capabilities & Challenges
The Way Forward
About ACMA

India: A Vibrant Economy

India: A Vibrant Economy

1. Largest Democracy 1.2 billion people, Growing Middle Class
2. 4th largest GDP (PPP) and 10th largest GDP (Nominal, USD 1.8 trillion)
3. One of the fastest growing economies

Indias average GDP growth rate: 8.4% over past 5 years

Expected to outpace China in the next decade

4. 3rd Largest Investor base in the World

5. Robust Legal and Banking Infrastructure
6. Demographics Advantage Youth driven economy
7. Suburbanization & Rural to Urban Migration 140 million by 2020; 700 million
by 2050
8. 2nd largest pool of Certified Professionals and highest number of Qualified
Engineers in the world
9. Investment in Infrastructure
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Automotive Industry in India

Automotive Clusters in India

Eicher
Escorts
Hero Moto Corp
Honda Motorcycle
Honda SIELCars
ICML
JCB

Maruti Suzuki
New Holland
Mahindra
Suzuki Motorcycles
Swaraj Mazda
Tata Motors
Yamaha

North

*New Hub: Sanand

Tata Motors, Maruti, Ford India,

Hindustan Motors
Tata Motors

East
West
Bajaj Auto
Fiat
Force Motors
GM
John Deere
Mahindra
Mahindra Navistar

Man Force
Mercedes Benz
PSA
Skoda
Tata Hitachi
Tata Motors
Volkswagen
Volvo Eicher

Ashok Leyland
BMW
Caterpillar
South Daimler
Ford
Hindustan Motors
Hyundai
Nissan

Renault
Royal Enfield
Same Deutz
TAFE
Tata Motors
Toyota Kirloskar
TVS
Volvo Buses
(Illustrative List)

Significant Manufacturing base of OEMs Indian & Global

6

Rapidly growing presence of Global OEMs

Passenger Vehicle market share by OEM parent country

Mahindra
Hindustan Motors
Premier

Maruti Suzuki
Tata Motors
Mahindra
Hindustan Motors
Premier

1980

1990

Mercedes Benz
Ford
Toyota
Honda
GM
Fiat
Hyundai
Maruti Suzuki
Tata Motors
Mahindra
Hindustan Motors

2000

BMW
VW
Skoda
Renault Nissan
Mercedes Benz
Ford
Toyota
Honda
GM
Fiat
Hyundai
Maruti Suzuki
Tata Motors
Mahindra
Force Motors
Hindustan Motors

Foreign

2011

Local

2007

2011
(Illustrative List)

Passenger Vehicles Production

(000 units)

10,000 *

10,000
CAGR 2008-12: 14%

7,500

CAGR 2012-21: 13%*

5100 *

5,000

2,500

1,838

2,357

2,987

3,146

3234

2010-11

2011-12

2012-13

2008-09

2009-10

2015-16

2020-21

Figures for financial year April to March

(* Estimates)

Other Vehicles Production

Commercial Vehicles

( 000 units)

CAGR 2008-12: 22%

CAGR 2012-21: 11%*

Commercial Vehicles include:

Small Commercial Vehicles (SCV)
Light Commercial Vehicles (LCV)

Tractors

( 000 units)

CAGR 2011-21: 5%*

< 1 ton
> 1 ton but < 7.5 tons

Medium Commercial Vehicles (MCV)

Heavy Commercial Vehicles (HCV)

> 7.5 tons but <16 tons

> 16 tons

(In 000 units)

Two & Three Wheelers

CAGR 2008-12: 16%
CAGR 2012-21: 7%*

Construction Vehicles( 000 units)

CAGR 2011-21: 14%*

Figures for financial year April to March

(* Estimates)

Auto Component Industry in India

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Auto Component Industry Profile - Turnover

*
USD billion

CAGR 2008-12: 12%

CAGR 2013-21: 14%*

Figures for financial year April to March

(* Estimates)

Comprehensive Product Range

Electrical Parts
9%
Equipments
10%
Suspension &
Braking Parts
12%

Others
7%

Body & Chassis

12%

Engine Parts
31%

Drive Transmission
& Steering Parts
19%

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Auto Component Industry Profile - Exports

USD billion

30

*
30

CAGR 2008-12: 22%

CAGR 2013-21: 16%*

20
10
3.8

3.4

2007-08

2008-09

2009-10

8.5

9.3

2011-12

2012-13

12*

5.2

0
2010-11

2015-16

2020-21

Figures for financial year April to March

Export Destinations
South America, 4%

Australia,
1%
Africa, 9%

(* Estimates)

Asia, 25%
Europe,
35%
North
America,
26%

OEM/Tier 1 account for 80%; Aftermarket for 20%

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Increased Component Outsourcing

Over 30 IPOs of Global OEMs & Tier 1 Procuring from India

OEMs

Tier 1 Component Manufacturers

BMW
Caterpillar
Ford
FIAT
GM
MAN
Mercedes-Benz
Nissan
Peugeot
Renault
Toyota
Volkswagen

Bosch
Continental
Cummins
DANA
Delphi
Denso
Eaton
Getrag
Kolbenschmidt
Magna
Meritor
TRW
Valeo
(Illustrative List)

Indian components already driving on international roads

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USD billion

Auto Component Industry Profile - Imports

40

CAGR 2008-12: 11%

30

CAGR 2013-21: 13%*

20
10

6.2

6.8

6.5

8.5

2007-08

2008-09

2009-10

2010-11

*
35

13.2

13.1

2011-12

2012-13

19 *

Sources of Imports

Europe,
32%

North
America,
8%

2015-16

2020-21

Figures for financial year April to March

(* Estimates)

South
America,
1%

Asia, 59%

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Vision 2020: Indian Auto Component Industry

150
150

USD Billion

35

100

30

85
56

19
12

50

13.2
8.5

85
54

33.9
0
2011-12*

2015-16 (E)

Production for domestic consumption

2020-21 (E)

Exports

Imports
E-Estimated
Source: ACMA - EY Vision 2020

Total Industry Potential: USD 150 billion by 2020

15

Policy Environment & Trade

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Favorable Policy Regime

Auto Policy 2002 and Auto Mission Plan 2006-16 framework for Automotive
Manufacturing in India

Manufacturing and Imports Free from Licensing and Approvals

WTO compliant policies (no import restrictions and reduced
tariff levels)
Robust Legal system and stable Foreign Exchange regime
Joined UN-ECE WP 29 for Global Standard in Technology

Robust Indian
Automotive
Industry

Increased budgets for R&D activities

100% FDI permitted without prior Govt. approval

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Major International Auto Component Companies with India

Manufacturing footprint
Aisin Seiki Co.

Magneti Marelli

BorgWarner

Mando Corporation

Continental

Meritor

Delphi

Mitsuba Corporation

Denso Corporation

NHK Spring

Eaton

Robert Bosch

FAG

Showa Corporation

Faurecia

Sumitomo Wiring Systems

GKN

Toyoda Gosei

Honda Foundry Co. Ltd.

USHIN

Honeywell

Valeo

Knorr Bremse

Visteon

Koyo

Yazaki

Magna

ZF
(Illustrative List)
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Capabilities & Challenges of Indian Component

Suppliers

19

Indian Suppliers Focus Global Best Practices

Industry fast embracing modern
shop-floor practices:

Focus on Quality

Deming
Award - 12

Japan Quality
Medal - 2

TPM Award
- 15

5-S; 7-W
Kaizen
TQM
TPM
6 Sigma
Lean Manufacturing

Shingo Silver
Medallion - 1

JIPM - 3

Largest no. of Deming Award winning companies outside Japan

20

Increasing focus on Innovation and Research

Design & Research Centers of leading Global companies in India
AMD

Honeywell

Boeing

Hyundai

Bosch

Intel

Caterpillar

Magna

Continental

Motorola

Cummins

Mercedes Benz

Ford

Microsoft

GM

Renault Nissan

GE

Suzuki

Honda

Valeo

(Illustrative List)
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Challenges Typical of a high Growth Emerging Market

Raising Capital & Scaling Capacities

Infrastructure Challenges
Roads
Ports
Power

Inflation

Availability of Skilled Manpower

Managerial Depth across Tiers

R&D Competence

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Conclusion

Vibrant Indian Economy

Automotive Industry - Double Digit Growth in all segments

India fast emerging as hub for Global Vehicle Programs

2020: USD 113 billion Auto Component Industry

Growing Engineering and IT capability for Designing & Manufacturing

Respect for IPR

Opportunity to Partner in Product & Process Innovation

Opportunity to Outsource for OEMs/T1s and Aftermarket

India: The Gateway of Growth
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About ACMA

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About ACMA

Established in 1959

Apex body of Auto Component Industry in India

650+ members from the Organized sector

Represents 85% of the Industry by turnover

Represented on all Government and Industry bodies

Strategic to the Auto Sector

Offices across all Regions in the Country

An ISO 9001-2008 Institution

ACMA Excellence in Service Delivery
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ACMA Services

Promotes Indian
Automotive Component Industry

Trade Promotion

Technology
Up-gradation

Quality
Enhancement

Collection &
Dissemination of
Information

Vital Catalyst for Industrial

Development

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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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