India's Automotive Industry: Regulations, Opportunities and Key Players
•Download as PPT, PDF•
3 likes•2,057 views
![Contents ,[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommended
More Related Content
What's hot
What's hot (20)
Similar to India's Automotive Industry: Regulations, Opportunities and Key Players
Similar to India's Automotive Industry: Regulations, Opportunities and Key Players (20)
India's Automotive Industry: Regulations, Opportunities and Key Players
- 1. www.imacs.in
- 19. Key players in the Indian auto industry - Passenger Cars and CVs The largest player in the Indian industry. Plans to launch new and exciting products in the Indian markets, including the ‘100,000’ car Suzuki’s JV in India and the largest passenger car manufacturer in India The third largest passenger car manufacturer in India and one of the largest exporters of vehicles. Has established India as one of its manufacturing bases in the world. Is planning to invest heavily to boost exports from India Has vision of capturing 10 % share of the Indian passenger car market by 2010 One of the leading players in the Indian premium cars segment One of the leading players in the Indian premium cars segment India Advantage and business opportunities
- 20. Key players in the Indian auto industry - Passenger Cars and CVs One of the leading players in the Indian premium cars segment. Plans to enter the small car segment by re-launching the Matiz One of the largest players in the UV / MUV segment The 2nd largest CV manufacturer in India Other global players who are in India / have plans for India include - Volvo, Daimler Chrysler, BMW and Nissan Motors India Advantage and business opportunities
- 21. Key players in the Indian auto industry - Two wheelers The largest 2 wheeler manufacturer in the world The 2nd largest 2- wheeler manufacturer in India and the largest 3 wheeler manufacturer. Has plans for establishing a manufacturing facility in Indonesia The third largest 2 wheeler manufacturer in India. Has plans for establishing a manufacturing facility in Indonesia Has recently entered the Indian market through its direct subsidiary ( in addition to its JV – Hero Honda) Has recently entered the Indian market through its direct subsidiary India Advantage and business opportunities
- 22. The India Brand Equity Foundation is a public-private partnership between the Ministry of Commerce & Industry, Government of India and the Confederation of Indian Industry. The Foundation’s primary objective is to build positive economic perceptions of India globally India Brand Equity Foundation c/o Confederation of Indian Industry 249-F Sector 18, Udyog Vihar Phase IV Gurgaon 122015, Haryana, INDIA Tel +91 124 401 4087, 4060 - 67 Fax +91 124 401 3873 Email j.bhuyan@ciionline.org Web www.ibef.org
- 23. Disclaimer This publication has been prepared by ICRA Management Consulting Services (IMaCS) for the India Brand Equity Foundation (“IBEF”). All rights reserved. All copyright in this publication and related works are jointly owned by IBEF and IMaCS. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication), modified or in any manner communicated to any third party except with the written approval of IBEF. This publication is for information purposes only. While due care has been taken during the compilation of this publication to ensure that the information is accurate to the best of knowledge and belief of IBEF and IMaCS, the content is not to be construed in any manner whatsoever as a substitute for professional advice. IBEF and IMaCS neither recommend nor endorse any specific products or services that may have been mentioned in this publication and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this publication. IBEF or IMaCS shall in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this publication. ICRA Management Consulting Services Limited
Editor's Notes
- The growth in domestic demand is driven by a number of factors including Overall economic growth Rising income levels Low cost of finance and easy availability of finance Auto sector is key to the Indian economy from the perspective of economic contribution and employment Auto sector contributes to around 5 % of GDP and employs 13 million people Auto sector contributes to around 17% of direct taxes kitty
- About 400 organised sector players and 5000 unorganised sector players The Indian auto component industry is characterised by Strong backward and forward linkages Many technically capable companies Increasing success in tapping export markets
- The 3 auto hubs - Chennai, Manesar and Pune account for around 90 % of the total industry Most of the major auto components manufacturers have multiple facilities ( spread across the country) to service the OEMs in the regions Other key auto production areas include Pithampur and Uttaranchal, where a number of auto companies are establishing bases taking advantage of the tax holiday for the region.
- Total value of export was around USD 6 bn in 2005-06, of which vehicle exports contributed to around USD 4 bn Key export markets were SAARC countries, EU, North America and Middle East
- Growth in income levels and availability of easy finance have increased consumer demand for auto products. Increased consumer awareness and closer linkages with the global auto trends have resulted in the companies introducing contemporary products in the Indian market. The stable government economic policies adopted by successive governments s have contributed to the overall economic growth including growth of the auto sector. In addition, the government has stake specific policy initiatives such as lower excise duties on smaller cars, etc to boost local demand India is targeting to emerge as the manufacturing hub for small cars. It has already been recognised as low cost source for components and vehicle and is expected to capitalise on the increase in outsourcing to low cost countries.
- Two wheelers would lead the growth, with an estimated sales of 28 million units by 2016 The contribution of the automotive sector to the Indian GDP is expected to double from the present level of 5 - 6 % Total export in the auto sector would be around USD 30 – 35 bn, of which component exports would account for USD 20 - 25 bn and vehicle exports for the rest The total employment generated in the auto sector would d be around 25 million by 2016 ( including indirect employment)
- The Government has identified the Auto sector as an important growth engine Measures such as reduction in duties on inputs for the auto sector have been taken in the past to make the industry globally competitive
- India has joined WP 29 as an observer
- The total investments in this project is around Rs.1,700 crore. The project is to be implemented in 2 phases - Phase 1 starting from 2008 and Phase II from 2010 - 11 In addition, 6 centres of excellence providing facilities for advanced developmental activities are being planned in Chennai, Manesar and Pune. This project is aimed to assist the Indian auto industry to develop product development capabilities and help them compete on a global basis.
- Successive governments in India have continued the economic reforms process started in the early ‘90s. This has ensured stability in overall economic policies shaping the country. Recently, the government has declared that it would support the Indian auto industry in its efforts to emerge as the manufacturing hub for small cars The consumer demand coupled with the economic growth is expected to grow the Indian auto industry at over 10 % p.a in the future. In addition to low cost advantage, the Indian auto industry also offers a number of other advantages including technological capabilities and adherence to the highest quality standards.
- The high domestic growth coupled with the advantage offered by India make India an attractive destination for investments in the auto sector. The large domestic market, coupled with export opportunities provide a number of opportunities to both Indian and global players