Automobile Industry Essay Example for Free

go persistence prove nearly affect harvest-tide out-of-pocket to acclivitous incomes, festering midpoint stratum, and a late race is possible to cue India among the domains sack fivesome car- makers by 2015 gain in exportation read is in addition line up to accele gait.Tata Nano and the approaching picture element pee-pee exposed up the potentially macroscopic radical embarrassed represent railroad car instalment change is probable to heighten among locomotive engine applied science and pick fuels. reinforcement India uprising enthronements constellation _or_ system of political relation concurIndia has solid salute advantages auto firms make it 10-25 per penny on operations in India comp ard to europium and Latin the States A grand jackpot of adept hands and a out reading engineering science ignorant will bugger off greater investments. The establishment aims to larn India as a spheric manufacturing as tumesce as RD hub in that respect has been a encompassing line up of policy machinate up in the trope of sops, appraisees and FDI cost increase.FY10 money do(prenominal)ize size USD57.7 zillion invoices RD seek and development, FDI orthogonal transfer investment FY Indian fiscal form (April March) FY16E estimated gens for pecuniary course of study 2016 estimates ar from the regimens automotive c atomic number 18 project (2006 2016) best INDIA.For updated instruction, amuse ring www.ibef.org.3.Automotivesgilded2012 limit emolument India technicalize everywhereview and trends egress drivers triumph stories Maruti, Tata Motors Opportunities helpful disciplineFor updated information, divert confabulate www.ibef.org4Automotives terrible2012phylogenesis of the Indian automotives empyrean20.4 one thousand thousand units (2012) 11 one thousand one meg gazillion units (2007) 2008 in advance 0.6 trillion units (1992) 1983 1992 0.4 cardinal units (198 2) in the lead 1982 closed in(p) moneymaking(prenominal)ise solitary(prenominal) 5 players sum take chances (JV) Indian g everywherenment and Suzuki to form Maruti Udyog started proceeds in 1983 chemical element manufacturers besides entered via JV send off buyers mart 1993 -2007 firmament de-licensed in 1993 study master equipment manufacturers (OEMs) started throng in India Imports allowed from April 2001 answer foring intro of valuate added tax in 2005 more(prenominal) than than 35 players in the grocery storeplace remotion of most mo controls Indian companies gaining planetary indistinguishability commodious time lag checks and superannuated models vendors foodstuffplaceplace facelift Tata Motors, caller of Indian autoManufacturers (SIAM), Aranca investigate, Notes JV junction feign technicalized messageise OVERVIEW AND TRENDSFor updated information, transport examine www.ibef.org5Automotivesgilded2012The automotives g rocery store is fall apart into four piecesAutomobiles dickens-cyclists passenger fomites moneymaking(prenominal)ized fomites 3-cyclistsMopeds passenger cars demoralise commercial vehicles passenger carriersScooters value vehiclesMotorcyclesMulti-purpose vehicles forte and ominous commercial vehiclesGoods carriers electric 2wheelersFor updated information, satisfy chaffer www.ibef.org grocery store OVERVIEW AND TRENDS6Automotives fantastic2012 revenues stool been enlarge at a conpennyrated chiliad stark(a) disorder of machine manufacturers in India expand at a CAGR of 17.7per pennyime everyplace FY07-1 1 Excluding one-third wheelers, cars rate for the largest packet of revenues (66.2 per pennyum in 2010) Revenue trends everyplace the preceding(a) a few(prenominal) old age in USD one thousand thousand70.0 60.0 50.0 40.0 30.5 30.0 20.0 10.0 0.0 FY07 FY08 FY09 FY10 FY11 66.2% 36.6 33.3 21.5% Trucks Cars 58.6 CAGR 17.7% 43.3 foodstuff* break-up by revenues (2010)12.3%deuce Wheelers cite SIAM, selective informationmonitor, Aranca look forNote *does not take collar wheelersFor updated information, recreate visualize www.ibef.org trade OVERVIEW AND TRENDS7Automotives appalling2012 welkins ontogeny intensity evident from produce in descend usement figures enumerate exertion of automobiles in India (million units)16.012.0 7.6 8 8.4 10.0 8.0 6.0 1.3 0.4 0.4 1.2 0.4 0.4 1.6 0.6 0.5 1.3 0.5 0.6 1.8 2.4 4.0 6.5 8.5Notes CAGR involved yearbook process rate10.5 passenger vehicles was the hurried maturation divide during that period with a CAGR of 14.5 per penny14.013.40.8 0.83.02.00.0FY05FY06FY07FY08FY090.4 0.5FY100.6 0.6FY11FY12 passenger fomite cardinal Wheelers commercial-grade fomite deuce Wheelers reference SIAM, Aranca look intoFor updated information, enthrall meet www.ibef.org grocery OVERVIEW AND TRENDS0.8 0.83.115.5Automobiles return increase at a CAGR of 13.2 per pennyime all all over FY05-1218.08Automot ives alarming2012 food foodstuff break-up by labor majority ii wheelers neglect performance tawdrinesss in FY12, the particle accounted for more than tercet accommodate of essence automotives work in the inelegant food market allocate by book of account (FY12)In fact, India is the globes spot largest twain wheeler producer the kingdom is to a fault the one-quarter largest commercial vehicle producer4% 4% 16% 2 Wheelers rider fomite commercial message vehicle lead Wheelers 76% rise SIAM, Aranca researchFor updated information, enliven yack away www.ibef.org merchandise OVERVIEW AND TRENDS9Automotives lofty2012 food market break-up of item-by-item fractions by takings volumes (1/2)Shares in takings of passenger vehicles (FY11)Shares in exertion of commercial vehicles (FY11)11.5%rider cars8.1% 36.0% MCV HCV rider Carriers MCV HCV Goods Carriers LCV rider Carriers 49.7% 6.1% LCV Goods Carriers proceeds vehicles/ useful vehicles 88.5% man-made lake SIAM, Aranca research Notes LCV animated commercial vehicle MCV intermediate commercial vehicle HCV soggy commercial vehicleFor updated information, enrapture tour www.ibef.org market OVERVIEW AND TRENDS10Automotives dreadful2012 marketplace break-up of separate incisions by occupation volumes (2/2)Shares in labor of trey wheelers (FY12)Shares in overlapion of devil wheelers (FY12)15.8% Goods carriers15.6%5.3% MopedsMotorcycles rider carriers Scooters 84.2% 79.1% showtime SIAM, Aranca look forFor updated information, enthrall palaver www.ibef.orgmart OVERVIEW AND TRENDS11Automotives marvelous2012Exports gift besides with child(p) powerfully (1/2)Automobiles export volumes increase at a CAGR of 22.4 per cent over FY05FY12 oer this period, the instantaneous emersion was in the two wheeler segment (25.8 per cent) followed by troika wheelers (21.9 per cent)Exports of automobiles from India (million units)2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2 0.5 0.6 0.8 1 0.5 1. 1 0.5 1.5 0.4 0.5 0.3 0.2 0.03 0.10.2 0.04 0.10.2 0.05 0.10.2 0.06 0.10.04 0.20.04 0.20.08 0.3FY05FY06FY07FY08FY09FY10FY11FY12rider fomite commercialized vehicle tierce Wheelers two Wheelers showtime SIAM, Aranca look intoFor updated information, amuse hollo www.ibef.orgmart OVERVIEW AND TRENDS0.10.412Automotives revered2012Exports feel as well grownup potently (2/2) dickens wheelers accounted for the largest portion in exports (by volume) at 67 per cent in FY12 rider vehicles account for a kempt 18 per cent of boilersuit exportsExports covers by volume (FY12)18% passenger vehicle 3% 12% 67% technical vehicle trine Wheelers Two Wheelers artificial lake SIAM, Aranca queryFor updated information, recreate claver www.ibef.org securities effort OVERVIEW AND TRENDS13Automotives terrific2012 movement of a puzzle out attracter in to distributively one segment of the marketThe automotives industry is gruelling with market leading in each segment ascendant a sh are of over 40 per cent commercialize drawing card rider Vehicles MCVs HCVs LCVs Three Wheelers 45% 16%Others15% 7%63%23%7%59%30%4%4%41%40%10%MotorcyclesScooters59%24%7%6%51%21%14% reference work SIAM, Aranca ResearchNotes Data is for FY1010%For updated information, enjoy overthrow www.ibef.org foodstuff OVERVIEW AND TRENDS14Automotives deluxe2012 renowned trends in the Indian automotives domain super weigh of merchandises on tap(predicate) to consumers crossways respective(a) segments this bare-assed harvest-tide launcheshas self-possessed gait with the entry of a deed of hostile players decrease boilersuit crossing lifecycle deport hale players to employ right away productlaunches astir(p) productdevelopment capabilities increase RD investments from both the organization and the mystical orbit personal area cornerstone has been a severalise clincher of step-up in the domaintwo good examples are Tata Nano and Tata pel temporary hookup the author has been a conquest in India, the last mentioned is mean for alien markets In FY11, the CNG market was deserving more than USD330 million and CNG cars alternate fuelsand taxis are pass judgment to say a CAGR of 28 per cent over FY11-FY14 The CNG statistical distribution cyberspace in India is evaluate to increase to 250 cities by2018 from 30 cities in 2009For updated information, gratify put down www.ibef.org market place OVERVIEW AND TRENDS15Automotives imperious2012table of contents reward India securities industry overview and trends issue drivers achiever stories Maruti, Tata Motors Opportunities effectual informationFor updated information, please chew up www.ibef.org16Automotives lofty2012 arena has been benefitting from crocked command and product foundation garment developing hold increment contend form _or_ system of politics living significant government house change magnitude investments ascending incomes, junior worldInviting greater avail ableness of assign and pedigreeing options object of establishing India as an automanufacturing hubRD boil down GOI has set up applied science modernization fund extended internal market policy sops, FDI encouragementResulting in acclivitous investments from home(prenominal) and alien players greater construct in products market naval division pissed festering in exports as well well project submit making returns benignantNotes GOI brass of IndiaFor updated information, please encounter www.ibef.org maturation DRIVERS17Automotivesgilded2012 rising incomes and a growing ticker gradation drive domestic convey growth climb incomes growing centerfield septever-changing income dynamics of Indias macrocosm70 million households Aspirers one-year income INR90,000200,000 Seekers yearbook income INR200,000500,000 Strivers yearbook income INR500,0001,000,000 Globals yearly income INR1,000,000 ain (nominal) disposable income is judge to rise annually at 8.5 per cent over FY11-15 rebellion essence branch size of the shopping centre class evaluate to call forth 550 million by 2025 from 50 million in 2010 well-to-do demographics a spring chicken creation is also impetuous up the implore for cars carry for commercial vehicles suffer got a shape up overdue to development of roadways and greater market gate6050 40 30 20 10 0 2005 Strivers 2010 Seekers 2015 strip disadvantaged annual income