ACMA Presentation

About ACMA

About ACMA

Established in 1959

Apex body of Auto Component Industry in India

Over 700+ 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
3

ACMA Services

Promotes Indian
Automotive Component Industry

Trade Promotion

Technology
Up-gradation

Quality
Enhancement

Collection &
Dissemination of
Information

Vital Catalyst for Industrial

Development

ACMA Centre for Technology (ACT)

ACT focuses on providing technical services to ACMA
members for improving process and quality capabilities
through Cluster Programmes

ACT Clusters Programs

- ACT SME Cluster

- ACT Foundation Cluster

- ACT UNIDO Partnership Program - ACT Advance Cluster

- ACT SME Advance Cluster

- ACT Engineering Excellence Cluster

India: A Vibrant Economy

India: A Vibrant Economy

1. Largest Democracy 1.2 billion people, Growing Middle Class
2. 3th largest GDP (PPP) and 10th largest GDP (Nominal, USD 2 trillion)
3. One of the fastest growing economies 2014-15: ~ 7.5% (E)

Indias average GDP growth rate for the last five year: over 7%

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

Infrastructure Development A Special Thrust

Roads

Airports

Ports

USD 16 bn

USD 36 bn
Telecommunication
Total planned
infrastructure
investments of
USD 1 Trillion*
from 2012-17

USD 172 bn

USD 172 bn
Energy

Railways

USD 331 bn

USD 117 bn

USD 10 bn for 100 smart cities

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,

Tata Motors

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

Mercedes Benz
PSA
Skoda
Tata Hitachi
Tata Motors
Volkswagen
Volvo Eicher

Ashok Leyland
BMW
Caterpillar
South Daimler
Ford
Hyundai
Nissan

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

Significant Manufacturing base of OEMs Indian & Global

10

Where does India stand?

Largest TRACTOR manufacturer

2nd Largest TWO WHEELER manufacturer

2nd Largest BUS manufacturer

5th Largest HEAVY TRUCK manufacturer

6th Largest CAR manufacturer

8th Largest COMMERCIAL VEHICLE manufacturer

Source: SIAM

Vehicles Exported From India

Maruti - Alto

Maruti - A Star

Hyundai - i10

Hyundai - EON

Volkswagon - Polo

Tata - Indica

Hyundai - i20

Bajaj Auto - Pulsar

Mahindra - Bolero

Nissan - Micra

Hero MotoCorp Splendor

(Illustrative List)

12

Vehicles Exported From India

Mahindra - Maxx

Piaggio - Ape

Tata

Mahindra - Alfa

Mahindra - Gio

Bajaj - Auto

Tata - Magic

Mahindra

Ashok Leyland
(Illustrative List)

13

Passenger Vehicles Production

CAGR 2011-15: 2%
(000 units)

3500
3146
3000

3234
3087

2987

3220

2500
2000
1500
1000
2010-11

2011-12

2012-13

2013-14

2014-15

Figures for financial year April to March

Source: SIAM

14

Other Vehicles Production

Tractors

Commercial Vehicles
( 000 units)

CAGR 2011-15: -2%

1000

929
753

800

800

640

833
699

600

697

600

( 000 units)

CAGR 2011-15: 3%

545

697

613

579

400

400
200

200
0

2010-11

2011-12

2012-13

Commercial Vehicles include:

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

2013-14

2014-15

< 1 ton
> 1 ton but < 7.5 tons

2010-11

Medium Commercial Vehicles (MCV)

Heavy Commercial Vehicles (HCV)

(In 000 units)

CAGR 2011-15: 8%

20000

16330

16584

17713

19449

90

2013-14

2014-15

> 7.5 tons but <16 tons

> 16 tons

70

CAGR 2011-15: -2.6%

( 000 units)

69.2
62.3

14176

15000

2012-13

Construction Vehicles*

Two & Three Wheelers

25000

2011-12

56

50.5

52

2012-13

2013-14

50

10000
30
5000
10

0
2010-11

Source: SIAM

2011-12

2012-13

2013-14

2014-15

2010-11

Figures for financial year April to March

2011-12

2014-15

* E&Y Estimates

Auto Component Industry in India

16

Turnover - Auto Component Industry: 2010-15

CAGR: 11%
2348 (38.5)

35.9%
2000

2046 (42.2)

2160 (39.7)

40%

2117 (35.1)

30%

1883 (41.3)

25.3%
1500

20%

1386 (30.8)

11.1%
1000

10%

8.7%
5.6%

500

Growth Rate in Rupee Terms

Turnover in INR 00 Crore (USD Billion)

2500

0%

-2.0%

-10%
2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

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

17

Product Range - Auto Component Industry

Others; 7%
Electical Parts; 9%

Engine Parts; 31%

Equipments; 10%

Suspension &
Braking Parts; 12%

Drive Transmission
& Steering Parts;
19%

Body & Chassis;

12%

The Industry produces High Quality Cost Competitive

Components in all product segments.
18

Auto Components Supply to OEMs

Backhoe Loaders,
2%

Others, 2%

Tractors, 8%

Two-wheelers,
22%

Three-Wheeler,
4%

PVs, 45%

HCV, 8%

MCV , 5%
SCV

Less than 2 T

LCV

2 to 7.5 T

MCV

7.5 to 16 T

HCV

More than 16 T

SCV , 1%
LCV , 4%

OEMs consumption includes locally produced Components and Imports

19

CAGR: 29%

900

80%

60.7%

Growth Rate in Rupee Terms

Turnover in INR 00 Crore (USD Billion)

Exports - Auto Component Industry: 2010-15

685 (11.2)
614 (10.2)

40.7%
600

40%

526 (9.7)
427 (8.8)

300

23.3%

303 (6.7)

189 (4.2)

16.7%

11.4%

0%

-19.3%

-40%
2009-10

2010-11
Africa
7.28%

Oceania
0.75%
Europe
36.39%

Asia
25.29%

2011-12
Latin
America
and the
Caribbean
7.04%

North
America
23.25%

2012-13

2013-14

2014-15

Exports Destinations: Top 10 Countries

USA

22.35

Thailand

3.38

Germany

7.51

Brazil

3.37

Turkey

6.49

China

3.07

UK

5.43

UAE

2.95

Italy

4.79

France

2.92
20

Exports by Region
Indias Export Growth Rate: -1.2%
Auto Component Export Growth Rate: 10%

5000

5.6%

3866

Figures in USD Million

4000
9.0%

18.9%

3000

2609

4084

2605

2839

2194
2000
12.6%

1000

725

817

4.6%

754

789

2.0%

86

84

0
Africa

Latin America
and the
Caribbean

North America
2013-2014

Asia

Europe

Oceania

2014-2015
21

Exports: Top 10 countries

3000
19%
2508
2500

Figures in USD Million

2100
2000

1500
1%
39%
1000

831 843

728
525

3%

8%

627 610

500

10%

10%
8%

499 537
344 379

412 379

Thailand

Brazil

15%

3%

314 344

288 331

337 327

China

UAE

France

0
USA

Germany

Turkey

UK

Italy
2013-2014

2014-2015
22

Key Auto Components Exported

Hydraulic Power Steering Systems & Steering Gear Systems and Parts
Gear boxes and parts

Exports

Parts of Diesel Engines

Parts for automobiles and earth moving Equipment
Drive-axles and parts
Spark Ignition and parts
Suspension systems and parts

Crank shaft for engines

Toothed wheels, other transmission parts
Brakes and servo-brakes; parts
(Illustrative list/ Products in random order)
23

CAGR: 18%

900

829 (13.58)
744 (13.7)

80%

Growth Rate in Rupee Terms

Turnover in INR 00 Crore (USD Billion)

Imports - Auto Component Industry: 2010-15

771 ( 12.8)

667 (13.8)

38.1%

600

497 (10.9)

40%

34.3%
11.6%

360 (8.0)

300

3.6%

7.5%

-4.4%

0%

-40%
2009-10

Oceania ;
0.12%
Europe;
32.45%

Africa;
1.04%

2010-11

2011-12

Latin America &

Caribbean; 1.21%
North
America;
7.21%

Asia;
57.97%

2012-13

2013-14

2014-15

Origin of Imports: Share of Top 10 in %

China

23.94

USA

6.96

Germany

14.57

Italy

3.75

Japan

11.53

UK

2.67

South Korea

10.66

France

2.01

Thailand

8.27

Spain

1.40
24

Imports by Region
Indias Import Growth Rate: - 0.4%
Auto Components Import Growth Rate: 6 %
5%

10000

4218 4408

17%

Figures in USD Million

4%

7505 7874

1000

19%

114

142

8%

812 979

152 164

100

11%

18

16

10

1
Africa

Latin America North America

and the
Caribbean
2013-2014

Asia

Europe

Oceania

2014-15
25

Imports: Top 10 countries

4000
19%

3170

Figures in USD Million

3000
2671
3%

1929 1979

2000

2%

5%

1593 1566 1527

1448

19%
15%

1123
941

1000

821

945
5%

483 510

24% 13%

31%

293 363 315 273 276

191

China

Germany

Japan

South
Korea

Thailand
2013-2014

USA

Italy

UK

France

Spain

2014-15
26

Capital Investment - Auto Component Industry: 2010-15

3

2.0 - 2.5 ( 91-102 )

USD Billion ( 00 Crore )

2.5

1.6 1.9 ( 77-92 )

1.26-1.75 (69-95)

1.7 ( 77 )
1.5

0.53-0.73 ( 32-44 )
0.33-0.46 ( 20-28 )

0.5

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15
27

Aspiration 2020

5 suppliers in
global 100

USD 20-22
billion in
revenue from
overseas
assets

With Export of
USD 35 - 40
billion
Indian auto
component
industry to
cross USD
100 billion
mark

28

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

29

Capabilities & Challenges of Indian Component

Suppliers

30

Indian Suppliers Focus Global Best Practices

Industry fast embracing modern
shop-floor practices:

Focus on Quality
OHSAS
ISO 14001

162

287

TS 16949

546
651

ISO 9001

Deming
Award - 14

Japan Quality
Medal - 5

TPM Award
- 15

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

Shingo Silver
Medallion - 2

JIPM - 3

Largest no. of Deming Award winning companies outside Japan

31

Increasing focus on Innovation and Research

Design & Research Centers of leading Global companies in India
AMD

Honeywell

Boeing

Hyundai

Bosch

Intel

Caterpillar

Magna

Continental

Mercedes Benz

Cummins

Microsoft

Ford

Renault Nissan

GM

Suzuki

GE

Valeo

Honda

(Illustrative List)
32

Challenges

Challenges

High Cost of Capital

Capacity Utilization

Roads

Infrastructure Challenges & Cost

Ports

Imports - higher than exports

Power

Combating Counterfeit Parts

Skilled Manpower
Building R&D Competence & Ecosystem

33

Summary
Figures in INR 00 Crs
2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

Turnover

1,386

1,883

2,046

2,160

2,117

2,348

Growth rate(%)

25.3

35.9

8.7

5.6

-2.0%

11.1%

Export
Growth rate(%)

189
-19.2%

303
60.3%

427
40.9%

526
23.2%

614
16.7%

685
11.4%

Import
Growth rate(%)

360
-4.3%

497
38.1%

667
34.2%

744
11.5%

771
3.6%

829
7.5%

77

91-102

72-92

69-95

32-44

20-28

Investment

34

Summary
Figures in USD Billion
2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

Turnover

30.8

41.3

42.2

39.7

35.1

38.5

Growth rate(%)

27.8

34.1

2.2

-5.9

-11.5

9.6

Export

4.2

6.6

8.8

9.7

10.2

11.2

-17.6

58.6

32.3

9.9

5.4

10.0

10.9

13.8

13.7

12.8

13.5

Growth rate(%)

-2.4

36.3

26.2

-0.6

-6.3

6.1

Investment

1.7

2-2.5

1.6-1.9

1.2-1.7

Growth rate(%)

Imports

0.53-0.73 0.33-0.46
35

Thank You

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

36