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AUTO COMPONENTS

For updated information, please visit www.ibef.org July 2017


Table of Content

Executive Summary...3

Advantage India.....4

Market Overview....6

Porters Five Forces Framework.....12

Recent Trends and Strategies....13

Growth Drivers.........16

Opportunities........19

Investments and Developments.........23

Policies and Initiatives.........27

Key Players...........29

Case Studies............32

ACMA Award Winners........37

Useful Information...........40
EXECUTIVE SUMMARY

Over the last decade, the automotive components industry has registered a CAGR of 14 per cent and has
Robust growth scaled three times to US$ 39 billion in 2015-16 while exports have grown at a CAGR of 14 per cent to US$
10.8 billion.

The growth of global OEM sourcing from India & the increased indigenisation of global OEMs is turning the
Rising indigenisation
country into a preferable designing and manufacturing base.

The Indian auto-components industry is expected to register a turnover of US$ 100 billion by 2020 backed by
Increasing turnover
strong exports ranging between US$ 80- US$ 100 billion by 2026.

Contribution to GDP and The auto-components industry accounts for almost seven per cent of Indias Gross Domestic Product (GDP)
employment and employs as many as 19 million people.

Growing automobile India is expected to become the 4th largest automobiles producer globally by 2020 after China, US & Japan.
industry The auto components industry is also expected to become the 3rd largest in the world by 2025.

Among top steel In 2016, India overtook Japan to become the 2nd largest producer of steel in the world & among the
producers lowest-cost ones as well.

Note: OEM: Original Equipment Manufacturer


Source: ACMA, Make in India

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Auto components

ADVANTAGE INDIA
ADVANTAGE INDIA

Growing working population & expanding India is emerging as global hub for auto
middle class are expected to remain key component sourcing
demand drivers Relative to competitors, India is
India is set to break into the league of top geographically closer to key automotive
5 vehicle producing nations markets like the Middle East & Europe

Reduction in excise duties in motor


vehicles sector to spur the demand for
auto components

ADVANTAGE
INDIA
Continued policy support in the form of
A cost-effective manufacturing base keeps
Auto Policy 2002 In September 2015,
costs lower by 10-25 per cent relative to
Automotive Mission Plan 2016-26 was
operations in Europe & Latin America
unveiled which targets a fourfold growth
Presence of a large pool of skilled & for the sector
semi-skilled workforce amidst a strong
Strong support for R&D & product
educational system
development by establishing NATRiP
3rd largest steel producer globally hence a centres
cost advantage
100 per cent FDI allowed under automatic
route for auto component sector

Notes: NATRiP - National Automotive Testing and R&D Infrastructure Project; FY - Indian Financial Year (April to March); FY21E Estimated figure for the financial year 2021; Estimates
are from Automotive Component Manufacturers Association of India (ACMA); R&D Research and Development

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Auto components

MARKET
OVERVIEW
PRODUCT SEGMENTS

Auto components

Drive
Body and Suspension &
Engine Parts transmission & Equipment Electrical parts Others
chassis braking parts
steering parts

Brake &
Pistons & Starter Sheet metal
Gears brake Headlights
piston rings motors parts
assemblies

Engine Hydraulic
Halogen
valves & Wheels Brake linings Spark plugs pneumatic
bulbs
parts instruments

Fuel-injection Electric
Steering Shock Wiper
systems & Ignition Fan belts
systems absorbers motors
carburetors Systems

Cooling
Dashboard Flywheel Pressure die
systems & Axles Leaf springs
instruments magnetos castings
parts

Power train Other panel Other


Clutches
components instruments equipment

Source: ACMA

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ORGANISED AND UNORGANISED SECTOR

Number of Players: Organised vs. Unorganised (FY15) Turnover Breakup: Organised vs. Unorganised (FY15)

12000

10000
10000
15%
8000
Organised

6000 Unorganised

4000

85%
2000
700
0
Organized Unorganized

The number of manufacturing units in the unorganised sector are far higher than those in the organised one
Although lesser in number, the organised sector accounts for 85 per cent of total industry turnover (FY15)
India auto component aftermarket is expected to grow at 10.5 per cent to touch US$ 13 billion by 2019-20, as compared to US$ 8.4 billion in
2016-17.

Source: ACMA

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PRODUCTION

Domestic market share by segment (FY16) Production volumes by product range (FY16)

Engine Parts
3.90%
3.27%
Drive Transmission and
7% Steering Parts
Two Wheelers
9% Body and Chassis
14.25% 31%
Passenger Vehicle 10%
Suspension and Braking Parts

Commercial Vehicle
12% Equipments

78.59% Three Wheelers 19%


12% Electrical Parts

Others

Engine parts accounts for 31 per cent of the entire product range of the auto components sector followed by drive transmission & steering
parts (19 per cent)
2 wheelers is the largest domestic customer segment for the auto components industry
Original Equipment Manufacturers (OEMs) dominate production volumes by market range; encouragingly, exports account for a round 28 per
cent.

Source: ACMA

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ROBUST GROWTH

Revenues have risen from US$ 26.5 billion in FY08 to US$ 39 Aggregate turnover* (US$ billion)
billion in FY16 at a CAGR of 4.95 per cent during
FY08-16.
CAGR: 4.95%
45
The market size for auto component sector increased by 8.8 per
cent reaching to US$ 39 billion in FY16 from US$ 38.5 billion in
42.2
FY15. 40 41.3
39.7
38.5 39
As per Automobile Component Manufacturers Association
35
(ACMA) forecasts, automobile component exports from India are 35.1
expected to reach US$ 70-billion by 2026 from US$ 10.8-billion in
FY15-16. The Indian auto component industry aims to achieve US$ 30
30.8
200 billion in revenues by 2026.
25 26.5
24.1
20

15

10

0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Note: CAGR Compound Annual Growth Rate, *Turnover data covers supplies to OEMs , aftermarket sales and exports
Source: ACMA

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EXPORT GROWTH

Value of auto component exports (US$ billion) Shares in export volumes by geography (FY16)

12

11.2 3% 1% Europe
10 10.8 4%
10.2
9.7 Asia
8.8 6%
8
North America
36%
6 6.6 Africa
25%
5.1 South America
4
4.2
Central America
25%
2
New Zealand & Australia

0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Indias exports of auto components increased at a CAGR of 11.31 per cent, during FY09-FY16, with the value of auto component exports
increasing from US$ 5.1 billion in FY09 to US$ 10.8 billion in FY16.
Europe accounted for a volume share of 36 per cent during FY16 in Indian auto component exports followed by Asia & North America with 25 per
cent each in same year.

Source: ACMA

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Porters Five Force Framework Analysis

Threat of Substitutes

Low As public transportation is


underdeveloped even in most cities

Rapid growth in Indian economy has


changed travel patterns

Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Buyers

Moderate As there are a large High As government has already Low High demand from car
number of steel and aluminium deregulated the sector manufacturers give them lesser
manufacturers (key raw material)
Increasing number of foreign firms bargaining power
Some of them have their own units (Ford, Volkswagen, etc.) are
Product differentiation is low
which give them linkage power increasing their presence
Cheaper imports of components from
China is increasing

Threat of New Entrants

Moderate Given the concentration


of industry clusters in specific
Positive Impact
strategic centres
Neutral Impact
Foreign firms are increasing their
Negative Impact
footprints in India

Source: Aranca Research, Media Sources

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Auto components

RECENT TRENDS
AND STRATEGIES
NOTABLE TRENDS

Improving product-development
Global components sourcing hub Inorganic route to expansion
capabilities

Major global OEMs have Increased investments in R&D Mahindra Group agreed to form a 60:40 joint venture by
made India a component operations & laboratories, acquiring Italy based car designer firm, Pininfarina SpA
sourcing hub for their global which are being set up to In February 2017, with an investment of US$ 29.74 million,
operations conduct activities such as Pricol inaugurated a 6.58 acres factory in Pune, to develop
Several global Tier-I suppliers analysis, simulation & infrastructure & cater the growing electronic cluster
have also announced plans to engineering animations business for off road, commercial vehicles, 2 wheelers, etc.
increase procurement from The growth of global OEM Ansysco Anand collaborated with Japans Seiken Chemical
their Indian subsidiaries sourcing from India & the to sell coolant & brake fluids in Japan
India is also emerging as a increased indigenisation of
At a cost of US$14 million, Bharat Forge acquired US
sourcing hub for engine global OEMs is turning the
based - WFT & PMT Holding Inc., for expanding their
components, with OEMs country into a preferred
product portfolio in automotive and other industrial
increasingly setting up engine designing & manufacturing
segments
manufacturing units in the base
In May 2017, Rockman Industries Ltd, a Gurugram-based
country ACT established to offer
auto components manufacturer, which acquired Moldex
For companies like Ford, Fiat, technical services to ACMA
Composites in January, has set up an office in the U.K.
Suzuki & General Motors, members for enhancing
through which Moldex will be expand into the U.S. &
India has established itself as process & quality abilities
Europe.
a global hub for small engines through various cluster
programmes In May 2017, Pricol announced its plans to acquire PMP
Auto Components as the brand is focusing on expanding in
North American & European markets. Pricol has inked an
exclusive agreement to acquire the entire ownership in
wiping systems business, including PMPs manufacturing
facilities.

Note: OEM means Original Equipment Manufacturer ACT - ACMA Centre for Technology
Source: Aranca Research

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STRATEGIES ADOPTED

New strategies Diversification Capacity R&D facilities

Auto component suppliers are focused on Many Indian firms Indias projected Looking at the opportunity
entering new vehicle segments & specialising in only production is many global suppliers for
manufacturing new products with higher one product market around 8.7mn example Bosch Chassis
margin or segment & are passenger Systems, Tenneco & Faurecia
Both Indian & global manufacturers are looking forward to vehicles per have established R&D facilities
investing in new capacities & newer diversify horizontally year by 2020 in India to adapt global designs
programmes, in order to get long term in other segments (with most of & develop new products
advantage like 2-wheelers, them being Increasing investments in R&D
passenger cars or compact cars) also assists companies in
As markets in North, West & South are
commercial vehicles. Many MNCs setting up laboratories, new
getting saturated, components makers
are now focusing on untapped market like They are stepping like Ford, facilities to conduct analysis,
the Northeast region of the country. up their product Hyundai, Toyota simulation & engineering
development & GM are animations. For instance
As of May 2017, private equity
capabilities in order launching new Magneti Marelli entered into a
investment in the sector increased by 607
to have the best vehicle models JV with Maruti Suzuki, to
per cent compared to the first five months
chance of capturing due to their establish a new plant to
of the previous. Mergers & acquisitions
growth opportunity. earlier success manufacture robotized
were valued at US$ 254.8 million, which
in the Indian gearboxes for automobiles.
is 170 per cent higher compared to Jan-
market.
May, 2016.

Source: Make in India, Media Sources

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Auto components

GROWTH DRIVERS
GROWTH DRIVERS

Demand-side drivers Policy support


GROWTH
Robust growth in domestic automotive DRIVERS Establishing special auto parks & virtual
industry SEZs for auto components

Increasing investment in road Lower excise duty on specific parts of


infrastructure hybrid vehicles

Growth in the working population & Policies such as Automotive Mission


middle class income to drive the market Plan 2016-26, Faster Adoption &
Manufacturing of Electric Hybrid
Supply-side drivers
Vehicles (FAME, April, 2015), NMEM
2020, likely to infuse growth in the auto
Competitive advantages facilitating
component sector of the country.
emergence of outsourcing hub

Technological shift; focus on R&D

Note: NMEM National Mission For Electric Mobility


Source: Aranca Research

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GROWTH IN THE AUTOMOBILES SECTOR

Vehicle production in India (thousand units) Capacity addition by 2015 (thousand units)

600
35,000
500
500
400
30,000 400
30,231 300 350
200 240
25,000 100 165
120 100 90
-
Maruti Nissan General Ford Peugeot Honda Toyota M & M
20,000 Suzuki motors
19,764

15,000 India vehicle loan outstanding** (US$ billion)

10,000 30
10,000
25
24.6
20 23.4
5,000 21.6
3,414 19.9 20.2 20.5
2,350 15
698
10 12.9 13.3
-
Passenger Commercial 2 & 3 Wheelers 5
Vehicles Vehicles
0
FY16 FY21E FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Note: (E) Estimate; **Loan outstanding at the end of financial year


Source: ACMA, Reserve Bank of India, Aranca Research

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Auto components

OPPORTUNITIES
DOMESTIC AND EXOPORTS MARKETS HOLD HUGE
POTENTIAL

Domestic Market Potential (US$ billion) Export Market Potential (US$ billion)

140 35

120 30
30
115
100 25

80 20

60 15

40 10 11.2 10.8
38.5 39
20 5

0 0
FY15 FY16 FY21E FY15 FY16 FY21E

The domestic market is expected to account for 71 per cent of Exports will account for as much as 26 per cent of the market by
total sales by 2021 with a total market size of US$115 billion. 2021.

Note: E - Estimate
Source: ACMA

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MARKET POTENTIAL BALANCED ACROSS PRODUCT
TYPES

Domestic market potential by components (2020E) Export market potential by components (2020E)

Transmission and Steering Transmission and Steering


Parts Parts
Suspension and Braking Suspension and Braking
17.10% Parts 16% Parts
23.10%
Interior 32% Interior

10.70% 11%
Engine & Exhaust Engine & Exhaust

17.10% 6.40% 8%
Electronics and Electrical Electronics and Electrical
16%
25.60% 18%
Body & Structure Body & Structure

Both domestic & export markets are almost similar in terms of potential share by different product types. For example, Engine & Exhaust
components, along with Body & Structural parts, are expected to make up 50 per cent potential domestic sales as well as exports in 2020
Transmission, Steering components, Electronics & Electrical parts are likely to be the other key products.

Note: 2020E Estimated value for 2020 by ACMA


Source: ACMA

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OPPORTUNITIES IN ENGINEERING PRODUCTS

New technological changes in this segment include introduction of turbochargers & common rail systems
Engine & engine parts
The trend of outsourcing may gain traction in this segment in the short to medium term

Share of the replacement market in sub-segments such as clutches is likely to grow due to rising traffic
Transmission & steering density
parts
The entry of global players is expected to intensify competition in sub-segments such as gears & clutches

The segment is estimated to witness high replacement demand, with players maintaining a diversified
Suspension & braking customer base in the replacement & OEM segments besides the export market
parts
The entry of global players is likely to intensify competition in sub-segments such as shock absorbers

Companies operating in the replacement market are likely to focus on establishing a distribution network,
Equipment
brand image, product portfolio & pricing policy

Manufacturers are expected to benefit from the growing demand for electric start mechanisms in the 2
Electrical
wheeler segment

Metal part manufacturers are likely to benefit from rising demand for body & chassis, pressure die castings,
Others sheet metal parts, fan belts, hydraulic pneumatic instruments, mainly in 2 wheelers industry
(Metal Parts)
The prominent companies in this business are constantly working towards expanding their customer base

Note: OEM means Original Equipment Manufacturer


Source: Make in India

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Auto components

INVESTMENTS AND
DEVELOPMENTS
INVESTMENTS HAVE BEEN RISING AT A FAST PACE

Investments in the auto components sector reached US$ 0.5 billion Investments
Visakhapatnam
in the auto
port
component
traffic (million
sectortonnes)
(US$ billion)
in FY16 in comparison with US$ 0.4 billion in FY15.

With the launch of Make in India initiative, the government is 2.5


expected to vitalise a substantial investment in the auto component
sector. 2.3
Auto component sector is expected to invest around US$ 4.5 billion 2.0
for upgradation of products & keeping up with the new industry
regulations. 1.8 1.8
1.7
928 MNCs have set up 1,165 R&D centres. 1.5
1.5
India accounted for almost 40 per cent of the total globalised
engineering & R&D centres around the world in 2015.
1.0
1.0

0.7 0.7
0.5
0.5
0.4
0.1
0.0

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16
Source: ACMA

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KEY INVESTMENTS AND DEVELOPMENTS

CEAT Ltd. is planning to invest around US$ 413.50 million to expand its tire production during 2017-22. The
CEAT Ltd company plans to reach at a production level of 17 million 2 wheeler tires, annually, 1 million Truck & Bus Radial
(TBR) tires & 6 million passenger car radial tires, annually.

As of March 2017, Bosch plans to invest around US$ 119 million annually in the next few years, to develop its
Bosch
headquarters in Bengaluru into a modern technology park & move the manufacturing facility to a new location.

Piramal Finance Ltd, through its Corporate Finance Group (CFG), has invested in two auto components firms; Rs
Piramal Finance Ltd
275 crore (US$ 42.55 million) in RSB Group and Rs 290 crore (US$ 44.87 million) in Indoshell Mould Ltd.

In February 2017, Gestamp invested US$ 38.67 million for a new hot stamping plant in Pune, to meet the growing
Gestamp
demand for safer & lighter vehicles which will reduce the overall weight of the vehicle by 30 per cent

In March 17, Tata Motors & Volkswagen Group signed a MoU to develop vehicle concepts & product components,
Tata Motors
jointly. Skoda Auto AS will be joining the project as a part of the German based auto group.

Mercedes Benz India Private Limited has set up Indias largest spare parts warehouse in Pune, with an area of
Mercedes Benz 16,500 square meters which can stock up to 44,000 parts. It will also include a vehicle preparation centre that can
stock up to 5,700 cars to customise them before delivery.

Exide Industries, Indias biggest automotive battery maker, plans to invest around Rs 300 crore (US$ 45 million) in
Exide industries
West Bengal to expand its capacity for advanced motorcycle batteries over a period of 18 months.

Sundaram Clayton, part of the TVS group, plans to invest US$ 50 million in US and Rs 400 crore (US$ 59.76
Sundaram Clayton
million) in India over the next three years.

Source: News articles, Government Websites, Aranca Research, Ministry of External Affairs, Govt. of India (ITP) Division

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INDIA IS POISED TO EMERGE AS AN OUTSOURCING
HUB

Hyundai plans to source gasoline and diesel engines from its Indian manufacturing operations for its domestic &
global operations.
The company is also planning to invest US$ 300 million for a new engine plant & metal pressing shop in India & is also in
plans to open its 2nd manufacturing plant in Rajasthan.
With the encouragement of Indian government, Hyundai, is planning to set up its 3rd new plant in the country & expand its
production capacity to 7.2 lakh units annually.

Ford expanded its retail distribution network of genuine parts in Gujarat, Daman & Diu & Silvassa.
Ford is currently working on a small capacity petrol engine called Dragon which is estimated to be ready by 2016 17. The
Detroit based company is planning to produce 1.5 million units a year globally, 4 lakh of which will be produced in India.
In 2015, the company opened a new production facility in Sanand, Gujarat which is likely to increase its capacity by adding
240,000 cars & 270,000 engines to its existing production level. US$ 1 billion has been invested for this manufacturing plant.

Honda is likely to setup a 3rd manufacturing plant in Gujarat for which US$ 384.9 million (approx.) has been initially invested
which is expected to reach US$ 655.1 million by the end of the project
The company has an export base for certain key engine components in India.
The company planned to invest US$ 59.23 million (approx.) in Tapukara plant to expand production capacity from 120,000
units per annum to 180,000 units per annum.

Toyota Kirloskar Motor disclosed its fully integrated cloud based telematics service for Indian market, by the name Toyota
Connect.
Toyota India under a new joint venture initiated production of diesel engines at Jigani Industrial Area.

Note: (* Figure converted from EUR to US$ at EUR/USD = 1.4)


Source: Respective Company Websites, News Articles

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Auto components

POLICIES AND
INITIATIVES
FAVOURABLE POLICY MEASURES AIDING GROWTH

Automatic approval for 100 per cent foreign equity investment in auto component manufacturing facilities.
Auto Policy 2002
Manufacturing & imports are exempt from licensing & approvals.

Set up at a total cost of US$ 388.5 million to enable the industry to adopt & implement global performance
NATRiP standards.
Focus on providing low-cost manufacturing & product development solutions.

Dept. of Heavy Created a US$ 200 million fund to modernise the auto components industry by providing an interest subsidy
on loans & investment in new plants & equipment.
Industries & Public
Provided export benefits to intermediate suppliers of auto components against the Duty Free Replenishment
Enterprises Certificate (DFRC).

Automotive Mission Plan AMP 2026 targets a 4-fold growth in the automobiles sector in India which includes the manufacturers of
2016-26 automobiles, auto components & tractor industry over the next 10 years.
(AMP 2026) It is expected to generate an additional employment of 65 million.

Planning to implement Faster Adoption & Manufacturing of Electric Hybrid Vehicles (FAME) till 2020 which
FAME (April, 2015) would cover all vehicle segments, all forms of hybrid & pure electric vehicles.

The Union Budget 2017-18 has tried to boost skill development by announcing to increase the establishment
Union Budget of skill centres by ten folds.
201718 A reduction in tax on Liquefied Natural Gas (LNG) from 5 per cent to 2.5 per cent was also announced under
the Union Budget.
Note: NATRiP - National Automotive Testing and R&D Infrastructure Project
Source: SIAM, Make in India

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Auto components

KEY PLAYERS
MAJOR PLAYERS BY SEGMENT

Pistons Goetze, Shriram Pistons & Rings, India Pistons, Anand I-Power Ltd.
Engine & engine Engine Valves Rane Engine Valves, Shriram Pistons & Rings, SSV Valves
parts Carburetors Ucal Fuel Systems & Spaco Carburetors & Escorts Auto Components
Diesel-based fuel-injection systems Mico, Delphi-TVS Diesel System & Tata Cummins

Steering Systems Sona Koyo Steering Systems, Rane NSK Steering Systems & Rane TRW Systems
Gears Bharat Gears, Gajra Bevel Gears, ZF Steering Gear (India) Ltd, Eicher, Graziano Trasmissioni & SlAP
Transmission & Gears India
steering parts Clutch Clutch Auto, Ceekay Daikin, Amalgamations Repco, Luk Clutches
Driveshafts GKN Driveshafts, Spicer India Private Ltd., Delphi & Sona Koyo Steering Systems

Brake Systems Brakes India, Kalyani Brakes, Mando India Ltd. & Automotive Axles
Suspension & Brake Lining Rane Brake Lining, Sundaram Brake Lining, Hindustan Composites & Allied Nippon
braking parts Leaf Springs Jamna Auto & Jai Parabolic
Shock Absorbers Gabriel India, Delphi, Mando India Ltd. & Munjal Showa

Electrical Lucas TVS, Denso, Delco Remy Electricals & Nippon Electricals are key players in this segment

Headlights Lumax, Autolite & Phoenix Lamps


Equipment Dashboard Premiere Instruments & Controls
Sheet metal parts Jay Bharat Maruti, Omax Auto and JBM Tools
Note: OEM means Original Equipment Manufacturer
Source: Media sources, Aranca research

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CAPACITY ADDITION PLANS OF KEY PLAYERS

Bosch inaugurated its 15th plant in November 2015, specialising in manufacturing power tools.

On August 2015, the company had completed the construction of new manufacturing facility (Phase-1) in Karnataka for which
it had acquired 97 acres of land in Bidadi & invested an amount of US$ 55.68 million. Completion of 2nd phase of Bidadi plant
is slated for 2018.

The company, which had planned to invest US$ 245.66 million for the expansion of its radial tyre capacity at its Chennai plant,
would invest an additional amount of US$ 196.53 million for this plant as on August 2015.

In September 2016, company announced that it will invest US$ 401.60 million, to double its Chennai plant capacity by the end
of 2020

The brand has opened its 6th plant globally in Hungary in April 2017, the investment is worth US$ 53.40 million.

Tata Auto Component Systems is setting up 5 auto component manufacturing plants in Sanand, Gujarat, at an investment of
US$ 62 million. It is also investing US$ 114 million for capacity addition in its Chakan plant in Maharashtra.

Hyundai India had setup a plant in Tamil Nadu with an investment of US$ 333 million to manufacture diesel engines & auto
components in 2015.

NGK Technologies India Pvt. Ltd., subsidiary of NGK Insulators, Ltd. was established to market automotive related & metal
components across India.

Indias TVS Group has acquired a 90 per cent stake in Universal Components UK Ltd for US$ 19.2 million, as part of its
expansion plans. Universal Components is a wholesale distributor of commercial vehicle parts. It has also signed a co-
operation agreement with BMW Motorrad to develop motorcycles below 500cc segment. Looking for new overseas markets.

In May 2015, the company made investments of US$ 24.56 million towards the capacity expansion of 2-wheelers across 2
plants in Tamil Nadu & Uttarakhand.

Source: Respective Company websites, News articles, TechSci Research

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Auto components

CASE STUDIES
BHARAT FORGE: INDIAS LARGEST AUTO
COMPONENTS EXPORTER

Bharat Forge is the worlds largest forging company with global 1,400
manufacturing footprint spread across India, Germany, Sweden and
France.

It is India's largest manufacturer and exporter of automotive 1,200

1,201
1,198
components and leading chassis component manufacturer in the

1,115
world.

1,056
1,000
With 50 years of experience, Bharat Forge has transformed itself

983
from just being a supplier of components to a preferred development

898
partner through a concentrated focus on innovation, technology and
value addition. 800

The passenger vehicle segment, one of our key focus areas,


performed extremely well in FY 2016 and the export revenues from
600
this segment registered a growth of 87 per cent.

400

200

117

100
31

74

92
- 65
FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 E

Revenue PAT (in US$ million)

Source: Aranca Research, Annual Report, Company website


Note: E - estimate

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BHARAT FORGE: MILESTONES

Established footprint across


Europe, North America, China, tie- Opens its first industrial gearbox
Bharat Forge Ltd incorporation, up with BITs Pilani to enhance service and assembly centre in
started commercial production, internal technology talent, Centre Hosur, India, supply of crankshaft
Forge Shop Hammer Technology, for Advanced Manufacturing takes for Indian rails, becoming the 1st
exports in Europe. shape in Baramati. indegenous supplier of crankshaft

1961-1985 1990-2001 2002 - 2007 2008 - 2010 2012 - 2013 2014 - 2015

Technology upgradation, commissioned two Commissioned Indias largest commercial open Safran and Bharat Forge form partnership to for
16,000 MT pressline, breakthrough in Japan, forging press, Inauguration of forging and high opportunities in Indian civil and military
USA, UK for supply of power-train and horse power, industrial crankshaft machining aerospace, Inauguration of High Tech Rail
chassis components. facility at Baramati, Inauguration of the Ring Rolling Component Manufacturing Facility at Baramati,
facility at Baramati. Establishment of the Kalyani Production starts at Alstom-Bharat Forges new
Center for Technology and Innovation turbine and generator manufacturing facility in
India, Acquisition of Oil & Gas Machining
Company, Mcanique Gnrale Langroise
(MGL) in France
Source: Aranca Research, Annual Report, Company website

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MOTHERSON SUMI SYSTEMS LIMITED (MSSL)

Motherson Sumi Systems Limited (MSSL) the flagship company of 900


the Samvardhana Motherson Group, was established in 1986 in a

852
joint venture between Samvardhana Motherson Group and
800
Sumitomo Wiring Systems (Japan).

783
The company has evolved into a full system solutions provider and
700

715
caters to a diverse range of customers in the automotive and other

679
industries across Asia, Europe, the Americas, Australia and Africa.

668
600
Their product portfolio majorly involves wiring harnesses, rear view
mirrors, polymers and modules, elastomers, metal working, IT

566
engineering and design, and manufacturing support. 500

400

300

200

100

110

24
83

79
72
- 49
FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 E

Revenue PAT (in US$ million)

Source: Aranca Research, Annual Report, Company website


Note: E - estimate

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MOTHERSON SUMI SYSTEMS LIMITED (MSSL)

Establishment of
Motherson Sumi
Systems Limited as International and domestic
a JV with Sumitomo expansion with more than 30
Wiring Systems. JVs and acquisitions.

1975 1999 2017


1986 1993
onwards

Started as Motherson and Listed on stock Consolidated revenue for


started its first cable factory in exchanges in India. FY17 is US$ 6.4 billion
1977.

Source: Aranca Research, Annual Report, Company website

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Auto components

ACMA AWARD
WINNERS
ACMA AWARD WINNERS

Excellence in Export

Bohra Rubber, Faridabad (Small Category)


Gold Trophy
Endurance Technologies, (Disc Brake Division) Aurangabad (Large Category)

Helvoet Rubber and Plastic Technologies (India), Pune (Small Category)


Silver Trophy
Wheels India, Chennai (Large Category)

A Raymond Fasteners India, Pune (Large Category)


Bronze Trophy
Stork Auto Engineering, Manesar (Small Category)

Excellence in Technology

Hella India Automotive, Gurgaon (Large Category) Gold Trophy

Sanjeev Auto Parts Manufacturer, Aurangabad (Large Category) Silver Trophy

Lumax Industries, Pune (Large Category) Bronze Trophy

Excellence in Quality & Productivity

LumaxCornaglia Auto Technologies, Pune (Small Category)


Gold Trophy
Pranav Vikas India, Faridabad (Large Category)

Chan Yun India, Gurgaon (Small Category)


Delux Bearings, Surendra Nagar (Small Category)
Silver Trophy
Hella India Lighting, Derabassi (Large Category)
Nipman Fastener Industries, Haridwar (Large Company)

Source: ACMA

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ACMA AWARD WINNERS

Excellence in Manufacturing

Stork Auto Engineering, Manesar (MSME Category)


Gold Trophy
Minda Corporation, Pantnagar (Large Category)

Paul Components, Manesar (MSME Category)


Silver Trophy
Sanjeev Auto Parts Manufacturer, Aurangabad (MSME Category)

Sellowrap EPP India, Bawal (MSME Category)


Technocrat Connectivity Systems, Pantnagar (MSME Category)
Bronze Trophy
Bosch Ltd., Bidadi (Large Category)
Steering Tools Ltd. (DLF), Faridabad (Large Category)

Source: ACMA

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Auto components

USEFUL
INFORMATION
INDUSTRY ASSOCIATIONS

Automotive Component Manufacturers Association of India


(ACMA)

6th Floor, The Capital Court,


Olof Palme Marg, Munirka,
New Delhi 110 067, India
Phone: 91 11 2616 0315, 2617 5873, 2618 4479
Fax: 91 11 2616 0317
E-mail: acma@acma.in; acma@vsnl.com

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GLOSSARY

ACMA: Automotive Component Manufacturers Association of India

CAGR: Compound Annual Growth Rate

FDI: Foreign Direct Investment

FY: Indian Financial Year (April to March)

(So FY12 implies April 2011 to March 2012)

GOI: Government of India

INR: Indian Rupee

OEM: Original Equipment Manufacturers

NATRiP: National Automotive Testing and R&D Infrastructure Project

SEZ: Special Economic Zone

US$: US Dollar

Wherever applicable, numbers have been rounded off to the nearest whole number

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EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR Equivalent of one US$ Year INR Equivalent of one US$

200405 44.81 2005 43.98

200506 44.14 2006 45.18


200607 45.14 2007 41.34
200708 40.27
2008 43.62
200809 46.14
2009 48.42
200910 47.42
2010 45.72
201011 45.62
2011 46.85
201112 46.88
2012 53.46
201213 54.31
2013 58.44
201314 60.28

2014-15 61.06 2014 61.03

2015-16 65.46 2015 64.15

2016-17 (E) 67.23 2016 (Expected) 67.22

Source: Reserve bank of India, Average for the year

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DISCLAIMER

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation
with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. 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 presentation), modified or in any manner communicated to any third party except with the written approval
of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEFs knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.

Neither Aranca nor IBEF shall 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 presentation.

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