Kirloskar

INDUSTRY PROFILE INDUSTRY SIZE: The Automotive industry in India is one of the largest in the world and one
of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. India's largest car manufacturing industry hub is based in and around Chennai, also known as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60 per cent of the country's automotive exports. Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Ahmedabad with the Tata Nano plant and planned Ford and Peugeot-Citroen plants, Halol again with General Motors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.
GROWTH TRENDS:
SWOT analysis: STRENGTHS:
Automobile industry is an established and an evergreen industry.
India is the strongest player in the small car segment of the global automobile market.
Indian companies are the best cost innovators.
The automotive industry has long been known for its development and promulgation of the assembly line.
Some of the greatest developments in the automotive supply chain lie in the development of Just-In-Time (JIT) inventory methods.
Through the use of advanced technologies, assembly line manufacturing, and JIT inventory management, the automotive industry has been able to achieve significant gains in productivity.
WEAKNESS:
Indian is lacking in proper infrastructure.
This is slowing the pace of growth of auto industry.
Companies are not improving after sale services.
Opportunities:
The automotive ecosystem is in the midst of significant change, with increasing challenges in consumer demands, technology development, and globalization.
While demand for incumbent technologies will remain strong, alternative power trains could capture more than 20 percent of the global market by 2020, depending upon boundary conditions such as fuel taxation and emissions regulation set by governments as well as oil price development.
Storage is in the heart of the next generation of efforts for fuel economy.
More realistic scenario will emerge for technologies using Hydrogen as automotive fuel.
Intelligent use of NCES (Non conventional energy sources) for powering Public Transport.
Threats:
Global Crisis.
Companies not focusing on R & D are under great risk.
High competition from foreign players.
Lack of technology for Indian companies.
GOVERNMENT SUPPORT AND POLICIES:

The Industrial Policy of 1991 de-licensed the Automobile Industry in India, but passenger car was de-licensed in 1993.
This took the Indian automobile production from 5.3Million Units in 2001-02 to 10.8 Million Units in2007-08. The other reasons attracting global auto manufacturers to India are the countrys large middleclass population, growing earning power, strong technological capability and availability of trained manpower at competitive prices. These are the major findings of our new report, Indian Automobile Sector -A Booming Market.
Now, no license is required for setting up of any unit for manufacture of Automobiles except in some special cases. Further, 100 per cent Foreign Direct Investment (FDI) is permissible.
This liberalization has helped this sector tore structure itself, absorb newer technologies, and keep pace with the global developments realizing its full potential.
Removal of Quantitative Restrictions (QRs) from April 1, 2001 has allowed the import of vehicle, including passenger car segment freely subject to certain conditions notified by DGFT
To protect India from becoming a dumping ground for old and used vehicles produced abroad, the custom duty on the import of second hand vehicles including passenger cars has been raised to 105 percent.
The custom duty rate on new Completely Built Units (CBUs) has also been increased to a level of 60 percent to allow Indian countries to a fully competitive environment.
In the Union Budget 2007-08, import duty on raw material had been reduced to 57.5 per cent from the earlier 10 per cent.
OPPORTUNITINES:
Future prospect of Indian Automotive Sector is looking bright.
Passenger car production in India is projected to cross three million units in 2014-15.
Sales of passenger cars during 2008-09 to 2015-16 are expected to grow at a CAGR of around 10%.
Export of passenger cars is anticipated to rise more than the domestic sales during 200809 to 2015-16.
Motorcycle sales will perform positively in future, exceeding 10 Million units by 201213.
Value of auto component exports is likely to attain a double digit figure in 2012-13.
Turnover of the Indian auto component industry is forecasted to surpass US$ 50 Billion in 2014-15.
Major Players: MARUTI SUZUKI TATA ASHOK LEYLAND BAJAJ HERO HONDA TVS MOTORS

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INDUSTRY PROFILE INDUSTRY SIZE: The Automotive industry in India is one of the largest in the world and one

Automobile industry is an established and an evergreen industry.

Indian companies are the best cost innovators.

This is slowing the pace of growth of auto industry.

Companies are not improving after sale services.

Companies not focusing on R & D are under great risk.

High competition from foreign players.

Lack of technology for Indian companies.

GOVERNMENT SUPPORT AND POLICIES:

Future prospect of Indian Automotive Sector is looking bright.

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