Automobile Industry

AUTOMOTIVE INDUSTRY

September 2009

AUTOMOTIVE INDUSTRY

September 2009

Content

 Profile of Indian automotive industry  Growth potential of Indian automotive industry  India as a manufacturing hub

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PROFILE OF INDIAN AUTOMOTIVE INDUSTRY Automotive Industry September 2009

India — the global manufacturing hub

Before 1983 Closed market • Growth of market limited by supply • Outdated models 1983–1993 • Government of India (GoI)-Suzuki joint venture (JV) to form Maruti Udyog 1993–2009 • Delicensing of sector in 1993 • Global major original equipment manufacturers (OEM) start assembly in India (Toyota, GM, Ford, Honda, Hyundai)

Players • Hindustan Motors • Premier • Telco • Ashok Leyland • Mahindra & Mahindra

• JV with companies in commercial vehicles and components

Players • Maruti Udyog • Hindustan Motors • Premier • Telco • Ashok Leyland

• Imports allowed from April 2001; alignment of duty on components and parts to Association of Southeast Asian Nations (ASEAN)* levels

• Implementation of value-added tax (VAT)

Evolution of India as a global manufacturing hub

• Emerging small and medium enterprises (SMEs) in India • More global players, such as Volkswagen, BMW, Nissan, etc., set up manufacturing bases in India

High levels of competence in design and processes, high productivity and low cost are the forte of Indian auto-makers.

* ASEAN member countries include Malaysia, the Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar, Indonesia and Cambodia

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PROFILE OF INDIAN AUTOMOTIVE INDUSTRY Automotive Industry September 2009

Indian automobile industry stands at 11 million vehicles at present Automotive production (million units)

The Indian auto industry has the potential to emerge as one of the largest in the world. Presently, India is:

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2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 8.47 9.74

11.18 10.85 11.09

The largest two-wheeler manufacturer in the world.

The largest...