ACMA Presentation

About ACMA

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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

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ACMA Services

Promotes Indian
Automotive Component Industry

Collection &
Technology Quality
Trade Promotion Dissemination of
Up-gradation Enhancement
Information

Vital Catalyst for Industrial

Development

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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

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India: A Vibrant Economy

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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)
• India’s 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

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Infrastructure Development – A Special Thrust
Airports Ports

Roads USD 16 bn USD 36 bn

Telecommunication
Total planned
infrastructure
investments of
USD 1 Trillion*
from 2012-17
USD 172 bn
USD 172 bn

Railways Energy

USD 117 bn USD 331 bn

USD 10 bn for 100 smart cities 8

Automotive Industry in India

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Automotive Clusters in India
Eicher Maruti Suzuki
Escorts New Holland
Hero Moto Corp Mahindra
Honda Motorcycle Suzuki Motorcycles North
Honda SIELCars Swaraj Mazda
ICML Tata Motors
JCB Yamaha

*New Hub: Sanand Tata Motors

Tata Motors, Maruti, Ford India,
East
West

Bajaj Auto Mercedes Benz Ashok Leyland Renault

Fiat PSA BMW Royal Enfield
Force Motors Skoda Caterpillar Same Deutz
South Daimler TAFE
GM Tata Hitachi
John Deere Tata Motors Ford Tata Motors
Mahindra Volkswagen Hyundai Toyota Kirloskar
Man Force Volvo Eicher Nissan TVS
Volvo Buses
(Illustrative List)

Significant Manufacturing base of OEMs – Indian & Global

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 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 Tata - Indica Mahindra - Bolero

Hyundai - EON Hyundai - i20 Nissan - Micra

Hyundai - i10

Volkswagon - Polo Bajaj Auto - Pulsar Hero MotoCorp – Splendor

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(Illustrative List)
Vehicles Exported From India

Mahindra - Maxx Mahindra - Alfa Mahindra - Gio

Piaggio - Ape Bajaj - Auto Tata - Magic

Tata Mahindra Ashok Leyland

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(Illustrative List)
Passenger Vehicles Production

 CAGR 2011-15: 2%
(’000 units)

3,500
3,414
3,400

3,300
3,234 3,221
3,200 3,146
3,087
3,100
2,987
3,000

2,900

2,800

2,700
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Source: SIAM Figures for financial year – April to March

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 Other Vehicles Production

1000
Commercial
929
Vehicles Tractors ( ’000 units)
( ’000 units) 800
900 833  CAGR 2011-15: 3% 697
753 700 640
800 613
699 697 698 579 572
700 600 545
600 500
500 400
400
300
300
200
200
100 100
0 0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Commercial Vehicles include:
• Small Commercial Vehicles (SCV) < 1 ton • Medium Commercial Vehicles (MCV) > 7.5 tons but <16 tons
• Light Commercial Vehicles (LCV) > 1 ton but < 7.5 tons • Heavy Commercial Vehicles (HCV) > 16 tons ** 2015-16 Figures Awaited
(In ’000 units)

Two & Three Wheelers Construction Vehicles*

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25000  CAGR 2011-15: -2.6%
( ’000 units)
19439 19764 69.2
20000
16584
17713 70 62.3
16330
14176 56
15000 50.5 52
50
10000

5000 30
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 10
2010-11 2011-12 2012-13 2013-14 2014-15
Source: SIAM
* E&Y Estimates
Figures for financial year – April to March ** 2015-16 Figures Awaited
Auto Component Industry in India

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Turnover - Auto Component Industry: 2015-16

CAGR: 6%
3000 40%
35.9%
2556 (39.0)
Turnover in INR’ 00 Crore (USD Billion)

2500
2348 (38.5) 30%
2160 (39.7)

Growth Rate in Rupee Terms

2117 (35.1)
2046 (42.2)
2000 1883 (41.3)
20%

1500
11.1%
8.7% 10%
8.8%
1000
5.6%

0%
500 -2.0%

0 -10%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
(Turnover includes supplies to OEMs, aftermarket sales and exports)

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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.
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Auto Components Supply to OEMs

Backhoe Loaders, Others, 2%

2% Tractors, 8%

Two-wheelers,
22%

Three-Wheeler,
4% PVs, 45%

HCV, 8%

MCV , 5%
SCV , 1%
SCV Less than 2 T LCV , 4%
LCV 2 to 7.5 T
MCV 7.5 to 16 T
HCV More than 16 T
OEMs consumption includes locally produced Components and Imports

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 Exports - Auto Component Industry: 2015-16

800 CAGR: 18% 80%

Turnover in INR’ 00 Crore

Growth Rate in Rupee Terms

685 (11.2) 709 (10.8)
615 (10.2)
(USD Billion)

600 60.7% 527 (9.7) 60%

427 (8.8)
400 40.7% 40%
303 (6.7)
23.3%
200 16.7% 20%
11.4%
3.5%
0 0%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

South Africa, 6% Exports Destinations: Top 10 Countries in %

America,
4% North
America,
USA 23.59 Thailand 3.18
Asia, 25%
25%
Germany 6.96 UAE 3.15
Europe, Turkey 6.22 France 2.99
36%
New UK 5.43 Brazil 2.62
Zealand & Central
Australia, America, Italy 3.86 Mexico 2.59
1% 3%
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Exports by Region

India’s Export Growth Rate: - 15.5%

Auto Components Export Growth Rate: -3.7 %

10000 6%
3% 3%
4125 3886
2798 2722 2609 2677
14%
19%
1000 817 699
Figures in USD Million

30% 546
444
315
243
2%

100 80 78

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Africa Asia Central Europe New Zealand North South
America & Australia America America

2014-15 2015-16
Growth Rate in USD

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Key Auto Components Exported

Hydraulic Power Steering Systems & Steering Gear Systems and Parts

Gear boxes and parts

Parts of Diesel Engines

Parts for automobiles and earth moving Equipment

Exports

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)

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Imports - Auto Component Industry: 2015-16

CAGR: 13%
Turnover in INR’ 00 Crore

Growth Rate in Rupee Terms

1000 38.1% 906 (13.82) 40%
829 (13.58)
34.3% 771 (12.8)
(USD Billion)

800 744 (13.7)

667 (13.8) 30%
600
497 (10.9)
20%
400
11.6%
200 7.5% 9.3% 10%
3.6%

0 0%
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

North South
America, America, Africa,… Origin of Imports: Top 10 Countries in %
New Zealand 7.9% 0.5%
& Australia,… China 23.15 USA 7.63
Europe, Germany 14.29 Italy 3.43
30.9%
Asia, S Korea 11.2 UK 2.58
58.6%
Japan 10.65 France 1.64
Central Thailand 8.07 Sweden 1.40
America,…
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Imports by Region

India’s Import Growth Rate: - 15.0%

Auto Components Import Growth Rate: 1.8% %
10000
1%

7998 8099
8000
Figures in USD Million

6000 1%

4301 4277
4000
12%
9%
2000 23% 31% 24%
972 1087
141 173 76 100 13 16 83 75
0
Africa Asia Central America Europe New Zealand & North America South America
Australia
2014-15 2015-2016

Growth Rate in USD

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 Imports: Top 10 countries

4000

19%
3170
3000
2671
Figures in USD Million

3%

2000 1929 1979

2% 5%
1593 1566 1527
1448 19%
15%
1123
941 945
1000 821 5%
24% 13% 31%
483 510
293 363 315 273 276
191

0
China Germany Japan South Thailand USA Italy UK France Spain
Korea
2013-2014 2014-15

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Capital Investment - Auto Component Industry: 2015-16

120

91-102 (2.0-2.5)
100
77-92 (1.6-1.9) 69-95 (1.26-1.75)
( ‘00 Crore ) USD Billion

80

60
32-44 (0.53-0.73)
27-40 (0.44-0.66 )
40
20-28 (0.33-0.46)
20

0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

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Aspiration 2020

USD 20-22
billion in
revenue from
overseas
5 suppliers in assets
global 100

With Export of
USD 35 - 40
billion

Indian auto
component
industry to
cross USD
100 billion
mark

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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 Robust Indian
Automotive
• Joined UN-ECE WP 29 for Global Standard in Technology Industry

• Increased budgets for R&D activities

• 100% FDI permitted without prior Govt. approval

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Capabilities & Challenges of Indian Component
Suppliers

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Indian Suppliers’ Focus – Global Best Practices

Focus on Quality Industry fast embracing modern

shop-floor practices:
OHSAS… 162  5-S; 7-W
 Kaizen
ISO 14001 287  TQM
TS 16949  TPM
546
 6 Sigma
ISO 9001 651  Lean Manufacturing

Deming Japan Quality TPM Award Shingo Silver JIPM - 3

Award - 14 Medal - 5 - 15 Medallion - 2

Largest no. of Deming Award winning companies outside Japan

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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)

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Challenges

High Cost of Capital

Capacity Utilization Roads

Challenges

Infrastructure Challenges & Cost Ports

Imports - higher than exports Power

Combating Counterfeit Parts

Skilled Manpower

Building R&D Competence & Ecosystem

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Summary
Figures in INR’ 00 Crs

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Turnover 1,883 2,046 2,160 2,117 2,348 2556

Growth rate(%) 35.9 8.7 5.6 -2.0% 11.1% 8.8%

Export 303 427 526 614 685 709

Growth rate(%) 60.3% 40.9% 23.2% 16.7% 11.4% 3.5%

Import 497 667 744 771 829 906

Growth rate(%) 38.1% 34.2% 11.5% 3.6% 7.5% 9.3%

Investment 91-102 72-92 69-95 32-44 20-28 27-40

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Summary
Figures in USD Billion

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Turnover 41.3 42.2 39.7 35.1 38.5 39.0

Growth rate(%) 34.1 2.2 -5.9 -11.5 9.6 1.3

Export 6.6 8.8 9.7 10.2 11.2 10.8

Growth rate(%) 58.6 32.3 9.9 5.4 10.0 -3.7

Imports 10.9 13.8 13.7 12.8 13.5 13.8

Growth rate(%) 36.3 26.2 -0.6 -6.3 6.1 1.8

Investment 2-2.5 1.6-1.9 1.2-1.7 0.53-0.73 0.33-0.46 0.44-0.66

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 Thank You

ACMA
The Capital Court, 6th Floor, Olof Palme Marg, Munirka, New Delhi – 110 067
Tel: 011-26160315, Fax: 011-26160317
E-mail: [email protected], Website: www.acma.in
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