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Auto Component Industry in India:
Enhancing the Capabilities of the
Industry
Presentation by:
Mr. Amit Mukherjee
Dy. Executive Director
17th October, 2013
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
Agenda
• India: A Vibrant Economy
• Automotive Industry in India
• Auto Component Industry in India
• Cluster Initiatives
• Policy Environment
3
India: A Vibrant Economy
1. Largest Democracy – 1.2 billion people, Growing Middle Class
2. 4th largest GDP (PPP) and 10th largest GDP (Nominal, USD 1.8 trillion)
3. One of the fastest growing economies - Estimates for 2013-14: ~ 5%
•
India’s average GDP growth rate: 8.4% over past 5 years
•
Expected to outpace China in the next decade
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
4
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,
Hindustan Motors
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
Hindustan Motors
Hyundai
Nissan
Renault
Royal Enfield
Same Deutz
TAFE
Tata Motors
Toyota Kirloskar
TVS
Volvo Buses
(Illustrative List)
Significant Manufacturing base of OEMs – Indian & Global
5
Passenger Vehicles Production
(’000 units)
10,000 *
10,000
 CAGR 2008-12: 14%
7,500
 CAGR 2012-21: 13%*
5100 *
5,000
2,500
1,838
2,357
2,987
3,146
3234
2010-11
2011-12
2012-13
2008-09
2009-10
2015-16
2020-21
Figures for financial year – April to March
(* Estimates)
Source: SIAM
6
Other Vehicles Production
Commercial Vehicles
Tractors
( ’000 units)
 CAGR 2008-12: 22%
 CAGR 2012-21: 11%*
1200
( ’000 units)
 CAGR 2011-21: 5%*
1,000
1000
800
600
545
640
641
710
420
400
200
0
2009-10 2010-11 2011-12 2012-13 2015-16 2020-21
Commercial Vehicles include:
• Small Commercial Vehicles (SCV)
• Light Commercial Vehicles (LCV)
•
< 1 ton
> 1 ton but < 7.5 tons •
Medium Commercial Vehicles (MCV)
Heavy Commercial Vehicles (HCV)
> 7.5 tons but <16 tons
> 16 tons
(In ’000 units)
Two & Three Wheelers
 CAGR 2008-12: 16%
 CAGR 2012-21: 7%*
Construction Vehicles( ’000 units)
 CAGR 2011-21: 14%*
7
Source: SIAM
Figures for financial year – April to March
(* Estimates)
7
Auto Component Industry Profile - Turnover
 CAGR – 15%
USD billion
120
115 *
90
66 *
60
30
27.2
24.1
2007-08
2008-09
41.3
42.2
39.7
2010-11
2011-12
2012-13
30.8
0
2009-10
Comprehensive Product Range
2015-16
2020-21
Figures for financial year – April to March
(* Estimates)
8
Auto Component Industry Profile – Exports & Imports
40
35
35
 Export CAGR – 17%
30
Import CAGR – 14%
*
30 *
USD billion
25
19 *
20
13.8
15
10.9
10
5
8.2
7.1
8
4.5
5.1
4.2
2007-08
2008-09
2009-10
13.7
8.8
9.7
2011-12
2012-13
12 *
6.6
0
Figures for financial year – April to March
2010-11
Export
North America,
24.0%
2020-21
Imports
(* Estimates)
Sources of Imports
Export Destinations
Latin America Oceania, 0.9%
and the
Caribbean,
6.6%
2015-16
Africa, 8.6%
Asia, 24.3%
Latin America
and the
North America,
Caribbean,
7.16%
1.17%
Oceania, 0.18%
Africa, 0.36%
Europe , 32.48%
Europe, 35.6%
OEM/Tier 1 account for 80%; Aftermarket for 20%
Asia, 58.65%
Indian Suppliers’ Focus – Global Best Practices
Industry fast embracing modern
shop-floor practices:
Focus on Quality






Deming
Award - 12
Japan Quality
Medal - 2
TPM Award
- 15
5-S; 7-W
Kaizen
TQM
TPM
6 Sigma
Lean Manufacturing
Shingo Silver
Medallion - 1
JIPM - 3
Largest no. of Deming Award winning companies outside Japan
Enhancing Competitiveness : Process Capabilities
ACT is a division of ACMA, called “ACMA Centre for Technology”. ACT focuses on
providing technical services to ACMA members as well as improving capabilities of
the Industry by organizing cluster programs on pan-India basis
ACT Clusters for company level engagement
- ACT SME Cluster
- ACT Foundation Cluster
- ACT UNIDO Partnership Program
- ACT Advance Cluster
- ACT SME Advance Cluster
- ACT Engineering Excellence Cluster
Roadmap for ACT Foundation Cluster
Industry focus - Integrated Development & Manufacturing
Leadership position in the Automotive World
Manufacturing
Vehicles and
components
manufactured in
India are
increasingly
meeting global
standards of
Quality, Reliability
and Durability
Product & Process
Development
However, today there is
limited end-to-end product
development and process
engineering capability
across the supply chain
Cost and quality (strong foundation)
Innovation
Significant work
needs to be done
in this area to
improve India’s
innovation
quotient
Enhancing Competitiveness: Product and Process
Capabilities
• Engaging with Global T2/ T3 suppliers for joint development ,
collaboration and partnership National Manufacturing Competitiveness
Program
• Partnering with Global institute like Fraunhofer, MIT and others for join
development and product innovation as well as working with local
institutes
• Companies are setting up their Global footprint by leveraging Merger
and Acquisition.
14
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
• Increased budgets for R&D activities
• 100% FDI permitted without prior Govt. approval
Robust Indian
Automotive
Industry
Government support / assistance for Small Enterprises
• National Manufacturing Competitiveness Program
• Design Clinic Scheme for design expertise for Manufacuring
• Competitiveness Improvement -Lean Manufacturing / Cluster
Development Program
• Setting up Common facililites like Tool Room , Training centers at
diferent auto component clusters
• Purchase Preference Policy
• Participation in overseas events/ Trade shows
• Skill Development
16
India’s automotive R&D testing infrastructure: National Level
NATRIP Centres
Vehicle Research &
Development
Establishment
(VRDE),
Ahmednagar
• Research, design, development & testing of
vehicles
• Centre of excellence (CoE) for photometry,
electromagnetic compatibility & test tracks
Indore: National
Automotive Test
Tracks (NATRAX)
• Complete testing facilities for all vehicle
categories
• CoE for vehicle dynamics & development
Automotive
Research
Association of India
(ARAI), Pune
• Service for all vehicle categories
• CoE for power-train development & material
Chennai Centre,
Tamil Nadu
• Complete homologation service for all
vehicle categories
• CoE for infotronics, EMC & passive safety
Rae Bareilly Centre
• Services to agri-tractors, off-road vehicles &
a driver training centre
• CoE for accident data analysis
International Centre
for Automotive
Technology (iCAT),
Manesar
• Services to all vehicle categories
• CoE for component development, noise
vibration & harshness (NVH) testing
Silchar Centre,
Assam
• Research, design, development & testing of
vehicles
• CoE for photometry, electromagnetic
compatibility (EMC) & test tracks
ACMA as an Association and its initiatives
Promotes Indian
Automotive Component Industry
Trade Promotion
Technology
Up-gradation
Quality
Enhancement
Vital Catalyst for Industrial
Development
Collection &
Dissemination of
Information
Auto Expo 2014
PRAGATI MAIDAN
NEW DELHI
6th – 9th February 2014
INDIA EXPO MART
GREATER NOIDA, UP
7th – 11th February 2014
We look forward to Welcoming you!
Thank You
for any assistance contact
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