1. Indian Automotive Industry
OICA Round Table
22 October 2010
New Delhi
Indian Automotive Industry
Dr. Pawan Goenka
President SIAM
President Automotive and Farm Equipment Sectors,
Mahindra & Mahindra Ltd.

2. Presentation Outline Introduction to SIAM
Overview of Indian Auto Industry
Domestic Market Performance
Exports Performance
Insights to Indian Market
India Opportunity and Growth Plan
Outlook

3. SIAM Society of Indian Automobile Manufacturers
Apex national industry body representing all major vehicle manufacturers in India
46 members
Provides a window to the automobile industry in India
Close working with stakeholders in the formulation of the policies, regulations and standards related to automobiles
Link between the industry and other bodies including the media
Interacts with various international bodies
OICA, IMMA, UN, APEC AD and counterpart associations like SMMT, VDA, JAMA, TAIA, AFM, ANFIA, ACEA, etc.
SIAM is the apex industry body which is a non-profit organization representing vehicle and vehicular engine manufacturers.
It has 37 members.
It brings out regularly statistical reports giving production, sales an exports.
The Three main agenda pursued by SIAM are Economic, Technical and Public Policy.
It organises Auto Expo every two years along with CII and ACMA.
The next Auto Expo is scheduled in January 2006 and we invite you to that major event of ours.
The main objective of SIAM is to promote sustainable development of Indian automobile industry.

4. SIAM Mission: Growth with Responsibility
To become a growth engine of the Indian economy by propelling the Indian Auto industry to a global $ 145 bn industry by whilst promoting sustainability by addressing the multiple challenges arising out of emissions, climate change, energy security and safety.
SIAM is the apex industry body which is a non-profit organization representing vehicle and vehicular engine manufacturers.
It has 37 members.
It brings out regularly statistical reports giving production, sales an exports.
The Three main agenda pursued by SIAM are Economic, Technical and Public Policy.
It organises Auto Expo every two years along with CII and ACMA.
The next Auto Expo is scheduled in January 2006 and we invite you to that major event of ours.
The main objective of SIAM is to promote sustainable development of Indian automobile industry.

5. Presentation Outline Introduction to SIAM
Overview of Indian Auto Industry
Domestic Market Performance
Exports Performance
Insights to Indian Market
India Opportunity and Growth Plan
Outlook

6. India : Rank by Automotive Production
Global Rank by Automotive Production
Source : OICA

7. 15% CAGR Growth in 8 Years
8.2
9.0
11.6
13.8
14.9
18.5
19.5
19.4
24.8
Cars
15 % CAGR
UVs
13 % CAGR
MHCVs
LCVs
23 % CAGR
MPVs
12 % CAGR
Cars
UVs
MHCVs
LCVs
MPV
2.0
2.3
2.8
3.1
3.6
4.0
3.5
4.4
42.0
48.1
53.6
62.1
70.5
78.5
72.5
74.4
93.7 3W 2W
Source : SIAM

8. Excellent Growth in 2009-10 Segment 2009-10 Growth Personal Vehicles
26%
Cars : 25%
UV : 21%
MPV : 41%
Commercial Vehicles
38%
LCV : 43%
MHCV : 34%
Three Wheelers
Two Wheelers
Total Auto Industry

9. Data for Jan – Aug 2010

10. Good Growth in Apr-Sep 2010
33%
42%
26%
20%

11. Source: Hindu Business Line, 9 Oct 2010

12. Good GDP Growth
High Consumer Confidence
Infrastructure spending
Thrust on rural employment
Stable Auto Finance Rates
New Launches Generate Excitement

13. Presentation Outline Introduction to SIAM
Overview of Indian Auto Industry
Domestic Market Performance
Exports Performance
Insights to Indian Market
India Opportunity and Growth Plan
Outlook

14. Growth in Exports from India
PVs
30 % CAGR
CVs
18 % CAGR 3W
35 % CAGR 2W 2W 3W CV PV
Source : SIAM

15. Export Performance: Apr-Sep 20101%
84 %
100 %
52 %

16. Presentation Outline Introduction to SIAM
Overview of Indian Auto Industry
Domestic Market Performance
Exports Performance
Insights to Indian Market
India Opportunity and Growth Plan
Outlook

17. PV: Acquisition Cost
Car Sales ‘000

18. PV: Fuel Efficiency
US is setting FE norms for Petrol Cars to achieve 35 mpg (14.8 kmpl)
Majority of Indian cars offer this FE

19. PV: Product Features

20. CV: Affordability is the Key
Truck Holding Pattern
Truck Holding Pattern
India US
Truck is Livelihood
Minimise Cost by all means
Maximise Returns by all means
Source: Asian Institute of Road Transport and M&M Study

21. CV: The Need for Last Mile Connectivity
LCV Goods < 3.5T
Sales Volume in ‘000
40% CAGR

22. Formation of a Hub and Spoke Model
25 %
CV > 16 T GVW
24 %
47 %
LCV < 3.5 T GVW
13 %
Sales Volume in ‘000

23. Presentation Outline Introduction to SIAM
Overview of Indian Auto Industry
Domestic Market Performance
Exports Performance
Insights to Indian Market
India Opportunity and Growth Plan
Outlook

24. Opportunity : Low Penetration Levels
Country
Cars / 1,000 people
Germany
565
France
480 US
453
Japan
451
Malaysia
271
South Korea
238
Mexico
145
Brazil
103
Thailand 57
China 27
Indonesia 18
India 10
Philippines 9
Country
2W / 1000 people
Thailand
286
Malaysia
258
Italy
166
Japan
100
Spain 90
Indonesia
Switzerland 77
Germany 69
China 59
India 43 US 18
Country
Vehicles /km
Germany
554
Thailand
426
South Korea
408
Mexico
256
Malaysia
205
Japan
162
France 99 US 98
Indonesia 51
China 48
Philippines 38
Brazil 35
India 10
First In comparision India is hugely under motorised.
7 cars per thousand
Even Delhi is 98 !
Source: WARDS, 2009; All figures for 2008

25. Opportunity: Strong GDP Forecast
Source : IMF (World Economic Outlook April 2010)

26. Growth Drivers: Personal Vehicles
Young Demographics
High Aspiration of Auto Ownership
Rising Disposable Incomes
Rural development
Travel for employment, Trade etc.
Inadequate public transport system
Improving access to vehicle financing

27. Growth Drivers: Commercial Vehicles
Roads carry a dominant share of traffic
60% of freight and 85% of passenger
Infrastructure development
Growth in freight generating sectors
Agriculture, Fertilisers, Mining, Cement, Retail
Development of Urban transportation system
Regulation
Overloading, Scrap of old vehicles
Procurement by defense

28. Indian Auto Industry to Double its contribution to GDP by 2016
$145 bn by
F16
16% CAGR
Vision 2016
“By 2016, India will emerge as the destination of choice in Asia for the design & manufacture of automobiles and automotive components. The output of the India’s automotive sector will be $ 145 billion by 2016, contributing to 10% of India’s Gross Domestic Product and providing employment to 25 million persons additionally.”
$34 bn In
F07
Source : SIAM & AMP

29. Interventions Under Implementation
Investment - Tariff Policy & Investment Support
Infrastructure
Expansion of Domestic Demand
Encouraging Exports
Support to Develop R&D
Long Term Emission Roadmap
Harmonization of Safety Standards & Road Safety
Incentivizing Modernization of Vehicle Fleet
Inspection & Certification Systems
Computerization of RTOs & Driver Licensing System
Ensuring Availability of Human Resource

30. Target to Build 20km Roads / Day
I have set a target of 20 km of road per day leading to 7,000 km in a year. My job is to create a paradigm shift in attitude, kilometers and approach.”
Mr. Kamal Nath
Union minister of Road Transport & Highways

31. Aggressive Road Development Project
Road Improvement
New Roads
Port connectivity
Hilly Roads
Target : 49,987 km
Completed : 14,382 km
Under Impl. : 9,066 km
Work to start : 26,381 km
Status as on 31 Aug 2010
Source : nhai.org

32. Presentation Outline Introduction to SIAM
Overview of Indian Auto Industry
Domestic Market Performance
Exports Performance
Insights to Indian Market
India Opportunity and Growth Plan
Outlook

33. Outlook
Source : SIAM, CRISIL Research

34. 2010-11 Outlook Over 2.4 million Passenger Vehicles
Over 600,000 Commercial Vehicles
Over 11 million Two wheelers
Over 500,000 Three Wheelers
Source : SIAM, CRISIL Research

35. Thank You
SIAM
Society of Indian Automobile Manufacturers