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The Indian Automotive Supplier Report 2014 - Product Image

The Indian Automotive Supplier Report 2014

  • ID: 2700240
  • October 2013
  • Region: India
  • 329 Pages
  • SupplierBusiness

FEATURED COMPANIES

  • Aisin Seiki
  • Bhushan Steel
  • Faurecia
  • JKM Automotive
  • Munjal Auto Industries
  • Shriram Pistons and Rings
  • MORE

The Indian automotive industry is currently going through one of its most challenging phases so far. Vehicle sales are set to register a negative growth in 2013 – first time in more than a decade – compared with the previous year. Official data shows that vehicle sales in India declined at a high single digit rate year on year in the first nine months of 2013 compared to 2012. This downward spiral has prompted automakers and suppliers to cut production to avoid excess inventory build-up. Besides, there’s little respite on the cost front. Though there has recently been some softening in raw materials prices, other costs such as wages, cost of power and finance expenses, continue to erode suppliers’ operating margins.

The weakness in the automotive market has taken its toll on the investment drive of many suppliers. While international suppliers have continued their investments in India, citing the country’s long-term growth prospects, local suppliers have almost put their expansion plans on hold until there is a sustained recovery in vehicles sales. The Indian automotive industry at the moment is facing multiple challenges such as slowing economic READ MORE >

Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Aisin Seiki
  • Bhushan Steel
  • Faurecia
  • JKM Automotive
  • Munjal Auto Industries
  • Shriram Pistons and Rings
  • MORE

1. Executive Summary

2. Introduction
Vehicle sales in 2012
Major players in light vehicle segment
Medium and heavy commercial vehicle segment
Competitive landscape
Vehicle sales decline in 2013
Factors behind declining vehicle sales in India
Declining economic growth
High inflation and interest rate
Rising fuel prices
Medium to long-term outlook remains bright

3. Vehicle Production

Emerging exports hub
Moderation of production in 2013
Long term production outlook remains strong
Investment plans of automakers

4. India’s Automotive Component Industry

Mixed performance in recent years
Diverse supply base
Exports remain robust
Imports have grown at higher rate
Investment declines as slowdown stretches
Long-term growth outlook remains strong
Joint-ventures
Mergers & Acquisitions

5. OEM-Supplier Relationship

Involvement of automakers in supplier development
Direct involvement declines post-liberalisation
Greater localisation driving better OEM-supplier relationship
Technology remains a big challenge for Indian suppliers
Automakers’ close-knit suppliers
Cost, quality, delivery (QCD)
India’s emergence as a sourcing hub

6. Automotive Clusters in India

Cluster development
Three major clusters
Distribution of Indian auto components manufacturers across India
Northern cluster
Southern cluster
Western cluster
Competition among clusters

7. Challenges for the Indian Supplier Industry

1. Demand fluctuations
2. Capacity expansion
3. High cost of capital
4. Fluctuating raw materials prices
5. Exchange rate volatility
6. Rising operating costs
7. R&D capabilities
8. Free trade agreements (FTAs)
9. Skilled manpower shortage
10. Growing competition
Challenges and opportunities go hand in hand

8. Government Policy

Policy environment
Tax policy
Union Budget for FY2014
Direct taxes
Indirect taxes
Trade policy
State policies
Labour laws
Land Acquisitions
Policy on fuel pricing
Industry regulations
Recent developments
Auto Policy 2002
Automotive Mission Plan 2006-16
National Automotive Board
National Manufacturing Policy
Government Initiatives on skills development

9. Infrastructure Development

Transportation
Roads
Ports
Power
Roadblocks in infrastructure development
Survey of Indian Supplier Industry

10. Supplier Profiles

Aisin Seiki
Alicon Castalloy
Amalgamations Group
Amtek Auto
Anand Group
Apollo Ty
Ashai India Glass
Ashok Iron Works
Ashok Minda Group
Auto Ignition Limited
Automotive Stampings
Axles India
Bagla Group
Bajaj Motors
Banco Products
Bharat Forge
Bharat Gears
Bharat Seats
Bhushan Steel
Birla Corporation
Birla Tyres
Bohra Rubber
Bosch India
Brakes India Limited
Bridgestone India
Caparo India
CEAT
Clutch Auto
Continental
Cooper-Standard
DCM Engineering Products
Delphi
Denso India
Endurance Systems
EXEDY India
Exide Industries
Faurecia
Federal-Mogul Goetze
Fenner India
Fiem
Gabriel India
GKN Driveline India
Goodyear India
Guru Nanak Auto
Halonix
Harita Seating
Hi-Tech Gears
Imperial Auto
IP Rings
Jamna Auto
Jaya Hind
Jay Bharat Maruti
Jay-Ushin
JKM Automotive
JK Tyre
Johnson Controls
Johnson Matthey
Kalyani Forge
Kinetic Engineering
Krishna Maruti
LG Balakrishnan
Lucas TVS
Lumax Automotive Systems
Lumax Industries
Machino Plastics
Madras Engineering
Magna
Magnetti Marelli
Mahindra Systech
Mahle
Mark Exhaust
MRF
Munjal Auto Industries
Munjal Showa
Neolite ZKW Lightings
NRB Bearings
Omax Auto
Pricol
Ramakrishna Forgings
Rane Group
Rasandik
Remsons
Rico Auto
Ring Ring Plus Aqua
RSB Transmissions
Ruia Group
Saint-Gobain
Samvardhana Motherson Group
Sanden Vikas
Sandhar Technologies
Setco Automotive
Shriram Pistons and Rings
Sigma Group
SKF India
Sona Koyo
Steel Strips Wheels
Sterling Tools
Subros
Sunbeam Auto
Sundaram Clayton
Sundram Fastners
Talbros Talbros Automotive
Tata AutoComp
Tata Steel
TRW Automotive
UCAL Fuel Systems
Valeo
Varroc Group
Victor Gaskets
Visteon
WABCO India
Whells India
ZF India

Figures

Figure 1: Vehicle sales recorded average annual growth of 14.5% between 2005 and 2012
Figure 2: Hatchbacks continue to dominate India’s LV market (LV segmentaiton based on body type)
Figure 3: A segment vehicles accounted for half of LV sales in 2012 (Global segmentation of LV sales)
Figure 4: Maruti Suzuki is the largest LV maker in India but its market share has declined amid intensifying competition
Figure 5: Trucks accounted for 85% of M&HCV sales in 2012 (M&HCV sales break up by vehicle)
Figure 6: Tata Motors accounted for more than half of M&HCV sales in 2012 (M&HCV sales break up by OEM)
Figure 7: Vehicle sales growth has moved in tandem with real GDP growth in India
Figure 8: RBI has been reluctant to cut rates significantly as CPI remains high
Figure 9: Both petrol and diesel prices remain high affecting vehicle demand (Movement of petrol and diesel prices in Delhi from April 2010 to August 2013)
Figure 10: Despite immediate concern vehicle sales outlook in India remains strong in medium to long term (LV and M&HCV sales forecast 2012-–2020
Figure 11: Vehicle production in India has recorded consistent growth between 2005 and 2012
Figure 12: Maruti-Suzuki’s market share has eroded between 2008 and 2012 (Light vehicle production market share by OEM)
Figure 13: Vehicle exports from India has tripled over the past eight years (Vehicle exports from India 2006–2012)
Figure 14: Vehicle production in India is expected to by 9.8% between 2014 and 2020
Figure 15: Most automakers expect to see strong growth in production capacity by 2020 (Vehicle production growth projection by 2012 compared with 2020 by OEM)
Figure 16: After three years of strong growth, turnover of Indian supplier industry took a hit in FY2013 amid continuing weak domestic vehicle sales (Indian supplier industry turnover 2008–2013)
Figure 17: Most suppliers produce Powertrain components in India (Figures for financial year ended 31 March 2012)
Figure 18: Europe remains biggest market for Indian suppliers (India’s Export Market 2010 and 2012)
Figure 19: Asia and Europe together accounted for more than 90% of total auto component imports in FY2011 (India’s Import Market 2012)
Figure 20: Gap between exports and imports of auto component has widened over the past six years (India auto components trade: 2007-08 and 2012-13)
Figure 21: Suppliers have invested USD7bn between FY2007 and FY2012
Figure 22: Northern region has the highest concentration of auto parts suppliers
Figure 23: Supplier Parcs in India Mapped
Figure 24: Raw material prices has remained moderate in 2012 and 2013 so far
Figure 25: Indian rupee has depreciated significantly against major currencies
Figure 26: Power leads allocation for infrastructure in 12th FYP (Sectoral investment planned in 12th FYP)
Figure 27: Cargo handled in India has grown on average 8.5% between FY2006 and FY2012 (Cargo handled in India between 2006–2012)

Supplier Survey

Figure 28: Q1. India’s economic growth has come under pressure in the past few quarters. By when do you see a recovery?
Figure 29: Q2. High inflation, a major issue for the Indian economy over the past five years, has seen some moderation in the past few quarters. Do you expect this trend to continue in the coming quarters?
Figure 30: Q3. The Reserve Bank of India (RBI) has cut policy rates in the past few quarters in response to softening inflationary pressure. Do you see room for further cuts?
Figure 31: Q4. The Indian rupee has depreciated significantly in the past few months. Do you see this as a significant threat to economic growth?
Figure 32: Q5. Do you believe the Indian government’s policy regarding the automotive industry is supportive towards automakers in India?
Figure 33: Q6. India is negotiating a Free Trade Area (FTA) agreement with the EU, which is feared to result in substantial reduction in import duty for European-made cars. Do you think this would discourage vehicle manufacturing in India?
Figure 34: Q7. Vehicle sales in India have been declining since the beginning of 2013. What are the major reasons behind this weakness?
Figure 35: Q8. By when do you expect a recovery in vehicle demand?
Figure 36: Q9. The decline in vehicle sales has prompted local automakers’ association SIAM to seek a stimulus package – similar to the one given in 2008-2009 – from the Indian government. Do you think SIAM’s demand is justified?
Figure 37: Q10. Considering falling sales, do you believe in the Indian automotive industry’s long-term growth potential?
Figure 38: Q11. Where do you see vehicle sales in India by 2020 compared with the 3.62 million units in 2012?
Figure 39: Q12. Automakers are adjusting production capacity in India in response to recent declines in vehicle demand. Has this impacted your company’s business?
Figure 40: Q13. Has it become more challenging to secure contracts from customers amid the weak economic outlook for the Indian automotive industry?
Figure 41: Q14. Have recent cuts in repo rates and cash reserve ratio (CRR) helped your company to cut financing costs?
Figure 42: Q15. What has been the net financial impact (export value - import value) of recent the depreciation of the Indian pupee on your company’s business?
Figure 43: Q16. Are OEMs in India willing to negotiate contract prices due to a change in the following factors?

Tables

Table 1: Investments by automakers in India (from 2012 onwards)
Table 2: Recent Supplier Investment Announcements
Table 3: Recent Supplier Joint-Venture Announcements
Table 4: Recent Supplier Merger and Acquisition Announcements
Table 5: Maruti Suzuki has close knit of 18 suppliers in which it has some stake
Table 6: Automotive Clusters in India
Table 7: Interest rates in some key automotive market as on 20 September 2013
Table 8: Most Indian suppliers spend less than 1% of their total revenues in R&D
Table 9: Tax structure for foreign and domestic companies in Inida
Table 10: Development of length and surface area of roads in india 2005–2011
Table 11: Development of length of national and state highways in india 2005–2011
Table 12: Annual Energy Generation

Note: Product cover images may vary from those shown

- Aisin Seiki
- Alicon Castalloy
- Amalgamations Group
- Amtek Auto
- Anand Group
- Apollo Ty
- Ashai India Glass
- Ashok Iron Works
- Ashok Minda Group
- Auto Ignition Limited
- Automotive Stampings
- Axles India
- Bagla Group
- Bajaj Motors
- Banco Products
- Bharat Forge
- Bharat Gears
- Bharat Seats
- Bhushan Steel
- Birla Corporation
- Birla Tyres
- Bohra Rubber
- Bosch India
- Brakes India Limited
- Bridgestone India
- Caparo India
- CEAT
- Clutch Auto
- Continental
- Cooper-Standard
- DCM Engineering Products
- Delphi
- Denso India
- Endurance Systems
- EXEDY India
- Exide Industries
- Faurecia
- Federal-Mogul Goetze
- Fenner India
- Fiem
- Gabriel India
- GKN Driveline India
- Goodyear India
- Guru Nanak Auto
- Halonix
- Harita Seating
- Hi-Tech Gears
- Imperial Auto
- IP Rings
- Jamna Auto
- Jaya Hind
- Jay Bharat Maruti
- Jay-Ushin
- JKM Automotive
- JK Tyre
- Johnson Controls
- Johnson Matthey
- Kalyani Forge
- Kinetic Engineering
- Krishna Maruti
- LG Balakrishnan
- Lucas TVS
- Lumax Automotive Systems
- Lumax Industries
- Machino Plastics
- Madras Engineering
- Magna
- Magnetti Marelli
- Mahindra Systech
- Mahle
- Mark Exhaust
- MRF
- Munjal Auto Industries
- Munjal Showa
- Neolite ZKW Lightings
- NRB Bearings
- Omax Auto
- Pricol
- Ramakrishna Forgings
- Rane Group
- Rasandik
- Remsons
- Rico Auto
- Ring Ring Plus Aqua
- RSB Transmissions
- Ruia Group
- Saint-Gobain
- Samvardhana Motherson Group
- Sanden Vikas
- Sandhar Technologies
- Setco Automotive
- Shriram Pistons and Rings
- Sigma Group
- SKF India
- Sona Koyo
- Steel Strips Wheels
- Sterling Tools
- Subros
- Sunbeam Auto
- Sundaram Clayton
- Sundram Fastners
- Talbros Talbros Automotive
- Tata AutoComp
- Tata Steel
- TRW Automotive
- UCAL Fuel Systems
- Valeo
- Varroc Group
- Victor Gaskets
- Visteon
- WABCO India
- Whells India
- ZF India

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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