Indian Auto Manufacturing Sector - May 2012

May 3, 2012 - PRLog -- Contents

Overview
Impact of Budget 2012-13, Rising Fuel Prices
Indian Automotive Mission Plan
Analysis (Porter’s, SWOT)
Two Wheeler Segment
Three Wheeler Segment
Passenger Vehicle Segment
Commercial Vehicle Segment
Road Ahead

Facts:
World’s 2nd fastest growing auto market
14.25% growth in 2011 (16.9 million units from 14.8 million units in 2010). Expected growth for 2012-13 to be around 11-13%
Automobile exports registered a 29% growth in 2011
6th largest automobile industry after China, US, Germany, Japan and Brazil
A study by Rothschild predicts that India would become the third largest auto industry by volumes after China and US by 2015
Globally competitive industry and has the potential to emerge as one of the largest auto industries in the world
Manufactures largest number of three wheelers and tractors in the world, second largest manufacturer of two-wheelers, fifth largest manufacturer of commercial vehicles, ninth largest manufacturer of passenger vehicles
By volume, two wheelers account for three-fourth of the entire market
Car market is evolving at a great pace
Dominated by small cars
Bajaj Auto has made a debut in four-wheeler segment by launching a low-cost, eco-friendly automobile - RE60
Tata Nano has opened up the potentially large ultra low cost car segment. Its sales figures touched 10,475 units in Mar’12

Growth Drivers:
FDI:
Benchmarking:

Two Wheeler Segment:
Currently India is world’s second largest manufacturer of two wheelers
Two wheelers account for more than 74% of India’s Auto Industry by volume
A volume CAGR of 10-12% is expected over the next four years

Three Wheeler Segment
Currently India is world’s largest manufacturer of three wheelers
Exports account for 34% of the total production
Three wheelers account for more than 4.4% of India’s Auto Industry by volume
In terms of volume, three wheeler industry grew by 29% in FY’12 as compared to FY’11

Passenger Vehicle Segment
Currently India is world’s 9th largest manufacturer of cars
In 2011-12 the Indian Passenger Vehicle (PV) industry has witnessed a slowdown in volume growth marred by rising inflation, increasing interest rates & fuel prices
PV account for 16.7% of India’s Auto Industry by volume

Commercial Vehicle Segment
Currently India is world’s 5th largest manufacturer of Commercial Vehicles (CV)
In 2011-12 the Indian Commercial Vehicle industry showcased a downward trend due to rising interest rates, fuel prices & falling Index of Industrial Production (IIP)
CV accounts for 4.4% of India’s Auto Industry by volume

Challenges
Initiatives
Future Investments


Contact:

ARC Financial Services (P) Ltd.
www.arc-fs.com
+91 11 6542 2128
tapan@arc-fs.com