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CURRENT SCENARIO IN
          AUTO INDUSTRY


                     Presentation by SELVA
                     (M.SELVARATHINAM)
                       1 September 2010
           Thiagarajar College of Engineering, Madurai



SELVA                           1
INDIA HAS THE POTENTIAL TO
USD BILLIONS

           Real GDP *
                        BECOME ONE OF THE TOP 5
21,000
18,000
                        ECONOMIES BY 2025
15,000
                                                                                                US
12,000
 9,000

                                         INDIA WOULD BE THE THIRD
                                         LARGEST ECONOMY (AFTER
 6,000                                   CHINA & US) by 2050
                                         GOLDMAN SACHS REPORT)

 5,000
                                                                                               JAPAN


 4,000
                                                                                               CHINA


 3,000
                                                                                               INDIA @8%


                                                                                               UK
 2,000
                                                                                               FRANCE
                                                                                               MEXICO
1,000
                                                                                               CANADA
                                                                                               S KOREA



         2003   2005    2007   2009   2011   2013    2015   2017   2019   2021   2023   2025
                                                    2
RANGE OF VEHICLES MADE IN INDIA
                              Indian Automobile Industry




  Light Pass. Vehicle   Commercial vehicle      Tractors      Two Wheelers     Three Wheelers




PCs / MUVs / SUVs          LCVs / M&HCVs     Farm/Earthmoving & Motorcycles/     Passenger
                                             Construction       Scooters /       Carriers / Good
                           / Buses
                                             Equipments         Mopeds           Carriers




                                                3
COST PRESSURE ON GLOBAL OEM WILL DRIVE
DEVELOPED COUNTRIES TO OUTSOURCE FROM LOW
             COST COUNTRIES
EUROPEAN
COMPACT CAR        Price squeeze on global OEMs
EXAMPLE
                   000 Euro/Vehicle

                                            15
           11              4
                                                              12
                                                                              3


        Car cost      Added cost of       Total expected   Car cost that     Target cost
        2002          innovation, mostly cost in 2015      market can bear   reduction,
                      from electronics,                    in 2015           mostly in
                      emission and safety                                    mechanical parts
                      regulations

 INDIAN SMALL CAR: $ 2000 US., INDIAN TWO WHEELER:$ 400 US
4
SELVA
                                                 Source : McKINSEY Report
COMPONENT PRODUCTION RANGE




                                           Body &
                         Others, 7%
                                         Chassis, 12%

                                                        Electrical Parts,
         Engine Parts,
                                                               9%
             31%


                                                             Drive
                                                        Transmittion &
                   Equipments,                          Steering parts,
                                      Suspension &
                      10%                                    19%
                                      Braking parts,
                                          12%




5 ELVA
S
AUTOMOTIVE CLUSTERS
                           N

                       W       E
        NORTH
                           S




                EAST

WEST




       SOUTH




         6
THANK YOU FOR
 YOUR ATTNETION


. ANY QUESTIONS?




      7

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Current scenario in auto industry 1 sep. 2010 tce

  • 1. CURRENT SCENARIO IN AUTO INDUSTRY Presentation by SELVA (M.SELVARATHINAM) 1 September 2010 Thiagarajar College of Engineering, Madurai SELVA 1
  • 2. INDIA HAS THE POTENTIAL TO USD BILLIONS Real GDP * BECOME ONE OF THE TOP 5 21,000 18,000 ECONOMIES BY 2025 15,000 US 12,000 9,000 INDIA WOULD BE THE THIRD LARGEST ECONOMY (AFTER 6,000 CHINA & US) by 2050 GOLDMAN SACHS REPORT) 5,000 JAPAN 4,000 CHINA 3,000 INDIA @8% UK 2,000 FRANCE MEXICO 1,000 CANADA S KOREA 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2
  • 3. RANGE OF VEHICLES MADE IN INDIA Indian Automobile Industry Light Pass. Vehicle Commercial vehicle Tractors Two Wheelers Three Wheelers PCs / MUVs / SUVs LCVs / M&HCVs Farm/Earthmoving & Motorcycles/ Passenger Construction Scooters / Carriers / Good / Buses Equipments Mopeds Carriers 3
  • 4. COST PRESSURE ON GLOBAL OEM WILL DRIVE DEVELOPED COUNTRIES TO OUTSOURCE FROM LOW COST COUNTRIES EUROPEAN COMPACT CAR Price squeeze on global OEMs EXAMPLE 000 Euro/Vehicle 15 11 4 12 3 Car cost Added cost of Total expected Car cost that Target cost 2002 innovation, mostly cost in 2015 market can bear reduction, from electronics, in 2015 mostly in emission and safety mechanical parts regulations INDIAN SMALL CAR: $ 2000 US., INDIAN TWO WHEELER:$ 400 US 4 SELVA Source : McKINSEY Report
  • 5. COMPONENT PRODUCTION RANGE Body & Others, 7% Chassis, 12% Electrical Parts, Engine Parts, 9% 31% Drive Transmittion & Equipments, Steering parts, Suspension & 10% 19% Braking parts, 12% 5 ELVA S
  • 6. AUTOMOTIVE CLUSTERS N W E NORTH S EAST WEST SOUTH 6
  • 7. THANK YOU FOR YOUR ATTNETION . ANY QUESTIONS? 7