automotive trends
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Automotive trends India OEM & Capacity InfusionTRANSCRIPT
BMS Auto PlatformAutomobile Industry-Key Market Trends
Page 1
Breakthrough future trends
OEM key Focus
Alternate fuel (Bio fuel, electricity) - Environment friendly green engines
Cost of ownership savings (life cycle cost) - Fuel efficiency & Thermal management
Rising purchasing power-Focus on SUV’s & Premium car segment
Investment in developing new products & up gradation
References –ACMA, Mckinsey, Reuters, The Hindu
India (2020) - Automotive hub led by small cars & SUVs
Export to ASEAN,BRIC,EU and USA for OEMs as well as Aftermarket
Increased deployment of IT-enabled Automobile support systems like GPS,ABS,ASR and Safety systems
Quality Certification (Deming, Six Sigma, TQM etc) amongst suppliers have attained critical mass
Page 2
Industry ForcesAuto v/s Material solutions
Industry Rivalry High
New entrants Threat-High
Buyer Bargaining
Power -High
Threat of substitutes
- High
Supplier Bargaining
PowerMedium-Low
Industry Rivalry High
New entrants Threat-High
Buyer Bargaining
Power -High
Threat of substitutes- Medium-
High
Supplier Bargaining
PowerHigh
Automobile Industry Material Solutions Provider
Key change in
trend
High supplier bargaining power for Material Solutions industry while lower supplier bargaining power for OEMS
To be discussed in detail
Page 3
India : A Developing Hub
Tata Motors
• Large scale update of
their product lineup
• Face lifted Indigo
sedan, facelift of the
Sumo Gold imminent
• End of Year plan -
Revamp Aria , Tata
Grande & Safari Storm
• Focus on exports to
Indonesia
• New product focus-
Undisclosed
Hyundai
• USD300 million investment in a flexible engine plant to manufacture both petrol and diesel engines
• Business focus- compact SUV, a multi-purpose vehicle and a sub 4-metre sedan
• Product focus- product features, technology & design
• Next gen i10 – 2014• Rural sales focus a core
part of our strategy• Will continue to launch 2-3
products every year for the next 5 years
Maruti Suzuki
• Total investment ( 3
year horizon ) worth
6,000 Cr.
• Investment focus-
SUVs and crossovers
• Cut Diesel Engine
Output by One-Third
due to narrowing
differential between
petrol & diesel
Mahindra & Mahindra
• Launched E20 - March 2013
• Working on introducing new refreshments to its existing UV’s- S101 and a sub 4 meter SUV
• To set up a new manufacturing unit, involving an investment of about Rs 4,000 crore.
• Product Focus - fully automatic climate control, intelligent reverse park assist system voice commands, cruise, audio control on steering wheel, laptop and mobile charging points, inbuilt laptop holder, individual reading lamps and many more.
4
India : A Developing HubFord
• Launched EcoSport compact
sports utility vehicle (SUV)
• Plans to export the EcoSport
from Chennai to Europe later
this year (2013 Dec)
• Invested $2 billion to build
manufacturing facilities in
India - Sanand Plant
operational by 2014
• Expects to manufacture
450,000 cars by 2015
Honda
• Rs 2,500 crore in India by
2014- Increase capacity,
upgrade plant activities,
quality etc
• Set up a car assembly line, a
diesel engine component
unit and a forging plant at its
Tapukara facility in
Rajasthan
• Will launch diesel variant of
all its future models in India
Renault Nissan
• Unveiled Datsun ( within 4 Lakh price tag)
• Intends to double its investment in India to nearly $5 billion - Targeting a 15 per cent market share (Renault-Nissan + Datsun)
• Captured 15% Market share in UV market ( FY 2013).
• CMF- Production begins after two years in Chennai, and the first car will hit the market by 2015.
• CMF will generate an average 30-40% cost per model
5
Passenger Vehicle (PVs)Production
Source : SIAM
• The production of PVs in India is expected to grow at CAGR of 13% during 2012-21, as per data published by ACMA.
36%
20%10%
10%
6%
4%3% 11% Maruti
NissanFord Others
Toyota
M&M
TataHyundai
April-March (%)Production Numbers by OEMs 2012-2013
Maruti 1,168,909 36%
Hyundai 638,963 20%
Tata 324,034 10%
M&M 321,061 10%
Toyota 187,826 6%
Nissan 138,549 4%
Ford 109,796 3%
Others 344,423 11%
Total Passenger Vehicles (PVs) 3,233,561 100%
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Maruti Hyundai Tata M&M Toyota Nissan Ford GM Honda VW Renault Skoda Others -
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
FY 2011-12 FY 2012-13
OEM Production Comparison
Source : SIAM
Renault Fiat
Honda Tata
M&M GM
Toyota VW
Nissan Skoda
3%
1%
-18%27%
17% 7%-8% -18% 50% -16% ++100% -17% -36%
Overall 3% Growth
Page 7
Company Maruti Hyundai M&M Tata Motors
Ford Honda Cars
Renault Nissan
Toyota VW
Overall Capacity
FY 2012-13( units )
12,60,000 700,000* ^^^ 600,000* 2,00,000 1,20,000 4,00,000 2,10,000 1,10,000
Production 11,68,909 638,963 321,061 323,518 1,09,796 74,026 1,93,944 1,87,826 66,699
Utilization 92.77% 91% 50%* 53% 54.90% 61.69% 48.49% 89.44% 60%
Fresh Capacity being added 2,50,000 300,000 Undisclosed Undisclosed 2,40,000 1,20,000 3,00,000 1,00,000 20,000
Planned Investment
(INR)
3000 Cr75% product dev.
1600 Cr Jan 2013
5,000 Cr +4000 Cr for new plant
6,000 Cr in 4 years 4500cr 2500cr 1500-
2500cr 900cr
Invested 2000 Cr to ramp up capacity
OEM Capacity Utilization
* : ApproximateBy FY16, industry passenger vehicle capacity to reach 6.5-6.7 million units
Sources:-SIAM, Business Standard, Reuters, The Hindu
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