汽車零部件產(chǎn)業(yè)分析英文

TableofContent

ExecutiveSummary 3

AdvantageIndia 4

MarketOverview 6

RecentTrendsandStrategies 13

GrowthDrivers 16

Opportunities 23

KeyIndustryAssociations 28

UsefulInformation… 29

EXECUTIVESUMMARY

Robustgrowth

Risingindigenisation

Increasingturnover

ContributiontoGDPand

employment

Growingautomobile

industry

Electricvehiclespush

Note:OEM:OriginalEquipmentManufacturer,EV–ElectricVehicles,*AsperNITIAayog

Source:ACMA,MakeinIndia,NewsArticles

3

Autocomponents

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Overthelastdecade,theautomotivecomponentsindustryhasregisteredaCAGRof6.83percentandhasreachedtoUS$51.20billionin2017-18whileexportshavegrownataCAGRof11.42percenttoUS$13.5billion.

ThegrowthofglobalOEMsourcingfromIndia&theincreasedindigenisationofglobalOEMsisturningthecountryintoapreferabledesigningandmanufacturingbase.

TheIndianauto-componentsindustryisexpectedtoregisteraturnoverofUS$100billionby2020backedbystrongexportsrangingbetweenUS$80-100billionby2026.

Theauto-componentsindustryaccountedfor2.3percentofIndia’sGrossDomesticProduct(GDP)in2017-

18.During2017-18,1.5millionpeopledirectlyand1.5millionpeopleindirectlywereemployedintheauto-componentsindustry.

Indiaisexpectedtobecomethe4thlargestautomobilesproducergloballyby2020afterChina,US&Japan.Theautocomponentsindustryisalsoexpectedtobecomethe3rdlargestintheworldby2025.

Theauto-componentsindustryisexpectedtofollowOEMsinadoptionofelectricvehicletechnologies.Theglobalmovetowardselectricvehicleswillgeneratenewopportunitiesforautomotivesuppliers.ThemassconversiontoelectricvehiclesmaygenerateaUS$300billiondomesticmarketforEVbatteriesinIndiaby2030.*

Autocomponents

ADVANTAGEINDIA

ADVANTAGEINDIA

Indiaisemergingasglobalhubforautocomponentsourcing

Relativetocompetitors,IndiaisgeographicallyclosertokeyautomotivemarketsliketheMiddleEast&Europe

Growingworkingpopulation&expandingmiddleclassareexpectedtoremainkeydemanddrivers

Indiaisthefourthlargestautomobilemarketglobally.

Reductioninexcisedutiesinmotorvehiclessectortospurthedemandforautocomponents

ADVANTAGEINDIA

Acost-effectivemanufacturingbasekeepscostslowerby10-25percentrelativetooperationsinEurope&LatinAmerica

Presenceofalargepoolofskilled&semi-skilledworkforceamidstastrongeducationalsystem

3rdlargeststeelproducergloballyhenceacostadvantage

InSeptember2015,AutomotiveMissionPlan2016-26wasunveiledwhichtargetsafourfoldgrowthforthesector

StrongsupportforR&D&productdevelopmentbyestablishingNATRiPcentres

100percentFDIallowedunderautomaticrouteforautocomponentsector

Notes:NATRiP-NationalAutomotiveTestingandR&DInfrastructureProject,FY-IndianFinancialYear(ApriltoMarch),R&D–ResearchandDevelopment

5

Autocomponents

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Autocomponents

MARKET

OVERVIEW

PRODUCTSEGMENTS

AutoComponents

Drivetransmission&steeringparts

Bodyandchassis

Suspension&brakingparts

Equipment

Electricalparts

Others

EngineParts

Source:ACMA

7

Autocomponents

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Otherequipment

Otherpanelinstruments

Clutches

Powertraincomponents

Pressurediecastings

Flywheelmagnetos

Dashboardinstruments

Leafsprings

Axles

Coolingsystems&parts

Fanbelts

ElectricIgnitionSystems

Wipermotors

Shockabsorbers

Steeringsystems

Fuel-injectionsystems&carburetors

Hydraulicpneumaticinstruments

Sparkplugs

Halogenbulbs

Brakelinings

Wheels

Enginevalves&parts

Sheetmetalparts

Startermotors

Headlights

Brake&brakeassemblies

Gears

Pistons&pistonrings

ROBUSTGROWTH

RevenueshaverisenataCAGRof6.83percentfromUS$26.44billioninFY08toUS$51.20billioninFY18.

DomesticOEMsuppliescontribute55.97percentoftheindustryturnoverfollowedbyexports(26.20percent)anddomesticaftermarket(17.82percent).

ExportsofautomobilecomponentsfromIndiainFY18stoodatUS$13.5billion.AsperAutomobileComponentManufacturersAssociation(ACMA)forecasts,automobilecomponentexportsfromIndiaareexpectedtoreachUS$80billionby2026.TheIndianautocomponentindustryaimstoachieveUS$200billioninrevenuesby2026.

Auto-componentproductionin2018-19isexpectedtoincrease12-14percentinFY19,onthebackofrobustgrowthindomesticandexportmarkets.**

Note:CAGR–CompoundAnnualGrowthRate,**AsperCRISILResearch,*TurnoverdatacoverssuppliestoOEMs,aftermarketsalesandexports,ExchangeRatesasperonpage31

Source:ACMA

8

Autocomponents

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FY08

26.44

FY09

24.09

FY10

29.23

FY11

41.31

FY12

42.68

FY13

39.69

FY14

35.00

FY15

38.41

FY16

39.05

FY17

43.55

FY18

51.20

Shareinturnoverofautocomponentsindustry(FY18)

Aggregateturnover*(US$billion)

17.82% OEMSupplies

Exports

55.97%

26.20%

Aftermarket

60.00 CAGR6.83%

50.00

40.00

30.00

20.00

10.00

0.00

EXPORTGROWTH

India’sexportsofautocomponentsincreasedataCAGRof11.42percent,duringFY09-FY18,withthevalueofautocomponentexportsincreasingfromUS$5.10billioninFY09toUS$13.50billioninFY18.

Europeaccountedforavolumeshareof34percentduringFY18inIndianautocomponentexportsfollowedbyNorthAmericaandAsiawith28and25percentrespectivelyinthesameyear.

Note:ExchangeRatesasperonpage31

Source:ACMA

9

Autocomponents

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5.10

3.99

6.65

8.91

9.68

10.16

11.21

10.83

10.90

13.50

Sharesinexportsbygeography(FY18)

Valueofautocomponentexports(US$billion)

5% 2%

Europe

6%

NorthAmerica

34%

Asia

25%

LatinAmerica

Africa

28%

CISandBaltics

16.00 CAGR11.42%

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00

FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18

AFTERMARKETGROWTH

India’sautocomponentsaftermarketcontributed17.82percentofthetotalindustryturnoverinFY18.

TurnoveroftheaftermarkethasincreasedataCAGRof9.67percentfromUS$5.80billioninFY13toUS$9.20billioninFY18.

The‘DrivingTransmissionandSteering’productcategoryaccountedforthelargestpartoftheaftermarketat21percent,followedby‘EngineComponents’and‘Electricals’at18percenteachand‘SuspensionandBraking’at15percent.

Note:ExchangeRatesasperpage31

Source:ACMA

10

Autocomponents

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5.80

5.90

6.50

6.80

8.40

9.20

Product–wiseshareinaftermarketturnover(FY18)

Valueofaftermarketturnover(US$billion)

DriveTransmissionandSteering

3%3%

EngineComponents

8% 21%

Electricals

14%

SuspensionandBraking

18% ConsumablesandMiscellaneous

15%

CoolingSystems

18%

RubberComponentsElectronicComponents

10.00 CAGR9.67%

9.00

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

0.00

FY13 FY14 FY15 FY16 FY17 FY18

SHARESINPRODUCTIONANDSUPPLY

ProductionofTwoWheelers,PassengerVehicles,CommercialVehiclesandThreeWheelersreached23.15million,4.01million,0.89million,and1.02millionin2017-18.

PassengervehicleshadthehighestshareoftotalautocomponentsuppliestoOriginalEquipmentManufacturers(OEMs)in2017-18,followedbytwowheelersandLightCommercialVehicles(LCV).

Source:ACMA

11

Autocomponents

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AutocomponentsupplytoOEMs(FY18)

Domesticmarketsharebysegment(FY18)(No.ofunits)

3%2%

6% PassengerVehicle

43%

13% Twowheelers

Mediumandheavycommercialvehicles

Lightcommercialvehicles

Tractors

10% Threewheelers

Constructionearthmovingequipments

23%

3.08% 3.51%

13.79% TwoWheelers

PassengerVehicleCommercialVehicleThreeWheelers

79.61%

MAJORPLAYERSBYSEGMENT

Engine&engine

parts

Transmission&

steeringparts

Suspension&

brakingparts

Electrical

Equipment

Note:OEMmeansOriginalEquipmentManufacturer

Source:Mediasources,Arancaresearch

12

Autocomponents

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Headlights–Lumax,Autolite&PhoenixLamps

Dashboard–PremiereInstruments&Controls

Sheetmetalparts–JayBharatMaruti,OmaxAutoandJBMTools

LucasTVS,Denso,DelcoRemyElectricals&NipponElectricalsarekeyplayersinthissegment

BrakeSystems–BrakesIndia,KalyaniBrakes,MandoIndiaLtd.&AutomotiveAxles

BrakeLining–RaneBrakeLining,SundaramBrakeLining,HindustanComposites&AlliedNippon

LeafSprings–JamnaAuto&JaiParabolic

ShockAbsorbers–GabrielIndia,Delphi,MandoIndiaLtd.&MunjalShowa

SteeringSystems–SonaKoyoSteeringSystems,RaneNSKSteeringSystems&RaneTRWSystems

Gears–BharatGears,GajraBevelGears,ZFSteeringGear(India)Ltd,Eicher,GrazianoTrasmissioni&SlAPGearsIndia

Clutch–ClutchAuto,CeekayDaikin,AmalgamationsRepco,LukClutches

Driveshafts–GKNDriveshafts,SpicerIndiaPrivateLtd.,Delphi&SonaKoyoSteeringSystems

Pistons–Goetze,ShriramPistons&Rings,IndiaPistons,AnandI-PowerLtd.

EngineValves–RaneEngineValves,ShriramPistons&Rings,SSVValves

Carburetors–UcalFuelSystems&SpacoCarburetors&EscortsAutoComponents

Diesel-basedfuel-injectionsystems–Mico,Delphi-TVSDieselSystem&TataCummins

Autocomponents

RECENTTRENDS

ANDSTRATEGIES

NOTABLETRENDS

Note:OEMmeansOriginalEquipmentManufacturerACT-ACMACentreforTechnology

Source:ArancaResearch

14

Autocomponents

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Inorganicroutetoexpansion

Improvingproduct-developmentcapabilities

Globalcomponentssourcinghub

AsofAugust2018,RicoAutoIndustriesissoongoingtosignaJointVenture(JV)dealwithHZManufacturingtoproduceautomatictransmissionforscooters.

InJuly2018,air-compressormanufacturerElgiEquipmentsacquiredPulfordAirandGasbasedinSydney,Australia.Theacquisitionwillhelpthecompanytoexpanditsglobalfootprintandhelpinachievingitsmissionofbecomingaleadingplayerintheglobalair-compressormarketby2027.

SandharTechhasenteredintoaJointVenture(JV)withDaeshinMachineryofKorea.ThenewlyformedJVwillmanufactureandsellproductssuchasgearshifters,automaticshifters,etc.

InApril2018,MothersonSumiSystemssignedadealtoacquireReydelAutomotiveforUS$201million.Theacquisitionwillhelpthecompanytoenternewgeographiesandgetnewcustomerportfolios.

IncreasedinvestmentsinR&Doperations&laboratories,whicharebeingsetuptoconductactivitiessuchasanalysis,simulation&engineeringanimations

ThegrowthofglobalOEMsourcingfromIndia&theincreasedindigenisationofglobalOEMsisturningthecountryintoapreferreddesigning&manufacturingbase

ACTestablishedtooffertechnicalservicestoACMAmembersforenhancingprocess&qualityabilitiesthroughvariousclusterprogrammes

Faurecia,aglobalautomotiveequipmentleader,haspartneredwithIndianInstituteofScience(IISc)todevelopnewtechnologiesandsolutionsinthreeareasviz.onlineairqualitymonitoring,dataanalysisandalgorithmsfordriverbehaviourandartificialintelligenceforindustrialdesign.

MajorglobalOEMshavemadeIndiaacomponentsourcinghubfortheirglobaloperations

SeveralglobalTier-IsuppliershavealsoannouncedplanstoincreaseprocurementfromtheirIndiansubsidiaries

Indiaisalsoemergingasasourcinghubforenginecomponents,withOEMsincreasinglysettingupenginemanufacturingunitsinthecountry

ForcompanieslikeFord,Fiat,Suzuki&GeneralMotors,Indiahasestablisheditselfasaglobalhubforsmallengines

VarrocLightingSystems(VLS)issupplyingthecompleteexteriorlightingsolutionsforTeslaModelSsedanandtheTeslaModelXcrossover.

STRATEGIESADOPTED

Source:MakeinIndia,MediaSources

15

Autocomponents

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R&Dfacilities

Capacity

Diversification

Newstrategies

LookingattheopportunitymanyglobalsuppliersforexampleBoschChassisSystems,TennecoandFaureciahaveestablishedR&DfacilitiesinIndiatoadaptglobaldesigns&developnewproducts

IncreasinginvestmentsinR&Dalsoassistscompaniesinsettinguplaboratories,newfacilitiestoconductanalysis,simulation&engineeringanimations.

InAugust2018,JKTyreandIndustriesLtdinaugurateditsstate-of-theartglobaltechnologycentreinMysore.Researchatthecentrewillfocusonvariousaspectsoftyretechnologyincludingcomingupwithadvancedlaboratorypredictorsfortyreperformanceandrecognisingkeyinputsforlifepredictionofrubberproducts.

India’sprojectedproductionisaround8.7millionpassengervehiclesperyearby2020(withmostofthembeingcompactcars)

ManyMNC’slikeFord,Hyundai,Toyota&GMarelaunchingnewvehiclemodelsduetotheirearliersuccessintheIndianmarket.

ManyIndianfirmsspecialisinginonlyoneproductmarketorsegment&arelookingforwardtodiversifyhorizontallyinothersegmentslike2-wheelers,passengercarsorcommercialvehicles.

Theyaresteppinguptheirproductdevelopmentcapabilitiesinordertohavethebestchanceofcapturinggrowthopportunity.

BothIndian&globalmanufacturersareinvestinginnewcapacities&newerprogrammes,inordertogetlongtermadvantage

AsmarketsinNorth,West&Southaregettingsaturated,componentsmakersarenowfocusingonuntappedmarketliketheNortheastregionofthecountry.

VarrocEngineering,India’ssecondlargestauto-componentsproducer,isaimingtoattractbusinessfromsalesofelectricvehiclecomponentssuchaselectronics,motorsandbatterymanagementsystem.

Autocomponents

GROWTHDRIVERS

GROWTHDRIVERS

Demand-sidedrivers

Policysupport

GROWTH

DRIVERS

Supply-sidedrivers

Note:NMEM–NationalMissionForElectricMobility

Source:ArancaResearch

17

Autocomponents

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Competitiveadvantagesfacilitatingemergenceofoutsourcinghub

Technologicalshift;focusonR&D

Establishingspecialautoparks&virtualSEZsforautocomponents

Lowerexcisedutyonspecificpartsofhybridvehicles

PoliciessuchasAutomotiveMissionPlan2016-26,FasterAdoption&ManufacturingofElectricHybridVehicles(FAME,April,2015),NMEM2020,likelytoinfusegrowthintheautocomponentsectorofthecountry.

ThegovernmentisgoingtocomeoutwithaNationalAutomotivePolicyforboostingthegrowthofIndia’sautomotivesector.

Robustgrowthindomesticautomotiveindustry

Increasinginvestmentinroadinfrastructure

Growthintheworkingpopulation&middleclassincometodrivethemarket

GROWTHINTHEAUTOMOBILESSECTOR

Note:(E)–Estimate;#Loanoutstandingattheendoffinancialyear,FY18*-uptoDecember2017,2018-19^-uptoAugust2018

Source:ACMA,ReserveBankofIndia,ArancaResearch,SIAM

18

Autocomponents

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11.76

2012-13

2,06,47,611

12.89

2013-14

2,15,00,165

16.44

2014-15

2,33,58,047

13.38

13.85

2015-16

2,40,16,068

13.67

2016-17

2,53,29,383

13.80

2017-18

2,90,73,892

14.02

2018-19^

1,37,01,825

Vehicles,vehiclepartsandtransportequipmentloan

outstanding#(US$billion)

VehicleProduction(innumberofunits)

VehicleproductioninIndia(thousandunits)

18.00

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

-

FY11 FY12 FY13 FY14 FY15 FY16 FY17FY18*

35,000

30,000

30,231

25,000

20,000

15,000

10,000

10,000

5,000 4,010

2,350

895

-

Passenger Commercial 2&3WheelersVehicles Vehicles

FY18 FY21E

3,50,00,000

3,00,00,000

2,50,00,000

2,00,00,000

1,50,00,000

1,00,00,000

50,00,000

-

24,169

INDIAISPOISEDTOEMERGEASANOUTSOURCING

HUB

HyundaiplanstosourcegasolineanddieselenginesfromitsIndianmanufacturingoperationsforitsdomestic&globaloperations.

ThecompanyisalsoplanningtoinvestUS$300millionforanewengineplant&metalpressingshopinIndia&isalsoinplanstoopenits2ndmanufacturingplantinRajasthan.

AsofJanuary2018,thecompanyisconsideringaddingathirdproductionlinewithacapacityof50,000unitsayearatitsplantinTamilNadu.

FordexpandeditsretaildistributionnetworkofgenuinepartsinGujarat,Daman&Diu&Silvassa.

Fordiscurrentlyworkingonasmall–capacitypetrolenginecalledDragonwhichisestimatedtobereadyby2016–17.TheDetroit–basedcompanyisplanningtoproduce1.5millionunitsayearglobally,4lakhofwhichwillbeproducedinIndia.

InMarch2018,FordMotorssignedfiveMoUswithMahindraandMahindra(M&M)tojointlydevelopnewSUVsandsmallelectricvehicle.ThepartnershipwillleverageFord’sglobalreachandexpertiseandM&MspresenceintheIndianmarket.

ThecompanyhasanexportbaseforcertainkeyenginecomponentsinIndia.

AsofApril2018,thecompanyhasdecidedtoinvestRs8billion(US$124.13million)inIndiatointroducenewproductsinthemarketandimproveefficiencyatitsexistingplants.

Thecompanyplanstolaunchanewmodelandupgrade18existingonesin2018-19.

ToyotaKirloskarMotordiscloseditsfullyintegratedcloudbasedtelematicsserviceforIndianmarket,bythenameToyotaConnect.

ToyotaIndiaunderanewjointventureinitiatedproductionofdieselenginesatJiganiIndustrialArea.

Source:RespectiveCompanyWebsites,NewsArticles

19

Autocomponents

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FAVOURABLEPOLICYMEASURESAIDINGGROWTH

AutoPolicy2002

NATRiP

Dept.ofHeavy

Industries&PublicEnterprises

AutomotiveMissionPlan2016-26

(AMP2026)

FAMEScheme

UnionBudget

2018–19

Note:NATRiP-NationalAutomotiveTestingandR&DInfrastructureProject

Source:SIAM,MakeinIndia

20

Autocomponents

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Theschemeisaimedatincentivisingallvehiclesegmentsi.e.2Wheeler,3WheelerAuto,Passenger4WheelerVehicle,LightCommercialVehiclesandBuses.Itcovershybrid&electrictechnologieslikeMildHybrid,StrongHybrid,PluginHybrid&BatteryElectricVehicles.TheschemehasbeenextendedforsixmonthsfromSeptember2018toMarch2019.

TheGovernmentofIndiaisintheprocessofcomingupwithFAME-IIScheme.

Budget2018-19imposedasurchargeof10percentonaggregatedutiesofcustomsonimports,replacingeducationandsecondaryandhigherEducationCess,whichisexpectedtoboostdomesticmanufacturing.

Reductionoftaxto25percentforcompanieswithturnoveruptoRs250crore(US$38.62million)wasalsoannouncedinUnionBudget.

Automaticapprovalfor100percentforeignequityinvestmentinautocomponentmanufacturingfacilities.

Manufacturing&importsareexemptfromlicensing&approvals.

SetupatatotalcostofUS$388.5milliontoenabletheindustrytoadopt&implementglobalperformancestandards.

Focusonprovidinglow-costmanufacturing&productdevelopmentsolutions.

CreatedaUS$200millionfundtomodernisetheautocomponentsindustrybyprovidinganinterestsubsidyonloans&investmentinnewplants&equipment.

ProvidedexportbenefitstointermediatesuppliersofautocomponentsagainsttheDutyFreeReplenishmentCertificate(DFRC).

AMP2026targetsa4-foldgrowthintheautomobilessectorinIndiawhichincludesthemanufacturersofautomobiles,autocomponents&tractorindustryoverthenext10years.

Itisexpectedtogenerateanadditionalemploymentof65million.

INVESTMENTSHAVEBEENRISINGATAFASTPACE

AccordingtoDepartmentofIndustrialPolicyandPromotion,FDIinflowinautomotive*sectorformApril2000toJune2018stoodatUS$19.29billion.

Withthelaunchof“MakeinIndia”initiative,thegovernmentisexpectedtovitaliseasubstantialinvestmentintheautocomponentsector.

AutocomponentsectorisexpectedtoinvestaroundUS$4.5billionforupgradationofproducts&keepingupwiththenewindustryregulations.

SchaefflerIndia,theIndianarmofGermany’sautomotiveandindustrialpartsmaker,isplanningtoinvestRs300crore(US$46.66million)perannumoverFY18-19.

AsofSeptember2018,air-compressormanufacturerElgiEquipmentsisgoingtoinvestRs18crore(US$2.56million)for

settingupofamotorproductionfacilityinIndia.The

expectedtobecommissionedinQ1FY20.

facility

is

Note:*-Includesautomobilesandauto-components,**-UptoJune2018

Source:ACMA,DIPP,NewsArticles

21

Autocomponents

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5.93

FY01-FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19**

FY01-FY19**

19.29

FDIinvestmentsinautomotive*sectorinApril2000-June2018Visakhapatnamporttraffic(milliontonnes)

(US$billion)

20 2.09 0.53

1.61

2.68

15

2.57

1.52

10

1.54

0.83

5

0

KEYINVESTMENTSANDDEVELOPMENTS

CEATLtd

IMIPrecision

Engineering

RicoAutoIndustries

ASKAutomotive

FaureciaInterior

Systems

HitachiAutomotive

AmaraRaja

Batteries

SundaramClayton

UNOMinda

Source:Newsarticles,GovernmentWebsites,ArancaResearch,MinistryofExternalAffairs,Govt.ofIndia(ITP)Division

22

Autocomponents

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CEATLtd.isplanningtoinvestaroundUS$413.50milliontoexpanditstireproductionduring2017-22.Thecompanyplanstoreachataproductionlevelof17million2wheelertires,annually,1millionTruck&BusRadial(TBR)tires&

6millionpassengercarradialtires,annually.

InOctober2018,thecompanyinaugurateditssecondlargestmanufacturingfacilityintheAsiaPacificregion.Thecompanyisplanningtoexpanditsproductandtechnicalofferingoverthecourseofthenextfewyears.

AsofAugust2018,RicoAutoIndustriesisdevelopingplanstoinvestRs400crore(US$57.00million)inthenextthreeyears.

FrictionmaterialsmakerASKAutomotivehassignedanagreementwithFras-leofBraziltosetupajointventureofabrakepadsandliningsfacilityforcommercialvehiclesinHaryanaataninvestmentofoverUS$15.6million.

AsofJune2018,FaureciaInteriorSystemshasstartedconstructionofitsRs50crore(US$7.46million)instrumentpanelplant.Thegreenfieldplantisbeingsetupoveranareaof12acresandStartofProduction(SOP)willbeinitiatedfromthethirdquarterof2019.

HitachiAutomotiveSystemshassetupanewtechnicalcentreinDelhiin2018whichwillhelpthecompanygrowintheNorthIndiamarket.Thecompanyalsoplanstostep-upitsproductioninIndiaby2020.

InAugust2018,theBoardofDirectorsofAmaraRajaBatteriesapprovedsettingupofaRs700crore(US$99.74million)greenfieldautomotivebatteryplantwithaproductioncapacityof6.5millionunitsperannum.AsofOctober2018,thecompanydecidedtofurtherenhancethecapacityoftheplantto10.8millionunitsinphases.

SundaramClayton,partoftheTVSgroup,planstoinvestUS$50millioninUSandRs400crore(US$59.76million)inIndiaoverthenextthreeyears.

UNOMindaGroupisexpandingitsmanufacturingcapacityinGujaratwithatotalinvestmentofUS$91.87million.

Autocomponents

OPPORTUNITIES

DOMESTICANDEXPORTSMARKETSHOLDHUGE

POTENTIAL

Note:E-Estimate

Source:ACMA

24

Autocomponents

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ExportMarketPotential(US$billion)

DomesticMarketPotential(US$billion)

35

30

30.00

25

20

15

10

5

0

FY16 FY17 FY18 FY21E

Exportswillaccountforasmuchas26percentofthemarketby2021.

140

120

100

80

60

40

39.05

20

0

FY16 FY17 FY18 FY21E

Thedomesticmarketisexpectedtoaccountfor71percentoftotalsalesby2021withatotalmarketsizeofUS$115billion.

51.20

115.00

43.55

10.90

10.83

13.50

MARKETPOTENTIALBALANCEDACROSSPRODUCT

TYPES

Bothdomestic&exportmarketsarealmostsimilarintermsofpotentialsharebydifferentproducttypes.Forexample,Engine&Exhaustcomponents,alongwithBody&Structuralparts,areexpectedtomakeup50percentpotentialdomesticsalesaswellasexportsin2020

Transmission,Steeringcomponents,Electronics&Electricalpartsarelikelytobetheotherkeyproducts.

Note:2020E–Estimatedvaluefor2020byACMA

Source:ACMA

25

Autocomponents

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Exportmarketpotentialbycomponents(2020E)

Domesticmarketpotentialbycomponents(2020E)

TransmissionandSteeringParts

SuspensionandBraking

16% Parts

32% Interior

11%

Engine&Exhaust

8%

ElectronicsandElectrical

16% 18%

Body&Structure

TransmissionandSteeringParts

SuspensionandBraking

23.10% 17.10% Parts

Interior

10.70%

Engine&Exhaust

17.10% 6.40%

ElectronicsandElectrical

25.60% Body&Structure

OPPORTUNITIESINENGINEERINGPRODUCTS

Engine&engineparts

Transmission&steering

parts

Suspension&braking

parts

Equipment

Electrical

Others

(MetalParts)

Note:OEMmeansOriginalEquipmentManufacturer

Source:MakeinIndia

26

Autocomponents

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Newtechnologicalchangesinthissegmentincludeintroductionofturbochargers&commonrailsystems

Thetrendofoutsourcingmaygaintractioninthissegmentintheshorttomediumterm

Shareofthereplacementmarketinsub-segmentssuchasclutchesislikelytogrowduetorisingtrafficdensity

Theentryofglobalplayersisexpectedtointensifycompetitioninsub-segmentssuchasgears&clutches

Thesegmentisestimatedtowitnesshighreplacementdemand,withplayersmaintainingadiversifiedcustomerbaseinthereplacement&OEMsegmentsbesidestheexportmarket

Theentryofglobalplayersislikelytointensifycompetitioninsub-segmentssuchasshockabsorbers

Companiesoperatinginthereplacementmarketarelikelytofocusonestablishingadistributionnetwork,brandimage,productportfolio&pricingpolicy

Manufacturersareexpectedtobenefitfromthegrowingdemandforelectricstartmechanismsinthe2wheelersegment

Metalpartmanufacturersarelikelytobenefitfromrisingdemandforbody&chassis,pressurediecastings,sheetmetalparts,fanbelts,hydraulicpneumaticinstruments,mainlyin2wheelersindustry

Theprominentcompaniesinthisbusinessareconstantlyworkingtowardsexpandingtheircustomerbase

CAPACITYADDITIONPLANSOFKEYPLAYERS

Boschinauguratedits15thplantinNovember2015,specialisinginmanufacturingpowertools.

AsofFebruary2018,BoschhasdecidedtoinvestRs500–Rs800crore(US$77.58–124.13million)overthenexttwoyears(FY19andFY20)toexpandoperationsinIndiaandincreaseR&Dtodevelopproductsfortheglobalmarket.

ThecompanyisplanningtoinvestoverRs1,800crore(US$279.29million),asofJanuary2018,forsettingupofanewplantinAndhraPradesh.Thenewfacilitywillhelpthecompanycatertogrowingdemandforpassengervehicletyres.

Thefoundationstonefortheplanthasbeenlaidandconstructionoftheplantisexpectedtostartinthenext6monthsand