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Indian Automobile Sector - A Booming Market

Publication Date October 2008
Publisher RNCOS
Product Type Report
Pages 130
ISBN Number not applicable
Product Code RCS00498
Price

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Summary

De-licensing in 1991 has put the Indian automobile industry on a new growth track, attracting foreign auto giants to set up their production facilities in the country to take advantage of various benefits it offers. This took the Indian automobile production from 5.3 Million Units in 2001-02 to 10.8 Million Units in 2007-08. The other reasons attracting global auto manufacturers to India are the country's large middle class population, growing earning power, strong technological capability and availability of trained manpower at competitive prices. These are the major findings of our new report, "Indian Automobile Sector - A Booming Market"

In 2006-07, the Indian automotive industry provided direct employment to more than 300,000 people, exported auto component worth around US$ 2.87 Billion, and contributed 5% to the GDP. Due to this large contribution of the industry in the national economy, the Indian government lifted the requirement of forging joint ventures for foreign companies, which attracted global to the Indian market to establish their plants, resulting in heightened automobile production.

The Indian automobile market is currently dominated by two-wheeler segment but in future, the demand for passenger cars and commercial vehicles will increase with industrial development. Also, as India has low vehicle presence (with passenger car stock of only around 11 per 1,000 population in 2008), it possesses substantial potential for growth.

Key Research Highlights

  • Passenger car production in India is projected to cross three million units in 2014-15.
  • Sales of passenger cars during 2008-09 to 2015-16 are expected to grow at a CAGR of around 10%.
  • Export of passenger cars is anticipated to rise more than the domestic sales during 2008-09 to 2015-16.
  • Motorcycle sales will perform positively in future, exceeding 10 Million units by 2012-13.
  • Value of auto component exports is likely to attain a double digit figure in 2012-13.
  • Turnover of the Indian auto component industry is forecasted to surpass US$ 50 Billion in 2014-15.

Key Issues & Facts Analyzed in the Report

  • Study of the Indian automobile industry structure.
  • Analysis of performance of industry sub-segments and their future outlook.
  • Understanding the Indian auto component market and its growth aspects.
  • Evaluation of factors fuelling growth in the Indian automobile market.
  • Discussion of the forces countering the market growth.
  • Identification of future prospects for the Indian automobile industry.

Research Methodology Used in the Report

Information Sources

The information has been sourced from various authentic and reliable sources like books, newspapers, trade journals and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Method

RNCOS industry forecast and analysis is based on various macro- and microeconomic factors, sector and industry specific databases, and our in-house statistical and analytical model. This model takes into account the past and current trends in an economy, and more specifically in an industry, to bring out an objective market analysis.

Our industry experts study the relationship between various industry and economic variables to ensure the required accuracy and desired check on the quality of data and information given in the report.

Content

  • 1. Analyst View
  • 2. Indias Rank in Global Automobile Industry
  • 3. RNCOS View on Indian Automobile Industry
    • 3.1 Supporting Environment
      • 3.1.1 Economic Factors
      • 3.1.2 Demographic & Psychographic Factors
      • 3.1.3 Environmental Factors
      • 3.1.4 Political Environment
      • 3.1.5 Legal Environment
      • 3.1.6 Technological Environment
    • 3.2 Roadblocks for the Industry
      • 3.2.1 Increasing Running Cost
      • 3.2.2 High Input Cost
      • 3.2.3 Strong INR
      • 3.2.4 Expensive Auto Finance
  • 4. Automobile Industry Overview
    • 4.1 Production
    • 4.2 Installed Capacity
    • 4.3 Competitive Landscape
    • 4.4 Sales
    • 4.5 Export
    • 4.6 Import
  • 5. Automobile Industry Analysis
    • 5.1 Passenger Cars
      • 5.1.1 Production
      • 5.1.2 Sales
      • 5.1.3 Export
      • 5.1.4 Future Outlook till Fiscal Year 2016
    • 5.2 Utility Vehicles
      • 5.2.1 Production
      • 5.2.2 Sales
      • 5.2.3 Export
      • 5.2.4 Future Outlook till Fiscal Year 2016
    • 5.3 Multi-purpose Vehicles
      • 5.3.1 Production
      • 5.3.2 Sales
      • 5.3.3 Export
      • 5.3.4 Future Outlook till Fiscal Year 2016
    • 5.4 Commercial Vehicles
      • 5.4.1 Passenger Carriers
      • 5.4.2 Goods Carriers
      • 5.4.3 Future Outlook till Fiscal Year 2016
    • 5.5 Two Wheelers
      • 5.5.1 Scooter/Scooterette
      • 5.5.2 Motorcycles
      • 5.5.3 Electric Two Wheelers & Mopeds
      • 5.5.4 Future Outlook till Fiscal Year 2016
    • 5.6 Three Wheelers
      • 5.6.1 Passenger Carriers
      • 5.6.2 Goods Carriers
  • 6. Auto Component Industry
    • 6.1 Industry Structure
    • 6.2 Production
    • 6.3 Sales
    • 6.4 Export
    • 6.5 Import
    • 6.6 Competitive Landscape
      • 6.6.1 Players
      • 6.6.2 Production by Type
      • 6.6.3 Mergers & Acquisitions
      • 6.6.4 Investment
    • 6.7 Future Outlook till Fiscal Year 2016
      • 6.7.1 Turnover
      • 6.7.2 Sales
      • 6.7.3 Export
  • 7. Growth Avenues
    • 7.1 Automotive Design Market
    • 7.2 Non-conventional Vehicle Market
    • 7.3 Domestic Tire Industry
    • 7.4 Automotive Steel
    • 7.5 Auto Insurance & Financing Market
    • 7.6 GPS Navigation Market
    • 7.7 Power Industry
  • List of Figures:
    • Figure 2-1: India - Passenger Cars Ownership per 1000 Population w.r.t Other Asia-Pacific Countries (in Units), 2008E
    • Figure 2-2: Global - Growth Rate of Top Automobile* Producing Countries (%), 2007
    • Figure 3-1: India - Nominal GDP vs Passenger Car Ownership* (2005-2008E)
    • Figure 3-2: India - Per Head Personal Disposable Income vs Passenger Vehicle Sales (2004-05 to 2007-08)
    • Figure 3-3: India - Labor Cost w.r.t Other Countries (in US$/Hr), 2006
    • Figure 3-4: India - Engineering Designer Wage w.r.t Other Countries (in US$/Annum), 2006
    • Figure 3-5: India - FDI in Automobile Industry (in Million US$), 2004-05 to 2007-08
    • Figure 3-6: India - Forecast for Young Population (%), 2006*-2012
    • Figure 3-7: India - Forecast for Expenditure on Transportation & Communication (%), 2008*-2012
    • Figure 3-8: India - Asset-backed Securitization Market (in Billion US$), 2005-06 & 2006-07
    • Figure 3-9: India - Finished Steel Production & Apparent Consumption (in Million Metric Tons), 2006-07 & 2007-08*
    • Figure 3-10: India - Gasoline Production & Consumption (in Million Metric Tons), 2005-06 to 2007-08*
    • Figure 3-11: India - High Speed Diesel Production & Consumption (in Million Metric Tons), 2005-06 to 2007-08*
    • Figure 3-12: India - Automobile Industry Capacity Utilization (%), 2006-07E
    • Figure 3-13: India - Growth in Retail Petrol Prices (%), 2002 to 2008
    • Figure 3-14: India - Growth in Retail Diesel Prices (%), 2002 to 2008
    • Figure 3-15: India - Growth in Steel Prices in Metros (%), Mar 2007 to Mar 2008
    • Figure 3-16: India - Forecast for Average Exchange Rate per US$ (in INR), 2009-2012
    • Figure 3-17: India - Auto Financing Interest Rate (%), 2001-02 to YTD 2008-09
    • Figure 4-1: India - Automobile Production (in Million Units), 2002-03 to 2007-08
    • Figure 4-2: India - Automobile Production Structure (%), 2007-08
    • Figure 4-3: India - Automotive Installation Capacity* (in Million Units), 2005-06 & 2006-07
    • Figure 4-4: India - Automobile Industry Input Cost (%), 2007
    • Figure 4-5: India - Automobile Sales (in Million Units), 2002-03 to 2007-08
    • Figure 4-6: India - Automobile Sales Structure (%), 2007-08
    • Figure 4-7: India - Automobile Export (in Million Units), 2002-03 to 2007-08
    • Figure 4-8: India - Automobile Export Structure (%), 2007-08
    • Figure 4-9: India - Automobile Import (in Units), 2006-07 & 2007-08
    • Figure 5-1: India - Passenger Car Production (in 000 Units), 2006-07 & 2007-08
    • Figure 5-2: India - Passenger Car Production by Body Type (%), 2007-08
    • Figure 5-3: India - Passenger Car Sales (in 000 Units), 2006-07 & 2007-08
    • Figure 5-4: India - Passenger Car Sales by Body Type (%), 2007-08
    • Figure 5-5: India - Passenger Car Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-6: India - Passenger Car Export by Body Type (%), 2007-08
    • Figure 5-7: India - Forecast for Passenger Car Production (in 000 Units), 2008-09 to 2015-16
    • Figure 5-8: India - Forecast for Passenger Car Sales (in 000 Units), 2008-09 to 2015-16
    • Figure 5-9: India - Forecast for Passenger Car Export (in 000 Units), 2008-09 to 2015-16
    • Figure 5-10: India - Utility Vehicle Production (in 000 Units), 2006-07 & 2007-08
    • Figure 5-11: India - Utility Vehicle Production by Body Type (%), 2007-08
    • Figure 5-12: India - Utility Vehicle Sales (in 000 Units), 2006-07 & 2007-08
    • Figure 5-13: India - Utility Vehicle Sales by Body Type (%), 2007-08
    • Figure 5-14: India - Utility Vehicle Export (in Units), 2006-07 & 2007-08
    • Figure 5-15: India - Utility Vehicle Export by Body Type (%), 2007-08
    • Figure 5-16: India - Forecast for Utility Vehicle Production (in 000 Units), 2008-09 to 2015-16
    • Figure 5-17: India - Forecast for Utility Vehicle Sales (in 000 Units), 2008-09 to 2015-16
    • Figure 5-18: India - Forecast for Utility Vehicle Export (in 000 Units), 2008-09 to 2015-16
    • Figure 5-19: India - Multi-purpose Vehicle Production (in 000 Units), 2006-07 & 2007-08
    • Figure 5-20: India - Multi-purpose Vehicle Production by Manufacturer (%), 2007-08
    • Figure 5-21: India - Multi-purpose Vehicle Sales (in 000 Units), 2006-07 & 2007-08
    • Figure 5-22: India - Multi-purpose Vehicle Export (in Units), 2006-07 & 2007-08
    • Figure 5-23: India - Forecast for Multi-purpose Vehicle Production & Sales (in 000 Units), 2008-09 to 2015-16
    • Figure 5-24: India - Commercial Passenger Carrier Production (in 000 Units), 2006-07 & 2007-08
    • Figure 5-25: India - Commercial Passenger Carrier Sales (in 000 Units), 2006-07 & 2007-08
    • Figure 5-26: India - Commercial Passenger Carrier Sales by Body Type (%), 2007-08
    • Figure 5-27: India - Commercial Passenger Carrier Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-28: India - Commercial Goods Carrier Production (in 000 Units), 2006-07 & 2007-08
    • Figure 5-29: India - Commercial Goods Carrier Production by Segment (%), 2007-08
    • Figure 5-30: India - Commercial Goods Carrier Sales (in 000 Units), 2006-07 & 2007-08
    • Figure 5-31: India - Commercial Goods Carrier Sales by Body Type (%), 2007-08
    • Figure 5-32: India - Commercial Goods Carrier Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-33: India - Commercial Goods Carrier Export by Body Type (%), 2007-08
    • Figure 5-34: India - Forecast for Commercial Vehicle Production by Segment (in 000 Units), 2008-09 to 2015-16
    • Figure 5-35: India - Forecast for Commercial Vehicle Sales by Segment (in 000 Units), 2008-09 to 2015-16
    • Figure 5-36: India - Forecast for Commercial Vehicle Export by Segment (in 000 Units), 2008-09 to 2015-16
    • Figure 5-37: India - Two Wheeler Production Structure (%), 2007-08
    • Figure 5-38: India - Two Wheeler Sales Structure (%), 2007-08
    • Figure 5-39: India - Two Wheeler Export Structure (%), 2007-08
    • Figure 5-40: India - Scooter/Scooterette Production (in 000 Units), 2006-07 & 2007-08
    • Figure 5-41: India - Scooter/Scooterette Sales (in 000 Units), 2006-07 & 2007-08
    • Figure 5-42: India - Scooter/Scooterette Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-43: India - Scooter/Scooterette Sales by Engine Capacity (%), 2007-08
    • Figure 5-44: India - Scooter/Scooterette Export by Engine Capacity (%), 2007-08
    • Figure 5-45: India - Motorcycle Production (in Million Units), 2006-07 & 2007-08
    • Figure 5-46: India - Motorcycle Sales (in Million Units), 2006-07 & 2007-08
    • Figure 5-47: India - Motorcycle Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-48: India - Motorcycle Production by Engine Capacity (%), 2007-08
    • Figure 5-49: India - Motorcycle Export by Engine Capacity (%), 2007-08
    • Figure 5-50: India - Electric Two Wheeler Production & Sales (in 000 Units), 2006-07 & 2007-08
    • Figure 5-51: India - Moped Production, Sales & Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-52: India - Forecast for Motorcycle Production (in 000 Units), 2008-09 to 2015-16
    • Figure 5-53: India - Forecast for Motorcycle Sales (in 000 Units), 2008-09 to 2015-16
    • Figure 5-54: India - Forecast for Motorcycle Export (in 000 Units), 2008-09 to 2015-16
    • Figure 5-55: India - Forecast for Scooter/Scooterette Production (in 000 Units), 2008-09 to 2015-16
    • Figure 5-56: India - Forecast for Scooter/Scooterette Sales (in 000 Units), 2008-09 to 2015-16
    • Figure 5-57: India - Three Wheeler Passenger Carrier Production, Sales & Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-58: India - Three Wheeler Passenger Carrier Production, Sales & Export by Seating Capacity (%), 2007-08
    • Figure 5-59: India - Three Wheeler Goods Carrier Production, Sales & Export (in 000 Units), 2006-07 & 2007-08
    • Figure 5-60: India - Three Wheeler Goods Carrier Production, Sales & Export by Carrying Capacity (%), 2007-08
    • Figure 6-1: India - Auto Component Industry Structure (%)
    • Figure 6-2: India - Auto Component Production (in Billion US$), 2002-03 to 2007-08E
    • Figure 6-3: India - Auto Component Sales* (in Billion US$), 2002-03 to 2007-08E
    • Figure 6-4: India - Domestic Auto Component Market (%), 2007-08E
    • Figure 6-5: India - Auto Component Export (in Billion US$), 2002-03 to 2007-08E
    • Figure 6-6: India - Auto Component Export by Region (%), 2007-08
    • Figure 6-7: India - Auto Component Export by Type of Industry (%), 1990 & 2007
    • Figure 6-8: India - Auto Component Import (in Billion US$), 2003-04 to 2006-07
    • Figure 6-9: India - Regional Presence of Auto Component Players (%), 2007-08
    • Figure 6-10: India - Auto Component Industry by Product (%), 2007-08
    • Figure 6-11: India - Investment in Auto Component Industry (in Billion US$), 2002-03 to 2007-08E
    • Figure 6-12: India - Forecast for Auto Component Production (in Billion US$), 2008-09 to 2015-16
    • Figure 6-13: India - Forecast for Auto Component Sales (in Billion US$), 2008-09 to 2015-16
    • Figure 6-14: India - Forecast for Auto Component Export (in Billion US$), 2008-09 to 2015-16
    • Figure 7-1: India - Forecast for Potential Market for Flex-fuel Cars (in 000 Units), 2008-09 to 2012-13
    • Figure 7-2: India - Forecast for Tire Demand (in Million Units), 2008-09 to 2011-12
    • Figure 7-3: India - Estimated Steel Requirement in Automobile Industry (in Million Tons), 2007-08 to 2011-12
    • Figure 7-4: India - Forecast for Steel Requirement by Type in Automobile Industry (%), 2011-12
    • Figure 7-5: India - Forecast for Passenger Car Insurance Premium (in Million US$), 2008-09 to 2011-12
    • Figure 7-6: India - Forecast for Two Wheeler Finance Market Structure (%), 2009-10
    • Figure 7-7: India - Estimated Power Requirement for Auto Component Industry (in MW), 2007-08 to 2015-16
  • List of Tables:
    • Table 4-1: India - Top OEMs
    • Table 5-1: India - Top 20 Passenger Car Manufacturers (2007-08)
    • Table 5-2: India - Passenger Car Sales by Manufacturer & Model (in Units), 2007-08
    • Table 5-3: India - Passenger Car Export by Manufacturer (in Units), 2007-08
    • Table 5-4: India - Utility Vehicle Manufacturers (in Units), 2007-08
    • Table 5-5: India - Utility Vehicle Sales by Manufacturer (in Units), 2007-08
    • Table 5-6: India - Utility Vehicle Export by Manufacturer (in Units), 2007-08
    • Table 6-1: India - Top Players in Auto Component Industry
    • Table 6-2: India - Top Auto Component Industry Players in North/Central Region
    • Table 6-3: India - Top Auto Component Industry Players in Western Region
    • Table 6-4: India - Top Auto Component Industry Players in Southern Region
    • Table 6-5: India - Top Auto Component Industry Players in Eastern Region
    • Table 6-6: India - Mergers & Acquisitions in Auto Component Industry (2003 to 2006)