Dilip Chenoy

Dilip Chenoy
Director General
Society of Indian Automobile Manufacturers
SIAM
The Automotive Industry in India:
Growth, Development , Challenges
&
Areas for Industry Academia Cooperation
December, 31 2007 IIT Kanpur
International Workshop on
Advances in Combustion Science & Technology
Society of Indian Automobile Manufacturers SIAM
2
Content
About SIAM
Automobile Industry in India
The Auto Component industry in India
The Automotive Mission plan
The Challenge of Innovation & Current Industry Response
Challenges ahead
Snap shot of cooperative activities underway
Areas for cooperation
3
Content
About SIAM
Challenges ahead
4
Society of Indian Automobile Manufacturers
Non-profit organisation representing 39 vehicle & vehicular
engine manufacturers
Advocacy: Industrial & Economic Policy, Technical
roadmaps and Public Policy
Networking Stakeholders National / International
Seminars / Conferences Technical, Trade & Economic,
Road Safety
Statistical services production, sales and exports
Auto Expo
5
SIAM Members
6
Mobility for All
7
Content
About SIAM
Challenges ahead
8
Indian Automobile Manufacturing Hubs
North
East
West
South
N
W E
S
BAJAJ AUTO
BAJAJ TEMPO
MAHINDRA & MAHINDRA
PREMIER
TELCO
HINDUSTAN MOTORS
TELCO
ASHOK LEYLAND
ROYAL ENFIELD
Pre 1970
API
STANDARD MOTORS
YEZDI
( now closed)
9
Automobile Industry Today
Automobile industry turnover in 2006-07 is ~ Rs 143.43
thousand crores (or USD 33.4 billion).
Contribution to Economy 5.5% of GDP.
Domestic sales growing at a CAGR of ~ 14% over last five
years.
Exports growing at a CAGR of ~ 40% over last five years.
10.5 million employment (direct & indirect).
New investments announced around Rs 67 thousand
crores (or 15 billion USD).
10
North
East
West
South
N
W E
S
BAJAJ AUTO
BAJAJ TEMPO
MAHINDRA & MAHINDRA
PREMIER
TATA MOTORS
KINETIC
ATUL AUTO
ASHOK LEYLAND
DAIMLER-CHRYSLER
FIAT
GENERAL MOTORS
PIAGGIO
SKODA AUTO
ELECTROTHERM
MAHINDRA RENAULT
VOLKSWAGON
LML
MAJESTIC AUTO
SCOOTERS INDIA
HERO HONDA
MARUTI
SWARAJ MAZADA
YAMAHA
ASHOK LEYLAND
HONDA M & S
HONDA SIEL
PIAGGIO
ICML
SUZUKI
MAHINDRA & MAHINDRA
BAJAJ AUTO
HERO HONDA
TATA MOTORS
HINDUSTAN MOTORS
TATA MOTORS
ASHOK LEYLAND
HINDUSTAN MOTORS
MAHINDRA & MAHINDRA
ROYAL ENFIELD
FORD
GENERAL MOTORS
HYUNDAI MOTOR
TATRA
TOYOTA
VOLVO
BMW
FORCE MOTORS
EICHER MOTORS
HINDUSTAN MOTORS
KINETIC MOTOR
MAN
Central
Pre 1970 1970-80
1980-90 1990-00 Post 2000
Evolution of Automobile Industry
11
Indian Automobile
Industry
Indian Automobile
Industry
Light Passenger
Vehicles
Light Passenger
Vehicles
Commercial
Vehicles
Commercial
Vehicles
Two Wheelers
Two Wheelers
Engines/
Components
Engines/
Components
Three Wheelers
Three Wheelers
LCVs / M&HCVs/ Buses
LCVs / M&HCVs/ Buses
PCs / MUVs / MPVs
PCs / MUVs / MPVs
Passenger Carriers /
Goods Carriers
Passenger Carriers /
Goods Carriers
Motorcycles/ Scooters/
Mopeds
Motorcycles/ Scooters/
Mopeds
Large Component Manufacturing Industry Large Component Manufacturing Industry
Range of Vehicles Made in India
Range of Vehicles Made in India
12
Automobile Domestic Sales - Growth
0
2000
4000
6000
8000
10000
12000
1
9
9
0
-
9
1
1
9
9
1
-
9
2
1
9
9
2
-
9
3
1
9
9
3
-
9
4
1
9
9
4
-
9
5
1
9
9
5
-
9
6
1
9
9
6
-
9
7
1
9
9
7
-
9
8
1
9
9
8
-
9
9

1
9
9
9
-
0
0

2
0
0
0
-
0
1

2
0
0
1
-
0
2
2
0
0
2
-
0
3
2
0
0
3
-
0
4
2
0
0
4
-
0
5
2
0
0
5
-
0
6
2
0
0
6
-
0
7
Year
i
n

'
0
0
0
CAGR of 14%
over last five years
13
Growth Across Segments
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Passenger Vehicles Two Wheelers Commercial Vehicles Three Wheelers
In Numbers*
*Domestic Sales figures
14
Total Registered Vehicles ~ 91 Mn
Commercial
Vehicles*
14%
Passenger
Vehicles
12%
Two
Wheelers
74%
Source: Govt. of India Statistics of Registered Vehicles & SIAM estimates
As on March 2006
Total Vehicle Parc
* Include tractor, trailer, three wheelers and others
15
Content
About SIAM
Current Status & Key Drivers
Challenges ahead
16
472 ISO 9000
269 TS 16949
135 QS-9000
137 ISO 14001
33 OHSAS 18001
9 Deming Prize winners
4 JIPM Award
1 Japan Quality Medal winner
World-class Auto-Component Industry
No. of companies
Certification
Total ACMA Member
Companies
512
Suppliers Embracing
Modern Shop-Floor Practices
1. 5-S, 7-W
2. Kaizen
3. TQM
4. TPM
5. 6-Sigma
6. Lean Manufacturing
17
Auto Component Production
Auto Component Production
4.5
5.4
6.7
12
8.7
0.0
5.0
10.0
15.0
20.0
25.0
2001 2002 2003 2004 2005
Source : MOHI Automotive Mission Plan (AMP)
(in US $ bln)
20.0
2009
18.7
40
2014
CAGR
2000-2005
20%
POTENTIAL CAGR
2005-2014
17%
40.00
25.0
Production
Turnover
18
Others
7%
Body &
Chassis
12%
Drive
Transmission
& Steering
Parts
19%
Engine Parts
31%
Suspension
& Braking
Parts
12%
Equipments
10%
Electrical
Parts
9%
Comprehensive Production Range
19
America
26%
Europe
36%
Asia
16%
Africa
10%
Others
0.5%
Oceania
1.5%
Middle East
10%
Component Industry
Component Industry
An Attractive OEM/ Tier 1 Supplier
An Attractive OEM/ Tier 1 Supplier
OEM/TIER 1
75%
Aftermarket
25%
COMPOSITION OF EXPORTS -2006
Aftermarket
65% OEM/TIER 1
35%
1990s
2006
20
Components can be segmented based on type of raw Components can be segmented based on type of raw
material and manufacturing/design process material and manufacturing/design process
High labour Skill Evolving
technology
Raw material
intensive (low
skill and
labour)
Type of manufacturing and design process
Aluminium
Steel, cast
iron, rubber
Plastic,
silicon
Raw
material
Skill
intensive
parts
Labour
intensive
parts
Parts for
evolving
technology
aggregates
Steel/cast iron
rubber
intensive parts
Plastic/
silicon
intensive
parts
Source :ACMA Mc Kinsey Study Vision 2015
21
Content
About SIAM
The Challenge of Innovation
Challenges ahead
22
By 2016, India will emerge as the destination of choice in the
world for the design & manufacture of automobiles and
automotive components with output reaching a level of US$ 145
billion accounting for more than 10% of GDP and providing
additional employment to 25 million people by 2016.
Automotive Mission Plan Vision 2016
23
Content
About SIAM
Challenges ahead
24
The Challenge :
Realising Innovation Business + Technology
Innovation Types
2) Operations
Innovation to improve effectiveness and
efficiency of core functional areas
3) Products, Services and Markets
Innovation applied to customer-focused,
go-to-market areas
1) Business and Enterprise Models
Innovation applied to restructure and
extend the enterprise
Source: IBM Business Consulting Services The Global CEO Study 2006
Importance of Integrating Business
and Technology
7%
4%
12%
78%
0%
20%
40%
60%
80%
100%
No
Response
Little to Not
At All
Moderate Great or
Critical
%

o
f

R
e
s
p
o
n
d
e
n
t
s
25
The challenges Industry state
Globalisation
Synchronising Global Operations
Higher velocity of business through Supply chain optimisation
Increasing consolidation across industries driven by
Competitive cost pressures
High growth in emerging economies
Greater Partnerships and Alliances
Greater Product & Service Complexity
Greater Choices with Customers
Faster information dissemination through direct consumer-consumer
interaction (Web-2)
Industry Standards
B2B Collaboration, RFID, Open Standards
26
Plan
Business
Manage
Human
Resources
Manage
Finances
Provide
Support
Services
Formulate and
Communicate
Business
Direction
Plan Human
Resources
Develop
and Track
Financial Plan
Manage Public
Affairs
Market
Vehicles
Develop
Business Plan
Acquire Human
Resources
Appropriate
Funds
Provide Legal
Support
Provide
Pre-Sales
Support
Develop
Employees
Develop and
Manage
Product Cost
Provide
Dealer
Support
Provide
Employee
Services
Manage
Payables &
Receivables
Sell
Vehicles
Foster
Employee/Labour
Relations
Provide
Administrative
Services
Manage
Assets
Support Activities
Develop
Product Price
Provide and
Administer Customer
Service
Maintain
Financial
Accounts
Monitor
Business Plan
Establish
Serviceability
Requirements
Research and
Develop
Technology
Manage Product
Program
Develop Product
Styling
Engineer, Design and
Develop Products
Engineer Process
Develop and Design
Product Paint
Parameters,
Equipment, Facilities
and Environmental
Strategies
Develop and Design
Tools and Related
Equipment
Plan
Manufacturing
Requirements
Plan Direct
Material
Requirements
Ship
Vehicles
Monitor Quality
and
Reliability
Procure Indirect
Material and
Services
Perform
Manufacturing
Operations
Manage
Direct Material
Suppliers
Control
Production
Manage
Inventory
Maintain
Equipment
and Tools
Manage
Transportation
Plan
Manufacturing
Operations
Plan
Shipments
1.0 2.0 3.0
Provide
Technical
Services
Administer
Product
Warranty
Develop
New Business
Manage Business
Process &
Information
4.0
Market and Sell
Parts, Accessories
and Service
Manage
Parts and Accessories
Warehouse
Manage
Material
Engineer
Co-ordinate
External Audit
and Internal
Control
Primary Activities
Manage
Logistics
Manage
Aftersales
10.0
9.0
6.0
Engineer
Product
and
Process
Market
and Sell
5.0
Plan
Business
Manage
Human
Resources
Manage
Finances
Provide
Support
Services
Formulate and
Communicate
Business
Direction
Plan Human
Resources
Develop
and Track
Financial Plan
Manage Public
Affairs
Market
Vehicles
Develop
Business Plan
Acquire Human
Resources
Appropriate
Funds
Provide Legal
Support
Provide
Pre-Sales
Support
Develop
Employees
Develop and
Manage
Product Cost
Provide
Dealer
Support
Provide
Employee
Services
Manage
Payables &
Receivables
Sell
Vehicles
Foster
Employee/Labor
Relations
Provide
Administrative
Services
Manage
Assets
Support Activities
Develop
Product Price
Provide and
Administer Customer
Service
Maintain
Financial
Accounts
Monitor
Business Plan
Establish
Serviceability
Requirements
Research and
Develop
Technology
Manage Product
Program
Develop Product
Styling
Engineer, Design and
Develop Products
Engineer Process
Develop and Design
Product Paint
Parameters,
Equipment, Facilities
and Environmental
Strategies
Develop and Design
Tools and Related
Equipment
Ship
Vehicles
Manage
Transportation
1.0 2.0 3.0
Provide
Technical
Services
Administer
Product
Warranty
Develop
New Business
Manage Business
Process &
Information
4.0
Market and Sell
Parts, Accessories
and Service
Manage
Warehouse
Manage
Material
Engineer
Co-ordinate
External Audit
and Internal
Control
Primary Activities
Manage
Logistics
Manage
Aftersales
10.0
9.0
Manage
Material
7.0
Plan Direct
Material
Requirements
Procure Indirect
Material and
Services
Manage
Direct Material
Suppliers
Manage
Inventory
Plan
Shipments
Manage
Material
7.0
6.0
Engineer
Product
and
Process
Market
and Sell
5.0
Manufacture
Product
8.0
Manufacture
Product
8.0
Integrated Business and Operational
processes are key to a responsive, collaborative enterprise
The challenge Automotive Business Process
27
India
India
The next Big Automotive R&D Base

The next Big Automotive R&D Base
1. Global MNCs Shifting Automotive Design Centers
into India.
2. An Excellent base for Prototyping, Testing,
Validating and
Productionizing of Auto-Components.
3. World renowned IT Skills with excellent
Automotive Domain
Knowledge.
28
Some Design & Research Centers in India
Some Design & Research Centers in India
29
Designing & Manufacturing - World Class
State
State
-
-
of
of
-
-
the
the
-
-
Art Vehicles Developed in India
Art Vehicles Developed in India
Mahindra Scorpio
TVS Scooty
Bajaj Pulsar
Tata Indica
Tata Indigo
Eicher Jumbo
30
Design and Manufacturing : World Class (2)
Design and Manufacturing : World Class (2)
Mahindra Scorpio
Bajaj Pulsar
Rhino
Tata ACE
Small
Car
31
State-of-the-Art Vehicles Developed
in India
Mature Indigenous Product Development Capability
Case: Indica (Economy Passenger Car): Tata Engineering
Design & Development Cost : US $ 140 million
Infrastructure & Production facility : US $ 200 million
Case: Scorpio (Sports Utility Vehicle): Mahindra & Mahindra
Infrastructure & Production facility : US $ 60 million
Case: Jumbo (Heavy Commercial Vehicle): Eicher
32
Content
About SIAM
Challenges ahead
33
Challenges Ahead
Availability
Fuels
Alternate Fuel
Inputs
Buyer Behaviour
Taxes
User Charges
Low cost products
Convenience
Public Transport
Interstate Movement
Regulation Procedures
Driving
Congestion
Discipline
Safety
Infrastructure
Environment
Air Quality
Green House Gas
Noise
Factors of
Production
Land
Capital
Human
34
Safety Regulations
Pre-2000 Period
Indian Standards (IS) since late 1960s.
IS for Automotive Components based on EEC/ ISO/ DIN/
BSAU/ FMVSS
Central Motor Vehicle Rules (CMVR) in force from 1989
Regulations reviewed periodically by a high-power Committee
States also have their State Motor Vehicle Rules
Post-2000
ECE Regulations used as basis for Indian regulations.
Since 2003, increased efforts being made to technically align
with ECE.
Variance from ECE on formatting phraseology and
administration issues.
Alignment of Indian regulations (AIS/ BIS) with ECE being
attempted as per the broad roadmap drafted by SIAM.
35
Applicability
2000 2002 2001 2003 2004 2005 2006 2009 2010
NEW DELHI
OTHER METRO
(Mumbai, Chennai,
Kolkatta)
MAJOR CITIES
(Banaglore,Hyderabad,Pune,
Kanpur,Ahmedabad, Surat and
Agra)
REST OF COUNTRY
04/2000
07/2001
04/2003
EURO II
EURO II
EURO II
EURO II
EURO III
EURO III
EURO III
EURO III
04/2005
04/2005
04/2005
04/2005
EURO IV
EURO IV
EURO IV
Govt. Notification awaited
Fuel Quality = Corresponding Europe Quality
(Except Minor Deviation)
Euro-I
EURO I
EURO I
EURO I
EURO I
Emission Roadmap in Place
36
Portfolio of Alternative Fuels
SIAM
CNG ,LPG
Bio-fuels
Bio- diesel,
Ethanol
Electric/
Hybrid Electric Vehicles
Hydrogen
Alternative
Fuels
37
Technology Evaluation Criteria
SIAM
Drivers
Enablers
Risk
Time Line
Investment
Required
38
Proposed Time Frame
Hydrogen/ Fuel Cell Long term
Bio-diesel, EV, HEV Medium term
Ethanol, CNG, LPG Short term
Technology Time Frame
SIAM
39
Content
About SIAM
Challenges ahead
40
Government Initiatives for R&D
Centres of excellence
Noise, Vibration & Harshness
Auto Components
Engine & Power Train
Materials & Fatigue
Crash & Vehicle dynamics
Core Group on Automotive Research
Setting up of a National Combustion Institute
National Hybrid Programme
Automotive infotronics
National Hydrogen Energy Road Map
Electric Vehicle Programme
TIFAC & DST Programmes
Ministry of New & Renewable Energy
41
Some Collaborative Programmes
Core Group on Automotive Research
Engine Management System
Telematics Project
Hydro forming & Tailor Welded blanks
National Hydrogen Energy Board
Use of Hydrogen CNG Blends
Other Projects
100% Hydrogen Engine
Fuel Cells
Bio Diesel up to 100%
42
Content
About SIAM
Current Status & Key Drivers
Challenges ahead
43
Manufacturing & Technology
Competitiveness
Development of appropriate technology to meet more stringent
regulations & to develop relevant machine tools and equipment
Development & Acquisition of appropriate technology for alternative
fuels and hybrid engines, use of advanced materials, design
and styling
Collaboration of Indian Industry with research institutions
Creation of centers for automotive manufacturing excellence in
four IITs
Improvement in capabilities of component manufacturers through
supplier technical assistance programs and the like
Improvement in manufacturing processes and
Improvement in manufacturing processes and
quality of the vehicles and components
quality of the vehicles and components
44
R & D and Creation of IPR
Encourage Industry academic collaboration
Modernisation and utilisation of facilities in
educational institutions
Promote manufacture of Hybrid/ fuel efficient /
alternate energy vehicles: Hydrogen/ Bio Diesel/
Synthetic Fuels/ Control Electronics
Specific incentives for R & D
Industry to work with other stakeholders
Industry to work with other stakeholders
45
Environmental & Safety
Performance
Bridging the gap through technical collaborations
Bridging the gap through technical collaborations
In depth analysis including source apportionment studies
Techno economic feasibility study for joining WP 29 1958
agreement
In-use vehicle emission management policy
Setting up of National Road Safety Board
Encourage setting up of Driving schools
46
Human Resource Development
Training in manufacturing management
Electronics, megatronics and software
capabilities for automotive engineers in IITs
Development of ITIs and ATIs
Creation of new Automotive Training Institute
Training and Education programmes through linkages with
Vocational colleges, ITIs and ATIs and other institutes.
Flexibility to R&D personnel employed by National
Labs, Universities and the like to work in industry for
a period of 3-4 years on deputation/sabbatical
47
Demand Creation
Fiscal incentives for innovative low cost
products that are aimed at consumers at the
bottom of the pyramid
e.g. cost effective small goods carrier, low cost rural
vehicle, small safe car, low cost motorcycle
Fiscal and promotional incentives for small cars,
MUVs, tractors, two wheelers and components
Making India automotive manufacturing hub
Making India automotive manufacturing hub
Thank you!
Society of I ndian Automobile Manufacturers
Core 4B, 5th Floor
India Habitat Centre
Lodi Road, New Delhi
Phone: +91 11 2464 7810 - 12
Fax: +91 11 2464 8222
E-mail: dchenoy@siam.in
Website: www.siam.in
SI AM

Dilip Chenoy

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Dilip Chenoy

Uploaded by

Copyright:

Available Formats

Dilip Chenoy

The next Big Automotive R&D Base

You might also like