4 Dilip Chenoy

“50by50”
25th November 2009

New Delhi
The Automobile Industry in India –

Challenges Ahead
Dilip Chenoy
Director General, SIAM
SIAM
Society of Indian Automobile Manufacturers
SIAM
 Apex national industry body representing all major vehicle

manufacturers in India
 Currently has 44 members
 Provides a window to the automobile industry in India
 Close working with stakeholders in the formulation of the
policies, regulations and standards related to automobiles
 Link between the industry and other bodies including the
government
 Interacts with various international bodies
 OICA, IMMA, UN, APEC AD and counterpart associations
like SMMT, VDA, JAMA, TAIA, AFM, ANFIA, ACEA, etc.
SIAM 2
SIAM Mission – Growth with Responsibility
To become a growth engine of the Indian

economy by propelling the Indian Auto industry
to a global $145 bn industry by 2016 whilst
promoting sustainability by addressing the
multiple challenges arising out of emissions,
climate change, energy security and safety.
SIAM 3
SIAM Focus
 Improve competitiveness of Indian

Automotive Industry
 Promote development of a sustainable
mobility eco-system
 Achievement of leadership in innovative
technologies
SIAM 4
SIAM Members
SIAM 5
Presentation Outline
 Introduction to SIAM
 Automobile Industry in India
 Growth Trajectory
 Recent Trends
 Current park
 Automobile industry Growth trends

 Energy Security & Fuel Economy
SIAM 6
Indian Auto Industry
 Estimated industry turnover 2008-09: € 36 bn

 Vehicles € 28 bn, rest components and after market
 Accounts for about 22% of manufacturing GDP
 One of the highest contributors to State and Central

Government finances
 Investments till FY06 : € 8.2 bn
 Investments announced : € 11 bn (FY 07-12)
 Employment: 600,000 direct + 12.5 mn indirect
 Presence of strong local OEMs
 Building brand India
 Highly competitive: Presence of most global MNCs and also

establishing engineering and sourcing centres
SIAM 7
Indian Auto Industry to Double its
Contribution to GDP by 2016
€115 bn
by
2016
Vision 2016
“By 2016, India will emerge as the destination of choice in Asia for the
design & manufacture of automobiles and automotive components.
€27 bn
The output of the India’s automotive sector will be € 115 billion by
In 2016, contributing to 10% of India’s Gross Domestic Product and
2006 providing employment to 25 million persons additionally.”
SIAM 8
Society of Indian Automobile Manufacturers Source : SIAM & AMP 2006-16
Production of Various Types of Vehicles
Passenger Commercial
Vehicles Vehicles
16% 4%
Three Wheelers
4%
Two Wheelers
76%
Data for 2008-09

Source: SIAM
SIAM 9
Vehicle Parc
Passenger Commercial
As on March 2009
Vehicles Vehicles*
13% 13%
Two
Wheelers
74%
Total Registered Vehicles ~ 119 Mn

Source: Govt. of India Statistics of Registered Vehicles & SIAM estimates
* Include tractor, trailer, three wheelers and others
SIAM 10
Top 12 Car Sales Destinations
Country Sales in 2007 (in mn)
USA 7.6
China 4.7
Japan 4.4
Germany 3.1
UK 2.4
France 2.1
Russia 2.0
Brazil 1.9
Spain 1.6
India 1.2
Source: WARDs
South Korea 0.7
SIAM 11
 Recent Trends
 Current park

SIAM 12
Historical Production Trends of Cars
Cars
1800
Units in Thousands
1600
1400
1200
1000
800
600 Production of cars
400
200
0
1960 1968 1976 1984 1992 2000 2008
Year
20
16.28 15.47
15
% Growth 11.59
8.73 9.22
10
CAGR
5
CAGR -2.05
0
1960-1968 1968-1976 1976-1984 1984-1992 1992-2000 2000-2008
-5
Year
SIAM 13
Production Trends of Small & Other Cars
Small Cars Other Cars
1,400,000
Units in Thousands
1,200,000
1,000,000
800,000
600,000 Trends of Small Cars & Others Cars
400,000
200,000
0
2002 2003 2004 2005 2006 2007 2008
Year
Small Cars Other Cars
60
50
% Growth
40 % Growth
30
CAGR 20
10
0
2003 2004 2005 2006 2007 2008
Year
SIAM 14
Projections
2010 2015
Light Vehicles Production Forecast
PwC 3.0 – 3.1 4.5 – 4.6
Light Vehicles Sales Forecast
CSM Forecast 2.1 – 2.2 3.2 – 3.4
SIAM 15
 Recent Trends
 Current park

SIAM 16
Fuel Price / Capita Income
Average Ratio – 0.3 times
 In India Fuel price as a Pocket Pinching factor is highest.

 Hence , it is already a strong competitive development parameter SOURCE : Fuel Price - Internal SIAM Data
Per capita Income - World Bank Data for the Year 2005
SIAM 17
Society of Indian Automobile Manufacturers 17
Proposed Time Frame for Alternative Fuel
Strategy
Time Frame Alt Fuel Tech
Short term Ethanol, CNG, LPG
Medium term Bio-Diesel, Hybrid, Electric
Long term Hydrogen ICE / Fuel Cell
SIAM 18
SIAM Fuel Economy Labeling Programme
 SIAM announced Voluntary

Labeling program at SIAM
Annual Convention on 4th
Sep’08 and implemented from
1st Jan’09 ~ 31st Mar’09 at
Point of Sale
 Applicable for 4W of M1
category & 2W.
 Visit www.siam.in for FE data
of 180+ India vehicle models
from 16 companies
 Industry also working
proactively with Government
for developing FE regulations
for vehicles in India
SIAM 19
SIAM 20
Possible Approach & Technology
Challenges
 Potential of Diesel Technology to be
harnessed
 Development & Collaboration for expediting
Hybrid Technology
 Widespread use of Electric Vehicles
 Hydrogen Economy in future
 Modal Shift
SIAM 21
Need for Comprehensive Efforts
Plan to Achieve Targets in the Fuel efficiency
Transport Department of automobiles
Fuel efficient
improvement
X tons
X+Y+Z Clean energy vehicle

tons
Y tons
Traffic
measures
Z
Traffic flow Eco - Drive
tons improvement
Target value or others
 Other factors
 Safety Regulations
 Roads & Traffic Conditions
 Inspection & Maintenance programme
 Future Emission Standards
Year 2020
SIAM 22
Integrated Approach
“Contributions from all Stakeholders”
Automotive Industry Fuel Industry

Improve Fuel Efficiency Environmentally
Reduce Emissions friendly fuels
Alternative drive systems
Customer Regulators
Fuel-saving Relevant framework
ways of driving Appropriate infrastructure
SIAM 23
For further details please write to
dchenoy@siam.in
SIAM

4 Dilip Chenoy

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“50by50”

25th November 2009

The Automobile Industry in India –

 Apex national industry body representing all major vehicle

To become a growth engine of the Indian

 Improve competitiveness of Indian

 Automobile industry Growth trends

 Estimated industry turnover 2008-09: € 36 bn

 Accounts for about 22% of manufacturing GDP

 One of the highest contributors to State and Central

 Highly competitive: Presence of most global MNCs and also

Data for 2008-09

Total Registered Vehicles ~ 119 Mn

 Automobile industry Growth trends

 Automobile industry Growth trends

Average Ratio – 0.3 times

 In India Fuel price as a Pocket Pinching factor is highest.

Time Frame Alt Fuel Tech

Short term Ethanol, CNG, LPG

Medium term Bio-Diesel, Hybrid, Electric

Long term Hydrogen ICE / Fuel Cell

 SIAM announced Voluntary

X+Y+Z Clean energy vehicle

Automotive Industry Fuel Industry

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