India's Automotive Sector - Where is it going?

India is trying to achieve a good position in Automobile sector. India is one of World’s largest auto industry with annual production of 25.31 million vehicles in FY17, significantly above US (17.5 million) and EU(12.6 million). In FY17, this sector directly contributes $97 billion to Indian economy ($58 billion to automotive sector and $39 billion to Automotive component sector). Total turnover of Indian automobile sector industry grew 3.6 times from $34 billion(2006) to $122 billion (2016) in just 10 years. In FY19, India is World’s 4th largest passenger vehicle maker with 4.06 million units assembled. It contributed 49% of manuacturing GDP, 7% of total GDP and employs 37 million people directly and indirectly. Among the sold vehicles in India the top 5 are Maruti Suzuki (50.6%), Hyundai (17.4%), Mahindra (7.5%), Tata Motors (5.21%) and Honda (4.6%). India is World's largest 2 wheeler market. Indian motorbike OEMs such as Hero Motocorp (35.9%), TVS (14.8%), Bajaj (12%) and Royal Enfield (3.8%) accounted 67% of market share in FY19, 26.1% accounted by Honda. In 2000-2020, Indian 2-wheeler OEMs filed 1643 patent applications and 478 were granted. TVS filed with 1334 applications and 425 were granted. Among bikes sold Hero Motocorp leads sub 125cc segment with 65% of share. India is also largest manufacturers of Tractors with 0.9 million units sold in FY19 (approx. 1/3rd of Global). In FY20, India exported 677 thousand passenger vehicles, 61 thousand commercial vehicles, 502 thousand units of 3-wheelers and 3.52 million units of 2-wheelers (total 4.76 million units). More than 17 million motorbikes and scooters sold in India in FY20. In FY19, the motorcycle exported by India is worth $2 billion (6.8% of global). The total turnover of automotive component industry in India is $51 billion in FY20. In 2018, India exported motorcycle worth $504.70 million in Latin America. Colombia holds 35% worth $198.4 million. In June 2020, Royal Enfield Interceptor 650 became UK’s highest selling motorbike. Bajaj motors has 48% share in Europe’s motorcycle market leader KTM. TVS acquired Britain’s Norton motorcycles in April 2020. In 2004, Tata motors acquired South Korea’s Daewoo commercial vehicle. In 2008, they acquired Britain’s iconic Jaguar LandRover from Ford for $2.3 billion. In 2015, Mahindra acquired Pininfarina’s 77% stake at ₹1240 crore. They later launched Pininfarina Battista Hyper EV. Ashok Leyland, headquartered in Chennai, is the second-largest manufacturer of commercial vehicles in India, the third-largest manufacturer of buses in the world. India is also home to 5 out of World’s top 30 tyre makers such as Apollo(#14), MRF(#15), JK(#23), CEAT(#27) and BKT(#30). In FY18, Indian tyre market is ₹59500crore or approx. 8.6 billion USD.

Indian Automotive industry invested ₹40 thousand crore for BS-6 compliance as stated by Automotive Component Manufacturers Association of India (ACMA). 40-50% of that investment goes to automotive component. India's export in Auto component witnessed a CAGR of 10.9% from USD 10.3 billion in FY14 to USD 15.6 billion in FY19.

India sold approx 24 thousand Electric 2-wheelers in FY20. Big names in this sector are Okinawa (HQ: Gurgaon), Hero Electric, Ather Energy (HQ: Bengaluru), Ampere and Revolt.

India's automobile manufacturing share was 0.14% of global share in 1950, that rose to 1.37% in 2000 and grew further to 5.41% in 2018. India's auto manufacturing grew 6.5 times in past 18 years. World auto manufacturing grew 3.25 times where as Indian manufacturing grew 67.66 times in past 50 years.



Comments

Post a Comment

Popular posts from this blog

Asian Dream - China, Japan and India

Image
Many experts, politicians, scholars believe 21st century is going to be “Asian Century”. To make this a reality 3 countries should come and work together – Soaring Dragon, Rising Elephant and Assertive Godzilla i.e. China, India and Japan. Below are the reasons I would like to mention – 1. Nominal GDP wise top 3 Asian countries are China, Japan and India. In terms of PPP, the order is China, India and Japan. For a rising Asia, these 3 countries should join hands. 2. In terms of Forex Reserve, the Top 3 Asian economies are China (>$3 Trillion), Japan (> $1 Trillion) and India (> $500 Billion). Surprisingly these 3 nations are also top 5 in the World. 3. China, Japan and India also has 6 (JPX, SSE, SEHK, SZSE, BSE, NSE) out of World’s Top 12 biggest Stock exchanges in terms of Market capitalization. Imagine the enormous potential if we create something like Euronext in Asia. 4. China, Japan, South Korea, India and Taiwan are always featured in top 10 nation Fortune Global 2000 c
Read more

India's Supercomputer Journey

Image
 India's Supercomputer journey is no less than an astounding achievement. In 1987, USA declined when India asked to purchase Supercomputers, developed by CRAY thinking India may develop nuclear weapon from it. The CRAY supercomputer, designated No. 1205 by Cray, was built for the Indian Institute of Science in Bangalore but it was never delivered. At a conference at CSIR (Council of Scientific and Industrial Research), in 1987, Rajiv Gandhi was discussing this problem with many renowned Indian scientists. They expressed their discontent on the PM asking other countries to setup India’s supercomputer. DoE established the Centre for Development of Advanced Computing (C-DAC) with initial investment of Rs 300 million produced PARAM 8000 supercomputer in 1991. Dr. Vijay P. Bhatkar is known as Father of PARAM Series Supercomputer. Indian scientists developed their supercomputer by linking together as many as 256 small, readily available computers in a technique known as massive parallel
Read more

India's preparation for upcoming Tokyo Olympics

Image
 As we are going towards Tokyo Olympic next year, let's see how we performed in Asian and World Championships in 2019. Archery Asian (Bangkok, Thailand) 1 Gold, 2 Silver, 4 Bronze World ('s-Hertogenbosch, Netherlands) 0 Gold, 1 Silver, 2 Bronze Athletics Asian (Doha, Qatar) 3 Gold, 7 Silver, 7 Bronze World (Doha, Qatar) 0 Gold, 0 Silver, 0 Bronze (Created 3 new National Records) Badminton Asian (Wuhan, China) 0 Gold, 0 Silver, 0 Bronze World (Basel, Switzerland) 1 Gold, 0 Silver, 1 Bronze Boxing Asian (Bangkok, Thailand) 2 Gold, 4 Silver, 7 Bronze World (Men : Yekaterinburg, Women : Ulan-Ude, Russia) 0 Gold, 2 Silver, 4 Bronze Cycling   (As this is new sport, considering Junior Asian and World Championship performance of Track Cycling. There are also BMX, Mountain and Road Cycling) Asian (Jakarta, Indonesia) 4 Gold, 4 Silver, 2 Bronze World (Frankfurt, Germany) 1 Gold, 1 Silver, 1 Bronze Fencing Asian (Chiba, Japan) 0 Gold, 0 Silver, 0 Bronze
Read more