December 2007 Newsletter
December 2007 Newsletter
December 2007 Newsletter
Making Market
Intelligent
Disclaimer: This manual is for internal purpose of Minda Group only and circulation externally without the prior permission of the publishers is
strictly prohibited
Contents
Plans for Future
• 4-Wheeler PV 1
• Two-Wheelers 9
• CV, Tractors & 3Wheelers 13
• Construction Equipment 17
Vehicles
Tier I Manufacturer 20
Minda JV Partners 25
Market Watch
• Production, Sales, Exports
November 2007 29
• Growth Potential of Indian
Auto Component Industry 33
PLANS FOR FUTURE
4-WHEELER PASSENGER VEHICLES:
1
MARUTI SUZUKI
Honour for Jagdish Khattar
The London Metropolitan University, UK, has conferred Doctor of
Business Administration (Honorary) on Mr Jagdish Khattar, Maruti Suzuki
India Managing Director, at the university convocation, in London.
According to a communication from the university, the degree is to
“recognise Mr Khattar’s contribution to the Indian automobile industry and
his popularity as a visionary leader of a successful organisation.”
2
developing research-related capabilities and is aimed at enabling the company to start designing
cars in India by 2010.
3
Tata Small Car Set to Offer 25 Kmpl Mileage
Ratan Tata and the Tata group have for months zealously kept a tight lid on the details of the Rs
1-lakh car that is slated to roll out of Tata Motors Singur factory in June 2008. Its an eco-car with
a 25 km-per-litre mileage on petrol, meets
every international standard and specification,
including Euro-4 norms. Acceleration wise, its
the same as a Maruti 800. In a bid to reduce
weight of the car, Tata Motors engineers have
used more plastics. The car does not use too
many bolts which also helps in reducing
weight. Instead, its all a new kind of welding a
new technology altogether. About the general
scepticism that the car would initially be priced
at Rs 1 lakh which could later be raised. It
does not look like the Indica and they have
styled it differently, it has a sloping front. It can
bring a transformation in low-cost transportation around the world. Tata Motors will conduct the
first test run of its ambitious small car in April 2008 before the scheduled roll out during the
middle of next year.
VOLVO, FORD
Ford to Make India Engine Hub, Fine-Tuning Chennai Project
The new facility will make 300,000 petrol and diesel engines for supply to Europe and the Asia-
Pacific region. Ford Motor Co. is betting big on its Indian operations and plans to make it a major
hub for supplying petrol and diesel engines to its operations in the entire Asia-Pacific region, as
well as markets in Europe. Ford India Pvt. Ltd, has commenced work on a new engine-making
facility in India, which will make 300,000 petrol and diesel engines. While the company has been
maintaining that it is still evaluating the feasibility of making a diesel engine plant in India, the
Ford work has indeed begun on the project and that it will come up at its existing facilities in
Chennai. Work has already started on localization of components for the engines.
HYUNDAI MOTOR
Hyundai to Roll out New Santa Fe New Model
Hyundai Motor India Limited (HMIL), is planning to roll out a
new model of 'Santa Fe'. Santa Fe is an SUV totally
imported from South Korea. The company's Getz Prime
(diesel) and i10 rolled out recently has been appreciated by
our customers in the country. The HMIL is marketing 22
variants of passenger cars in six segments and the Santro in
the small car segment has recorded highest sales in the
country.
DaimlerChrysler
Daimler's 60% Stake in Bus & Truck JV with Hero
German auto maker Daimler Trucks has zeroed in on the Munjals of Hero Honda for a joint
venture to make commercial vehicles in India. Daimler will hold 60% stake in its commercial
vehicle joint venture in India with the Hero group holding the remaining 40%. The total
investment in the project will be around Rs 3,500 crore, although the final numbers are still being
worked out. Daimlers move has been widely anticipated as it has already expressed its intention
to move beyond luxury cars in India. Daimler will bring its expertise in manufacturing and its
huge technological assets to the joint venture. Hero, on the other hand, will bring in knowledge
of the local market and marketing and distribution muscle.
6
TOYOTA
Now, Corolla & Innova to Fire on CNG Too
Toyota Kirloskar Motor has decided to join the low-cost compressed natural gas (CNG) fuel
bandwagon. It will launch CNG fuel variants of its premium sedan Corolla and multi-utility vehicle
Innova. The Corolla and Innova will be the first ever CNG fuel based offering by the Japanese
major in the world. The
company is currently testing
various types of CNG kits on
these models at its Bangalore
based facility. The new kits for
CNG are being supplied by
Minda Auto Gas.
BMW
BMW to Augment Global Sourcing Share from India
Luxury carmaker BMW, which recently set up the International Purchasing Office in the country,
is exploring sourcing of global requirements from India. Mr Peter Kronschnabl, President, BMW
India, said the purchasing office would focus on the development of exports from India to the
BMW Group International Production Network and thus increase the sourcing share from India in
the coming years. He said the activities include identification and assessment of potential
suppliers and exploring procurement of production material (components), as well as IT and
engineering services. He, however, noted that it was still in the initial stages and no contract has
been signed as yet. Purchasing offices have been set up in Japan, Singapore, China and
Gurgaon in India for the sourcing of components.
DAEWOO
Daewoo Plant to Make Cars on Contract
The former Daewoo facility at Surajpur in Noida will become the first automobile plant in the
country to manufacture cars for third parties. The Daewoo plant new owners — Mr Ajay Singh,
Mr Ashish Deora and Mr B.V.R. Subbu — have already started negotiations with German and
US car makers. They are in talks with German and US firms who do not have a base in India but
plan to take advantage of lower costs to produce locally for the Indian market.
VOLKSWAGEN
Volkswagen Small-Car Plan Hobbles
Volkswagen (VW) is doing a rethink on its small car plan for India. The company is taking a
careful look at the project, mainly because of a feasibility study holding out little promise on the
cost front. Frequent changes at the top management level are also believed to be an impeding
factor.
8
TWO WHEELERS
BAJAJ
Bajaj Auto Hikes KTM Stake, Rajiv to Join Board
Bajaj Auto has increased its stake in KTM Power Sports from 14.5 to 18.8%. The company plans
to finally hold 25% in KTM, which is Europe’s second largest sport motorcycle maker. Bajaj Auto
MD Rajiv Bajaj has been inducted to the board. Bajaj would up its stake to 25% in KTM when
the deal was announced. Bajaj picked up the 14.5% stake in the KTM from the open market for
around Rs 300-350 crore as part of a “wide-ranging co-operation” arrangement. Bajaj Auto
picked up the stake through its 100% Dutch subsidiary.
HERO HONDA
Hero Honda Drives Into Used-Bike Market
Hero Honda, the largest two-wheeler manufacturer in the world, has forayed into the used two-
wheeler trading business under the ‘Hero Honda SURE!’ brand. Taking a cue from the
passenger car market leader, Maruti Suzuki India (MSI), which spearheaded the used-vehicle
9
business through Maruti True Value, Hero Honda has started SURE! at its 40 dealerships across
India on a pilot basis. Maruti has sold around 90,000 cars through True Value, which was 16% of
its total sales last year. As part of its strategy to remain India’s top two wheeler company, it has
introduced a 110-check point quality parameter to assess the condition of used two-wheelers to
develop SURE! as a reliable place to buy, sell and exchange pre-owned two-wheelers in India.
Hero Honda engineers re-condition these used vehicles with genuine spare parts and the
company also offers warranty on different vehicles and free service benefits. Convenient and
easy finance options for both new and used two wheelers are also available at its different
dealerships.
HERO MOTORS
Hero Motors Forms Jt Venture with Kiriu Corp of Japan
Hero Motors Ltd, part of the Hero Group, entered into a joint venture with Kiriu Corporation,
Japan. The joint venture company, Munjal Kiriu Industries Pvt Ltd (MKIPL), would manufacture
brake discs, drums and knuckles for automotive original equipment manufacturers at Manesar,
Haryana. At an overall investment of Rs 240 crore, the plant would have a capacity to produce
35,000 tonnes of machined castings for the domestic as well as overseas manufacturers. “This
alliance is a strategic move to focus on high technology, quality and high precision automotive
manufacturing,” said Mr Pankaj Munjal, Managing Director, Hero Motors.
10
KINETIC
Kinetic Sym Flyte Launched
Targeting women, India's pioneering scooter manufacturer
Kinetic Motor in collaboration with Taiwan's $1.1 bn
automotive giant SYM launched the scooter 'Flyte'. Kinetic
Motor Company said the 125cc Kinetic SYM Flyte is based on
the SYM X'Pro, SYM's "current bestseller" across 62 countries.
Flyte is a superior gearless scooter in terms of design and
styling, engine and technology, ride quality and international
level of quality. It is available in five colours and offers a three-
year warranty. Over 20 percent of Flyte's components were
being imported from Taiwan. 'It is a great feeling to present the
Flyte to youngsters who are looking for a set of wheels as cool
as themselves. Buyers are intelligent and appreciate
convenience and high quality in their scooters.
TVS
TVS Motor launches Flame
Signalling its keenness to secure its presence in the dominant executive segment of the
motorcycle market, TVS Motor Company, launched its 125cc ‘Flame’. The launch comes even
as the company is engaged in a legal battle on the technology usage in the bike with Bajaj Auto.
Executive segment forms over 50 per cent of the Indian motorcycle market. After the launch of
Victor in the wake its disengagement with Suzuki of Japan, TVS Motor had not seen any
significant new product roll-outs in this category. With Victor sort of fading out, TVS Motor is now
filling its absence in this segment with the launch of Flame. Flame is priced at Rs. 45,000 ex-
showroom Chennai and comes with disc brakes as an option. Addressing a press conference,
Venu Srinivasan, Chairman and Managing Director, TVS Motor, said, “This is the highest
technology product in the country. A three-valve bike has been
rolled out earlier, but this is the first time that a mass market
roll-out is happening.” According to the Indian Driving Cycle
(IDC), the bike could deliver a mileage of 82 km a litre. “No
vehicle (in this segment) anywhere nears this on mileage,” Mr.
Srinivasan said. TVS Motor had set a sales target of 20,000
Flame vehicles a month once the bike was launched across
the country by January. Flame, along with a new Star Sport
(an entry-level mass market bike), expected to hit the roads in
January, would stem the sagging sales of the company. Once
these two bikes were launched across the nation, TVS Motor
would be hoping to hawk 75,000 bikes a month.
11
In a First, TVS Fits ABS in 2-Wheelers
The Chennai-based TVS Motors is all set to become the first global company to launch anti-lock
brake system (ABS) on its two wheelers. ABS, often referred as a ‘sure braking system’ for
automobiles, is a high-tech feature and is currently available in all premium four wheelers and
commercial vehicles across the globe. Banking on the rich rewards from this ‘in-demand’ safety
feature, TVS is currently testing the indigenously developed ABS technology on its bikes and
scooters to reduce multiple vehicle and the run-
of-road crashes. TVS Motors confirmed that the
technology in the final stages of development
and is undergoing testing at its Hosur facility.
ABS is part of the 30 different technologies that
they are developing for two -wheeler range. The
ABS will help in avoiding skidding of two-
wheelers and allow sure stopping on wet and
slippery roads and help in reducing fatalities on
two wheelers.
YAMAHA
Yamaha Launches 2 high-end Models
Company rebuilding the Yamaha brand in India. Aimed at re-inventing and repositioning its
brand in the market, Yamaha Motor India has introduced two high-end models targeting biking
enthusiasts. The company hopes to ride on the aspirational values of new age consumers,
besides raising its market share from a mere three per cent to 10 per cent by 2010 with the new
launches. “The DNA of Yamaha is changing in India and we will move over to a retail identity by
riding on the aspirational values of the new age consumer,” Mr P. Sam, Head of marketing and
sales at Yamaha Motor India, told.
12
COMMERCIAL VEHICLE, TRACTORS & 3 WHEELER
ASHOK LEYLAND
Leyland to Focus on Luxury
Ashok Leyland is pitching for an aggressive drive through the bus segment as work on newer
projects for the segment picks up pace at the company’s research center. The company is
presently working on various projects, which include buses suited for inter-city and inter-state
transport systems. The range includes buses, which have low floors and ideally suited for
transport within city limits and also the ultra luxurious high-end buses favourable for long haul
trips. The company is working with its manufacturing and technical design teams on various
projects at its Chennai center. The vehicle will be available in both rear and front engine formats.
FORCE MOTORS
Force Motors Launches Two Models in AP
Force Motors has announced the launch of two new models of commercial vehicles – Traveller
New Facia and Traveller Strong in Andhra Pradesh. Announcing the launch, Mr Ravinder Singh,
President of Force Motors (formerly, Bajaj Tempo) said
they expect to boost the commercial vehicles market in
the State. The company has appointed Anshu Force as
its dealer. Mr Singh inaugurated the Anshu Force
showroom also. Force company plans to expand its
market share and this partnership is a step in that
direction. The Force range of products includes Traveller,
Toofan and M4.
13
ASIA MOTORS
Asia Motor to Launch Buses with Chinese Partnership
Truck maker Asia Motor Works (AMW) is all set to launch buses in association with
a Chinese manufacturer and light motor vehicles from its own stable next month. AMW might
enter into a venture with a Chinese manufacturer to source key parts for launching buses in the
country while LCVs will be made at its plant in Bhuj in Gujarat. According to industry estimates,
the total size for such a project is between $350 million and $400 million.
SONALIKA
HYUNDAI
Hyundai to enter commercial vehicle space within a year
Hyundai Motor Co plans to launch commercial vehicles in the country within a year and it is in
the process of roping in a local partner. They are looking for a joint venture with a local partner.
The company has shortlisted two firms and are close to selecting one. The Korean auto
manufacturer plans to launch mid-size buses in the 25-seater category and large buses first.
Hyundai Motors India Ltd said the company plans to sell 5.3 lakh cars by end of 2008. Last year,
the company sold 3.27 lakh units. Besides, the company unveiled LPG variant of its largest
selling brand Santro which would hit the market by the end of September.
TATA MOTORS
Tata Motors introduces new range of Comm. Vehicles
The new M&HCV range includes multi-axle trucks, heavy-duty trucks, tractor- trailers and tippers
and fully-built solutions like tip-trailers, load bodies, etc. These vehicles will cater to sectors like
14
mining, construction, road works, logistics, petrochemicals, agricultural products and many
more. Tata Motors unveiled its new and exciting range of Medium and Heavy
Commercial vehicles in Pune. Tata Motors will be redefining motoring solutions in the country
with its all-new range in Medium and Heavy Commercial Vehicles. The Medium and Heavy
Commercial Vehicles range includes: The Tata LPS 4930 Novus - 6x4 BSII Tractor is a 49 ton
6X4 Novus tractor. The Tata LPS 4923 TC 6x4 BS II Tractor is a 49ton GCW Tractor-Trailer.
The Tata LPT 3118 TC 8x2 BS II Truck is India’s first 8 X 2 Multi Axle truck with ‘Lift Axle’. The
Tata LPT 2516 Super Turbo Multi Axle Truck provides the best fuel efficiency in its class coupled
with superior power pick-up and speed. The Tata LPK 2518 TC 6x4 BS II Tipper has high power
and torque with a higher gradeability of 24%. The Tata LPK 1618 BS II Tipper is India’s first 4 X
2 front end tipper with 176HP Cummins engine, which delivers a maximum power of 176.9HP @
2500 rpm and a high torque of 650 Nm @1500 rpm.
16
CONSTRUCTION EQUIPMENT VEHICLES
17
Escorts Construction Equipment Ltd
ECEL Launches TRX Series of Pick-n-Carry Cranes in the 23T, 17T and 16T Category. ECEL, a
subsidiary of Escorts Limited and a leader in the Indian Construction and Material handling
Equipment Industry, launched TRX Series of Pick-n-Carry Cranes in the 23T (TRX 2319), 17T
(TRX 1713) and 16T (TRX 1614) category. ECEL has been a pioneer in Pick-n-Carry Cranes
and it has always come out with new products and innovations in line with the customer needs.
TRX series cranes have been designed while keeping in mind the requirement of handling
heavier loads to higher heights due to scaling-up of construction and infrastructure projects and
to meet the global operational and safety standards. In another development, a partnership with
Alpha Services, leading manufacturers and pioneers of Mobile Tower Cranes in India, ECEL will
exclusively be marketing its range of mobile tower cranes. They are self-erecting and self-folding
through a cable remote and are available in tow able/Self propelled versions.
AEM
The Association of Equipment Manufacturers (AEM) has joined its association counterparts in
Europe, Japan, China and Korea in a formal partnership to advance the construction equipment
industry worldwide. The five associations in the new International Associations Committee (IAC)
have signed a letter agreeing to general terms of cooperation. They are already holding regular
meetings to provide guidance and direction from the executive level on issues including
emerging markets, global statistics, exhibitions and intellectual property rights. All companies
and countries will benefit by the IAC focus on an open and cordial exchange of ideas, exploring
opportunities of mutual interest,” stated AEM President Dennis Slater. In addition to AEM, the
associations in the IAC are the China Construction Manufacturers Association (CCMA), the
Committee for European Construction Equipment, (CECE), the Japan Construction Equipment
Manufacturers Association (CEMA) and the Korea Construction Equipment Manufacturers
Association (KOCEMA).
MANITOWOC
Manitowoc’s crane division has broken ground on a new 50,000-square-foot addition and
expansion project at its crawler crane assembly facility in Manitowoc, WI. The addition is part of
a $25 million renovation and modernization investment that the company is making in its
Wisconsin-based manufacturing facilities. Manitowoc previously announced plans to expand its
Port Washington, Wisconsin fabrication facility in late August.
18
Thomas Equipment
Thomas Equipment Inc. announced its Thomas Model 250 Series Skid Steer top-of-line loader is
available for 2008 and offers outstanding performance and dependability equal to the challenges
of rugged construction and work sites where power, speed and reliability are vital. The company
added that the Thomas 250 combines strength and agility for tough jobs ranging from loading
and digging to drilling and lifting when big muscle is a must to get tough job done. Petter Etholm,
President and Chief Executive Officer, said, “The Thomas 250 is the power hitter in the Thomas
Equipment loader line-up. The tough Thomas 250 Skid Steer Loader has dependable power to
perform under demanding worksite conditions and combines speed and reliability with full range
cab comfort and visibility to make the 250 an indispensable workhorse at any efficient
construction site. The Thomas 250 sports an 87.5 horsepower Kubota turbo-charged diesel
engine offering tremendous power and high bucket lift capacity of 2,500 pounds, the Thomas
250 moves at a consistent 7.5 mph pace on worksites where time is money and safety and
performance are paramount.
19
NEW DEVELOPMENTS IN AUTO COMPONENT SECTOR
20
Tudor India Plans Rs 35-cr Capacity Expansion
Tudor India Ltd (TIL), makers of the Prestolite brand of lead-acid batteries for both automotive
and inverter applications, announced plans to invest Rs 35 crore for capacity expansion at its
transportation manufacturing facility in Gandhinagar, Gujarat. The company is investing in
equipment upgrades, line expansions, infrastructure and utilities to increase operational capacity
from six lakh batteries to ten lakh per year.
Ricardo-Delta Electronics
Global automotive technology provider Ricardo and leading international electronics company
Delta Electronics, Inc. have announced a joint-development alliance which aims to challenge the
current paradigm of automotive electronics supply. The innovative business model of the joint-
development alliance will mark a new generation of Tier 1 suppliers. The alliance will enable
22
automakers to access advanced electronics R&D technology and high quality manufacturing
resources, while allowing them to maintain brand identity and protect intellectual property. By
combining their respective strengths in advanced electronics R&D and high quality
manufacturing capabilities, the Ricardo-Delta alliance will create an entirely new business model
to provide total solutions. While both partners will continue to operate independently as dictated
by the needs of their respective businesses, they both believe that the benefits of the alliance.
24
MINDA JV PARTNERS
VALEO
Following the closing of Valeo's sale of its wiring harness business, this activity became part of
Leoni on January 1, 2008.
As per news release published on 16 October 2007 - Valeo announced that it has signed a
contract with Leoni regarding the sale of its wiring harness activity, Valeo Connective Systems,
for an enterprise value of 255 million euros. The activity generated sales of 545 million euros
and an EBITDA of 36 million euros in 2006. It employs 11,700 people at 12 industrial sites,
including 9 in cost-competitive countries.
The divestiture of the wiring harness activity is in line with Valeo’s strategy, initiated in 2005 and
confirmed at the 2007 Annual General Meeting of Shareholders, to reinforce its offer in the
Domains of Driving Assistance, Powertrain Efficiency and Comfort Enhancement. This sale is
another step in the implementation of this strategy through targeted divestitures and
acquisitions.
This sale will result in a capital loss of around 51 million euros for Valeo. The closing of the sale
should occur by year end following clearance from the anti-trust authorities.
STONERIDGE
Stoneridge Raises 2007 Earnings Outlook
Stoneridge, Inc. announced that earnings for the fourth quarter of 2007 are expected to be in the
range of $0.24 to $0.30 per diluted share. As a result, the Company said that the full-year 2007
earnings are expected to be in the range of $0.67 to $0.73 per diluted share, which is higher
than its previously announced range of $0.45 to $0.55 per diluted share. Current earnings
estimates include restructuring expense of approximately $1.0 million for the Company's
previously announced restructuring initiatives.
"Our fourth-quarter results were positively impacted by a more favorable sales mix in our North
America electronics business, continued strength in our European electronics business and
improvement in our China operations," said John C. Corey, president and chief executive officer.
"These improvements offset the continued decline in the Class 8 truck market in North America."
Stoneridge will report its fourth-quarter results on January 31, 2008.
Forward-Looking Statements
Statements in this release that are not historical fact are forward- looking statements, which
involve risks and uncertainties that could cause actual events or results to differ materially from
those expressed or implied in this release. Things that may cause actual results to differ
materially from those in the forward-looking statements include, among other factors, the loss of
a major customer; a significant change in automotive, medium- and heavy-duty truck or
agricultural and off-highway vehicle production; a significant change in general economic
conditions in any of the various countries in which the Company operates; labor disruptions at
the Company's facilities or at any of the Company's significant customers or suppliers; the ability
25
of the Company's suppliers to supply the Company with parts and components at competitive
prices on a timely basis; customer acceptance of new products; and the failure to achieve
successful integration of any acquired company or business. In addition, this release contains
time-sensitive information that reflects management's best analysis only as of the date of this
release. The Company does not undertake any obligation to publicly update or revise any
forward-looking statements to reflect future events, information or circumstances that arise after
the date of this release. Further information concerning issues that could materially affect
financial performance related to forward-looking statements contained in this release can be
found in the Company's periodic filings with the Securities and Exchange Commission.
Outlook
Because of the previously announced IPO transaction filing of the Company's PST Eletronica
S.A. joint venture in Brazil, Stoneridge is not providing earnings guidance for the year 2008 at
this time due to the volatility and uncertainty in the capital and equity markets. "For 2008, we
expect to continue making the progress that we exhibited during 2007 with our previously
announced restructuring plans," Corey said.
FURUKAWA
Notice Regarding Riken Electric Wire Company Limited Becoming
a Wholly Owned Subsidiary of The Furukawa Electric Co., Ltd.
through a Share Exchange
The Furukawa Electric Co., Ltd. (Furukawa) and Riken Electric Wire Company Limited (Riken)
are pleased to announce that each of their Boards of Directors at meetings held today has
resolved to conduct a share exchange to be effective on April 1, 2008, through which Riken
becomes a wholly owned subsidiary of Furukawa (the “Share Exchange”). The two companies
have entered into a Share Exchange Agreement.
As of April 1, 2008, the effective date of the Share Exchange, Furukawa will be the sole
shareholder of Riken and Riken will be a wholly owned subsidiary and Riken shares are
scheduled to be delisted on March 26, 2008 pursuant to the delisting rule (the last trading date is
scheduled to be March 25, 2008).
Purpose of making Riken a wholly owned subsidiary through the Share Exchange.
(1) Purpose of the Share Exchange
In March 2006, Furukawa launched “Innovations 09,” a new medium-term management plan that
adopted a management vision of “With evolution of technology, Toward a more profitable,
innovative and dynamic global presence.” Under this plan, Furukawa is reorganizing and
integrating its subsidiaries, as part of changes to its Group management, to bolster their
business position and governance, streamline their operations and reduce their administration
costs. Riken, incorporated in 1934 to operate a business based on the technology of Riken
Laboratory, became a member of Furukawa Group in 1949. Riken primarily manufactures
magnet wires, solder-plated wires, stainless steel wires, electric wires, cables, electronics
components and optical components. It has been steadily developing its business under the
Riken brand, based on unique technologies for specialized cables such as fine and super-fine
magnet wires and stainless steel wires and precision manufacturing. In today’s very competitive
global environment, it has become necessary for Riken to develop new markets and diversify its
27
product lineup to maintain and improve its business. To do this, Riken needs to strengthen its
cooperation with Furukawa under the Group management strategy, so that it can call on the
resources of the Furukawa Group in marketing and technology development.
Through the Share Exchange to make Riken a wholly owned subsidiary, Furukawa will be able
to improve its business by defining Riken’s position in the Furukawa Group strategy, accessing
Riken’s technology and cooperating with Riken in marketing. After discussion, Furukawa and
Riken have reached the conclusion that it would be in the best interests of both companies to
conduct their businesses jointly to develop the business of each company. Furukawa and Riken
will strengthen Riken’s business and increase the enterprise value of the Furukawa Group by
tapping the business resources that are amalgamated through the Share Exchange.
(2) Schedule for delisting
As of April 1, 2008, the effective date of the Share Exchange, Furukawa will be the sole
shareholder of Riken and Riken will be a wholly owned subsidiary. Riken shares are scheduled
to be delisted on March 26, 2008 pursuant to the delisting rule (the last trading date is scheduled
to be March 25, 2008).
(3) Reasons for delisting
Although the delisting of Riken shares is not the main purpose of the Share Exchange, Riken
shares are scheduled to be delisted on March 26, 2008 pursuant to the delisting rule described
in the preceding section, as a result of the Share Exchange through which Furukawa becomes
the sole shareholder of Riken. Furukawa shares of common stock to be allotted and delivered in
exchange for Riken shares in the Share Exchange are listed on the Tokyo, Osaka, and Nagoya
stock exchanges and these Furukawa shares in exchange for Riken shares are available for
trading on every stock exchange (except for shares of less than one share unit (1,000 shares),
please refer to note. 2 under section 2. (2) for information about shares of less than one share
unit.)
(4) Measures to achieve a fair share exchange ratio To ensure that the share exchange ratio is
fair, Furukawa and Riken each appointed an independent financial advisor to calculate the share
exchange ratio. Furukawa and Riken held repeated discussions and negotiations based on the
calculations and agreed on the share exchange ratio at which the Share Exchange is to be
conducted.
(5) Measures to prevent conflicts of interest
To avoid conflicts of interest, the two statutory auditors of Riken, namely Kiyoshi Takeuchi, who
concurrently serves as a statutory auditor of Furukawa and Mitsuyoshi Shibata who concurrently
is an employee of Furukawa, have not taken part in the deliberations about the Share Exchange
held at meetings of Riken’s Board of Directors. No Riken director is serving as a director of
Furukawa or is an employee of Furukawa.
KABA Group
No recent news.
28
Production, Sales, Exports - November 2007
Category Production Domestic Sales Exports
Segment / Subsegment For the month of Cumulative For the month of Cumulative For the month of Cumulative
Manufacturer November April - November December April - November January April - November
2006 2007 06-07 07-08 2006 2007 06-07 07-08 2006 2007 06-07 07-08
Passenger Vehicles (PVs) A: Passenger cars - No. of seats including driver not over 6
A1: Mini - (upto 3400mm)
Maruti Suzuki India Ltd. 8,303 8,956 65,632 55,282 6,040 5,653 52,839 44,795 941 1,870 10,180 9,443
A2: Compact (3401-400mm)
Fiat India Automobiles 0 123 830 2,349 73 243 1,228 2,181 0 0 5 1
Ford India 6 198 6 1,155 0 132 0 1,074 0 0 0 0
General Motors India 0 2,440 0 20,834 0 2,520 0 21,122 0 0 0 0
Hyundai Motor India 21,662 29,970 178,657 195,834 13,425 16,335 111,326 112,419 8,426 9,114 66,241 77,650
Maruti Suzuki India Ltd. 37,329 44,615 273,022 344,641 37,060 47,641 267,197 327,820 1,418 2,510 11,616 23,665
Tata Motors 15,669 10,646 101,133 98,028 13,047 10,488 91,773 90,614 473 663 7,484 5,307
Total 74,666 87,992 553,648 662,841 63,605 77,359 471,524 555,230 10,317 12,287 85,346 106,623
A3: Mid size (4001-4500mm)
Fiat India Automobiles 0 0 489 0 40 0 470 79 0 0 0 0
Ford India 2,838 2,479 24,865 23,918 2,841 1,804 24,664 20,912 1,960 350 18,198 1,607
General Motors India 22 644 7,855 3,378 602 576 7,921 3,647 0 0 0 0
Hindustan Motors 991 715 8,834 7,164 993 713 8,890 7,307 0 0 5 0
Honda Siel Cars India 3,171 1,671 28,140 24,481 2,732 2,468 26,982 23,785 7 0 25 16
Hyundai Motor India 3,365 3,622 27,991 30,119 2,970 2,671 18,801 21,923 0 784 9,289 9,802
Mahindra Renault 0 1,035 0 16,786 0 1,560 0 16,267 0 0 0 0
Maruti Suzuki India Ltd. 2,716 3,719 21,359 32,352 2,083 4,260 20,743 33,611 12 2 62 50
Tata Motors 3,996 2,182 24,733 20,936 2,857 2,014 21,222 18,679 401 171 3,601 3,324
Total 17,099 16,067 144,266 159,134 15,118 16,066 129,693 146,210 2,380 1,307 31,180 14,799
A4: Executive (4501-4700mm)
BMW India 0 80 0 537 0 109 4 611 0 0 0 0
Daimler Chrysler India 55 32 598 671 59 45 586 531 0 0 0 0
General Motors India 0 964 1,076 5,219 301 557 2,683 3,949 0 0 0 0
Honda Siel Cars India 1,859 968 10,016 11,950 1,528 1,375 9,544 10,890 0 0 0 0
Hyundai Motor India 279 0 1,615 0 60 1 1,251 192 0 0 0 0
SkodaAuto India 1,070 583 8,268 7,152 842 901 7,820 7,066 0 0 0 0
Toyota Kirloskar Motor 508 359 4,490 4,135 475 394 4,400 4,134 0 0 0 0
Total 3,771 2,986 26,063 29,664 3,265 3,382 26,288 27,373 0 0 0 0
A5: Premium (4701-5000mm)
BMW India 0 120 0 497 10 43 55 319 0 0 0 0
Daimler Chrysler India 117 88 543 764 108 67 491 652 0 0 0 0
Honda Siel Cars India 101 0 1,560 2,130 195 268 1,607 2,010 0 0 6 4
Hyundai Motor India 3 14 92 507 35 34 317 421 0 0 0 0
SkodaAuto India 40 75 512 474 58 36 498 340 0 0 0 0
Toyota Kirloskar Motor 0 0 0 0 29 48 693 720 0 0 0 0
Total 261 297 2,707 4,372 435 496 3,661 4,462 0 0 6 4
A6: Luxury (5001mm & above)
BMW India 0 0 0 0 18 30 120 164 0 0 0 0
Daimler Chrysler India 20 65 149 346 20 45 141 296 0 0 0 0
Total 20 65 149 346 38 75 261 460 0 0 0 0
Total A 104,120 116,363 792,465 911,639 88,501 103,031 684,266 778,530 13,638 15,464 126,712 130,869
B: Utility Vehicles
B1: Max Mass upto 3.5 tonnes No. of seats not exceeding 7
BMW India 0 0 0 0 0 8 11 32 0 0 0 0
Force Motors 123 0 568 326 109 6 590 318 0 0 6 1
Ford India 213 255 1,319 1,549 169 226 1,287 1,628 0 0 0 0
General Motors India 729 730 5,467 5,708 644 729 5,115 5,547 0 0 0 0
Hindustan Motors 83 110 588 957 119 127 662 1,108 0 0 0 0
Honda Siel Cars India 0 0 0 0 220 314 1,066 2,317 0 0 0 0
Hyundai Motor India 0 0 0 0 16 11 280 160 0 0 0 0
Mahindra & Mahindra 3,969 5,102 30,526 44,513 3,091 5,294 27,418 41,186 62 64 836 1,502
Maruti Suzuki India Ltd. 0 0 0 0 0 98 0 645 0 0 0 0
Tata Motors 1,831 2,501 13,828 18,079 1,747 2,410 9,930 15,522 71 69 1,212 1,768
Toyota Kirloskar Motor 1,426 1,463 10,311 12,204 1,243 1,533 10,544 12,476 0 0 0 0
Total 8,374 10,161 62,607 83,336 7,358 10,756 56,903 80,939 133 133 2,054 3,271
B2: No. of seats over 7 but under 9
Force Motors 1 0 10 73 0 0 0 21 0 0 9 2
General Motors India 149 249 1,475 1,374 107 210 1,610 1,390 0 0 0 0
Mahindra & Mahindra 2,664 2,332 20,701 21,719 2,223 2,512 18,815 20,581 59 38 875 301
Maruti Suzuki India Ltd. 384 310 2,529 2,082 241 233 2,076 1,836 0 15 96 72
Tata Motors 54 287 1,757 2,188 73 317 3,827 1,932 1 4 16 29
Toyota Kirloskar Motor 1,876 2,202 17,558 18,465 1,861 2,081 17,465 18,464 0 0 0 0
Total 5,128 5,380 44,030 45,901 4,505 5,353 43,793 44,224 60 57 996 404
Total B 13,502 15,541 106,637 129,237 11,863 16,109 100,696 125,163 193 190 3,050 3,675
C: Multi Purpose Vehicles MPV / Van type vehicles
Maruti Suzuki India Ltd. 8,208 8,198 53,969 59,055 7,150 7,331 52,235 57,525 88 86 783 655
Tata Motors 0 499 0 3,748 0 873 0 4,815 0 0 0 0
Total C 8,208 8,697 53,969 62,803 7,150 8,204 52,235 62,340 88 86 783 655
Total of all M1 category 125,830 140,601 953,071 1,103,679 107,514 127,344 837,197 966,033 13,919 15,740 130,545 135,199
29
Category Production Domestic Sales Exports
Segment / Subsegment For the month of Cumulative For the month of Cumulative For the month of Cumulative
Manufacturer November April - November December April - November January April - November
2006 2007 06-07 07-08 2006 2007 06-07 07-08 2006 2007 06-07 07-08
N1 Category: Max mass upto 3.5 tonnes (Goods Carrier)
A: Max Mass notover 3.5 tonnes
Force Motors 335 831 1,684 3,849 231 691 1,444 3,462 12 0 95 162
Hindustan Motors 18 0 67 1 12 0 56 7 2 0 8 0
Mahindra & Mahindra 3,955 4,399 24,935 33,384 3,887 4,073 21,894 29,138 305 585 3,488 4,819
Piaggio Vehicles 0 459 0 2,047 0 450 0 1,924 0 2 0 2
Tata Motors 10,476 10,766 67,362 74,121 8,673 9,035 55,960 62,989 961 893 9,525 9,034
Total of all N1 Category 14,784 16,455 94,048 113,402 12,803 14,249 79,354 97,520 1,280 1,480 13,116 14,017
M2 category: More than 9 seats Max. Mass upto 5 tonnes (Passenger Carrier)
A: No. of seats not over 13
Force Motors 758 665 4,763 4,578 544 663 4,682 4,511 0 0 6 36
General Motors India 1,172 732 7,846 7,201 900 764 7,540 6,663 0 0 0 0
Mahindra & Mahindra 1,512 413 8,555 5,067 1,052 804 8,766 5,219 6 20 83 158
Tata Motors 1,655 1,174 13,984 10,316 1,751 1,352 13,767 10,978 13 10 61 144
Total 5,097 2,984 35,148 27,162 4,247 3,583 34,755 27,371 19 30 150 338
A2: No. of seats over 13
Force Motors 277 355 2,355 2,954 299 316 2,342 2,595 22 102 139 209
Hindustan Motors 19 0 129 20 18 0 131 45 0 0 0 0
Mahindra & Mahindra 96 260 1,251 2,732 125 288 1,112 2,277 0 0 40 22
Tata Motors 188 146 1,351 1,503 73 140 1,145 1,262 15 3 74 11
Total 580 761 5,086 7,209 515 744 4,730 6,179 37 105 253 242
Total of all M2 Category 5,677 3,745 40,234 34,371 4,762 4,327 39,485 33,550 56 135 403 580
N2 Category: Max Mass over 3.5 tonnes But under 12 tonnes (Goods Carrier)
A: Max mass over 3.5 tonnes but less than 5 tonnes
Force Motors 0 78 0 408 0 79 0 422 0 0 0 0
Mahindra & Mahindra 217 101 1,075 895 196 138 1,099 926 0 0 2 2
Tata Motors 144 54 746 497 0 0 1 0 106 7 541 197
Total 361 233 1,821 1,800 196 217 1,100 1,348 106 7 543 199
A2: Max Mass between 5 tonnes and 7.5 tonnes
Ashok Leyland 0 0 2 0 0 0 0 1 0 0 2 4
Eicher Motors 626 340 3,995 2,362 501 300 3,177 1,884 40 17 560 432
Force Motors 20 13 464 170 43 11 458 121 0 0 32 13
Mahindra & Mahindra 271 261 1,731 2,298 276 268 1,788 2,158 11 20 73 158
Swaraj Mazda 275 201 1,706 1,543 141 142 1,564 1,338 20 6 174 89
Tata Motors 2,713 2,162 18,408 16,053 1,920 1,459 14,727 11,987 348 486 2,727 4,027
Total 3,905 2,977 26,306 22,426 2,881 2,180 21,714 17,489 419 529 3,568 4,723
A3: Max Mass between 7.5 tonnes and 12 tonnes
Ashok Leyland 292 225 1,126 1,660 127 177 878 1,293 22 19 184 263
Eicher Motors 1,210 1,594 8,418 10,726 1,120 1,440 8,196 10,078 16 6 68 210
Swaraj Mazda 379 442 2,656 2,907 324 344 2,667 2,484 0 40 85 245
Tata Motors 1,741 1,871 12,275 13,617 1,498 1,733 10,669 11,485 54 152 478 871
Total 3,622 4,132 24,475 28,910 3,069 3,694 22,410 25,340 92 217 815 1,589
Total of all N2 Category 7,888 7,342 52,602 53,136 6,146 6,091 45,224 44,177 617 753 4,926 6,511
M3 Category: More than 9 seats Max Mass over 5 tonnes (Passenger Carrier)
A: Max mass between 5 tonnes and 7.5 tonnes A2: No. of seats over 13
Ashok Leyland 20 79 289 513 20 43 231 350 1 9 1 54
Eicher Motors 124 56 1,329 1,479 92 81 1,079 1,398 15 25 149 164
Force Motors 0 5 0 63 0 9 0 60 0 0 0 0
Mahindra & Mahindra 119 85 1,285 1,504 81 97 1,171 1,471 0 0 55 47
Swaraj Mazda 205 135 1,597 1,441 189 82 1,519 1,364 0 0 5 19
Tata Motors 1,111 1,362 9,811 11,042 674 703 6,655 7,729 409 500 2,521 2,890
Total A 1,579 1,722 14,311 16,042 1,056 1,015 10,655 12,372 425 534 2,731 3,174
B: Max mass between 7.5 tonnes and 12 tonnes B2: No. of seats over 13
Ashok Leyland 55 127 320 920 43 58 412 582 2 30 17 152
Eicher Motors 128 59 820 1,240 43 42 725 1,004 13 11 164 136
Swaraj Mazda 142 255 1,010 1,749 121 105 886 1,306 6 21 70 122
Tata Motors 13 107 764 432 56 81 790 605 129 0 241 48
Total B 338 548 2,914 4,341 263 286 2,813 3,497 150 62 492 458
C: Max mass between 12 tonnes and 16.2 tonnes C2: No. of seats over 13
Ashok Leyland 1,358 1,750 8,899 15,801 1,076 1,039 6,204 11,823 342 338 2,321 2,460
Eicher Motors 69 46 277 316 30 47 282 275 4 5 13 77
Tata Motors 1,099 1,319 7,580 10,282 1,047 1,069 7,515 9,522 244 191 2,309 2,968
Volvo India 13 20 134 66 27 17 152 132 0 0 12 0
Total C 2,539 3,135 16,890 26,465 2,180 2,172 14,153 21,752 590 534 4,655 5,505
Total of all M3 Category 4,456 5,405 34,115 46,848 3,499 3,473 27,621 37,621 1,165 1,130 7,878 9,137
30
Category Production Domestic Sales Exports
Segment / Subsegment For the month of Cumulative For the month of Cumulative For the month of Cumulative
Manufacturer November April - November December April - November January April - November
2006 2007 06-07 07-08 2006 2007 06-07 07-08 2006 2007 06-07 07-08
N3 Category: Goods Carrier
A: Max mass under 16.2 tonnes A1: Max mass between 12 tonnes and 16.2 tonnes
Ashok Leyland 1,237 1,240 10,075 9,013 807 982 7,817 7,450 124 27 1,123 856
Eicher Motors 212 256 1,254 1,990 156 191 1,123 1,712 22 7 93 101
Tata Motors 5,281 4,305 35,139 29,448 4,284 4,445 29,511 26,332 482 403 2,739 3,598
Total A 6,730 5,801 46,468 40,451 5,247 5,618 38,451 35,494 628 437 3,955 4,555
B1: Max mass over 16.2 tonnes Rigid Vehicles
(a) Max mass between 16.2 tonnes and 25 tones
Ashok Leyland 4,070 3,153 25,891 20,969 3,815 2,509 25,326 19,817 12 4 127 114
Eicher Motors 153 168 895 1,400 142 63 944 1,051 7 4 15 137
Tata Motors 6,710 6,314 49,032 41,610 6,184 6,029 46,941 39,642 86 172 776 1,301
Volvo India 1 0 2 7 0 0 7 4 0 0 0 0
Total 10,934 9,635 75,820 63,986 10,141 8,601 73,218 60,514 105 180 918 1,552
(b) Max mass exceeding 25 tonnes
Eicher Motors 0 5 0 43 0 15 0 38 0 0 0 0
Tatra Vectra Motors 5 0 41 36 5 0 41 36 0 0 0 0
Volvo India 33 50 253 405 38 43 266 385 21 0 21 0
Total 38 55 294 484 43 58 307 459 21 0 21 0
Total B 10,972 9,690 76,114 64,470 10,184 8,659 73,525 60,973 126 180 939 1,552
B2: Max mass over 16.2 tonnes Haulage Tractor (Tractor - Semi trailer / Trailer)
Ashok Leyland 0 0 0 0 0 0 0 0 0 0 0 19
Total 0 0 0 0 0 0 0 0 0 0 0 19
(b) Max mass between 26.4 tonnes and 35.2 tonnes
Ashok Leyland 250 150 2,080 1,464 192 186 2,073 1,667 0 7 28 43
Tata Motors 612 382 3,650 3,364 521 371 3,292 3,281 0 0 1 9
Total 862 532 5,730 4,828 713 557 5,365 4,948 0 7 29 52
c) Max mass over 35.2 tonnes
Ashok Leyland 381 317 4,483 2,361 340 372 4,343 2,731 0 0 0 1
Eicher Motors 0 28 0 49 0 1 0 13 0 0 0 0
Tata Motors 998 749 6,742 6,663 863 698 6,313 6,315 0 6 18 36
Volvo India 16 3 78 41 3 4 92 72 20 0 20 0
Total 1,395 1,097 11,303 9,114 1,206 1,075 10,748 9,131 20 6 38 37
Total B 2,257 1,629 17,033 13,942 1,919 1,632 16,113 14,079 20 13 67 89
Total of all N3 Category 19,959 17,120 139,615 118,863 17,350 15,909 128,089 110,546 774 630 4,961 6,196
Three Wheeler Category
A: Passenger carrier
A1: No. of seats under 4 Max mass under 1 tonne
Atul Auto 594 288 4,021 2,485 594 270 3,898 2,497 1 0 149 1
Bajaj Auto 26,906 21,976 182,501 176,601 11,825 10,518 92,688 88,075 13,946 11,251 86,748 89,911
Force Motors 118 34 340 610 110 52 394 694 0 0 84 0
Piaggio Vehicles 6,496 6,910 49,806 60,214 6,228 7,381 49,572 58,213 260 162 1,184 2,195
Scooters India 353 274 1,623 1,927 287 228 1,995 1,907 0 0 0 0
Total 34,467 29,482 238,291 241,837 19,044 18,449 148,547 151,386 14,207 11,413 88,165 92,107
A2: No. of seats between 4 and 7 Max mass under 1.5 tonnes
Force Motors 190 275 1,520 1,061 191 131 1,347 830 9 28 172 304
Mahindra & Mahindra 402 243 2,120 1,320 329 217 2,090 1,349 0 0 8 0
Piaggio Vehicles 13 0 45 26 9 0 36 24 0 0 4 0
Scooters India 805 275 3,483 2,125 722 297 3,579 2,722 0 0 0 4
Total 1,410 793 7,168 4,532 1,251 645 7,052 4,925 9 28 184 308
Total A 35,877 30,275 245,459 246,369 20,295 19,094 155,599 156,311 14,216 11,441 88,349 92,415
B: Goods Carrier
B1: Max mass under 1 tonne
Atul Auto 907 467 5,727 3,369 901 451 5,845 3,398 13 0 58 4
Bajaj Auto 3,813 2,092 31,176 19,726 3,612 2,428 30,012 20,329 1 0 1 100
Piaggio Vehicles 6,099 4,777 44,667 41,716 6,237 4,771 44,332 41,285 13 36 212 259
Scooters India 404 295 2,524 2,220 366 246 2,983 2,261 0 0 0 0
Total 11,223 7,631 84,094 67,031 11,116 7,896 83,172 67,273 27 36 271 363
B2: Others
Force Motors 862 346 8,087 2,162 922 338 8,301 2,759 0 0 20 14
Mahindra & Mahindra 2,160 2,890 22,075 22,460 1,894 2,594 19,228 21,751 0 12 9 27
Piaggio Vehicles 45 0 551 130 32 0 167 21 0 0 390 96
Scooters India 168 315 1,254 1,416 160 202 1,331 1,424 0 0 0 0
Total 3,235 3,551 31,967 26,168 3,008 3,134 29,027 25,955 0 12 419 137
Total B 14,458 11,182 116,061 93,199 14,124 11,030 112,199 93,228 27 48 690 500
Total of all TH Category 50,335 41,457 361,520 339,568 34,419 30,124 267,798 249,539 14,243 11,489 89,039 92,915
31
Category Production Domestic Sales Exports
Segment / Subsegment For the month of Cumulative For the month of Cumulative For the month of Cumulative
Manufacturer November April - November December April - November January April - November
2006 2007 06-07 07-08 2006 2007 06-07 07-08 2006 2007 06-07 07-08
Two Wheeler Category
A: Scooters / Scooterette Wheel size less than or equal to 12"
A1: Engine capacity less than 75cc
Kinetic Motor Company 735 20 6,593 3,030 876 219 7,418 3,432 106 0 311 192
LML 0 0 0 0 0 0 0 0 0 0 0 0
TVS Motor Company 1,375 2,712 5,509 23,165 1,274 2,259 7,836 23,579 0 0 0 0
Total 2,110 2,732 12,102 26,195 2,150 2,478 15,254 27,011 106 0 311 192
A2: Engine capacity 75cc - 125cc
Bajaj Auto 110 1,627 7,206 17,638 8 1,620 7,214 17,389 0 104 1 112
Hero Honda 11,670 11,086 66,610 71,846 10,904 10,740 64,819 71,043 0 112 976 1,008
Honda Motorcycle & Scooter India 43,444 45,203 282,499 377,637 42,056 45,001 264,123 370,502 236 436 16,911 7,330
Kinetic Motor Company 4,313 2,216 30,101 17,801 4,085 2,633 29,467 17,863 31 10 775 1,878
LML 0 0 0 0 0 0 0 0 0 0 0 0
Suzuki Motorcycle India 0 3,530 0 5,347 0 3,448 0 5,180 0 0 0 0
TVS Motor Company 22,253 21,210 149,089 167,827 20,423 19,318 167,605 165,719 94 989 6,142 7,112
Total 81,790 84,872 535,505 658,096 77,476 82,760 533,228 647,696 361 1,651 24,805 17,440
A3: Engine capacity 125cc - 250cc
Bajaj Auto 0 0 30 0 0 0 4,152 0 0 0 1,102 0
Honda Motorcycle & Scooter India 9,791 3,850 63,180 43,136 9,205 3,840 62,419 43,553 0 0 0 0
LML 0 0 0 0 0 0 0 0 0 0 0 0
Total 9,791 3,850 63,210 43,136 9,205 3,840 66,571 43,553 0 0 1,102 0
Total A 93,691 91,454 610,817 727,427 88,831 89,078 615,053 718,260 467 1,651 26,218 17,632
B: Motorcycle / step through Wheel size more than 12"
B2: Engine capacity 75cc - 125cc
Bajaj Auto 161,787 84,763 1,028,855 726,200 123,420 70,335 918,201 511,630 13,585 18,973 125,066 186,102
Hero Honda 270,059 233,789 2,124,871 2,035,041 253,846 257,060 2,050,451 1,983,751 6,953 4,846 69,708 48,323
Kinetic Motor Company 286 264 4,131 3,541 250 177 6,921 1,828 299 34 1,107 1,609
LML 0 0 0 0 0 0 0 0 0 0 0 0
TVS Motor Company 67,776 44,250 535,074 325,667 46,705 41,494 481,854 292,845 4,217 6,016 42,352 53,965
Yamaha Motor India 18,296 3,829 156,277 70,405 10,061 12,845 124,311 64,011 5,002 1,605 31,013 21,413
Total 518,204 366,895 3,849,208 3,160,854 434,282 381,911 3,581,738 2,854,065 30,056 31,474 269,246 311,412
B3: Engine capacity 125cc - 250cc
Bajaj Auto 84,145 124,774 629,582 747,335 68,762 104,601 539,899 652,345 8,554 15,967 73,426 133,664
Hero Honda 8,193 14,029 42,608 107,891 8,297 14,191 40,853 104,032 171 1,078 1,503 4,378
Honda Motorcycle & Scooter India 16,718 22,974 95,318 181,968 15,898 20,818 93,481 165,534 416 1,992 2,566 16,012
LML 0 0 0 0 0 0 0 0 0 0 0 0
Suzuki Motorcycle India 8,100 5,284 49,853 38,862 6,417 5,212 41,831 42,215 0 46 0 223
TVS Motor Company 22,834 13,791 132,653 76,091 15,645 6,851 116,212 58,528 2,307 2,752 12,933 14,503
Yamaha Motor India 7,250 2,897 68,165 33,898 4,389 4,107 37,799 20,510 1,863 3,229 15,087 22,087
Total 147,240 183,749 1,018,179 1,186,045 119,408 155,780 870,075 1,043,164 13,311 25,064 105,515 190,867
B4: Engine capacity 250cc and above
Royal Enfield (Unit of Eicher) 2,720 3,047 20,416 25,153 2,922 2,862 19,504 22,488 155 247 1,289 2,087
Total B 668,164 553,691 4,887,803 4,372,052 556,612 540,553 4,471,317 3,919,717 43,522 56,785 376,050 504,366
C: Mopeds: Engine capacity under 75cc fixed transmission Wheel size more than 12"
C1: Engine capacity less than 75cc
Kinetic Motor Company 293 986 8,186 8,413 1,800 1,021 10,761 8,152 710 0 5,559 1,098
Majestic Auto 1,497 37 15,217 8,533 957 100 4,068 3,831 1,191 0 12,291 4,525
TVS Motor Company 28,621 29,866 217,864 269,012 26,492 32,436 210,150 261,040 1,000 651 10,924 8,329
Total C 30,411 30,889 241,267 285,958 29,249 33,557 224,979 273,023 2,901 651 28,774 13,952
D: Electric Two Wheelers
Electrotherm (India) 4,563 1,749 20,333 12,668 4,523 1,993 20,069 12,928 0 0 0 0
Total D 4,563 1,749 20,333 12,668 4,523 1,993 20,069 12,928 0 0 0 0
Total of all TW Category 796,829 677,783 5,760,220 5,398,105 679,215 665,181 5,331,418 4,923,928 46,890 59,087 431,042 535,950
Grand Total of All Categories 1,025,758 909,908 7,435,425 7,207,972 865,708 866,698 6,756,186 6,462,914 78,944 90,444 681,910 800,505
32
GROWTH POTENTIAL OF INDIAN AUTO COMPONENT INDUSTRY
33
The OEM as well as the component industry is highly competitive
• The Indian auto industry is highly competitive with a number of global and Indian auto
companies present
• The supplier industry is equally competitive with a mix of global and Indian players
34
35
36
Growth in automobile production has driven growth in Indian auto
component industry
• The Indian auto component industry has reached a size of US$ 15 billion in 2006–07, growing
at a CAGR of nearly 29% in the last four years
• Industry has developed strong backward and forward linkages
• The industry is characterised by the presence of technically capable companies in areas such
as manufacturing, design, testing, product development
37
More than 60% of exports are made to the developed markets of
Europe and USA
• Over 60% of the exports are to developed markets such as US and Europe, indicating the
capability of Indian manufacturers to meet stringent quality and technical standards
• A significant characteristic of exports is the shift in the market in which the components are
sold - 75% of the supplies are today made to OEM/Tier-I players as compared to only 35% in the
1990’s
38
Demand from the OE segment dominates the Indian component
industry
• OE demand accounts for half of the auto component market in India.
39
Two and Three wheeler’s along with car segment account for a
major portion of the component market in India
• Two and Three wheelers, along with passenger cars account for two-thirds of the components
manufactured
• However, CV components have shown the fastest growth rate over the last 5 years. The
growth rate of components of various vehicle categories are as follows:
• 2/3Wheelers: 14.95%
• Cars : 15.4%
• CVs : 26.1%
40
Indian auto component companies are spreading their operations
globally, mainly through acquisitions
• Acquisitions made overseas are helping Indian auto component companies get access to new
set of skills, technology and customers
41
Government of India Initiative to strengthen Automotive R&D Infrastructure
National Automotive Testing and R&D Infrastructure Project (NATRIP)
NATRIP envisages an investment of US$ 380 million in setting up the following facilities NATRIP
is expected to strengthen the automotive R&D infrastructure in India
Manesar - iCAT
• Complete homologation services to all vehicle categories as per Indian or Global Standards
• Center of Excellence For Component Development, NVH
• Commissioning Schedule Phase-I: 2008, Phase-II: 2010
Silchar Centre
• Hill area Driver Training Centre and Inspection & maintainence Facilities
• Center of Excellence For Driver Training
• Commissioning Schedule Phase-I: 2008, Phase-II: 2010
Chennai Centre
• Complete homologation services to all vehicle categories as per Indian or Global Standards
• Center of Excellence For Infotronics, EMC, Passive Safety
• Commissioning Schedule Phase-I: 2008, Phase-II: 2011
42
Indian Productivity is on a rise - Analysis of Return On Capital
Employed (ROCE)
• ROCE% levels in India have shown an increase in the past few years, indicative of the
productivity increase
• Average ROCE levels in India are estimated to be in the range of 24-28%
• MNC/Collaborations have achieved significantly higher ROCE levels in India
43
Indian auto component industry is expected to grow to US$ 33-40
billion by 2015
• The size of the Indian automotive industry is expected to grow at 13% p.a over the next decade
to reach around US$ 130-159 billion by 2016.
• In volume terms the market is expected to grow to 31.96 million vehicles
44
Several factors make India a favourite investment destination
Quality Services
• Indian IT Recognized worldwide
Quality Manpower
• 0.4 Million Engineering Graduates
Quality Suppliers
• 456 Nos ISO 9000 Certified Suppliers
Lower
• Labour Cost
Lower
• Design Cost
45
Many global auto companies have made India a manufacturing
base - a robust supply base exists in India
46
Leading global auto components companies are also sourcing
from India
Conclusions
• India has a cost advantage when compared to Brazil, however suffers from a cost
disadvantage vis-à-vis China and Thailand (to a lesser extent), primarily due to high level of
taxes and their cascading impact.
• India, in the near future is expected to go ahead with the abolition of interstate Central Sales
Tax (CST), which will reduce the cascading impact of taxes to some extent.
• Implementation of Goods and Services tax (along the lines of VAT) and abolition of all other
taxes by 2010 is under consideration, which will reduce the taxation loading on the automotive
sector considerably. This step is expected to strengthen India’s future position as a leading
automobile manufacturing hub.
• Various steps being taken by the Indian government in improving infrastructure would reduce
the disadvantage that India suffers from because of poor infrastructure that causes project
delays, delays in deliveries and others. This would increase the demand for road transportation
in the country and consequently demand for auto components.
• India’s exports of auto components have the advantage of proximity to automotive
manufacturing nations like Thailand; trade agreements being signed with ASEAN nations are
expected to give further boost to exports.
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Minda Management Services Limited
D-6-11, Sector-59, Noida-201301 U.P. (India)
Tel: +91-120-2580249/50/52
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