Automobile September 20161
Automobile September 20161
Automobile September 20161
Executive Summary... 3
Advantage India...... 6
Market Overview and Trends....8
Porter Five Forces Analysis ....25
Strategies Adopted...27
Growth Drivers...... 29
Opportunities......40
Success Stories.42
Useful Information.... 45
8.00%
By 2020, India's share in the
Third-largest automobile global passenger vehicle
2.40%
industry by 2016 market to touch 8 per cent from
2.40 per cent in 2015
2015 2020
CAGR: 15.97%
34
Two wheeler production to rise
Worlds second-largest two 18.8
from 18.8 million in FY16 to 34
wheeler manufacturer
million by FY20E
FY16 FY20E
million
CAGR: 30.96%
10
Passenger vehicle production
Passenger vehicle production to
3.4 to increase from 3.4 million in
nearly triple by 2020E
FY16 to 10 million in FY20E
FY16 FY20E
million
Source: SIAM, NEMMP 2020 (National Electric Mobility Mission Plan), TechSci Research;
Note: E Estimate
SEPTEMBER 2016 For updated information, please visit www.ibef.org 3
AUTOMOBILES
EXECUTIVE SUMMARY(2/3)
CAGR: 12.87% >9.4
Domestic sales of passenger
Domestic sales of passenger
vehicles to grow from 2.8
2.8
vehicles in India is expected to
million in 2016 to 9.4 - 13.4
increase at a CAGR of 12.87
million by 2026
per cent during 2016-26
2016 million 2026
CAGR: 3.79%
>0.5
Domestic sales of three 0.4
Domestic sale of three
wheelers will grow from 0.4 wheelers in India increased at a
million in 2010 to 0.5 million CAGR of 3.79 per cent during
in 2016 2010-16
2010 million 2016
Source: SIAM, NEMMP 2020 (National Electric Mobility Mission Plan), TechSci Research;
Note: E Estimate
SEPTEMBER 2016 For updated information, please visit www.ibef.org 4
AUTOMOBILES
EXECUTIVE SUMMARY(3/3)
Source: SIAM, NEMMP 2020 (National Electric Mobility Mission Plan), TechSci Research;
Note: 20161 Data till March 2016, E Estimate
SEPTEMBER 2016 For updated information, please visit www.ibef.org 5
AUTOMOBILES
ADVANTAGE INDIA
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
ADVANTAGE INDIA
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
EVOLUTION OF THE INDIAN AUTOMOTIVES SECTOR
24 million
21.5 million units (FY16)
units (FY14)
11 million
units (2007)
0.6 million
units (1992)
2008 onwards
19932007
0.4 million
More than 35 market players
units (1982) Sector de-licensed in
198392 Indian companies gaining
1993
acceptance on a global scale
Major Original
Joint Venture (JV): Equipment Setting up of National
Before 1982 Indian government and Manufacturers (OEMs) Automotive Board to act as
Suzuki formed Maruti started assembly facilitator between the
Udyog; commenced operations in India government and industry
Closed market production in 1983 Government has proposed
Imports permitted from
Five players Component April 2001 GST to support lower raw
Long waiting manufacturers entered material cost
Introduction of value-
periods and the market via JV added tax in 2005 Launch of Automotive Mission
outdated models Buyers market Plan 2016-26 in 2015
Sellers market
Source: Tata Motors, Society of Indian Automobile Manufacturers (SIAM), TechSci Research
Notes: JV Joint Venture, GST: Goods and Service Tax
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 9
AUTOMOBILES
THE AUTOMOTIVES MARKET IS SPLIT INTO FOUR SEGMENTS
Automobiles
Electric two-
wheelers
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 10
AUTOMOBILES
ROBUST GROWTH IN REVENUES
The gross turnover of automobile manufacturers in India expanded at a CAGR of 11.72 per cent over FY07-15
The domestic Two Wheelers segment accounted for 80.4 per cent of the total domestic market share1 for the year 2015-16
CAGR: 11.72% 74
66.3 67.6
58.6
46
43.3
36.6
33.3
30.5
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 11
AUTOMOBILES
GROWTH IN THE SECTOR EVIDENT FROM HIGHER TOTAL PRODUCTION FIGURES
During FY06-16, passenger vehicle segment witnessed the fastest growth, at a CAGR of 10.09 per cent, followed by two
wheeler segment, which grew at a CAGR of 9.48 per cent during the same time period.
18.5 18.8
16.9
15.4 15.7
13.4
10.5
8.5 8.4
7.6 8.0
3.4
3.2
3.2
3.1
3.1
3.0
2.4
1.8
1.6
1.3
1.3
0.9
0.9
0.9
0.9
0.8
0.8
0.8
0.8
0.8
0.8
0.7
0.7
0.6
0.6
0.6
0.6
0.5
0.5
0.5
0.4
0.4
0.4
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 12
AUTOMOBILES
MARKET BREAK-UP BY PRODUCTION VOLUME
Two wheelers dominate production volumes; in FY16, the Market share by volume (FY16)
segment accounted for about 78.6 per cent of the total
automotive production in the country. 3.27%
3.90%
Three Wheeler
78.59%
Commercial Vehicle
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 13
AUTOMOBILES
MARKET BREAK-UP OF INDIVIDUAL SEGMENTS BY PRODUCTION VOLUME (1/2)
Share in production of passenger vehicles (FY16) Share in production of commercial vehicles (FY16)
6.36%
44.10%
21.03%
Passenger Cars LCVs
Vans 55.90%
72.61%
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 14
AUTOMOBILES
MARKET BREAK-UP OF INDIVIDUAL SEGMENTS BY PRODUCTION VOLUME (2/2)
4.40%
18.03%
30.58%
Motor Cycles
Passenger Carrier
Scooters
Load Carrier
Mopeds
65.03%
81.97%
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 15
AUTOMOBILES
STRONG GROWTH IN EXPORTS (1/2)
During FY06-16, automobile exports from the country increased at a CAGR of 16.23 per cent.
Further, during FY06-16, two wheeler segment reported fastest growth of around 17.5 per cent, followed by three wheelers ,
which grew at a rate of 14.8 per cent during the same period.
2.5 2.5
2.1
2.0 2.0
1.5
1.1
0.8
0.6
0.6
0.6
0.6
0.6
0.5
0.5
0.4
0.4
0.4
0.4
0.4
0.4
0.3
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 16
AUTOMOBILES
STRONG GROWTH IN EXPORTS (2/2)
With a volume share of 68.14 per cent, two wheeler Exports shares by volume (FY16)
segment accounted for the largest share in overall
automobile exports in FY16. 2.79%
11.11%
Passenger vehicle segment accounted for a sizeable share
of 17.96 per cent in the overall automobile exports in FY16. Two Wheeler
17.96%
Three Wheeler
68.14%
Commercial Vehicle
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 17
AUTOMOBILES
AUTOMOBILE MARKET RECOVERS AFTER A POOR SHOW IN FY14
Auto sales across categories domestically rose by 3.78 per
cent in FY16 from 19.72 million units in FY15. Growth of Volume Sales
(Annual)
Sale of passenger vehicles grew by 7.24 per cent in FY16, from 27% 28%
2.6 million units in FY15.
18%
14%
12%
LCV sales declined by 0.3 per cent in FY16
11%
8%
7%
7%
5%
5%
4%
3%
3%
1%
1%
Sale of M&HCVs increased by 30 per cent in FY16
-6%
-3%
-2%
-2%
-11%
-20%
Two-wheelers registered a growth of 3.01 per cent during FY16
CAGR: 31%
10
Passenger vehicle production to increase at a
CAGR of 31 per cent during FY1620 3.4
CAGR: 15.4%
35.1
Two and Three wheeler production projected to
19.8
expand at a CAGR of 15.4 per cent during FY16
20
The Indian luxury car market expanded at a CAGR of 37.12 per cent during FY07-15, with
sale of 50,000 luxury car units in 2015. The market is dominated by players such as BMW,
Mercedes, Audi, Jaguar, etc. In 2015, Audi sold 11,292 units, followed by Mercedes, which
Scenario sold 11,213 units, while BMW sold 7,000 luxury car units during the same year. The Indian
luxury car market is expected to grow from USD14.7 billion in 2015 to USD18.3 billion in
2016.
India has the worlds 12th-largest HNI population, with a growth of 20.8 per cent (highest
among the top 12 countries)
Key drivers With expansion in the education and realty sectors, and increasing wealth of IT
professionals, more consumers aspire to own luxury cars
Affluent class of the country is driving the demand of the luxury cars
The Indian luxury car market is estimated to expand at a CAGR of 25 per cent during
201220 and reach 150,000 units by 2020 (accounting for 4 per cent of the estimated 6.8
million unit domestic car market)
The luxury SUV segment is growing at about 50 per cent, while luxury sedans are
Notable increasing 2530 per cent
trends Audi to launch Q7 SUV and new sports car TT later in the year.
Volvo, which sold 1,423 models in India during 2015, is planning to launch six new luxury
models in the country during 2016
Source: World Wealth Report (2011) of Merrill Lynch Wealth Management and Capgemini, TechSci Research, News articles
Note: HNI - High Networth Individuals
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 20
AUTOMOBILES
PRESENCE OF A CLEAR LEADER IN EACH MARKET SEGMENT
The automotive industry is majorly commanded by domestic players, with an immense market share in the country
during FY161.
Passenger
Market leader Others
Vehicles
Commercial
Market leader Others
Vehicles
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 22
AUTOMOBILES
NOTABLE TRENDS IN THE INDIAN AUTOMOTIVES SECTOR
Large number of products available to consumers across various segments; this has
gathered pace with the entry of a number of foreign players
New product launches Reduced overall product lifecycle have forced players to employ quick product launches
After the success of Maruti S-Cross, Honda City, Hyundai Verna, Toyota Fortuner, Ford
EcoSport in 2015, the companies have announced to launch upgraded versions of the
same cars in late 2016 or early 2017 in Indian market
Increasing R&D investments from both the government and the private sector
Improving product-
development Private sector innovation has been a key determinant of growth in the sector; two good
capabilities examples are Tata Nano and Tata Pixel; while the former has been a success in India, the
latter is intended for foreign markets
The CNG distribution network in India is expected to increase due to the new geographical
areas allocated through 5th and 6th round of CGD bidding by Petroleum and Natural Gas
Alternative fuels Regulatory Board(PNGRB)
Number of CNG stations in India increased from 142 stations in 2005 to 1010 stations in
FY15, which further increased to 1,081 stations in FY16, across 12 major states of the
country.
Carmakers such as BMW, Audi, Toyota, Skoda, Volkswagen and Mercedes-Benz have
New financing options started providing customised finance to customers through NBFCs
Major MNC and Indian corporate houses are moving towards taking cars on operating
lease instead of buying them
Source: Ministry of Petroleum & Natural Gas
Note: NBFCs - Non-Banking Finance Companies
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 23
AUTOMOBILES
NOTABLE TRENDS IN THE INDIAN AUTOMOTIVES SECTOR
Between April 2000 to March 2016, Indian automobile industry attracted foreign direct investment
(FDI) of around USD15.06 billion.
Honda Cars India Limited is planning to invest around USD59.24 million to increase its production
capacity by 50 per cent (to 180,000 units). Also, Honda Motorcycle & Scooter India is planning to
Investments invest around USD91.2 million to expand production at the Karnataka plant, by the end of 2016.
General Motors announced plans to invest about USD1 billion for capacity expansion of Pune plant,
with the production expected to increase from 130,000 units to 220,000 units annually, by the end of
2025.
Government of India heavily promotes foreign investment in the automobile industry by allowing 100
per cent FDI, under automatic route. The industry is delicensed and allows free import of automotive
components. Also, the Indian government does not lay down any minimum investment criteria for
this industry.
Notable
trends Under Union Budget 2016-17, the government has announced plans to make amendments in Motor
Vehicle Act to enhance road transport sector, mainly in passenger segment.
The government plans to encourage use of eco friendly automobiles such as hybrid vehicles,
electrical vehicles, CNG based vehicles in India.
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 24
AUTOMOBILES
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
PORTERS FIVE FORCES ANALYSIS
Competitive Rivalry
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 26
AUTOMOBILES
STRATEGIES ADOPTED
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
STRATEGIES ADOPTED
Considering low cost of production, prominent auto companies are increasing their
production capacity in order to capture a dominant share in Indian automobile industry.
Capacity addition Most of the automobile companies are eyeing India as an outsourcing hub.
With the total investment of around USD163.7 million, Honda Motorcycle and Scooter
India expanded its production of Activa in three variants at Ahmedabad plant.
In 2015-16, few of the newly launched cars were Volkswagen Ameo, Mahindra e-Verito,
Toyota Land Cruiser 200, Maruti Baleno, Honda BR-V, Tata Tiago, Toyota Innova Crysta
Launch of new models
and Maruti Ciaz and under premium range Audi Q7 (New Generation), Audi S5
Sportback, Ford Mustang, Rolls-Royce Dawn and Porsche 911.
Each and every firm is now focusing on shelling out a chunk of their profits on
advertisement
Marketing &
The idea is to make the customers more brand conscious and increasing brand
advertisement
positioning
This is giving the firms differential advantage. Success today lies in structuring and
restructuring strategies
Catering Indian needs Most of the firms including Ford and Volkswagen have adapted themselves to cater to this
class by dropping their traditional structure and designs
This allows them to compete directly with domestic firms making the sector highly
competitive
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 28
AUTOMOBILES
GROWTH DRIVERS
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
CAPITALISING ON STRONG DEMAND AND PRODUCT INNOVATION
Increasing
Growing
Growing demand
demand Policy support
Strong investments
government
support
Goal of Rising
Rising income, establishing India investments from
young population as an auto- domestic and
manufacturing hub foreign players
Inviting Resulting in
Greater R&D focus; GOI Greater product
availability of has set up a innovation; market
credit and technology segmentation
financing options modernisation fund
Demand projected
Strong growth in Policy sops, FDI to remain strong,
exports, Improved making returns
encouragement
Infrastructure attractive
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 30
AUTOMOBILES
RISING INCOME AND MIDDLE-CLASS POPULATION DRIVING GROWTH IN DOMESTIC DEMAND
GDP per capita has grown from USD1,430.19 in 2010 to Million Household, 100%
USD1,595.7 in 2014, and is expected to reach
USD2,128.78 by 2018(E) 244 273 322
15%
Apart from the impact of rising incomes, widening of the 30% 26%
consumer base will also be aided by expansion of the
32%
middle class, increasing urbanisation, and changing
lifestyles 40%
43%
29%
A young population is boosting demand for cars 25%
23% 17%
2% 1% 6% 3% 7%
Demand for commercial vehicles increased due to the 2015 2020 2030
development of roadways and greater market access
Globals(>22065.3) Strivers(11032.7-22065.3)
Seekers(4413.1-11032.7) Aspirers(1985.9-4413.1)
Deprived(<1985.9)
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 31
AUTOMOBILES
EASIER ACCESS TO CREDIT A KEY DETERMINANT OF GROWTH IN AUTOMOTIVES
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 32
AUTOMOBILES
INDIA HAS A SIGNIFICANT COMPETITIVE ADVANTAGE VIS--VIS PEERS(FY15)
Less competitive than India In competition with India Source: ACMA, TechSci Research
Setting up of R&D centers at a total cost of USD388.5 million to enable the industry to be
on par with global standards
NATRiP Nine R&D centers of excellence with focus on low-cost manufacturing and product
development solutions
The government has extended the timeline of NATRiP from 2014 to 2017.
Dept. of Heavy Worked towards reduction of excise duty on small cars and increase budgetary allocation
Industries & Public for R&D
Weighted increase in R&D expenditure to 200 per cent from 150 per cent (in-house) and
Enterprises
175 per cent from 125 per cent (outsourced)
Certain amendments in Motor Vehicle Act to enhance the passenger segment under road
transport sector
Union Budget FY16-17 Applicability of 1 per cent Infrastructure cess on small petrol, LPG, CNG cars; 2.5 per cent
cess on diesel cars ( to a certain capacity); 4 per cent cess on other higher engine
capacity vehicles and SUVs.
The Automotive Mission AMP 2026 targets a fourfold growth in the automobiles sector in India which includes the
Plan 2016-26 manufacturers of automobiles, auto components and tractor industry over the next ten
(AMP 2026) years
Notes: SME Small and Medium Enterprises, R&D - Research and Development, NATRiP National Automotive Testing and R&D
Infrastructure Project, AMP - Automotive Mission, JNNURM - Jawaharlal Nehru National Urban Renewal Mission
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 34
AUTOMOBILES
STRONG POLICY SUPPORT HAS BEEN CRUCIAL IN DEVELOPING THE SECTOR
Indian government is negotiating FTAs/PTAs with following countries:-
Agreement on South Asian Trade Free Trade Area (SAFTA), Sri Lanka, Mauritius
The Economic and Social Commission for Asia and the Pacific (ESCAP) / Generalized System of Preferences
(GSP)
India-Sri Lanka Bilateral Free Trade Area and the Proposal for Comprehensive Economic Partnership
Agreement
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) - FTA
Framework Agreement on Comprehensive Economic Co-operation between the Association of South East
Asian Nations (ASEAN) and India
Source: Society of Indian Automobile Manufactures (SIAM)
Notes: FTAs Free Trade Agreements, PTAs Preferential Trade Agreements, SAFTA South Asian Trade Free Trade Area,
ESCAP Economic and Social Commission for Asia and the Pacific, GSP Generalized System of Preferences, SACU Southern African Customs
Union, CECA Comprehensive Economic Cooperation Agreement, BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic
Cooperation, ASEAN Association of Southeast Asian Nations
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 35
AUTOMOBILES
BOOST TO R&D IN THE AUTO COMPONENTS SECTOR - NATRIP CENTRES
Business description
Research, design, development and testing of vehicles
Vehicles Research & Development
Establishment (VRDE), Ahmednagar Centre of excellence for photometry, Electromagnetic Compatibility (EMC) and
test tracks
Complete testing facilities for all vehicle categories
Indore National Automotive Test
Centre of excellence for vehicle dynamics and tyre development
Tracks (NATRAX)
In October 2014, Powertrain LAB facility has been inaugurated to support R&D
List of companies
FDI equity inflows in the automobile industry aggregated to USD11.8 billion over FY2010-16. Whereas, in FY16, FDI inflow
automobile industry accounted for 6.3 per cent of total FDI equity inflow in country.
40.00
35.12
DelhiGurgaon
30.93
Faridabad
25.83
24.30
22.42
19.43
Ahmedabad
MumbaiPune
Nashik
Aurangabad
2.73
2.53
1.54
1.52
1.30
1.24
Kolkata
0.92
Jamshedpur
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 38
AUTOMOBILES
INCREASING INVESTMENTS BY GLOBAL CAR MANUFACTURERS
Global car majors have been ramping up investments in India to cater to the growing domestic demand. Also, these
manufacturers plan to leverage Indias competitive advantage to set up export-oriented production hubs
Planning to double its current investment level of about USD2.5 billion over the next five years
Aims to raise its market share from 1.5 per cent in FY13 to 10 per cent by FY19
To increase the Chennai Plant capacity to 400,000 units a year in a few years time
On 10th September 2015, Ford has signed a MoU with the Tamil Nadu government for increasing the
manufacturing capacity of its plant and for establishing new engineering and technology center at Chennai.
Long term strategy to export 25 per cent of vehicles and to make India compact car global production base
Volkswagen announced launch of its first Made-in-India & Made-for-India compact sedan, Ameo in June 2016
The company plans to increase its production volume by 15 per cent in 2016 over 123,000 units in 2015 at Pune
plant.
Plans to launch up to eight models over the next 56 years
Honda is planning to invest USD160 million in India to expand its capacity for cars and bike by the end of 2016
This will include a new diesel engine component production and a forging plant
Expects to invest another USD163 million at Bidadi plant near Bengaluru
Toyota is planning invest USD165 million on its new engine plants and projects
Plans to invest USD552-737million over the next two to three years to develop new products
Increased the plant capacity of 20,000 units per year in Chakan Plant, which is the largest for any luxury car
manufacturer in India.
Expansion of MIDC and MoU, and to invest USD244 mn for capacity expansion in Chakan, Pune
Mercedes-Benz will introduce 15 products in 2015, including products without any predecessors in India. These
15 new products are Mercedes-Benz India's biggest product initiative till date.
Source: Respective company websites, News articles, TechSci Research
Note: MIDC - Maharashtra Industrial Development Corporation
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 39
AUTOMOBILES
OPPORTUNITIES
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
OPPORTUNITIES
Strong support from the Mahindra and Mahindra General Motors, Nissan and
government; setting up of targeting on implementing Toyota announced plans to
NATRiP centres digital technology in the make India their global hub
business for small cars
Private players, such as
Hyundai, Suzuki, GM, keen to Bajaj Auto, Hero Honda and Passenger vehicle market is
set up R&D base in India M&M plan to jointly develop a expected to touch 10 million
technology for two-wheelers units by 2020
Strong education base, large
to run on natural gas
skilled English-speaking Strong export potential in ultra
manpower Considering the potential of low-cost cars segment (to
auto market, new models of developing and emerging
Comparative advantage in
hybrid & electric cars markets)
terms of cost
launched at Auto Expo 2016
After the successful execution
Firms both National and
Tata Motors to launch of Tata Nano, the company is
Foreign are increasing their
MiniCAT, a car running on testing the electric variant of
footprints with over 1,165
compressed air, thereby the small car, Nano in India
R&D centers
stepping into the next era
Maruti Suzuki launched
Indian automobile industries where cars would not require
facelift version of Alto 800,
invest s USD100 billion for any fossil fuel and emissions
after the success of earlier
R&D sector annually would be almost nil
model
SUCCESS STORIES
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
MARUTI SUZUKI: CONTINUING TO REMAIN MARKET LEADER
Signed a manufacturing
agreement with Suzuki Motor
Gujarat Private Limited in
October 2015
Continuing market FY16
leadership Consolidated
To launch six new
revenue was
models by the end
USD8.60
Product portfolio of this year
Accounted for 45 million
expansion per cent share in
the Indian car
Increased market FY16
productivity Total sales
Product portfolio crossed
comprising 16 2011
Roll-out of 0.13 million
Enhanced R&D passenger vehicle units
capability models 10 millionth
car
1983 1994 1997 2001 2004 2006 2007 2008 2009 2010 2011 2012 2013 2015 2016
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 43
AUTOMOBILES
TATA MOTORS: LEADING IN TERMS OF INNOVATION AND GLOBAL PRESENCE
Introduction
Acquired of
stake in Megapixel,
Production of Hipo an electric
Disruptive innovation JV with vehicle
first Carrocera
Daimler AG
indigenously SA
designed LCV Consolidated
Market expansion revenue for
Launch of the
first FY16 is
indigenous USD42.09
Product portfolio billion
expansion CV Launched Acquisition
Indica, India's of Jaguar
first fully and
Enhancing Landrover
R&D capability indigenous
passenger car
Establishment
Acquisitions of Tata
Engineering & Launched
Locomotives Tata Nano
Joint Ventures
Revenue in 2015 1945 1954 1961 1977 1982 1986 1991 1998 2005 2008 2010 2012 2013 2015 2016
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 44
AUTOMOBILES
USEFUL INFORMATION
SEPTEMBER
JUNE 2016 2016
AUTOMOBILES
INDUSTRY ASSOCIATIONS
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 46
AUTOMOBILES
GLOSSARY (1/2)
CAGR: Compound Annual Growth Rate
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 47
AUTOMOBILES
GLOSSARY (2/2)
ULCC: Ultra Low Cost Car
USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 48
AUTOMOBILES
EXCHANGE RATES
Year INR equivalent of one USD Year INR equivalent of one USD
200405 44.81
2005 43.98
200506 44.14
2006 45.18
200607 45.14
2007 41.34
200708 40.27
2008 43.62
200809 46.14
2009 48.42
200910 47.42
2010 45.72
201011 45.62
India Brand Equity Foundation (IBEF) engaged TechSci to prepare this presentation and the same has been
prepared by TechSci in consultation with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The
same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any
medium by electronic means and whether or not transiently or incidentally to some other use of this presentation),
modified or in any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of TechSci and IBEFs knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.
TechSci and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.
Neither TechSci nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission
on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
SEPTEMBER
JUNE 2016 2016 For updated information, please visit www.ibef.org 50