Auto Ancillary
Auto Ancillary
Auto Ancillary
70000
60000 Agriculture
17%
50000
40000
32,811
26,588 36,064
30000 20,696
18,763
20000 16,704
11,173 14,803 10,324
10000 9,617 11,550
5,893 10,142 Industry
4,950 6,364 7,260 8,957 9,523
0 20%
2003-04 2005-06 2006-07 2007-08 2008-09 2009-10 Services
63%
After several consecutive years of strong growth, the world economy entered into the worst recession which started in
third quarter of 2008.
All the advanced economies faced deep economic crisis , as the world GDP dropped by 1.3% in 2009.
The signs of recovery shall be visible from fourth quarter of 2010.
The Indian economy which has also been impacted by the global turmoil, posted a growth of 6.7% in FY 2009.
The Indian Automobile Industry is expected to reach the Market size of INR 2684 Billion by the end of 2010 from INR 2324 Billion in
2009.
The total number of Automobiles on the Indian roads has reached a mark of 2.6 Million in 2009.
The Indian Automobile Industry contributes nearly 7.5% to the GDP.
73,924
80,000 There are more than 25,000
70,000 61,603
items and parts that are
60,000 51,336
42,780 produced in Indian Auto
50,000
40,000 Ancillary Industry every
30,000 year.
20,000
10,000
-
2006 2007 2008 2009
The Indian Auto Ancillary Industry grew at a CAGR 20% for past couple of years.
Having gained the global recognition, the Indian Auto Ancillary Industry exports are placed at around INR 16,000 crores.
The sector is composed of 500 medium and large players, besides over 5,000 units in the small scale sector.
Owing to Improved performance by the auto industry in the domestic market as well as on the export front, the overall production
jumped to INR 70,000 crores in 2009.
Suspension &
Braking Parts
12%
An interesting insight provided by a study conducted by the National Council of Applied Economic Research revealed
that the market segments for auto components included OEMs constituting 33%, local components having 25% with the
balance 42% comprising of spurious market including re-conditioned parts. A large part of the spurious or grey market
companies are in the unorganised sector.
Transmission Suspension
Engines and Electrical
and steering and braking Equipments Others
Engine Parts parts
parts parts
Brake and
Pistons and Starter Sheet metal
Gears brake Headlights
Piston rings motors parts
assemblies
Engine
Brake Halogen Body and
valves and Wheels Spark plugs
linings Bulbs chassis
parts
Fuel-
Electric
injection Steering Shock Wiper
ignition Fan belts
systems & systems absorbers motors
systems
carburetors
Cooling
Dashboard Flywheel Pressure die
system and Axles Leaf springs
instruments magnetos castings
parts
Hydraulic
Power train Other panel Other
Clutches pneumatic
components instruments equipments
instruments
Availability
Increasing
of Low Cost
demand for
Skilled GROWTH
vehicles
Labour DRIVERS
OF INDIAN
AUTOMOBILE
Policy
Low-cost and INDUSTRY initiatives to
high-quality promote
standards growth in the
sector
GROWTH OF
INDIAN
AUTO
ANCILLARY
SECTOR
W E
Competitive
Positioning and
Techno-Economic Acquiring Larger
Analysis of New Market Share and
Business Brand Image
Segments & Building
Leveraging
Traditional
approach with
GROWTH