View
19
Download
0
Category
Preview:
DESCRIPTION
auto industry India
Citation preview
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 1/18
India automotive market
review – forecasts to 2014
January 2010
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 2/18
Page i
© 2010 All content copyright Aroq Ltd. All rights reserved.
India automotive market review –
forecasts to 2014
January 2010
By Modus Priori
Published by
Aroq Limited
Seneca House
Buntsford Park Road
Bromsgrove
Worcestershire
B60 3DX
United Kingdom
Tel: +44 (0)1527 573 600
Fax: +44 (0)1527 577 423
Web: www.just-auto.com
Registered in England no: 4307068
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 3/18
Page ii
Single-user licence edition
This report is provided for individual use only. If you would like to share this
report with your colleagues, please order additional copies or sign up for a
multi-user licence by contacting:
Chris Clarke
Research manager, just-auto.com
Tel: +44 (0)1527 573 615
Email: chris.clarke@just-auto.com
Copyright statement
© 2010 All content copyright Aroq Limited. All rights reserved.
This publication, or any part of it, may not be copied, reproduced, stored in a
retrieval system, or be transmitted in any form by any means electronic,
mechanical, photocopying, recording or otherwise without the prior written
permission of Aroq Limited. This report is the product of extensive research
work. It is protected by copyright under the Copyright, Designs and Patents Act
1988. The authors of Aroq Limited’s research reports are drawn from a wide
range of professional and academic disciplines. The facts within this report are
believed to be correct at the time of publication but cannot be guaranteed. All
information within this study has been reasonably verified to the author’s and
publisher’s ability, but neither accept responsibility for loss arising from
decisions based on this report.
Incredible ROI for your budget – single and multi-user licences
We understand the pressure your research budget is under and price our
reports realistically. You won’t find our reports with four, or even five-figure
price tags, but you will find that they make some of the competition look
expensive. Each title is available to you on a single-user basis, supplied on the
strict understanding that each title is not to be copied or shared. Alternatively,
titles can be shared within departments or entire corporations via a cost-
effective multi-user licence. Multi-user licences can also save you money by
avoiding unnecessary order duplication. To further add value, all multi-user
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 4/18
Page iii
© 2010 All content copyright Aroq Ltd. All rights reserved.
copies are hosted on a password protected extranet for your department or
company – saving you time, resources and effort when sharing research with
your colleagues. To find out more about multi-user pricing, please contact
Chris Clarke.
just-auto.com membership
From just GBP99/US$170/EUR115* a year you will gain access to a growing
portfolio of exclusive management briefing reports, and also receive 12 new
briefings for each year you are a member. As well as this impressive list of
members’ only reports, you also gain one year’s access to a constantly-
updated stream of news, feature articles and analysis. Established in 1999,
just-auto has rapidly evolved into the premier source of global automotivenews, analysis and data for busy senior executives. For details of the current
special joining offer visit: www.just-auto.com/offer.aspx
*Prices correct at time of publication.
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 5/18
Page iv Contents
© 2010 All content copyright Aroq Ltd. All rights reserved.
Contents
Single-user licence edition............... ..................... .................... ...................... ..................... ....... ii Copyright statement............. ..................... ..................... .................... ...................... .............. ii Incredible ROI for your budget – single and multi-user licences .................. .................... ....... ii just-auto.com membership.... .................... ..................... .................... ...................... ..............iii
Contents.................. ..................... ..................... ..................... ...................... .................... ........... iv List of tables .................. ...................... .................... .................... ...................... ..................... .. viii Chapter 1 Introduction ..................... ..................... .................... ...................... ..................... ....... 1 Chapter 2 Key market drivers ................. ..................... .................... ...................... .................... . 3
Market penetration..... .................... ..................... .................... ...................... ..................... .... 3 Price sensitivity and positioning .................... .................... .................... ...................... ........... 3 Fuel prices................... ...................... .................... .................... ...................... .................... .. 4 High economic growth rate .................... .................... ..................... ...................... ................. 4 Taxation................ ..................... ..................... .................... ....................... .................... ........ 5 Increasing urbanisation levels...... .................... ..................... .................... ...................... ....... 5 Strong domestic consumption......... ..................... .................... .................... ...................... .... 6 Demographics............................ ..................... ..................... ...................... .................... ........ 6 Vehicle finance .................... ..................... .................... .................... ...................... ............... 7 Infrastructure development .................... .................... ..................... ...................... ................. 7
Chapter 3 Light vehicle sales trends ..................... .................... ..................... ...................... ...... 9
Segment classification................... ..................... ..................... ...................... .................... .... 9 Vehicle sales.............................. ..................... .................... ...................... .................... ......... 9 Market share analysis... ..................... ..................... .................... ...................... ................... 15 Market share analysis... ..................... ..................... .................... ...................... ................... 18
Compact car segment....................... ..................... .................... ...................... ............ 18 Mid-size car segment........................ ..................... .................... ...................... ............ 20 Executive car segment ................. ..................... ..................... .................... ................. 22 Premium car segment....................... ..................... .................... ...................... ............ 23 Luxury car segment ................... ..................... .................... .................... ..................... 25
Chapter 4 Light vehicle export trends ................... .................... ..................... ...................... .... 27 Chapter 5 Commercial vehicle sales trends..................... .................... ...................... .............. 29 Chapter 6 Commercial vehicle export trends...................... .................... ...................... ........... 31 Chapter 7 Vehicle sales forecasts .................. ..................... .................... ...................... ........... 33 Chapter 8 OEM profiles .................... ..................... .................... ...................... .................... ...... 42
Maruti Suzuki India .................... ..................... ..................... .................... ...................... ...... 42 Hyundai Motor India...... ..................... ..................... .................... ...................... ................... 44
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 6/18
Page v Contents
© 2010 All content copyright Aroq Ltd. All rights reserved.
Tata Motors ................. ..................... ..................... .................... ...................... .................... 45 Mahindra & Mahindra...................... ..................... .................... ...................... .................... .. 48 Toyota .................. .................... ...................... .................... ...................... .................... ....... 50 Honda.. ..................... .................... ..................... ..................... ...................... .................... ... 52 Ford.................. ..................... ..................... ..................... ...................... .................... .......... 53
General Motors .................... ..................... .................... .................... ...................... ............. 54 Volkswagen .................. .................... ..................... .................... ...................... .................... 56 Reva Electric Car Company........ ..................... .................... .................... ...................... ...... 57
Chapter 9 Supplier profiles ..................... ..................... .................... ...................... ................... 59 Bharat Forge................. .................... ..................... .................... ...................... .................... 59 Bosch ................... .................... ...................... .................... ...................... .................... ....... 60 Tata Auto Component Systems .................... ..................... .................... ...................... ........ 62 Lumax Industries .................... ..................... ..................... .................... ...................... ......... 63 Sona Koyo................... ..................... ..................... .................... ...................... .................... 64 Anand Automotive Group...... .................... ..................... .................... ...................... ............ 65 Motherson Sumi Systems .................. ..................... .................... .................... ..................... 66 Apollo Tyres........................ ..................... ..................... .................... ...................... ............. 68 JK Tyres & Industries........... ..................... .................... .................... ...................... ............. 69 Subros .................. .................... ...................... .................... ...................... .................... ....... 70
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 7/18
Page vi List of figures
© 2010 All content copyright Aroq Ltd. All rights reserved.
List of figures
Figure 1: Passenger car production in India, 2004-2008 (in vehicle units).. .................... .............. 10 Figure 2: Passenger car sales in India, 2004-2008 (in vehicle units) .................... ..................... ... 10 Figure 3: Sales of passenger vehicles by category, 2004-2008 (in vehicle units) ................... ...... 11 Figure 4: Growth in vehicles sales across categories, 2006-2008 (in % terms) ................. ........... 12 Figure 5: Growth in passenger vehicles sales across segments, 2006-2008 (in % terms)... ......... 14 Figure 6: Growth in UV sales, 2006-2008 (in % terms)................................ ...................... ........... 14 Figure 7: Manufacturer market shares across all vehicle categories, 2005-2009* (in % terms)..... 15 Figure 8: Manufacturer market shares for compact car segment, 2005-2008 (in % terms)........... 19 Figure 9: Manufacturer market shares for mid-size car segment, 2005-2008 (in % terms) ........... 20 Figure 10: Manufacturer market shares for executive car segment, 2005-2008 (in % terms)........ 22 Figure 11: Manufacturer market shares for premium car segment, 2005-2008 (in % terms)......... 24 Figure 12: Manufacturer market shares for luxury car segment, 2005-2008 (in % terms) ............. 26 Figure 13: Vehicle exports across all light vehicle categories, 2004-2008 (in vehicle units) .......... 28 Figure 14: Growth in vehicle exports across all light vehicle categories, 2005-2008 (in % terms). 28 Figure 15: Commercial vehicle production, 2004-2008 (in vehicle units) ..................... ................. 29 Figure 16: Commercial vehicle sales (domestic), 2004-2008 (in vehicle units) ................... .......... 30 Figure 17: Growth in commercial vehicle sales (domestic), 2005-2008 (in % terms) .................... 30 Figure 18: Commercial vehicle exports, 2004-2008 (in vehicle units)................... ..................... ... 31 Figure 19: Growth in commercial vehicle exports, 2005-2008 (in % terms) .................... .............. 32 Figure 20: Sales forecast across all light vehicle categories, 2009-2014 (in vehicle units)............ 33 Figure 21: Growth in sales of light vehicles, 2009-2014 (in % terms).......................... .................. 33 Figure 22: Sales forecast for minicars, 2009-2014 (in vehicle units).......... ..................... .............. 34 Figure 23: Growth in sales of minicars, 2009-2014 (in % terms)................ .................... ............... 34
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 8/18
Page vi List of figures
© 2010 All content copyright Aroq Ltd. All rights reserved.
Figure 24: Sales forecast for compact cars, 2009-2014 (in vehicle units) .................... ................. 35 Figure 25: Growth in sales of compact cars, 2009-2014 (in % terms)........ .................... ............... 35 Figure 26: Sales forecast for mid-sized cars, 2009-2014 (in vehicle units) .................. ................. 36 Figure 27: Growth in sales of mid-sized cars, 2009-2014 (in % terms).................... ..................... 36 Figure 28: Sales forecast for executive cars, 2009-2014 (in vehicle units)................... ................. 36 Figure 29: Growth in sales of executive cars, 2009-2014 (in % terms) .................... ..................... 37 Figure 30: Sales forecast for premium cars, 2009-2014 (in vehicle units)................ ..................... 37 Figure 31: Growth in sales of premium cars, 2009-2014 (in % terms) ................. ...................... ... 38 Figure 32: Sales forecast for luxury cars, 2009-2014 (in vehicle units).................... ..................... 38 Figure 33: Growth in sales of luxury cars, 2009-2014 (in % terms)............ .................... ............... 39 Figure 34: Sales forecast for UVs, 2009-2014 (in vehicle units) ................... ..................... ........... 39 Figure 35: Growth in sales of UVs, 2009-2014 (in % terms).................. .................... ................... 40 Figure 36: Sales forecast for MPVs, 2009-2014 (in vehicle units).................. ..................... .......... 40 Figure 37: Growth in sales of MPVs, 2009-2014 (in % terms) .................. .................... ................ 40
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 9/18
Page vi List of tables
© 2010 All content copyright Aroq Ltd. All rights reserved.
List of tables
Table 1: Car penetration levels and per capita income in various countries, 2008..................... ..... 3 Table 2: Real GDP growth rate in India, 2007-2012 ................... ..................... ...................... ......... 4 Table 3: Industrial production growth rate in India, 2007-2012.................. .................... ................. 5 Table 4: Private consumption growth rate in India, 2008-2012 .................. .................... ................. 6 Table 5: Population growth rate in India, 2008-2012 ................... .................... ...................... ......... 7 Table 6: Vehicle classification by length and weight................... ..................... ...................... ......... 9 Table 7: Market share analysis for various brands in India, 2005-2009 ................... ..................... 17
Note: data in some tables may not sum due to rounding.
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 10/18
Page 1 Chapter 1 Introduction
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 1 Introduction
India’s passenger car industry has been growing at a robust pace fuelled by a
rapid increase in disposable household incomes.
In the fiscal year 2008/09, the automotive industry accounted for xx% of India’s
overall GDP and roughly xx% of manufacturing GDP. During the year, the
automotive industry directly employed 600,000 people and indirectly
accounted for the livelihood of xx people in India.
During 2008/09, exports accounted for approximately xx% of India’s vehicle
production. This includes passenger cars, utility vehicles (UVs), commercial
vehicles, two wheelers and three wheelers.
Between 2008 and 2012, it is estimated that OEMs and vendors will invest
US$18bn into creating new production capacity and upgrading their existing
facilities.
Most global OEMs already have a presence in India, however, the supply base
is still restricted. A key reason behind the relatively smaller presence of global
suppliers is low production volumes. Maruti Suzuki, Hyundai and Tata Motors
together account for xx% of the passenger car market (in terms of volume).
Hence, suppliers with strong linkages to South Korean and Japanese OEMs
find it easy to procure orders.
The commercial vehicle market is dominated by Tata Motors and Ashok
Leyland which together account for roughly xx% of total demand. Commercial
vehicle sales are value-driven in the upper segments and price-driven in thelower segments. In a fragmented market, where pricing is the critical decision
factor, high-value products have a limited market and acceptability. Hence new
entrants are restricted to small niches such as mining and inter-city bus
operations, whereas high value, high price vehicles can be profitably operated
on a multiple trip/multiple-shift basis.
In 2008/09, India’s automotive industry generated an aggregate turnover of
US$xx. This included vehicle sales of US$xx and component, tyre and
aftermarket sales of US$xx. In value terms, passenger cars accounted for
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 11/18
Page 3 Chapter 2 Key market drivers
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 2 Key market drivers
Market penetration
Passenger car penetration in India is amongst the lowest in the world at xx
cars per xx.
Table 1: Car penetration levels and per capita income in various countries, 2008
Countries Cars per xx person Per capita income (US$)
USA 4xx 44,710
UK 4xx 40,560
Japan 4xx 38,630
Germany 5xx 36,810
Mexico 1xx 7,830
Brazil 1xx 4,710
Chin 1xx 2,000
India 9xx 820
Source: just-auto
Price sensitivity and positioning
The Indian car market is highly price sensitive. This presents difficulties in
pricing and positioning. The market leader, Maruti Suzuki has largely used its
pricing power to maintain its dominance in the A and B segments where it
prices most of its products lower than its peers. Strong volumes generated
from lower pricing also help Maruti Suzuki in maintaining an upper hand over
its suppliers. This pricing strategy has worked effectively for players with a
product line-up with potential customers who do not overlap. The affordable
pricing of the Maruti Alto (fifth generation Suzuki Alto), which is the highest
selling car in India (2009), has largely cannibalised the sales of the Maruti 800
(second generation Suzuki Alto).
Similarly, clever pricing strategies have helped Mahindra in creating new
segments without cannibalising its existing sports-utility vehicle (SUV) offering.
In 2009, Mahindra launched the Xylo, an entry level multi-utility vehicle (MUV)
priced below competing offerings from Toyota and Tata Motors.
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 12/18
Page 9 Chapter 3 Light vehicle sales trends
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 3 Light vehicle sales trends
Segment classification
Light vehicles sold in India are classified by length and application. They are
primarily classified into three categories: passenger cars, UVs (utility vehicles)
and MPVs (multi-purpose vehicles). The passenger car category is further
divided into six segments based on the length of the vehicle as illustrated
below.
Table 6: Vehicle classification by length and weight
Vehicle category Vehicle segment Length (in mm) By weight
Passenger car Minicar Up to 3,400 -
Passenger car Compact 3,400-4,000 -
Passenger car Mid-size 4,001-4,500 -
Passenger car Executive 4,501-4,700 -
Passenger car Premium 4,701-5,000 -
Passenger car Luxury > 5,001 -
Utility Vehicles (UV) <5T
Multi-purpose
vehicles (MPV)
<3.5T
Source: just-auto
Vehicle sales
Between 20xx
and 20xx
, five major OEMs entered the Indian market (BMW,Nissan, Renault, Volkswagen and Volvo) and approximately 110 new car
models and variants were introduced. During this period, the passenger car
industry in India registered a CAGR (compound annual growth rate) of xx%
as illustrated below.
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 13/18
Page 27 Chapter 4 Light vehicle export trends
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 4 Light vehicle export
trends
The concept of using India as an export hub is underpinned by its low labour
and engineering costs. Actual export volumes of vehicles are considerably
below potential numbers, however, due to component quality issues and lack
of shipping facilities. Moreover, most OEMs have focused largely on
establishing a domestic market first. Hyundai and Maruti together account for
the majority of vehicle exports.
While Hyundai’s facilities are close to its shipping ports of Chennai and
Ennore, Maruti primarily exports through Mundra port in Gujarat. In 2008,
Maruti Suzuki invested in a dedicated rail wagon train which ferries its export
production to a dedicated car terminal it has set up at the port of Mundra.
Both Hyundai and Maruti see India as a major export centre and are actively
pursuing global production programs. Hyundai exclusively manufactures the
i10 and i20 models in India. Suzuki manufactures the seventh generation
Suzuki Alto (sold as the Maruti Suzuki A-Star domestically) exclusively in India
at Maruti Suzuki’s Manesar facility. Maruti Suzuki also supplies the seventh
generation Alto (A-Star) to Nissan which markets the car as the Nissan Pixo in
Europe. Between 2004 and 2008 passenger car exports grew at a CARG of
18%. The following chart illustrates the growth in light vehicle exports from
India between 2004 and 2008.
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 14/18
Page 29 Chapter 5 Commercial vehicle sales trends
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 5 Commercial vehicle sales
trends
The commercial vehicle market in India is dominated by Tata Motors and
Ashok Leyland. Together they account for 85% of commercial vehicle sales.
The growth in commercial vehicle production in India is illustrated by the graph
below.
Figure 15: Commercial vehicle production, 2004-2008 (in vehicle units)
Source: just-auto
Commercial vehicle sales decreased by xx% in 2008. This was attributed to
lack of credit availability and the withdrawal of vehicle financing companies
from the market during the latter half of the year. Sales of commercial vehicles
improved substantially in the first half of 2009 after the government introduced
stimulus schemes that allowed buyers to claim accelerated depreciation on
commercial vehicles purchased within a three-month window ending in March
2009. Moreover, the government directed public sector banks to resume
lending to commercial vehicle makers. This was followed by a one-time
allocation of funds to promote purchase of commercial vehicles by city
transport corporations under the JNNURM (Jawaharlal Nehru National Urban
Renewal Mission) scheme.
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 15/18
Page 31 Chapter 6 Commercial vehicle export trends
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 6 Commercial vehicle
export trends
Ashok Leyland and Tata Motors export commercial vehicles from India. Their
major export destinations include the Middle East and North Africa (MENA),
South Africa and Central Africa. Demand for commercial vehicles weakened in
2008 following the emergence of the global financial crisis. As seen in the
chart below, commercial exports contracted by xx% in 2008, representing the
first decline in the last decade.
Figure 18: Commercial vehicle exports, 2004-2008 (in vehicle units)
Source: just-auto
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 16/18
Page 33 Chapter 7 Vehicle sales forecasts
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 7 Vehicle sales forecasts
Between 2009 and 2014 the Indian passenger vehicle and UV industry is
expected to register a CAGR of xx% as illustrated in the chart below.
Figure 20: Sales forecast across all light vehicle categories, 2009-2014 (in vehicle units)
Source: just-auto
As shown in the chart below, growth in car sales is expected to register two-
digit growth rates in 2011 and 2013. In general the global economy is expected
to recover completely by 2011/12.
Figure 21: Growth in sales of light vehicles, 2009-2014 (in % terms)
Source: just-auto
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 17/18
Page 42 Chapter 8 OEM profiles
© 2010 All content copyright Aroq Ltd. All rights reserved.
Chapter 8 OEM profiles
Maruti Suzuki India
Maruti Udyog was incorporated in February 1981 as a xx% joint venture
between Suzuki and the Indian Government. However, in 2008 the Indian
Government sold the majority of its holding to Suzuki with the remaining being
offloaded to the public after a listing on the Indian stockmarket. Subsequent to
this arrangement, the company was renamed Maruti Suzuki.
At the time of its entry into India, the company faced modest competition
primarily from Hindustan Motors and PAE, which produced vintage models
borrowed from Austin and Fiat, respectively. The introduction of the company
was launched through its immensely successful model, the Maruti 800, which
was based on the first generation Suzuki Alto platform. Maruti Suzuki
continues to sell the 800 after several facelifts despite the introduction of
several rebadged-Alto platforms. At the moment, the company markets three
Suzuki Alto platforms in the Indian market.
The Maruti 800 caught the imagination of the Indian consumer and quickly
gained acceptance because of its modern product and design mix and vastly
improved component quality in comparison with its competitors’ offerings. The
company then introduced its off-road vehicle (the Suzuki Jimny re-badged as
the Maruti Gypsy), a microvan (Maruti Omni) and a subcompact sedan, (the
Maruti 1000/Esteem, a re-badged variant of the Suzuki Baleno). Between 1983
and 1998, Maruti Udyog faced little competition and developed sales and
service points across India in order to deepen product penetration. The
company gradually increased its plant capacity from 20,000 vehicles per year one 1m cars in 2008-09.
Despite the entry of several new OEMs, Maruti Suzuki is still the largest
automaker in India, cornering a 46.5% market share in 2008/09, and is ranked
as the market leader both in terms of volume and revenue. The company
focuses largely on sub-compact and compact cars, which account for the bulk
of its sales. Maruti Suzuki was the first company to introduce used car sales
dealerships and commands significant presence in the second hand car
market.
7/14/2019 India Automotive Market Review Forecast 2014
http://slidepdf.com/reader/full/india-automotive-market-review-forecast-2014 18/18
Page 59 Chapter 9 Supplier profiles
© 2010 All content copyright Aroq Ltd All rights reserved
Chapter 9 Supplier profiles
Bharat Forge
Established in 1961, Bharat Forge is the flagship company of the Kalyani
Group. The Kalyani Group has interests in alloy steels, steel-based products,
forgings and automotive components. Bharat Forge is the second largest
forging company in the world and has a manufacturing presence in India,
Germany, the US, Sweden, the UK and China. The company holds a xx%
market share in the global axle market. Bharat Forge’s Indian operations cater
to both the domestic and global market, with significant exports to North
America and Europe. The company has become the preferred supplier of
many global automotive companies.
Currently, Bharat Forge has operations across three continents: Europe, North
America and Asia. With manufacturing facilities spread across 12 locations in
six countries – four in India, three in Germany, one each in Sweden, Scotland
and the US, and two in China – the company manufactures a wide range of
safety and core components for passenger cars, SUVs, light, medium & heavy
commercial vehicles, tractors and diesel engines. Bharat Forge also engagesin the production of specialised components for the aerospace, power, energy,
oil & gas, rail & marine, mining & construction equipment, and other industries.
Bharat Forge derives xx% of its total revenue from India, while the balance is
derived from its international operations.
Over the last few years, the company has made several acquisitions, including
Carl Dan Peddinghaus and CDP Aluminiumtechnik (in Germany), Imatra Kilsta
(in Sweden), together with its 100% subsidiary Scottish Stampings Limited
(also known as the Bharat Forge Kilsta Group) and Federal Forge in the US.
BFL also has a majority stake in a joint venture with First Auto Works (FAW),
called FAW Bharat Forge (Changchun) Company Limited, which operates in
China.
Bharat Forge has been working on a dual-shore supply model, which is based
on establishing engineering and design expertise, close to its international
customers and production bases in low cost markets. To this end, Bharat
Forge has successfully acquired companies in critical automotive markets of
North America and Europe and has gained access to new customers and
Recommended