Automobile & Auto Component

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Automobile & Auto Component

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Automobile Industry: India

4th

in passenger vehicle production

in the world

7th

in commercial vehicle production

in the world

Source: Society of Indian Automobile Manufacturers (SIAM), ACMA Annual Report 2019, FDI Factsheet (DPIIT Sep 2019), Invest India

2 Wheeler 79%

Passenger13%

Commercial 4%

3 wheeler 4%

Automobile Category wise share

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Ve h i c l e s p r o d u c e d ( U n i t s )

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Ve h i c l e s ex p o r t e d ( U n i t s )

CAGR 6.8%CAGR 6.2%

$ 24.2 bn FDI Inflow (5.1% of total FDI from 2000 to 2020)

24.5 mn 2-Wheeler(Units manufactured in 2018-19)

4.63 mn Vehicles Exported (In 2018-19, growth of 14.5% YoY)

1st

in 2-wheeler production in the

world

4th

in automobile production in the

world

31 mn Vehicles Produced (In 2018-19, growth of 6.3% YoY)

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2.3%Share in India's

GDP

1.5 mn.Employment

generated

13%Industry Growth

Rate

4%Share in India’s

export

Source: ACMA Annual Report 2019

3538.41 39.05

43.55

51.2

56.52

0

10

20

30

40

50

60

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

10.1611.21 10.83 10.9

13.5

15.17

0

2

4

6

8

10

12

14

16

2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Auto Component Annual Turnover (in US$ billion)

Auto Component Export (in US$ billion)

Engine Components26%

Suspension& Braking

16%

Body/ Chassis/ BiW 14%

Drive Transmission &

Steering 13%

Elect & Electronics12%

Interiors (non-electro) 11%

Consumables & Misc. 6%

Cooling Sys. 1%

Rubber 1%

Auto Component wise Share

Auto Component: India

$ 56.52 bn Industry(in 2018-19. $ 200 bn projection by 2026)

$ 15.17 bn export (in 2018-19)

$ 10.1 bn Aftermarket segment (in 2018-19)

USA, Germany, UK, Thailand & Italy (Top destinations for exports)

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Source: Automotive Mission Plan 2016-26 (AMP), National Electric Mobility Mission Plan 2020 (NEMMP), NATRiP

• AMP aims to keep automotive industry as front runner in ‘Make in India’ program and tocontribute more than 12% in GDP and 40% in manufacturing sector.

• Prominent intervention points under AMP are encouragement to Electric Vehicles,Free Trade Agreements, Skill Development, Automotive Specific Infrastructure, Export &Transportation services etc.

Automotive Mission Plan 2016-26 (AMP)

Government of India Policies

• Setting up of testing and R&D facilities in automotive technology to create globalcompetencies.

• Enhancement of skills for product development and manufacturing.

National Automotive Testing R&D Infrastructure Project (NATRiP)

• NEMMP encourages reliable, affordable and efficient EVs for promotion & developmentof manufacturing, infrastructure, technology & awareness.

• Under Fame-2 scheme incentivizing & promoting e-vehicles & charging infrastructurewith total outlay of INR 10000 Cr., w.e.f. 1st April 2019

National Electric Mobility Mission Plan 2020 (NEMMP)

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Growth Drivers

Source: Economic Survey 2019-20 Invest India, India Brand Equity Foundation (IBEF),

• Ease of Doing Business

• Simplified Tax Structure

• Availability of low costlabor

• Cost advantage as comparedto European & Americanmarkets

• Rise in demand of vehiclesdue to growth in middleincome group and youngpopulation

• Proximity to the Gulf andASEAN markets for Export(United States of America,Sri Lanka, Africa, Nepal &Bangladesh etc.)

• Government Incentives for Electric Vehicle & Charging infra.

• ‘Make in India’ initiative to boost manufacturing

• India has 6 million km ofroadways in the year 2019,~30 km of roads built perday

• High demand of commercialvehicle due toinfrastructure developmentby Government of India

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Automotive Value Chain

• Powertrain Lab• Safety Lab/Fatigue Lab• Vehicle Evaluation• Engine/Body/ Chassis

Design• R&D Track

• Steel, aluminum, copper

• Glass • Rubber • Special fibers

• Engine• Gearbox parts• Drive axle• Steering • Suspension• Brakes

• Ports• Railways• Road Transport

• Distribution• Retailing• Equipment/

Accessories• Auto Service

Co

mp

on

en

ts

Source: https://www.iacegujarat.com/, http://www.madehow.com/Volume-1/Automobile.html, https://www.natrip.in/, https://www.garc.co.in/garc-facilities/power-train-lab/

R&D and DesignRaw Material

Supply

Parts and

Components

Export & Transport

Sales & Service

• Testing R&D center under NATRiP

• Robust Supply of material such as steel, copper, rubber etc.

• Up to 95% of the auto components manufactured locally

• Strong network of Ports, Railways lines and National highways

• Well organized Distribution network which includes storage, facilities, inventory and servicesS

tre

ng

th

• R&D opportunities in Electric vehicle & components development

• Huge Market for specialize raw material

• Manufacturing of Automobile electronics and key parts

• Automobile export capacity and Shipping infrastructure

•Manufacturing of high quality service apparatus

•Labor skill institutes

Op

po

rtu

nit

y

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Gujarat Auto Industry

Gujarat Auto Industry Map

Source : Directorate General of Commercial Intelligence and Statistics data, GIDC Gujarat

Delhi- Mumbai Industrial Corridor influence area

0.099 0.106 0.11

0.29

0.86

1.1

0

0.2

0.4

0.6

0.8

1

1.2

2012-13 2013-14 2014-15 2015-16 2016-17 2018-19

Value of Auto & Auto Component Export (US$ billion)

Well-developed auto clusters in Ahmedabad-Sanand, Mandal-Becharaji, Hansalpur–Vithalpur, Vadodara-Halol and Rajkot

Rajkot

Halol

Ahmedabad

Bharuch

Sanand

Vadodara

Becharaji

Dholera

Pipavav

MundraKandla

Mandal

Jamnagar

• Emerging investment destination for major automobile & ancillarycompanies with plug & play infrastructure

• Clusters comprising automobile, castings & machine tools, brassparts, engines, electric motors, bearings and auto-ancillaries

• Ideal automobile export-hub with excellent port connectivity andwell connected to northern, central and western regions in India

• Motor vehicle registration reached 25.2 million in 2018-19, additionof 6.5 million in last 5 years

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Auto & Auto Component Companies in Gujarat

Company Name Location Product Capacity (in units) Investment

Tata MotorsSanand, Ahmedabad

Cars (including EV)

0.15 million vehicles per annum

US$ 777 million

Ford India Pvt. Ltd. (FIPL)

Sanand, Ahmedabad

Cars0.24 million vehicles and 0.27 million engines per annum

US$ 1606 million

Maruti Suzuki India Ltd. (MSIL)

Hansalpur –Becharaji

Cars0.75 million units per annum

US$ 1604 million

MG Motor India (SAIC Motor Corp. Limited)

Halol, Vadodara

Cars80,000 units per annum

US$ 308 million

Honda Motorcycles and Scooters India (HMSI)

VithalapurTwo wheelers

1.2 million per annum

US$ 212 million

Hero MotoCorp(HMCL)

Halol, Vadodara

Two wheelers

1.8 million per annum

US$ 213 million

Maxxis Rubber India Pvt. Ltd. (MRIPL)

Sanand, Ahmedabad

Tires & tubes

20,000 tires and 40,000 tubes per day

US$ 314 million

MRFDahej, Bharuch

Tires & tubes

1 million tires per month (est.)

US$ 446 million

1 US$ = Rs. 65

Automobile

Tyre Manufacturing

Auto-Ancillaries

Electric Vehicle Research & Development

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Auto-Components Companies in Gujarat

SANAND

Auto Component Suppliers

Products

FCC Clutch, Pulley Assembly

Endurance HPDC Parts

Radiant Small Plastic Parts

Hilex Cable: Brake, Throttle

Lumax Ind. Cushion Assembly

Motherson Sumi Systems Painted Bumpers

JBM Stampings

Magna(Cosma) Stampings

Yanfeng Instrument Panels

Valeo Eng Cooling Syst

Mahabal Machined/Ferrous castings

Visteon(Hanon) HVAC

Yazaki Wiring Harness

Kautex Plastic Fuel Tank

Magna Seat Assembly

Grupo Antolin Hard Trims

Saargumi Dyn Weather Strip

Caparo Eng. India Pvt Ltd. Sheet Metal Parts

Lumax Industries Ltd Lights and Lamps

Tata Autocomp System Ltd. Bumpers and Dashboard

Rico Auto Industries Ltd. Engine casting

Rucha Engineers Pvt. Ltd. Engine Components

Tata Yazaki Autocomp Ltd. Wiring Harness

Cluster wise Major Auto Component Supplier

Auto Component Suppliers Products

BADVE Chassis, Suspensions, BIW

ROCKMANAluminum Die Casting, Alloy Wheels

AG Industries Ltd Clutchplate, Gearbox, Gasket

SATYAM Auto Components Fuel Tank, Chassis, BIW

ENDURANCE Suspension, Transmission

VARROCLighting, electrical-electronics & precision metal component

NAPINO Electronic & Transmission Sys.

AUTOFIT Seat, Wheel Assembly

Yangfeng India Automotive Interior Systems Pvt. Ltd Automotive Interior

Munjal Auto Industries LtdExhaust, Wheel, Accessories, Complete Assembly

Liuzhou Wuling Automobile Industry Co., Ltd Vehicles & Auto parts

Lumax Industies Limited Lighting Systems

ASAL BIW, Body & Structural Panel

Caparo Engineering India LtdMetal Stamping, Fastening, Forging

Hannon Automotive Systems India Pvt Ltd HVAC, Compressor, Controller

Yangfeng Adient Seating Co.,Ltd. Seat, Overhead systems

HALOL OTHER

LocationAuto Component

SuppliersProducts

ChattralAdvik Bracket L Brake Assy

Modern Crank Shaft

GIDC-Mandal

TSMD Seat

Roki-Minda Air Cleaner

Karsanpura

Fiem Ind. Light, Plastic parts

JRG Automotive Plastic Parts

Varroc Polymers Plastic Parts

MahesanaJNS Speedometer

Jay-ushin Key Set, switches

ViramgamASK Hub, Grip RR, C'case covers

Bony Polymers Rubber Parts

Vithalapur

Badve Weld Parts: F/ Body, Muffler

NMPL Weld Parts: F/ Body, Muffler

Newswan Weld Parts: F/ Body,

Indo Auto Weld Parts: F/ Body, Muffler

Bharuch

Continental Carbon

Carbon Black, Power and steam

Nocil Rubber Chemicals

Merchem Rubber Chemicals

Lanxess Rubber Chemicals

PCBL Carbon Black

Gujarat Reclaim reclaim rubber

Acmechem Rubber Chemicals

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Success Story: Suzuki Motor Gujarat Pvt Ltd

MSIL executed a State Support Agreement with GOG on in 2012 forestablishment of integrated facility for the manufacture of vehicleswhich was subsequently assigned to Suzuki Motor Gujarat PrivateLimited (SMG)

Development in the region

• 43 Auto-ancillary companies invested approximately $ 462 Mn• SMG Collaborated with 5 ITIs for Skill development, 5 more to adopt• SMG-MSIL planning to open Hi-Tech Hospital & School• Establishment of Japan-India Institute for Manufacturing (JIM)

• Establishment of International Automobile Center of Excellence (IACE)

Investment: $ 1604 Mn

Employment:~26500

Production:• 0.75 mn Vehicles/annum• 0.5 mn Engine/annum• 0.32 mn Transmission/annum

Government Support:Incentives: $ ~65.5 Mn

Growth of Suzuki Motors : Testimony of development of Automobile Sector in Gujarat

SMG @ Hansalpur-Becharaji, Gujarat

“For the Suzuki group, setting up of this new manufacturing facility in Gujarat is the start of a new era. Under the “Make in India” program proposed by

the Prime Minister H.E. Mr. Narendra Modi, we will set up a state-of-the-art production plant here in Gujarat,

with high focus on productivity and efficiency.”

Mr. Osamu Suzuki,

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Auto Hub 1: Sanand

Sanand Industrial Estate spread across 2000+ hectares with presence of several major multinational auto and auto component companies

Outline

• Auto & Component• Engineering• MSME

Focus Sectors

• Highways: Connected through NH-8A, SH-17, SH-74, SH-135 and SH –144

• Railways: Ahmedabad (35 km)

• Airports: Ahmedabad (35 km), Baroda (130 km), Surat (280 km)

• Ports: JNPT Mumbai (570 km), Kandla (276 km), Mundra (320 km) & Pipavav (287 km)

Support Infrastructure

•Power: One 400/Three 66 KV substations, One 66KV under construction•Waste treatment: Naroda & Vatva (50 km)•Water: Supply by GIDC•Gas: Supply by GSPL

Utilities

Source: GIDC- https://gidc.gujarat.gov.in/

Sanand

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Auto Hub 2: Khoraj (at Sanand III)

It spans across 1438 hectare of land, out of which 612 hectare of land is developed as Japan Industrial Township.An ecosystem of core manufacturing, allied industries, supporting facilities including testing labs, warehousing, logistic support etc.

Outline

•Auto & Ancillary• Engineering• Pharmaceutical

Focus Sectors

• Ports: Kandla (266 km), Dahej (272 km), Mundra (324 km) & Hazira (318 km)


• Airports: Ahmedabad (45 km)

• Capacity building through training institutes and incubation center


• Power supply: ▸Five 66/11 KV substation and one 200KV

substation is under planning▸Three 66/11 KV substation is under

planning exclusively for Japanese zone.• Water supply:

▸Permissible limit of 11 KLD/ ha area of land

▸Planning of 30 lakhs ltr capacity of Sump & 15 lakh ltr. Capacity ESR

• GAS:▸Supply of GAS at factory doorstep by GSPL▸Charges INR 32/SCM for GAS

Utilities


Khoraj

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Auto Hub 3: Mandal-Becharaji (MBSIR)

Spread over an area of 102 sq. km. A Japanese Industrial Zone developed at MBSIR which is be home to major auto companies.

Outline

•Auto & Ancillary• Engineering• Electronics

Focus Sectors

• Ports: Mundra (300 km) & Kandla (240 km)


• Airports: Ahmedabad (89 km)

• Urban Areas Nearby: Ahmedabad, Kadi, Surendranagar, Mehsana

• Integrated Operation Centre, City Surveillance and Data Center

• Solid waste management


• Power supply: 2 Existing 66KV substations, Proposed 16 new 400/220/66 KV substations

• Water supply: For Industrial use 45000 L/ha

• Gas supply: Supplied by Gujarat Gas Ltd.

Utilities


Mandal Becharaji

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Auto Hub 4: GIDC Bhagapura

To create value chain with the auto giants such as Maruti Suzuki, GIDC has identified & acquired approximately 273 ha of land in Bhagapura, Ahmedabad for developing Maruti Suzuki Vendors Park

Outline

•Auto & Ancillary• Engineering• Electronics• Plastics

Focus Sectors

• Ports: Kandla (275 km), Mundra (325 km), Dahej (330 km) & Hazira (381km)

• Railways: Viramgam(30 km), Ahmedabad (90 km)

• Airport: Ahmedabad(90 km)

• Urban Area: Ahmedabad

• Nearest Auto Component Hub: Sanand (70-80 km)


• Power supply: One 66 KV substation is operational and two 66KV and one 220 KV substation is under planning (INR 7.5/kwh)

• Water supply: Available from Narmada Canal (at INR 47.3/KL)

• GAS: Existing pipeline from Vapi to Mehsana by GSPL (at INR 32/SCM)

Utilities


MA Extrusion India

Roki Minda Company

TS Tech (Mandal Pvt. Ltd)Munjal Kiriu India Pvt. Ltd

Murakami Corporation

Topre Corporation

Presence of Japanese Companies

GIDC Bhagapura

Technotrends Autopark Pvt. Ltd.Plug & Play Facility

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Auto Hub 5: Dholera (DSIR)

• Large & contiguous land parcels for industrial development • Notified Area 920 sq.km. & Development Area of 422 sq. km.• Fully serviced plots – Plug & Play• Lowest utility cost in India

Outline

• Auto & Ancillary• Electronics• Heavy

Engineering

• Pharmaceuticals• IT/ITES• Aerospace &

Defense

Focus Sectors

• Road: 6 lane Ahmedabad-Dholera expressway

• Airport: DholeraInternational Airport, Ahmedabad (125 km)

• Ports: Pipavav (209km), Kandla (330km), Mundra (396km)

• Multimodal TransportHub: BRT, MRTS, Para-Transport, Rail & Cycle

• Planned EV chargingstation


• Power: Lowest terrify in the country (INR 4.5-5.5/ kwh)

• 5000 MW Solar Park

• Water: Treatment Plant (capacity 50 MLD), 114km Potable water network (INR 40/KL), Treated water(INR 40/KL)

• GAS: Natural Gas (640-750 MMBTU)

• 135km underground ICT duct

Utilities

Ahmedabad -Dholera6 lane Expressway

Solar Park Development (in CRZ -1B) 5000 MW

BhimnathDholera Freight Line connecting to DFC

International Airport

Activation area (22.54

sqkm)

MRTS within the RoW

Multimodal Transport HubHub for MRTS, LTR, BRT, Regional bur and rail, para transport, Cycle & pedestrian integration

Logistic Park

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Auto Hub 6: Halol II

• Halol Expansion has an area of 601 hectares.

• Halol-Savli has been declared as a Special Investment Region, spread over an area of 123 sq. kms.

Outline

• Auto & Ancillary• Electronics

• Engineering• Plastics

Focus Sectors

• Road: Connected to NH-8 &NE-1 through 4 lane StateHighway No 87

• Airport: Vadodara (42km), Ahmedabad (155 km)

• Ports: Dahej (175km), Hazira (220km), Kandla (450km), Mundra (500km)

• Railways: Baroda-Godhrabroad-gauge (6km)


• Power: 220 KV power line passing and two 66KV substation proposed

• Water: Available through supply network (INR 40/KL)

• GAS: Supply to factory doorstep (INR 32/ SCM)

Utilities


GIDC Halol-II

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Japan-India Institute for Manufacturing (JIM)

• Institution between government, industry and educational institute for development of skilledmanpower through various courses for Fitter, Electrician, Welder, Mechanic Diesel, MechanicMotor Vehicle, Mechanic Auto Body Repair, Mechanic Auto Body Painting and Driver cumMechanic etc.

• Institute has dual certificate system of Government of India and the Government of Japan

• Exemplary standard in terms of quality training. Equipped with features such as mini vehicleassembly line, engine assembly line, safety lab, welding simulators etc.

Skill Development

Source: Maruti Suzuki website, Team Lease University website, Hyundai India website

Skill University

• A first of its kind private university established at Vadodara in collaboration with TeamLease Foundation with the aims to create an open and a flexible system which permitsaccumulation of productive knowledge

• University offers industry responsive academic programs with active participation ofindustries in curriculum design, implementation, internship, assessment and job placement

Other Initiatives

• Hyundai Motor India Ltd. opened a State-of-the-art Regional Training Centre in Ahmedabadfor skilling approx. 2000 technician

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International Automobile Centre of Excellence (I-ACE)

• Government of Gujarat had entered into an agreement with MarutiSuzuki India Limited to establish I-ACE, a Center of Excellence inthe automobile sector with equal share.

• I-ACE is the apex center for skill development through moderntechnology for the automotive sector

• It caters to the skill requirement of the entire value chain of theautomotive industry encompassing both Manufacturing & Servicing

International Automobile Centre of Excellence

Source: https://www.iacegujarat.com/

Welding

Painting

Machining

Lean Manufacturing

Engine & Engine cooling

Transmission & Driveline

Steering & Suspension

Brakes

Courses

Manufacturing &

Servicing

Vehicle System

LightingInjection Molding

Exhaust

Batteries

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Investment Opportunities

Electric Vehicle - Mega Opportunity

• 2/3/4 wheeler & Commercial EVs

• EV Charging Infrastructure

• Hybrid/Autonomous Vehicle

• Battery & Components

Vehicle Components

Vehicle Production

Passenger Car

2-Wheelers

3-Wheelers

Commercial Vehicles

Axel, Exhaust, Transmission

Seats, Door Panels

Glass Windshield and Windows

Air Conditioning, Electronic Systems

Engine, Gear Box

Automobile Textiles

Others

Tyre Manufacturing

Car Accessories

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Connect for more Information

Industries Commissionerate

Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar, Gujarat, India - 382 010http://ic.gujarat.gov.in/ Phone: 079-23252683E-mail: [email protected]

Industrial Extension Bureau (iNDEXTb)

Block No. 18, 2nd floor, Udyog Bhavan, Gandhinagar, Gujarat, India – 382 010www.indextb.com Phone: 079-2325 6009E-mail: [email protected]

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Automobile & Auto Component