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www.datamonitor.com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected]
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India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 1
INDUSTRY PROFILE
New Cars in
India
Reference Code: 0102-0358
Publication Date: October 2011
EXECUTIVE SUMMARY
India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 2
EXECUTIVE SUMMARY
Market value
The Indian new cars market grew by 40.4% in 2010 to reach a value of $48.5 billion.
Market value forecast
In 2015, the Indian new cars market is forecast to have a value of $134.5 billion, an increase of 177.3% since 2010.
Market volume
The Indian new cars market grew by 29.2% in 2010 to reach a volume of 2.5 million units.
Market volume forecast
In 2015, the Indian new cars market is forecast to have a volume of 4.8 million units, an increase of 93.2% since 2010.
Market segmentation
India accounts for 10.9% of the Asia-Pacific new cars market value.
Market share
Maruti Suzuki is the leading player in the Indian new cars market, generating a 35.3% share of the market's volume.
Market rivalry
Rivalry within the new cars market has been intensified, as a consequence of recent economic turbulence and the presence of strong, international incumbents.
CONTENTS
India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 3
TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
MARKET OVERVIEW 7
Market definition 7
Research highlights 8
Market analysis 9
MARKET VALUE 10
MARKET VOLUME 11
MARKET SEGMENTATION 12
MARKET SHARE 13
FIVE FORCES ANALYSIS 14
Summary 14
Buyer power 15
Supplier power 16
New entrants 17
Substitutes 18
Rivalry 19
LEADING COMPANIES 20
Hyundai Motor Company 20
Maruti Suzuki India Limited 24
Tata Motors Limited 28
MARKET FORECASTS 33
Market value forecast 33
Market volume forecast 34
MACROECONOMIC INDICATORS 35
APPENDIX 37
Methodology 37
Industry associations 38
Related Datamonitor research 38
CONTENTS
India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 4
Disclaimer 39
ABOUT DATAMONITOR 40
Premium Reports 40
Summary Reports 40
Datamonitor consulting 40
CONTENTS
India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 5
LIST OF TABLES Table 1: India new cars market value: $ billion, 2006–10 10
Table 2: India new cars market volume: thousand units, 2006–10 11
Table 3: India new cars market segmentation: % share, by value, 2010 12
Table 4: India new cars market share: % share, by volume, 2010 13
Table 5: Hyundai Motor Company: key facts 20
Table 6: Hyundai Motor Company: key financials ($) 21
Table 7: Hyundai Motor Company: key financials (KRW) 22
Table 8: Hyundai Motor Company: key financial ratios 22
Table 9: Maruti Suzuki India Limited: key facts 24
Table 10: Maruti Suzuki India Limited: key financials ($) 25
Table 11: Maruti Suzuki India Limited: key financials (Rs.) 25
Table 12: Maruti Suzuki India Limited: key financial ratios 26
Table 13: Tata Motors Limited: key facts 28
Table 14: Tata Motors Limited: key financials ($) 30
Table 15: Tata Motors Limited: key financials (Rs.) 31
Table 16: Tata Motors Limited: key financial ratios 31
Table 17: India new cars market value forecast: $ billion, 2010–15 33
Table 18: India new cars market volume forecast: thousand units, 2010–15 34
Table 19: India size of population (million), 2006–10 35
Table 20: India gdp (constant 2000 prices, $ billion), 2006–10 35
Table 21: India gdp (current prices, $ billion), 2006–10 35
Table 22: India inflation, 2006–10 36
Table 23: India consumer price index (absolute), 2006–10 36
Table 24: India exchange rate, 2006–10 36
CONTENTS
India - New Cars 0102 - 0358 - 2010
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LIST OF FIGURES Figure 1: India new cars market value: $ billion, 2006–10 10
Figure 2: India new cars market volume: thousand units, 2006–10 11
Figure 3: India new cars market segmentation: % share, by value, 2010 12
Figure 4: India new cars market share: % share, by volume, 2010 13
Figure 5: Forces driving competition in the new cars market in India, 2010 14
Figure 6: Drivers of buyer power in the new cars market in India, 2010 15
Figure 7: Drivers of supplier power in the new cars market in India, 2010 16
Figure 8: Factors influencing the likelihood of new entrants in the new cars market in India, 2010 17
Figure 9: Factors influencing the threat of substitutes in the new cars market in India, 2010 18
Figure 10: Drivers of degree of rivalry in the new cars market in India, 2010 19
Figure 11: Hyundai Motor Company: revenues & profitability 23
Figure 12: Hyundai Motor Company: assets & liabilities 23
Figure 13: Maruti Suzuki India Limited: revenues & profitability 26
Figure 14: Maruti Suzuki India Limited: assets & liabilities 27
Figure 15: Tata Motors Limited: revenues & profitability 32
Figure 16: Tata Motors Limited: assets & liabilities 32
Figure 17: India new cars market value forecast: $ billion, 2010–15 33
Figure 18: India new cars market volume forecast: thousand units, 2010–15 34
MARKET OVERVIEW
India - New Cars 0102 - 0358 - 2010
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MARKET OVERVIEW
Market definition
The new cars market consists of the initial retail sale of passenger cars. The market value is calculated at retail selling price (RSP) and the market volume is given in terms of units sold. Any currency conversions used in this report have been calculated at constant 2010 annual average exchange rates.
For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.
MARKET OVERVIEW
India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 8
Research highlights
The Indian new cars market had total revenue of $48.5 billion in 2010, representing a compound annual growth rate (CAGR) of 23.8% between 2006 and 2010.
Market consumption volumes increased with a CAGR of 16.5% between 2006 and 2010, to reach a total of 2.5 million units in 2010.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 22.6% for the five-year period 2010 - 2015, which is expected to drive the market to a value of $134.5 billion by the end of 2015.
MARKET OVERVIEW
India - New Cars 0102 - 0358 - 2010
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Market analysis
The Indian new cars market has, apart from 2008, seen strong, double digit growth in recent years. This growth is expected to continue to the end of the forecast period.
The Indian new cars market had total revenue of $48.5 billion in 2010, representing a compound annual growth rate (CAGR) of 23.8% between 2006 and 2010. In comparison, the Chinese market increased with a CAGR of 21.7%, and the Japanese market declined with a compound annual rate of change (CARC) of -0.9%, over the same period, to reach respective values of $178.7 billion and $138.1 billion in 2010.
Market consumption volumes increased with a CAGR of 16.5% between 2006 and 2010, to reach a total of 2.5 million units in 2010. The market's volume is expected to rise to 4.8 million units by the end of 2015, representing a CAGR of 14.1% for the 2010-2015 period.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 22.6% for the five-year period 2010 - 2015, which is expected to drive the market to a value of $134.5 billion by the end of 2015. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 16.5% and 0.7% respectively, over the same period, to reach respective values of $383 billion and $142.9 billion in 2015.
MARKET VALUE
India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 10
MARKET VALUE
The Indian new cars market grew by 40.4% in 2010 to reach a value of $48.5 billion.
The compound annual growth rate of the market in the period 2006–10 was 23.8%.
Table 1: India new cars market value: $ billion, 2006–10 Year $ billion Rs. billion € billion % Growth2006 20.7 949.2 15.6 2007 24.3 1,116.8 18.3 17.7%2008 25.3 1,163.7 19.1 4.2%2009 34.5 1,586.6 26.0 36.3%2010 48.5 2,228.2 36.5 40.4%
CAGR: 2006–10 23.8%
Source: Datamonitor D A T A M O N I T O R
Figure 1: India new cars market value: $ billion, 2006–10
Source: Datamonitor D A T A M O N I T O R
MARKET VOLUME
India - New Cars 0102 - 0358 - 2010
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MARKET VOLUME
The Indian new cars market grew by 29.2% in 2010 to reach a volume of 2,464.2 thousand units.
The compound annual growth rate of the market in the period 2006–10 was 16.5%.
Table 2: India new cars market volume: thousand units, 2006–10 Year thousand units % Growth2006 1,339.42007 1,510.8 12.8%2008 1,518.1 0.5%2009 1,907.8 25.7%2010 2,464.2 29.2%
CAGR: 2006–10 16.5%
Source: Datamonitor D A T A M O N I T O R
Figure 2: India new cars market volume: thousand units, 2006–10
Source: Datamonitor D A T A M O N I T O R
MARKET SEGMENTATION
India - New Cars 0102 - 0358 - 2010
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MARKET SEGMENTATION
India accounts for 10.9% of the Asia-Pacific new cars market value.
China accounts for a further 40.3% of the Asia-Pacific market.
Table 3: India new cars market segmentation: % share, by value, 2010 Category % ShareChina 40.3Japan 31.2India 10.9South Korea 6.6Rest of Asia-Pacific 11.0
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 3: India new cars market segmentation: % share, by value, 2010
Source: Datamonitor D A T A M O N I T O R
MARKET SHARE
India - New Cars 0102 - 0358 - 2010
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MARKET SHARE
Maruti Suzuki is the leading player in the Indian new cars market, generating a 35.3% share of the market's volume.
Hyundai Motor Co. accounts for a further 11.9% of the market.
Table 4: India new cars market share: % share, by volume, 2010 Company % ShareMaruti Suzuki 35.3%Hyundai Motor Co. 11.9%Tata Motors Limited 7.3%Other 45.5%
Total 100%
Source: Datamonitor D A T A M O N I T O R
Figure 4: India new cars market share: % share, by volume, 2010
Source: Datamonitor D A T A M O N I T O R
FIVE FORCES ANALYSIS
India - New Cars 0102 - 0358 - 2010
© Datamonitor. This profile is a licensed product and is not to be photocopied Page 14
FIVE FORCES ANALYSIS
The new cars market will be analyzed taking car manufacturers as players. The key buyers will be taken as consumers and fleet operators, and suppliers of commodity items, such as metals as the key suppliers.
Summary
Figure 5: Forces driving competition in the new cars market in India, 2010
Source: Datamonitor D A T A M O N I T O R
Rivalry within the new cars market has been intensified, as a consequence of recent economical turbulences and due to presence of strong, international incumbents.
The new cars market has a large number of buyers. Manufacturers have invested significantly in brand building. Whilst switching costs are low and buyers are price-sensitive, this brand power means buyer power is weakened. Key inputs include commodities like steel, whose price may be difficult for manufacturers to control, and other inputs such as fabricated components and labor. Although there are high capital requirements for viable manufacturing scale, as the market shows signs of recovering from the recent economic downturn, incumbents may face more threat from new entrants. Substitutes such as used cars and public transport offer a strong threat to car makers. Concentration within particular geographic regions can be quite high, due to years of consolidation that have left relatively few major players.
FIVE FORCES ANALYSIS
India - New Cars 0102 - 0358 - 2010
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Buyer power
Figure 6: Drivers of buyer power in the new cars market in India, 2010
Source: Datamonitor D A T A M O N I T O R
The new cars market will be analyzed taking manufacturers as players and end-users, both consumers and fleet operators, as buyers. This assumes that the intermediaries (dealers) are transmitting end-user demand fairly reliably to manufacturers. The new cars market offers a great deal of choice for customers, with a variety of manufacturers making products with high levels of differentiation. For many buyers, who are price-sensitive, switching costs are low. However, manufacturers have invested heavily in brand building, meaning buyer power is weakened. This market is essentially a polypsony, with a large number of vehicles being sold to an equally large number of consumers, none of whom have a particularly large market share. This reduces buyer power. Car leasing companies offer a partial exception to this. Through bulk purchasing and contractual arrangements, favorable prices can be obtained, along with an enhanced degree of buyer power. Overall, buyer power in the new cars market is assessed as moderate.
FIVE FORCES ANALYSIS
India - New Cars 0102 - 0358 - 2010
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Supplier power
Figure 7: Drivers of supplier power in the new cars market in India, 2010
Source: Datamonitor D A T A M O N I T O R
Key inputs required by car manufactures include commodity items, such as metals, as well as more differentiated input such as fabricated components, produced by other companies rather than being manufactured in-house. There is often little to distinguish between suppliers, with raw materials offering low differentiation. This reduces buyer power somewhat. Despite this, the high importance of the quality of raw materials and components to the car manufacturers (particularly when safety-critical) can enhance supplier power. Manufacturers’ margins have been affected by the global fluctuating price of raw materials, such as steel and aluminum, during recent years. The upstream competitive landscape is relatively fragmented, although recent consolidation in the steel industry could boost supplier power. Typical suppliers are likely to sell to a wide variety of manufacturing companies, with the car market likely to be contributing only a small share of total supplier revenues. This further strengthens the position of suppliers. Overall, supplier power is moderate.
FIVE FORCES ANALYSIS
India - New Cars 0102 - 0358 - 2010
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New entrants
Figure 8: Factors influencing the likelihood of new entrants in the new cars market in India, 2010
Source: Datamonitor D A T A M O N I T O R
It is relatively difficult for new players to directly enter a particular country’s market due to the importance of brand strength and reputation within the new cars market. Those that succeed often do so through the introduction of successful foreign brands. Due to the high fixed costs in car design and manufacture, as well as the economies of scale gained from mass production, new start-up companies are rare: the capital requirements for a manufacturing facility of feasible scale are high. Unlike the new cars market in many other countries, the Indian market has continued to grow at a rapid rate, experiencing double digit growth in 2010. This is likely to be attractive to possible new entrants. The threat of new entrants is assessed as moderate.
FIVE FORCES ANALYSIS
India - New Cars 0102 - 0358 - 2010
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Substitutes
Figure 9: Factors influencing the threat of substitutes in the new cars market in India, 2010
Source: Datamonitor D A T A M O N I T O R
The main substitutes threatening players in the new cars market are used cars, alternative forms of personal transport, and public transport. Auto manufacturers totally committed to conventionally-powered cars may see hybrid powered vehicles as a threat. These are often cheaper alternatives, and offer a more environmentally friendly option, which is generally rewarded by governments, i.e. through lower taxes. Public transport, and substitutes, such as cycles, can reduce the effect of volatile fuel prices for the user. However, end-users may also find them less convenient, less reliable, and less significant as status symbols. Overall, the threat from substitutes - particularly in countries affected by recession and with high consumer awareness of environmental factors - is strong.
FIVE FORCES ANALYSIS
India - New Cars 0102 - 0358 - 2010
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Rivalry
Figure 10: Drivers of degree of rivalry in the new cars market in India, 2010
Source: Datamonitor D A T A M O N I T O R
A relatively small number of large companies dominate the new cars market, with Maruti Suzuki, Hyundai and TATA Motors holding a strong market position. Rivalry is reduced somewhat due to a degree of differentiation, with several different segments within the market, such as luxury and budget. Companies utilize a high level of design and marketing to promote their product. The Indian new cars market has not been as affected as many by the economic downturn. After a deceleration in 2008, the market has experienced double digit growth in recent years. Despite this, rivalry in the new cars market is strong.
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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LEADING COMPANIES
Hyundai Motor Company
Table 5: Hyundai Motor Company: key facts Head office: 231 Yangjae-dong, Seocho-gu, Seoul 137 938, KOR Telephone: 82 2 3464 1114 Website: worldwide.hyundai.com Financial year-end: December Ticker: 5380 Stock exchange: Seoul Source: company website D A T A M O N I T O R
Hyundai Motor Company (Hyundai) is an automobile manufacturer in Korea. The company is engaged in the design, development and manufacturing of automobiles. The company is part of the Hyundai Group, which includes companies with diverse market range including electronics, finance, shipping and shipbuilding. It primarily operates in Korea, North America, Europe and Asia. Hyundai has over 6,000 sales points and 24 overseas manufacturing plants and distributors in 180 countries worldwide.
The company operates through two business segments: non-financial industry and financial industry.
The non-financial industry segment of Hyundai deals with the design, development, and manufacturing of automobiles. The company divides this segment into three categories: passenger vehicles, recreational vehicles, and commercial vehicles. Hyundai's product line-up includes subcompact and compact cars; mini-vehicles; mid-size, luxury, sports and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks and buses.
In FY2010, the company sold approximately 1,730,696 vehicles which included 657,897 vehicles sold in South Korea and 1,072,799 vehicles sold through exports. Out of the exports, North America accounted for 287,796 vehicles, Africa and Middle East accounted for 291,148 vehicles, Latin America accounted for 219,786 vehicles, Asia Pacific accounted 169,771 and Europe accounted 104,298.
The company sells its passenger cars through its Equus, Genesis, Azera, Sonata, Getz, Elantra, Accent, Genesis Coupe, i10, 120, 130, Grandeur, Centennial, and Santro brands. The company markets its recreational vehicles under Veracraz, Terracan, Santa Fe, Tucson, H1, Trajet, and Matrix brand names. Hyundai markets its commercial vehicles including pickup trucks, minivans, trucks and buses through Hyundai HD, County, Aero town, Super Aero city, Aero, and Universe brand names.
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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Hyundai owns and operates three principal automobile production plants in Korea: the Ulsan plant, Asan and Jeonju. Ulsan is Hyundai's chief production plant and is located on a 5,050,000 square meters site comprising five independent plants. This plant has over 34,000 employees and its daily average production capacity is 5,400 vehicles. Asan is an independent automobile production plant with a capacity of producing 30,000 mid to large size passenger vehicles annually. With a capacity of producing 125,000 units per year, the Jeonju plant is specialized in producing mid-to large-sized buses of 2.5 tons or more apart from trucks, and specialty vehicles. In addition, the company owns nine overseas manufacturing plants including two plants in China, two in India, and one each in Alabama, Turkey, Czech Republic, Russia and Brazil.
Hyundai financial services business provides financing to dealers and their customers for the purchase or lease of the company's vehicles. The company also provides retail leasing through the purchase of lease contracts originating from Hyundai dealers.
Key Metrics
The company recorded revenues of $97,071 million in the fiscal year ending December 2010, an increase of 23.1% compared to fiscal 2009. Its net income was $4,691 million in fiscal 2010, compared to a net income of $2,553 million in the preceding year.
Table 6: Hyundai Motor Company: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 54,875.0 60,007.9 68,745.8 78,856.1 97,070.7Net income (loss) 1,315.7 1,450.5 1,248.3 2,553.3 4,691.3Total assets 22,786.9 25,508.8 27,733.8 30,560.4 101,802.4Total liabilities 8,948.5 9,815.1 10,790.4 11,567.7 70,130.3Employees 54,115 55,629 137,000 110,704 78,270 Source: company filings D A T A M O N I T O R
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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Table 7: Hyundai Motor Company: key financials (KRW) KRW million 2006 2007 2008 2009 2010Revenues 63,648,025.
069,601,504.0 79,736,351.
091,463,064.
0 112,589,679.
0Net income (loss) 1,526,063.0 1,682,419.0 1,447,904.0 2,961,509.0 5,441,279.0Total assets 26,429,958.
029,586,929.0 32,167,729.
035,446,135.
0 118,077,818.
0Total liabilities 10,379,130.
011,384,298.0 12,515,438.
013,417,112.
0 81,342,217.0
Source: company filings D A T A M O N I T O R
Table 8: Hyundai Motor Company: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 2.4% 2.4% 1.8% 3.2% 4.8%Revenue growth 8.2% 9.4% 14.6% 14.7% 23.1%Asset growth (0.9%) 11.9% 8.7% 10.2% 233.1%Liabilities growth (10.6%) 9.7% 9.9% 7.2% 506.3%Debt/asset ratio 39.3% 38.5% 38.9% 37.9% 68.9%Return on assets 5.7% 6.0% 4.7% 8.8% 7.1%Revenue per employee $1,014,044 $1,078,716 $501,794 $712,315 $1,240,203Profit per employee $24,313 $26,075 $9,112 $23,064 $59,937 Source: company filings D A T A M O N I T O R
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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Figure 11: Hyundai Motor Company: revenues & profitability
Source: company filings D A T A M O N I T O R
Figure 12: Hyundai Motor Company: assets & liabilities
Source: company filings D A T A M O N I T O R
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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Maruti Suzuki India Limited
Table 9: Maruti Suzuki India Limited: key facts Head office: Nelson Mandela Road, Vasant Kunj, New Delhi 110070, IND Telephone: 91 11 46781000 Fax: 91 11 46150275 Website: www.marutisuzuki.com Financial year-end: March Ticker: 532500, MARUTI Stock exchange: Bombay, India Source: company website D A T A M O N I T O R
Maruti Suzuki India (MSIL) is engaged in the manufacturing and distribution of passenger cars and spare parts. It is a majority owned subsidiary of Suzuki Motor (SMC) of Japan. The company offers a range of spare parts and accessories of all the vehicles. It was formerly known as Maruti Udyog Limited.
MSIL's business segments comprise primary segment and other activities. The company manufactures, purchases and sells motor vehicles and spare parts (automobiles). The other activities of the company comprise facilitation of pre-owned car sales, fleet management and car financing.
The company has two manufacturing facilities; one at Gurgaon and the other at Manesar in India. Both the facilities have a combined capability to produce over a 1.2 million passenger car units annually.
MSIL's facility in Gurgaon comprises three fully integrated plants with a total installed capacity of 350,000 cars per year. The facility also includes `K' Engine plant, which has an installed annual capacity of 500,000 engines. In FY2010, the company produced 1,027,879 passenger cars and light duty utility vehicles.
The Manesar facility manufactures models such as Swift, A-star, SX4 and DZire. The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds a 70% equity the rest is held by MSIL. In FY2010, the company started work on an additional plant of 250,000 cars per annum capacity at Manesar.
The company offers luxury cars, sports utility vehicles and multi-purpose vehicles. Additionally, MSIL offers entry-level cars such as Maruti 800 and Alto; family cars such as Ritz, A star, Swift, Wagon R, Estilo and Eeco; luxury cars such as DZire and SX4; and sports utility vehicle such as Grand Vitara.
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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The company has a sales network of 802 outlets spread over 555 cities in India. In FY2010, MSIL sold 1,018,365 vehicles, of which 870,790 units were sold in the domestic market and 147,575 units were exported. Moreover, of the total units sold in India, 33,028 units were M800 models; 633,190 units (Alto, WagonR, Zen, Swift, A-Star and Ritz models); 99,315 units (SX4, D'zire models); 3,932 units (Gypsy, Grand Vitara models); and 101,325 units (Omni, Versa and Eeco models). The company also provides maintenance support to customers through 2,740 workshops spread over 1,335 towns and cities of India.
The company's service businesses include TrueValue, which is involved in the sale and purchase of pre-owned cars. The company offers insurance and finance services such as Maruti Insurance and Maruti Finance. MSIL's N2N fleet management system offers a range of services including, leasing, maintenance, convenience services and remarketing.
Key Metrics
The company recorded revenues of $6,442 million in the fiscal year ending March 2010, an increase of 43.2% compared to fiscal 2009. Its net income was $571 million in fiscal 2010, compared to a net income of $267 million in the preceding year.
Table 10: Maruti Suzuki India Limited: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 2,643.5 3,219.3 3,941.1 4,498.4 6,441.9Net income (loss) 265.4 345.8 389.6 267.2 571.4Total assets 1,857.8 2,279.8 2,762.0 3,061.1 3,693.7Total liabilities 644.6 754.5 883.9 978.8 1,041.6 Source: company filings D A T A M O N I T O R
Table 11: Maruti Suzuki India Limited: key financials (Rs.) Rs. million 2006 2007 2008 2009 2010Revenues 121,432.0 147,884.0 181,041.0 206,638.0 295,915.0Net income (loss) 12,191.0 15,883.0 17,899.0 12,274.0 26,247.0Total assets 85,342.0 104,724.0 126,875.0 140,616.0 169,673.0Total liabilities 29,612.0 34,659.0 40,604.0 44,963.0 47,847.0 Source: company filings D A T A M O N I T O R
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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Table 12: Maruti Suzuki India Limited: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 10.0% 10.7% 9.9% 5.9% 8.9%Revenue growth (8.6%) 21.8% 22.4% 14.1% 43.2%Asset growth (7.0%) 22.7% 21.2% 10.8% 20.7%Liabilities growth 60.6% 17.0% 17.2% 10.7% 6.4%Debt/asset ratio 34.7% 33.1% 32.0% 32.0% 28.2%Return on assets 13.8% 16.7% 15.5% 9.2% 16.9% Source: company filings D A T A M O N I T O R
Figure 13: Maruti Suzuki India Limited: revenues & profitability
Source: company filings D A T A M O N I T O R
LEADING COMPANIES
India - New Cars 0102 - 0358 - 2010
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Figure 14: Maruti Suzuki India Limited: assets & liabilities
Source: company filings D A T A M O N I T O R
LEADING COMPANIES
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Tata Motors Limited
Table 13: Tata Motors Limited: key facts Head office: Bombay House, 24, Homi Mody Street, Fort, Mumbai, Maharashtra
400001, IND Telephone: 91 22 5665 8282 Website: www.tatamotors.com Financial year-end: March Ticker: TTM, 500570 Stock exchange: New York, Bombay Source: company website D A T A M O N I T O R
Tata Motors (or the company) is one of the leading automobile manufacturers in India with a portfolio that includes light commercial vehicles, medium and heavy commercial vehicles, utility vehicles, and passenger cars. The company has its assembly operations in India, South Korea, South Africa, Thailand, Bangladesh, Singapore, Spain and the UK. The company belongs to Tata Group, one of the leading business groups in India.
Tata Motors operates through three business segments: Jaguar Land Rover; Tata vehicles, spares, and financing; and other operations.
Tata Motors acquired the Jaguar Land Rover business from Ford Motor Company in 2008. Jaguar Land Rover is a global premium automotive business, which designs, manufactures, and sells Jaguar luxury performance cars and Land Rover premium all-terrain vehicles. Tata Motors acquired the global businesses relating to Jaguar Land Rover including three major manufacturing facilities and two advanced design and engineering facilities in the UK together with national sales companies spread across the world. Jaguar's principal products are the X-Type, XF, XJ, and XK. Land Rover's principal products include the Defender, Freelander 2 (LR2), Discovery (LR3), Range Rover Sport, and Range Rover. In FY2010, the company sold 47,459 units of Jaguar and 146,382 units of Land Rover.
The Tata vehicles, spares, and financing segment designs, manufactures, assembles, sells and services commercial and passenger vehicles, utility vehicles, spare parts, components and accessories. The segment also provides finance for all its dealers and customers. The company's manufacturing facilities are located in Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka), in India; supported by a nation-wide dealership, sales, services and spare parts network comprising over 3,500 individual locations.
LEADING COMPANIES
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The company manufactures a variety of passenger cars, including the Tata Indica (a compact car), the new generation of the Indica, the Indica Vista, the Tata Indigo, (a mid-sized car), and the Indigo Marina, (a station wagon version). These passenger cars are manufactured in gasoline and diesel engine versions. The company also offers Tata Nano, the world's cheapest car.
The company also produces utility vehicles including the Tata Sumo and the Tata Safari. Both the Tata Sumo and the Tata Safari have various variants to meet different consumer preferences such as the Safari DICOR 2.2 VTT range, and the Sumo Grande, a special utility vehicle (SUV) with the comforts of a family car.
The commercial vehicles of the company include light commercial vehicles and medium and heavy commercial vehicles. The company manufactures a variety of light commercial vehicles (LCV), including pickup trucks, trucks, and buses with a gross vehicle weight (GVW) between 0.7 ton and 7.5 tons. This also includes the Ace, India's first indigenously developed mini-truck with a 0.7 ton payload; the Magic, a passenger variant for commercial transportation developed on the Ace platform; and the Winger. The medium and heavy commercial vehicles of the company include buses, dumpers, and multi-axled vehicles with GVW between 9 tons to 49 tons. In addition, the company manufactures a range of high horsepower trucks ranging from 220 horsepower to 400 horsepower, including in dump trucks, tractor-trailers, mixers, and cargo vehicles, through Tata Daewoo Commercial Vehicle (TDCV), a wholly-owned subsidiary in South Korea.
The company's total vehicle production capacity in India as of March 31, 2010 was 1,117,143 units annually. In addition, through the manufacturing facilities of TDCV, Tata Motors has vehicle production capacity of 20,000 units annually in South Korea. The company's Marcopolo plant in Brazil has capacity of 15,000 units; has bus body building capacity of 330 units in Spain and 240 units in Morocco, and Tata Motors' joint venture in Thailand has capacity of 25,000 units.
The company sold 675,761 units of Tata and other brand vehicles in FY2010. Out of which, 629,878 units were sold in India while 45,883 units were sold outside of India. Out of the total vehicles sold, 232,006 were passenger cars, 35,107 were utility vehicles, 228,987 were light commercial vehicles, and 179,661 were medium and heavy commercial vehicles.
Tata Motors also owns Tata Motors Finance (TMFL), which acts as the preferred financing provider for the company's dealer's customers. The company also operates a wholly-owned subsidiary named Tata Motors Insurance Services (now known as Tata Motors Insurance Broking and Advisory Services) which undertakes the business of insurance and reinsurance broking.
The company's other services primarily include information technology, services, construction equipment manufacturing, machine tools, and factory automation solutions. It also offers high-precision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations.
LEADING COMPANIES
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The company provides information technology services through its 82.5% owned subsidiary Tata Technologies (TTL). TTL provides specialized engineering and design services, product lifecycle management, and product-centric IT services to leading global manufacturers. It operates through companies, INCAT and Tata Technologies iKS. It has nine functional subsidiary companies as of March 31, 2010. Its customers include automotive, aerospace, and consumer durable manufacturers.
Tata Motors is engaged in the business of manufacturing and sale of construction equipment and providing related supporting services through Telco Construction Equipment Company (Telcon). The company owns 40% of Telcon, with the remaining 60% being held by Hitachi Construction Machinery Company (HCM) of Japan. The company also owns TML Distribution Company (TDCL), which is engaged in the business of dealing and providing logistics support for distribution of Tata Motors' products throughout India.
Tata Motors operates through 67 consolidated subsidiaries and equity method affiliates.
Key Metrics
The company recorded revenues of $20,141 million in the fiscal year ending March 2010, an increase of 30.4% compared to fiscal 2009. Its net income was $560 million in fiscal 2010, compared to a net loss of $545 million in the preceding year.
Table 14: Tata Motors Limited: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 5,179.3 7,044.8 7,763.0 15,442.9 20,140.8Net income (loss) 379.7 478.3 471.9 (545.4) 559.7Total assets 4,000.6 5,548.4 7,694.6 15,926.3 18,943.7Total liabilities 2,646.3 3,834.6 5,801.2 14,633.1 17,110.7 Source: company filings D A T A M O N I T O R
LEADING COMPANIES
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Table 15: Tata Motors Limited: key financials (Rs.) Rs. million 2006 2007 2008 2009 2010Revenues 237,916.2 323,612.0 356,600.7 709,388.5 925,192.5Net income (loss) 17,441.6 21,972.8 21,677.0 (25,052.5) 25,710.6Total assets 183,772.0 254,873.0 353,461.8 731,595.0 870,199.3Total liabilities 121,560.6 176,148.9 266,486.6 672,188.6 785,999.4 Source: company filings D A T A M O N I T O R
Table 16: Tata Motors Limited: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 7.3% 6.8% 6.1% (3.5%) 2.8%Revenue growth 35.3% 36.0% 10.2% 98.9% 30.4%Asset growth 156.2% 38.7% 38.7% 107.0% 18.9%Liabilities growth 297.2% 44.9% 51.3% 152.2% 16.9%Debt/asset ratio 66.1% 69.1% 75.4% 91.9% 90.3%Return on assets 13.7% 10.0% 7.1% (4.6%) 3.2% Source: company filings D A T A M O N I T O R
LEADING COMPANIES
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Figure 15: Tata Motors Limited: revenues & profitability
Source: company filings D A T A M O N I T O R
Figure 16: Tata Motors Limited: assets & liabilities
Source: company filings D A T A M O N I T O R
MARKET FORECASTS
India - New Cars 0102 - 0358 - 2010
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MARKET FORECASTS
Market value forecast
In 2015, the Indian new cars market is forecast to have a value of $134.5 billion, an increase of 177.3% since 2010.
The compound annual growth rate of the market in the period 2010–15 is predicted to be 22.6%.
Table 17: India new cars market value forecast: $ billion, 2010–15 Year $ billion Rs. billion € billion % Growth2010 48.5 2,228.2 36.5 40.4%2011 58.1 2,668.6 43.8 19.8%2012 72.8 3,342.3 54.8 25.2%2013 89.1 4,092.3 67.1 22.4%2014 109.0 5,006.9 82.1 22.3%2015 134.5 6,177.2 101.3 23.4%
CAGR: 2010–15 22.6%
Source: Datamonitor D A T A M O N I T O R
Figure 17: India new cars market value forecast: $ billion, 2010–15
Source: Datamonitor D A T A M O N I T O R
MARKET FORECASTS
India - New Cars 0102 - 0358 - 2010
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Market volume forecast
In 2015, the Indian new cars market is forecast to have a volume of 4,761.5 thousand units, an increase of 93.2% since 2010.
The compound annual growth rate of the market in the period 2010–15 is predicted to be 14.1%.
Table 18: India new cars market volume forecast: thousand units, 2010–15 Year thousand units % Growth2010 2,464.2 29.2%2011 2,735.3 11.0%2012 3,200.8 17.0%2013 3,657.2 14.3%2014 4,166.7 13.9%2015 4,761.5 14.3%
CAGR: 2010–15 14.1%
Source: Datamonitor D A T A M O N I T O R
Figure 18: India new cars market volume forecast: thousand units, 2010–15
Source: Datamonitor D A T A M O N I T O R
MACROECONOMIC INDICATORS
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MACROECONOMIC INDICATORS
Table 19: India size of population (million), 2006–10 Year Population (million) % Growth2006 1,119.8 1.5%2007 1,136.6 1.5%2008 1,153.1 1.5%2009 1,160.8 0.7%2010 1,176.7 1.4%
Source: Datamonitor D A T A M O N I T O R
Table 20: India gdp (constant 2000 prices, $ billion), 2006–10 Year Constant 2000 Prices, $ billion % Growth2006 666.1 9.4%2007 730.3 9.6%2008 775.3 6.2%2009 827.7 6.8%2010 912.6 10.3%
Source: Datamonitor D A T A M O N I T O R
Table 21: India gdp (current prices, $ billion), 2006–10 Year Current Prices, $ billion % Growth2006 854.1 13.5%2007 1,091.0 27.7%2008 1,192.5 9.3%2009 1,268.6 6.4%2010 1,565.9 23.4%
Source: Datamonitor D A T A M O N I T O R
MACROECONOMIC INDICATORS
India - New Cars 0102 - 0358 - 2010
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Table 22: India inflation, 2006–10 Year Inflation Rate (%)2006 6.6%2007 6.4%2008 8.4%2009 10.9%2010 12.0%
Source: Datamonitor D A T A M O N I T O R
Table 23: India consumer price index (absolute), 2006–10 Year Consumer Price Index (2000 = 100)2006 129.32007 137.52008 149.02009 165.22010 185.0
Source: Datamonitor D A T A M O N I T O R
Table 24: India exchange rate, 2006–10 Year Exchange rate ($/Rs.) Exchange rate (€/Rs.)2006 45.3188 56.85962007 41.3570 56.58982008 43.8145 64.11152009 48.8500 67.92642010 45.9361 60.9708
Source: Datamonitor D A T A M O N I T O R
APPENDIX
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APPENDIX
Methodology
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Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends
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APPENDIX
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Industry associations
International Organization of Motor Vehicle Manufacturers
4 rue de Berri, F 75008 Paris, France Tel.: 0033 1 4359 0013 Fax: 0033 1 4563 8441 http://www.oica.net/htdocs/Main.htm
Society of Indian Automobile Manufacturers (SIAM)
Core 4B, 5th Floor, India Habitat Centre, Lodi Road, New Delhi - 110 003 Tel.: 0091 11 464 7810/12 Fax: 0091 11 464 8222 http://www.siamindia.com
Related Datamonitor research
Industry Profile
Global new cars
New Cars in Australia
New Cars in Europe
New Cars in Asia-Pacific
New Cars in Japan
APPENDIX
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