Perspectives on Importance of Automotive Industryimage-src.bcg.com/Perspectives-Importance-Auto-Industry...PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 3 AUGUST 2013 Foreword

Perspectives on Importance of

Automotive Industry

PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 3 AUGUST 2013

Foreword

The Indian Automotive industry, at ~US$ 80 billion turnover and with a rapid growth rate of

~15% for the last five years, has been a significant pillar of the India growth story. While the

current economic conditions have challenged the short term growth scenario of the sector, the

long term prospects are expected to remain robust owing to strong fundamental demand and

supply factors. In this regard it is essential to recognize the various contributions of the

Automotive industry and the role it could play in reviving the overall Indian economy.

The economic contribution of the sector is significant. The industry contributes ~22% of

India's manufacturing GDP and ~7% of India's overall GDP. To the state exchequer it

provides ~18% of the excise duties. Further, the industry has attracted FDI investments to the

tune of ~US$ 7 billion over the last decade and has helped establish a significant presence in

international markets with a year on year increase of ~18% in exports over the last 5 years.

The sector has also contributed to social development and benefited local communities. It is

one of the leading employers in the country and has helped create nearly 19 million jobs

through direct and indirect employment. The creation of automotive hubs across the country

has led to development of ecosystems around the industry with the rise of urban settlements

and strengthening of civic amenities of education and healthcare.

The Automotive industry has also been instrumental in the growth of R&D in the country

through localization and indigenization of technology over the past few decades. Several

players have undertaken acquisitions and forged alliances with multinational firms to gain

technical know–how and fast–track their progress on the technology roadmap.

We capture in this report some of these contributions and assess the potential of the sector

through global benchmarks. More importantly, we present a call for action for industry, as

well as for the policy makers, to ensure that a vibrant automotive sector continues to remain

the growth engine for India in the years ahead.

Mr. Sharad Verma

Partner & Director

The Boston Consulting Group


Contents

1. Automotive industry – Starting position ........................................................................ 5

1.1. Overview of Automotive industry in India ................................................................. 5

1.2. Contribution of Automotive industry to India's economy ........................................... 8

2. Economic contribution ..................................................................................................... 9

2.1. Driver for India's GDP growth .................................................................................... 9

2.2. Contributor to the state exchequer and FDI .............................................................. 10

2.3. Contributor to India's BoP through exports .............................................................. 10

3. Social contribution .......................................................................................................... 12

3.1. Creator of direct and indirect employment opportunities ......................................... 12

3.2. Facilitator for development of urban hubs ................................................................ 12

4. Technological contribution ............................................................................................ 14

4.1. Contributor to R&D spend ........................................................................................ 14

4.2. Driver for technology adoption ................................................................................. 15

4.3. Facilitator for new vehicle design and development ................................................. 15

5. Ten point agenda for Government and Industry ......................................................... 16

6. Bibliography .................................................................................................................... 18


1. Automotive industry – Starting position

1.1. Overview of Automotive industry in India

Over the past five years the Automotive industry in India has evolved significantly and

witnessed high growth. The turnover of the overall industry is ~US$ 80 billion, covering both

vehicles and components, and has exhibited an annual growth of ~15% during this period.

India has emerged as the second largest base for two wheelers and buses globally. India has

also become the third largest heavy truck manufacturer and the sixth largest passenger car

manufacturer in the world. On the global map, India has developed as the hub for small car

development and established itself as a best cost country sourcing location for automotive

components and engineering services.

Domestic sales across all vehicle segments have exhibited double digit growth in India. The

commercial vehicle segment witnessed a growth rate of ~20% p.a., while the passenger

vehicle and two wheeler segments have seen a growth rates upward of ~15% p.a. The three

wheeler segment grew at ~10% p.a. in this time period.

12 1318 21 22

33

43

5860 58

0

20

40

60

80

100

US$ billion

Components

Vehicles

FY13

80

FY12

81

FY11

76

FY10

56

FY09

45

+15%

Exhibit 1: Automotive industry's turnover in India (2009–13)

Source: SIAM; BCG analysis; ACMA and ATMA; Press search


While the current economic scenario has challenged the short term growth story of the

Automotive industry, we believe that this only a temporary deviation in the overall roadmap.

The long term prospects are expected to remain robust given strong fundamental drivers such

as favourable consumer demographics, increasing spends and continuing need for mobility

across the country.

0

2,000

4,000

Units ('000s)

+15%

FY13

2,686

FY12

2,630

FY11

2,520

FY10

1,951

FY09

1,553

1,000

500

0

Units ('000s)+20%

FY13

793

FY12

809

FY11

676

FY10

533

FY09

384

20,000

10,000

0

Units ('000s)

+17%

FY13

13,798

FY12

13,409

FY11

11,790

FY10

9,371

FY09

7,438

MotorcyclesScooters

1,000

500

0

Units ('000s)

+11%

FY13

538

FY12

513

FY11

526

FY10

440

FY09

350

Goods carrierPassenger carrier

LCVsM&HCVs

Exhibit 2: All vehicle segments have grown steadily in the last

5 years

Domestic sales: Passenger vehicles Domestic sales: Commercial vehicles

Domestic sales: Two wheelers Domestic sales: Three wheelers

Source: SIAM

26mn

(9%)

11mn

(4%)

80mn

(28%)

66mn

(23%)

103mn

(36%)

124mn

(66%)

47mn

25%)

11mn

(6%)

3mn

(2%)

2.3mn

(1%)

Affluent

$18.5k-$37k

Aspirers

$7.4k-$18.5k

Next Billion

$3.3k-$7.4k

Strugglers

<$3.3k

121mn

(51%)

72mn

(30%)

34mn

(14%)

10mn

(4%)

4mn

(2%)

Elite

>$37k

Annual gross

HH income1

6,393 18,4482,441

Average

Nominal HH

income ($)

202020102000

Number and % of households in different income brackets

Income growth

Exhibit 3: Significant increase in average income levels

expected in the current decade

1. Annual gross income based on 2010 pricesNote: 1 US$ = INR 46; Years represented as calendar year Source: NCAER income distributions; EuroMonitor; Indian Readership Survey 2005 and 2010; BCG analysis


Further, the industry has matured significantly over this time period. This has exhibited in the

form of reduced ownership period for cars and more frequent model refreshes creating a

strong impetus to demand.

Supply side variables such as investments in road infrastructure by the Government through

public funds, rise of PPP models and capacity expansions announced by multiple OEMs,

who have plans to enter India or expand existing capacities, will further stimulate demand.

Global benchmarks also indicate significant headroom for future growth. India currently has

~13 cars per 1,000 people while the global average for developed countries is ~400–500 cars

per 1,000 people1.

However, to ensure that the growth trajectory of the Automotive industry is revived and the

above mentioned potential of the industry is realised all the stakeholders including the

government and the industry need to act in consort.

Given this context, it is critical at this juncture to review the contribution and the impact of

the Automotive industry on the Indian economy; to step back and take stock of the

challenges faced by the industry and to align on an action agenda to refuel the growth engine.

1 Global Insights; EIU; SIAM; BCG analysis

Unit sales of passenger vehicles

2,6862,6302,520

1,951

1,553

0

1,000

2,000

3,000

4,000

'000 units

+15%

FY13FY12FY11FY10FY09

Exhibit 4: Global benchmarking indicates headroom for future

growth

Source: Global Insight; EIU; BCG Analysis; SIAM

India still significantly lags several

economies in car penetration

0

100

200

300

400

500

600

700

0 10,000 20,000 30,000 40,000 50,000

Cars per 1,000 people

GDP per–capita

United States

United Kingdom

South Africa

Singapore

Russia

Poland Japan

Italy

GermanyFrance

Czech Republic

Canada

Brazil

AustriaAustralia

Argentina

IndiaChinaNigeria

Thailand


1.2. Contribution of Automotive industry to India's economy

The Indian Automotive industry plays a critical role in the Indian economy. Its importance

and impact on the overall growth scenario can be assessed across three key dimensions:

Economic contribution through factors such as GDP, exports, FDI, domestic

investments, taxes and duties etc

Social contribution through indicators such as direct and indirect employment and

benefits to local communities and clusters around automobile hubs

Technological contribution through new technologies introduced in the country,

localization and indigenization of the same and spends on R&D

Indian economic growth

Exhibit 5: Indian Automotive industry has three key

contributions towards Indian economy

Economic

contribution

• GDP

• Taxes

• FDI

• Export

Social

contribution

• Employment

• Development

Technological

contribution

• Technology

adoption

• R&D spend

• New vehicle

design &

development

Indian Automotive industry


2. Economic contribution

2.1. Driver for India's GDP growth

Automotive sector is one of the key contributors to India's GDP. At ~US$ 80 billion, the

automotive sector accounts for ~22% of India's manufacturing GDP and ~7% of India's

overall GDP. Given the current industrial slowdown, over the past 12–18 months, the

sector's importance in reviving the manufacturing industry cannot be overstated.

It has also been one of the key drivers for India's GDP growth rate. While the Indian

economy has grown at ~8% p.a in the last five years, the Indian automotive sector has grown

at ~15% p.a. during the same period.

Currently, India's automotive demand as a percentage of GDP is substantially low compared

to several other leading developed and developing countries. This indicates significant

opportunity for greater value addition as is evidenced in other countries.

Exhibit 6: Automotive industry has huge potential to increase

its share of value addition in the overall country GDP

30

58

62

81

28

73

26

22

9003001000

US$ billion

India

232

Thailand

346Japan

842 842United States

Brazil 82

154

Russia

346

China

83

Germany

37

254

0 5 10 15 20

India 3%

China 3%

United States 6%

Japan 7%

Brazil 7%

Russia 7%

Germany 9%

Thailand 15%

Automotive demand as % of GDP Increase in automotive demand

20122007

3

8

Source: Economist Intelligence Unit; BCG Analysis

20

33


2.2. Contributor to the state exchequer and FDI

The Automotive industry contributes ~18%2 to India's excise duty collection. The sector also

attracts huge foreign investment. The Automotive industry is the 4th largest industry in terms

of FDI inflow into India. The FDI inflow for the last decade has been ~US$ 7 billion3 and

represents ~4% of the overall FDI inflow into the country. Given the potential of India, most

auto majors have announced plans to grow and strengthen their India manufacturing and

engineering bases, implying further potential flow of FDI.

2.3. Contributor to India's BoP through exports

India is emerging as a major export hub for the global automotive industry. During FY13,

automotive exports from India amounted to ~US$ 17 billion, ~ 5.5% of India's overall

export4. Exports have increased by ~18% p.a. in the last 5 years, representing an increasing

share of the exports base for the country. Both vehicle and component exports grew at a

similar growth rate of ~18% p.a with the growth consistent across vehicle segments.

Most global OEMs have also set up purchase organizations in India. Currently more than 40

IPOs of OEMs and automotive component players exists in India.

2 SIAM

3 DIPP; Ministry of Commerce; GoI

4 SIAM; OICA

5.1 4.26.7

8.8 9.7

3.7 4.8

6.0

7.37.1

0

5

10

15

20

US$ billion

+18%

FY13

16.8

FY12

16.1

FY11

12.7

FY10

9.0

FY09

8.8

185.3 178.8

251.1

306.0 300.3

0

100

200

300

400

FY11FY10FY09 FY12 FY13

US$ billion

Automotive

exports as a %

of Total India's

exports

4.7 5.0 5.3 5.65.0

Exhibit 7: Automotive exports in India have shown very

strong growth

Exports: Automotive Vs Total

Automotive exports

Vehicle and Auto Components

Source: SIAM; BCG Analysis

8.8 9.0

12.7

16.1 16.8

Automotive exports Total exports Vehicle exports Component exports


Currently, only 14% of total passenger cars and commercial vehicles produced in India are

exported. This is substantially lower than Japan and Germany, where exports account for

~30–50%5 of automotive sales respectively. The global opportunities represent a significant

potential for growth of the Automotive industry in India. These range from small car exports

to Europe; addressing vehicle markets in other emerging markets such as Africa, Latin

America, South East Asia; to establishing presence in developed markets and becoming a

primary source of automotive components to the Western OEMs.

5 OICA

1,000

500

0

Units ('000s)

FY13

555

FY12

509

FY11

453

FY10

446

FY09

336

+13%100

50

0

FY09

43

Units ('000s)+17%

FY13

80

FY12

92

FY11

76

FY10

45

Exports: Passenger vehicles Exports: Commercial vehicles

2,000

1,000

0

Units ('000s)+18%

FY13

1,961

FY12

1,975

FY11

1,540

FY10

1,140

FY09

1,004

MotorcyclesScooters

400

200

0

Units ('000s)+20%

FY13

303

FY12

362

FY11

270

FY10

173

FY09

148

Goods carrierPassenger carrier

Exports: Two wheelers Exports: Three wheelers

LCVsM&HCVs

Exhibit 8: All vehicle segments have shown robust growth in

exports in the last 5 years

Source: SIAM; BCG Analysis


3. Social contribution

3.1. Creator of direct and indirect employment opportunities

The Automotive industry has generated jobs not only through direct employment at OEMs

and automotive component companies, but also through indirect employment in allied

activities. The Automotive industry directly employs ~1 million people. In addition it also

provides employment to approximately another 18 million people through associated

industries such as vehicle finance, motor insurance, repair and service stations, drivers etc.

Thus the Automotive industry represents ~ 4% of India’s total labour force.

Further the nature of employment generated by the Automotive Industry is inclusive in

effect, as a significant share of employment is for workers with limited educational

qualification. Nearly 80% of workers indirectly employed through the automotive sector do

not have a graduate degree.

3.2. Facilitator for development of urban hubs

The manufacturing footprint of the Automotive industry in India has led to the development

of multiple automotive hubs. Over the past decade hubs have developed in Gurgaon, Pune,

Chennai and now Gujarat. When an automotive hub is developed, an entire ecosystem grows

around it. Automotive component suppliers establish their base near OEM manufacturing

locations and logistics centers get developed in the vicinity. This results in creation of new

Exhibit 9: Automotive sector generates large–scale and

inclusive employment opportunities

Automotive industry employs a workforce

of ~19 million

Employment provided by automotive sector

well spread across educational qualification

Source: SIAM; National Skill Development Council – Automotive sector report

18

1

0

5

10

15

20

million

Indirect labourDirect labour

49

33

18

100

0

20

40

60

80

100

Total

workforce

12th pass

or below

ITI or diploma

engineer

Graduate

or above

% of workforce


jobs and brings about socio–economic development to the region. Further to facilitate this

ecosystem, residential settlements evolve and civic amenities like education and healthcare

are strengthened. Thus social infrastructure gets created, fast forwarding the process of

urbanisation and development. These clusters also create positive feedback loops and further

enhance the efficiency and growth prospects of the core industries established.

The Michigan Case Study – economic and social impact of the Automotive industry

The Automotive industry has been at the centre of Michigan’s growth ever since the first

Ford Model T rolled off the assembly plant from Ford’s Piquette Avenue Plant in Detroit in

1908. Over the years, the Automotive industry has had significant influence over the

economic fortunes and social fabric of the state of Michigan.

Automotive plants attracted workers in thousands to Michigan in the early part of the 20th

century. Detroit region’s population jumped over 5.5 times between 1900 and 19506. In

1978, the Automotive industry employed more than 250,000 who worked in the Detroit

region. Other cities like Flint, Lansing also prospered due to the automotive boom.

Automotive plants provided workers with 20% to 50% higher wages than prevailing

manufacturing wages and fuelled the rising American middle class7.

In 2006, Automotive industry contributed to 10% of Michigan’s Gross State Product and

6% of its employment, not including the larger benefits in linked industries such as

transportation, logistics, finance, metal manufacturing etc8.

The financial crisis of the last decade hit the Automotive industry hard and in turn Michigan

as well. However, the Automotive industry has also been pivotal in the economy’s revival.

Auto industry contributed 18% of the 2.2% rate of growth of the US GDP between 2009 and

2012 (Q2)9. Michigan, which produces nearly 22% of vehicles manufactured in US, has

been pivotal in this growth10

.

The US economic recovery has been enabled by the Automotive industry. Working in GM’s

factory in Orion, Michigan, a 30 year old worker says she feels much happier than she did

working at a nursing home for a paltry US$ 9 per hour. Her job at GM’s factory pays her

US$ 16.78, significantly lower than the pre–crisis automotive wage levels. However as she

puts it – “It’s just an opportunity for me, It’s a better life for my kids”.

6 Combined Statistical Area (CSA)

7 Bloomberg

8 Automotive Cluster in Michigan (USA)(2009) – Michael E. Porter et al

9 Bloomberg

10 “Michigan is Auto”(Detroit Regional Chamber) (2013)


4. Technological contribution

4.1. Contributor to R&D spend

The total R&D spend in India is much lower (~ 0.9% of GDP) than several countries across

the world. However, automotive R&D spend at ~2.6% of its revenues, is much higher than

several other industries in India.

The above spend on R&D by Automotive Industry in India, is still lower than that seen in

developed countries. US and European automotive companies invest ~4% of their revenues

in R&D11

. As R&D requires significant upfront investments and entails risk, government

further support in R&D will be beneficial for the industry. In an effort to boost Automotive

R&D in the country, the Indian government has set up several centres of excellence under the

aegis of National Automotive Testing and R&D Infrastructure Project (NATRiP) in

collaboration with the state governments and the automotive sector12

.

11

ACEA 12

Batelle report on Global R&D Expenditure 2012; GDP figures taken from EIU country database at 2005

prices for real GDP

Exhibit 10: Total R&D spend in India much lower than global

benchmarks

0.0 1.0 2.0 3.0 4.0 5.0

40

80

400

120

0

R&D expenditure in FY11 (US$ billion)

R&D as % of GDP in FY11 (%)

United StatesJapan

Germany

ChinaFrance

South Korea

Israel

Sweden

FinlandSwitzerlandDenmark

AustriaAustralia

Taiwan

Singapore

Mexico

Poland

India

Turkey Russia

Brazil

SA

Italy

UK

Canada

Czech R

Netherlands

Spain

Norway

Belgium

Spend on R&D by different countries

Note: GDP values taken at real valuesSource: Batelle report on Global R&D Expenditure 2012; GDP figures taken from EIU country database at 2005 prices for real GDP


4.2. Driver for technology adoption

Given the nature of the Automotive industry, domestic supplies form a significant share of its

manufacturing. As a result substantial technology for the industry, over the past decades, has

been absorbed and indigenized. Further the imperative for localization of manufacturing is

significant, given severity of competition necessitating need to save on import duties and cost

of transportation. Automotive companies have formed joined ventures and signed technical

agreements in order to obtain knowledge of modern manufacturing processes, product design

and development.

Several acquisitions have also occurred in the automotive space in recent years as another

method to acquire technology and product portfolios. Over the last five years 25% of the

deals done by value in the industrial goods space have taken place in the automotive sector13

.

4.3. Facilitator for new vehicle design and development

India has developed as a small car manufacturing hub for the rest of the world. Leading

players in this segment use the local manufacturing base in India to export to their home

markets. The existence of a well established supply chain for small car manufacturing also

enables significant design and product innovation to take place in India.

Most global OEMs have established engineering centers in India and the concept of frugal

engineering has now become mainstream in several companies. Several companies are now

manufacturing products specifically designed for customers in the Indian market and then

using these products as base models for other similar emerging markets.

13

Capital IQ


5. Ten point agenda for Government and Industry

The growth of the Automotive industry is critical to ensure revival of the industrial sector of

the Indian economy.

We have created a ten point agenda for the government and the industry to work together to

reignite this growth engine.

1. Stimulate demand through schemes such as fleet modernisation – At present,

India does not have a robust national policy on retirement of vehicles or end-of-life of

vehicles. As a result, vehicle users in India tend to continue the usage well beyond the

expected life of the product. Such vehicles have high emission content, low fuel

efficiencies and also have lower safety standards. The government with the OEMs

can promote an incentive scheme to drive vehicle owners to replace older vehicles

with new generation products. In addition fleet modernization of government

departments can also be included in this program. This would not only help revive

new demand but also lead to ~15% reduction in carbon monoxide emissions. Further

fuel savings so caused will also benefit the exchequer by reducing petroleum imports.

2. Promote exports and provide funding support – To increase the share of Indian

Automotive sector in global exports, the government needs to support the exporters

financially and at the same time carry out soft promotions overseas, especially in

emerging markets in Africa and Latin America. The government can explore

extending export line of credit at attractive conditions and supporting brand

development of India based products.

3. Develop infrastructure to drive demand and reduce supply chain costs – The

government has announced infrastructure plans of ~US$ 400 billion to foster growth

and development. Automotive demand in several segments has a strong co-relation to

road development and increasing mobility and connectivity. India has one of the

highest logistics cost as percentage to GDP in comparison to other countries. Singular

focus on high quality execution and removing regulatory hurdles for infrastructure

projects would both drive demand for automobiles as well as improve supply chain

and logistics costs for automobile companies.

4. Improve availability of rural finance – Availability of attractive finance is one of

the key drivers of automotive demand. With demand share increasing in rural

markets, the government and the automotive sector needs to explore innovative ways

of making automotive finance available and cheaper than the informal sector. Some

potential methods include working closely with micro-finance institutions,

establishing tie-ups with institutions such as the Post Office etc.


5. Adopt innovative business models for Tier 3/4 cities – There is a significant

number of Tier 3/4 cities emerging which have a small but sizeable middle class

population and median income levels at par with leading cities in India. The

consumers in these cities have a clear aspiration for mobility, however are not

homogenous in terms of needs, preferences and behaviour. The industry must evolve

its sales and distribution models to reach these customers and create a profitable

model which can operate at lower scale than Metros and Tier 1 cities.

6. Evolve new product development models – Competition in the Indian market has

increased significantly over the last decade across segments. To drive demand and

increase market shares there has been a significant increase in new model launches,

which in the short term co-relate well with sales spikes for the automobile companies.

In this scenario, it becomes critical for the OEMs to evolve newer product

development approaches which have lower timelines and platform strategies which

commonalize parts and reduce costs. An effective multi-generation product plan is

critical to enable companies to balance return on investments with market needs.

7. Drive productivity improvement – India's labour productivity has not kept pace

with increasing costs. As a result there is an increasing threat of dilution of the India

advantage on structural costs. There is a clear need for developing vocational training

models in collaboration with educational institutions to drive skill development as

well as productivity increases. Further, power in India for industrial units is expensive

and the quality and reliability is also uncertain. Several of the auto hubs are facing

acute power shortage. Resolving coal availability and utility pricing issues on the

production side and driving distribution reforms on supply side are critical steps to

ensuring that India remains competitive on power costs.

8. Develop clusters for cost competitiveness – Clusters help the economy by ensuring

development of the overall ecosystem. The Government working with industry can

help setup these automotive clusters and drive cost competitiveness through shared

facilities, local supply chains and common development and testing centers.

9. Incentivize investment in technology and innovation – Government can explore

methods to incentivize industry to invest in research and development of new

products. Methods include incentives on commercialization of IP, cash deferral

schemes for SMEs and greater co-ordination with educational institutes on specific

subjects to develop an ecosystem of research and innovation.

10. Reform national fuel policy – The Automotive industry's investment plans are

heavily dependent on the fuel policy devised by the government. A long term fuel

policy roadmap covering various aspects of fuel emission, subsidies, availability etc

would provide clarity to the industry and reduce risk to capital. Further, the roadmap

can include benefits provided by the Government on incentives for the development

of fuel efficient vehicles and electric and hybrid vehicles.


6. Bibliography

This section outlines all references used while developing the report:

Report by National Skill Development Corporation, "Human Resource and Skill

Requirements in the Auto & Auto Components sector (2022)"

Report by Department of Heavy Industry, Ministry of Heavy Industries and Public

Enterprises, "Report of the Working Group on Automotive Sector for the 12th Five

Year Plan (2012–2017)"

Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises

(2006), "Automotive Mission Plan (2006–2016)"

Invest India website, "http://www.investindia.gov.in"

SIAM industry statistics

Eurostat by European Commission (2011), "Report on R&D expenditure"

WIPO statistics database, "http://www.wipo.int"

Economist Intelligence Unit Country Database

World bank website, "http://www.worldbank.org"

UN comtrade website, "http://www.comtrade.un.org"

Indiastat website, "http://www.indiastat.com"

IDEMA website,"http://www.idema.org"

IMTMA website, "http://www.imtma.in"

TMMA website, "http://www.tmmaindia.net"

Or, Ng & Chan Lawyers website, "http://www.onc.hk/pages/index.asp"

http://www.investindia.gov.in/

http://www.wipo.int/

http://www.worldbank.org/

http://www.comtrade.un.org/

http://www.indiastat.com/

http://www.idema.org/

http://www.imtma.in/

http://www.tmmaindia.net/

http://www.onc.hk/pages/index.asp


Society of Indian Automobile Manufacturers,

SIAM, a not-for-profit organization, is the apex

national industry body representing all major

vehicle and vehicle engine manufacturers in India.

Members include manufacturers of Passenger

vehicles, Commercial vehicles, Three wheelers,

Two wheelers and Engines.

SIAM aims to promote sustainable development of

the Indian automobile industry and enable India to

become a global automotive hub. It endeavors to

improve industry’s competitiveness, create an

environment to promote mobility, internationalize

the industry and promote India as a global hub for

Research & Development.

SIAM provides a window to the automobile

industry in India. The Society works closely with

all stakeholders in the formulation of the policies,

regulations and rules related to the Indian

automobile industry. It is a link between the

industry and other bodies including the

government. It works with various international

bodies like OICA, IMMA, UNECE, etc and

counterpart associations like VDA, SMMT, JAMA,

TAIA, AFM, ANFIA, etc.

SIAM works towards holistic development of the

industry with its activities spanning over three

broad areas – Economic & International Trade

Policy, Technical Policy and activities related to

Environment & Safety Awareness. Environment

protection and safety are the key driving principles.

Dissemination of information is an integral part of

the Society’s activities. It publishes monthly

industry statistics, other reports and organizes

various informative seminars/workshops.

Auto Expo, a biennial auto exhibition, is one of the

major activities of the society. It is planning other

regional and segment shows across the country and

abroad.

SIAM aspires to be a catalyst in the sustainable

development of the automobile industry in India.


Note to the Reader

_______________________________________________ _____

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About the authors

Sharad Verma is a Partner and Director at BCG, based at the firm's New Delhi office.

Sachin Kotak is a Principal at the firm's New Delhi office.

We gratefully acknowledge the contribution of Anupama Pande, Rakshika Sharma and

Vivek Jain from BCG India for a pivotal role in the conceptualization and writing of this report.

We would also like to thank Saroj Singh for his contributions to the editing, design and

production of this report.

For further contact

If you would like to discuss the themes and content of this report, please contact:

Sharad Verma

BCG New Delhi

+91 124 459 7025

[email protected]

Sachin Kotak

BCG New Delhi

+91 124 459 7128

[email protected]

© The Boston Consulting Group, Inc. 2013. All rights reserved.

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