…. the way forward
Presentation bySunil Kakkar
General Manager (SupplyChain)
Maruti Suzuki India Ltd
Indian auto industry : Among the top 10 in world
Two Wheelers
Small Cars
Commercial Vehicles
2nd
3rd
5th
Automobile Industry – A Global Hub
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15 manufacturers of passenger cars and multi-utility vehicles,
9 manufacturers of commercial vehicles,
16 manufacturers two/ three wheelers,
14 manufacturers tractors,
5 manufacturers of engines.
Key drivers for the growth of Indian Auto industry
Finance Availability
Poor public transport system
Improved Infrastructure
Low car penetration
Key drivers Rising Family Income
Exchange of Cars
Favorable duty structure
Changing lifestyle
Impact of infrastructure
2 key projects of strategic importance for India
NHDP project:
• Largest highway development project
• Golden quadrilateral - Connects 4 metros • NSEW project – Connecting North,
South & East, West lengths of India
Rapid Urbanization
Urban Percentage of Total Population
Rising GDP per Capita
Per Capita GDP (US $)
2010
2011
2012 2013 2014 2015
Accelerated overall growth of other industrial segments
…..a key enabler to fuel auto demand
Indian Pockets growing Deeper
Annual Income (INR)
Number of Households in
2010(million)
Expected Households in
2015 (million)
More than1000000
1.2
3.3
500000-1000000
2.4
5.5
200000-500000
10.9
55.1
90000-200000
91.3
106.0
Less than 90000
101.1
74.1
TOTAL
206.9
244.0
Indian Car Buyer getting Younger
40
35
30
25
39
2000
Average Age
36
2005
33
2010
?
2015
Passenger car penetration
Passenger car penetration (Cars / 1000 population)
India 15,
China 40, Europe 400 ~ 700
Some growth forecasts for Indian auto industry
• The Passenger Vehicle market of India will even cross Japan by selling about
5 million Vehicles by 2017-18.
• The Indian auto exports will be upto $5.62 billion in the year ending
March 2011 and the same will grow to $17.64 billion in