Indian Automobile Industry - Passenger Cars & Utility Vehicles Outlook

Published by: CRISIL Ltd.

Published: May. 1, 2007 - 132 Pages

Table of Contents

Sections

Demand to more than double by 2011-12

Executive summary

1.0 Small cars to drive growth

Segment-wise assessment of demand drivers

Overall demand drivers for passenger cars industry

Research methodology

Key characteristics

Approach and methodology

2.0 Increasing significance of exports in Indian production

Export growth: Review and outlook

India’s position as a an export base

3.0 Player strategies

Segment presence

Commonality of platforms

Marketing and sales strategies

Parent company support

Level of indigenisation and vendor management

4.0 Rising competition to affect profitability

State of competition

Product mix changes

Benefits of process improvements and rising scale of operations

Reduction in labour cost through increase in productivity

Capacity utilisation rate to remain high despite entry of new players

Box

2.0 Increasing significance of exports in Indian production

01 Automotive Mission Plan (2006-2016)

Charts

Figures

1.0 Small cars to drive growth

01 Rapid expansion in addressable households

02 EMIs to increase with higher interest rates, stable loan tenures

2.0 Increasing significance of exports in Indian production

01 Export growth slowed down in 2005-06

02 Small car segment to be major contributor to exports

03 Export to production of major players

04 Exports to increase share in production

05 Major passenger car export regions (2005)

06 India’s share in total imports of different countries

07 Sales of major global passenger car manufacturers

3.0 Player strategies

01 Customer segment break-up of sales

02 Distribution network and sales per dealer

03 Contribution to revenue and net income of parent company

04 Margin comparison: Indian vs global operations

05 Indigenisation levels (2005-06) and import structure of units

4.0 Rising competition to affect profitability

01 Number of car models to increase

02 Passenger car and UV demand growth

03 Passenger cars: Key ratios

04 Passenger cars: Cost aggregates

05 Increasing throughput per platform

06 Importance of labour productivity MUL: Index of man-hours spent to produce one vehicle

Tables

Executive summary

01 Passenger car and UV demand growth

1.0 Small cars to drive growth

01 Passenger car and UV demand growth

3.0 Player strategies

01 Passenger cars: Company-wise, platform-wise domestic sales (in units)

4.0 Rising competition to affect profitability

01 Analysing competitive scenario in different segments

02 Increase in number of players to add to competition

03 Difference in profitability across players

04 Throughput per platform (2006-07)

Sections

1.0 Key success factors

2.0 Supply

Capacity to touch 3 million units by 2008-09

3.0 Cars and utility vehicles: Finance

Review

Outlook

4.0 Used car and UVs market

5.0 Regulations and policies

Environmental regulations

Fiscal regulations

FTA with Thailand

6.0 Fuel technologies

Factors that determine the fuel mix

Engine technology

Evolving fuels and new technologies

7.0 Domestic players

8.0 International markets

United States of America (USA)

Western Europe

Japan

China

9.0 International players

DaimlerChrysler AG

Ford Motor Company

General Motor Corporation (GMC)

Honda Motor Corporation

Hyundai Motor Corporation (HMC)

PSA Peugeot Citroen

Renault

Toyota Motor Corporation (TMC)

Volkswagen AG

Box

5.0 Regulations and policies

01 Responses to emission norms

Figures

4.0 Used car and UVs market

01 Growth in Used car sales

6.0 Fuel technologies

01 Petrol: Demand and supply

02 Diesel: Demand and supply

03 LPG: Demand and supply

04 Relative performance of gasoline engines in Brazil

8.0 International markets

01 International market size (2006)

02 Change in cars sales (2006)

03 USA: Passenger car sales

04 USA: Market share of key players

05 W Europe: Passenger car sales

06 W Europe: Market share of key players

07 Japan: Passenger car sales and exports

08 Japan: Market share of key players

09 China: Passenger car sales

9.0 International players

01 Profitability of players in 2005

02 Developing countries contribute significantly to the global growth

03 DaimlerChrysler AG: Share in key markets

04 Sharp decline in operating profit of Mercedes shrinks over all operating margin

05 Ford Motor Company: Share in key markets

06 Negative growth from PAG, North America affected overall profitability

07 General Motor Corporation (GMC): Share in key markets

08 Declining profitability in North America pulls down profitability

09 Honda Motor Corporation: Share in key markets

10 Cost reduction and Yen depreciation let to improved margin

11 Hyundai Motor Corporation (HMC): Share in key markets

12 Rise in raw materials prices, exchange rate appreciation hit profitability

13 PSA Peugeot Citroen: Share in key markets

14 Competition in European market resulted in lowered margins

15 Renault: Share in key markets

16 Lower volumes realisation in European market affected profitability

Figures

9.0 International players

17 Toyota Motor Corporation (TMC): Share in key markets

18 Exchange rate fluctuation and increase in employee costs affected profitability

19 Volkswagen AG: Share in key markets

20 High employee costs, escalation in oil, raw material prices lowers profitability

Tables

2.0 Supply

01 Cars and UVs: Capacity (2006-07)

4.0 Used car and UVs market

01 Market segmentation

5.0 Regulations and policies

01 Prescribed emission limits

02 Engine technologies for compliance of emission norms

03 Cars and utility vehicles: Tariffs

04 Difference between LST and VAT

6.0 Fuel technologies

01 Comparing costs across fuel options

02 Comparison of annual expenditure towards owning a car

7.0 Domestic players

01 Daimler Chrysler India Private Limited (subsidiary of Daimler Chrysler Group)

02 Fiat India Private Limited

03 Force Motors Limited

04 Ford India Limited (subsidiary of Ford Motor company)

05 General Motors Ltd (subsidiary of General Motors Corporation)

06 Hindustan Motors Limited

07 Honda Siel Cars India Limited (subsidiary of Honda Motors Corporation)

08 Hyundai Motors India Limited (subsidiary of Hyundai Motor Corporation)

09 Mahindra & Mahindra Ltd

10 Maruti Udyog Limited (subsidiary of Suzuki Motors Corporation)

Tables

7.0 Domestic players

11 Skoda Auto India Private Limited (subsidiary of Volkswagen Group)

12 Tata Motors Ltd

13 Toyota Kirloskar Motors Ltd

9.0 International players

01 Ratings of major global players

02 DaimlerChrysler AG: Key financials

03 Ford Motor Company: Key financials

04 General Motor Corporation (GMC): Key financials

05 Honda Motor Corporation: Key financials

06 Hyundai Motor Corporation (HMC): Key financials

07 PSA Peugeot Citroen: Key financials

08 Renault: Key financials

09 Toyota Motor Corporation: Key financials

10 Volkswagen AG: Key financials

Tables

01 Cars: Segment-wise sales

02 Cars: Segment-wise market share

03 Cars: Model-wise sales

04 Cars: Model-wise market share

05 Utility vehicles: Model-wise domestic sales

06 Utility vehicles: Model-wise domestic market share

07 Cars and Utility vehicles: Exports

08 Cars and Utility vehicles: Share of exports in total sales

09 Cars and Utility vehicles: Company-wise sales

Abstract

• Large number of players to enter the small car market. What are the strategies of
passenger car manufacturers that players are pursuing while establishing a base in India?
• More players, more competition. What is the impact of rising competition on
profitability of passenger cars manufacturers?
• Export focus: What would be India’s position as an export hub for passenger cars?
• Demand outlook & drivers. How would launch of one lakh car expand the
addressable market for cars?
• Higher interest rates impact financing. What would be the impact of higher interest
rates on affordability and future call on interest rate scenario?

• Investment Managers
• Venture Capitalists
• Management Consultants
• Research Companies
• Private Equity Managers
• Market intermediates
• Banks
• Automobile Industry participants
• Analyst
• Other Industry Professionals

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