Automotive Scenario - Highlights
Dun & Bradstreet India
Auto Component Industry
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In its pre-budget memorandum to the Ministry of Finance, the Automotive Component Manufacturers Association has made the following key recommendations:
- Create a Rs. 75 billion Auto Component Technology Upgradation & Development Fund to support firms to modernize/upgrade technology
- Eliminate customs duty on specified aluminium and alloy steel items
- Abolish MRP-based assessment for auto components
- Make CNG/LPG kits and parts fully exempt from customs duty, excise duty and CST. |
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Korea-based Hyundai WIA, manufacturer of automotive parts, machine tools and heavy machinery, plans to set up two manufacturing plants in India at a combined investment of $10 million. The first plant is coming up in Tamil Nadu, which would have an annual capacity of 0.6 million units. |
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Amtek Auto formed a joint venture with Autech Corporation of South Korea to manufacture vehicles for defence, para-medical, fire fighting and waste management sectors in order to capitalise on the growing demand for specialized vehicles. Amtek will set up an assembly unit in Haryana with an initial capacity of 10,000 units p.a.
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Motherson Sumi Systems plans to invest Rs. 5 billion during 2011-12 to expand production capacity. The company intends to commission six plants in India, Hungary and South Africa in 2011.
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Commercial Vehicle Industry
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Eicher Motors Ltd plans to raise its capacity for trucks and buses to 100,000 units per annum from the current 48,000 units per annum by 2015. The company plans to invest approximately Rs. 5.0 billion in the next three years towards the capacity expansion plans. |
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Volvo Buses India Pvt Ltd plans to widen its India operations, as the company aims at developing the country as its fourth global hub for product development, bus manufacturing, sourcing of components, sales and exports. In view of this, the company plans to expand its Hoskote plant located in Karnataka, by December 2015 for which the company has a capex plan of 2.0 billion. The expansion project would be of two phases. In phase-l, the capacity will be enhanced from 1000 to 1500 buses per annum while under phase-ll, the capacity will be further increased to 5,000 units of buses per annum. |
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Tata Motors received an order for supplying around 250 Tata Prima trucks to LINFOX Logistics, a leading supply chain solutions company in the Asia Pacific region. |
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Tata Hispano Motors Carrocera SA, Tata Motors Ltd's wholly owned subsidiary in Spain, bagged an order to supply around 500 buses to the Avanza Group, one of the largest private passenger transportation groups in Spain, in the coming three years. The order includes Intea Premium and Intea low entry models for medium and suburban routes, Xerus model for long distance routes and Area and Habit models for urban transportation routes. |
| Commercial vehicle sales (Nos.) |
| Segments |
Jan-10 |
Jan-11 |
y-o-y
growth (%)
|
Apr 09-
Jan 10 |
Apr 10-
Jan 11 |
y-o-y
growth (%)
|
| M&HCV |
25,988 |
27,713 |
6.6 |
182,322 |
251,039 |
37.7 |
| LCV |
27,975 |
33,040 |
18.1 |
225,070 |
283,583 |
26.0 |
| Total domestic |
53,963 |
60,753 |
12.6 |
407,392 |
534,622 |
31.2 |
| Exports |
4,176 |
6,875 |
64.6 |
34,923 |
61,393 |
75.8 |
| Total |
58,139 |
67,628 |
16.3 |
442,315 |
596,015 |
34.7 |
Passenger Vehicle Industry
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The year 2011 started on a bright note for fie passenger vehicle industry, with domestic sales of passenger cars and multi-utility vehicles recording y-o-y growth of 25.6% and 18.9%, respectively, in January. Cumulative domestic sales of passenger vehicles during April-January FY11 were a sharp 31% higher over sales in the same period of FY10. |
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Exports of cars continue to slip. In January, car exports fell sharply by 14.6%. Cumulatively, exports of passenger vehicles were lower by 2.9% during April-January FY11, over exports during April-January FY10. The unrest in Egypt has contributed to the decline in exports of cars from India to Europe.
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Competition in the Indian car market is set to increase further, with several companies planning to roll out new models. General Motors, in partnership with its Chinese partner Shanghai Automotive Industry Corporation, plans to launch a car to be pitted against the Maruti Alto. GM is also looking at introducing its premium car Cadillac in India in two years. Meanwhile, Hindustan Motors plans to launch a small car in the second half of 2011. Hyundai Motor India announced plans to roll out two new models every year in the next three years in a bid to enhance its position in the Indian car market. PSA Peugeot Citroen of France plans to re-enter the Indian market with a mid-sized sedan. |
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Carmakers raised vehicle prices in January, citing rise in input costs. While Maruti Suzuki hiked prices by 0.5-2.2%, Hyundai and General Motors raised prices by 1 .5% and 1-1.5%, respectively. |
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Several new car models were launched in the market recently. These include Maruti's luxury sedan Kizashi, at a price of up to Rs. 1.75 billion, and re-launch of the super luxury car Maybach by Mercedes, to be priced at up to Rs. 51 million. |
| Passenger vehicle sales (Nos.) |
| Segments |
Jan-10 |
Jan-11 |
y-o-y
growth (%) |
Apr 09-
Jan 10 |
Apr 10-
Jan 11 |
y-o-y
growth (%) |
| Mini |
6,495 |
8,579 |
32.1 |
48,623 |
74,321 |
52.9 |
| Compact |
106,207 |
133,810 |
26.0 |
904,713 |
1,175,133 |
29.9 |
| Mid-size |
27,201 |
35,372 |
30.0 |
217,525 |
292,775 |
34.6 |
| Executive |
4,730 |
5,005 |
5.8 |
36,845 |
42,503 |
15.4 |
| Premium |
1,275 |
1,374 |
7.8 |
9,252 |
13,219 |
42.9 |
| Luxury |
63 |
192 |
204.8 |
1,102 |
1,544 |
40.1 |
| MPV |
15,580 |
18,616 |
19.5 |
119,527 |
175,141 |
46.5 |
| Passenger cars |
161,551 |
202,948 |
25.6 |
1,337,587 |
1,774,636 |
32.7 |
| Multi-utility vehicle |
26,120 |
31,046 |
18.9 |
219,258 |
264,396 |
20.6 |
| Domestic sales |
187,671 |
233,994 |
24.7 |
1,556,845 |
2,039,032 |
31.0 |
| Exports |
38,616 |
32,942 |
-14.7 |
369,180 |
358,583 |
-2.9 |
| Total sales |
226,287 |
266,936 |
18.0 |
1,926,025 |
2,397,615 |
24.5 |
Two-Wheeler and Three-Wheeler Industry
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Buoyancy in demand for two-wheelers continued into 2011, with domestic sales recording a robust y-o-y growth of 17.5% in January. Cumulative sales during April-January FY11, at 9.67 million units, were 27% higher over sales in the corresponding period of FY10. |
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In January, exports of two-wheelers surged by 46% on a y-o-y basis. Cumulative exports for the April-January FY11 period were 37.8% higher over exports in the same period of FY10. |
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International two-wheeler companies which had exited the Indian market are now planning to make a second coming in India. Italian auto major Piaggio is setting up a new facility in Maharashtra at an investment of 30 million Euros which would have a capacity to manufacture 0.15 million scooters per annum. Hyosung Motors of South Korea plans to re-enter the motorcycle market in India in partnership with Maharashtra-based Garware Motors. Garware Motors is investing Rs. 0.2 billion to set up an assembly plant in Wai (Maharashtra), while Hyosung will provide the technical expertise. |
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With a view to cater to the growing demand and bring down the waiting period for its bikes, Eicher Motors is looking at setting up a greenfield facility for its Enfield Bullet and other two-wheelers. |
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In January, domestic sales of three-wheelers rose by 22.6% to 47,480 units. Cumulative domestic sales during Apr-Jan FY11 were 19.5% higher over sales in the same period of FY10. Exports of three-wheelers jumped by 64% during this 10-month period in FY11. |
| Segments |
Jan - 11 |
Apr 10 - Jan 11 |
| Vol (Nos) |
y-o-y
growth
(%) |
Vol (Nos) |
y-o-y
growth
(%) |
| Motorcycles |
747,818 |
14.9 |
7,402,098 |
23.6 |
| Mopeds |
52,862 |
18.2 |
572,498 |
23.9 |
| Scooters |
180,072 |
29.6 |
1,697,204 |
46.6 |
| Total domestic |
980,752 |
17.5 |
9,671,800 |
27.0 |
| Exports |
130,098 |
45.9 |
1,292,696 |
37.8 |
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| Total |
1,110,850 |
20.3 |
10,964,496 |
28.2 |
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| Segments |
Jan - 11 |
Apr 10 - Jan 11 |
| Vol (Nos) |
y-o-y
growth
(%) |
Vol (Nos) |
y-o-y
growth
(%) |
| Passenger carriers |
37,733 |
20.5 |
351,610 |
21.5 |
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| Goods carriers |
9747 |
31.7 |
79,183 |
11.2 |
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| Total domestic |
47,480 |
22.6 |
430,793 |
19.5 |
| Exports |
23,742 |
26.1 |
224,498 |
64.0 |
| Total |
71,222 |
23.8 |
655,291 |
31.8 |
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