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Indian Automobile Industry Growth
The passenger car and motorcycle segment in Indian auto
Industry is growing by 8-9 per cent.
Current Scenario
- The Indian automobile
industry crossed a landmark with total vehicle production of
10 million units.
- Car sales was 8,82,094 units against 8,20,179 units in 2004-05.
- The two-wheeler market grew by 13.6 per cent with 70,56,317 units
against 62,09,765 units in 2004-05.
- Commercial vehicles segment grew at 10.1 per cent with 3,50,683
units against 3,18,430 units in 2004-05.
Overview
Snippets
- India, sourcing base for global auto majors.
- Passenger car and motorcycle segment is set to grow by 8-9%.
- The two-wheeler segment will clock 11.5% rise by 2007.
- Commercial vehicle to grow by 5.2 per cent.
- Estimated component market size is US$ 6.7 bn.
Facts & Figures
India, in auto sector, is turning to be a sourcing
base for the global auto majors. The passenger car and the motorcycle
segment is set to grow by 8-9 per cent in coming couple of years, says
the ICRA report. The industry is likely to maintain the growth momentum
picked up in 2002-03.
The ICRA's analysis points on the auto sector that the passenger car
market in the country was inching towards cars with higher
displacements. The sports-utility-vehicle (SUV) that was getting crowded
everyday, would witness intense competition as many SUVs had been
competitively priced, the report said.
Honda,
Suzuki,
General Motors and
Hyundai, the global automakers had
already launched their premium SUVs in the market to broaden their
portfolio and create product excitement in the segment estimated at
about 10,000 units annually.
In the two-wheeler segment, according to the report, the motorcycles
would clock 11.5 per cent rise during 2004-2007 over its
siblings-scooters and mopeds. Scooters sales would decelerate and mopeds
would also see the same. Overseas market would present huge
opportunities for the two-wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent.
Heavy commercial vehicles market would rise at 5.5 per cent and sales of
light buses and trucks would achieve 4.7 per cent growth. For the
tractors, the report predicts a growth at 4.6 per cent.
Indian Auto Market Growth for the year 2005-06
- The domestic automobile
industry sales grew 12.8 per cent at 89,10,224 units as
against 78,97,629 units in 2004-05.
- The automotive industry crossed a landmark with total vehicle
production of 10 million units.
- According to the Society of Indian Automobile Manufacturers
(SIAM), car sales was 8,82,094 units against 8,20,179 units in
2004-05.
- The growth of domestic passenger car market was 7.5 per cent
- Car exports stood at 1,70,193 units against 1,60,670 units in
2004-05.
- The two-wheeler segment, the market grew by 13.6 per cent with
70,56,317 units against 62,09,765 units in 2004-05.
- Motorcycles had the upward march, 17.1 per cent in domestic
market touching 58,15,417 units against 49,64,753 units in 2004-05.
- Scooter segment grew by 1.5 per cent, fall at 9,08,159 units
against 9,22,428 units in 2004-05.
- Commercial vehicles segment grew at 10.1 per cent with 3,50,683
units against 3,18,430 units in 2004-05.
- Medium and heavy commercial vehicles managed a growth of 4.5 per
cent against 23 per cent growth in the year ended March 31, 2005.
- Light commercial vehicles sales growth was 19.4 per cent at
1,43,237 units against 1,19,924 units in 2004-05.
- Three-wheelers sales rose by 17 per cent at 3,60,187 units
against 3,07,862 units in 2004-05.
Auto Component Market
The Indian auto parts industry is significantly
fragmented with a large number of players having a turnover of less than
US$10 million per year. The industry directly employs about 2,50,000
people and has an annual turnover over US$ 56.3 billion.
- Estimated market size - US$ 6.7 bn
- Estimated market size by 2012 - US$ 17 bn
- Projected CAGR - 15%
Note: Nearly two-thirds of the auto component production is
consumed directly by Original Equipment Manufacturers (OEMs).
- Fast paced urbanisation to rise from 28% to 40% by 2020.
- Upward migration of household income levels.
- Middle class expanding by 30-40 million every year.
- Growing working population.
 
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