The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent.
- 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.
- 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.
, General Motors
, 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%
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.