Country Industry Forecast

Report Service

The Indian Automotive Industry

1996 - 2006
The Indian Automotive Industry

Structural Reforms To Accelerate Economic Growth

Economic reforms in India have finally steered the country towards steady growth. The
country escaped the Asian crisis and even experienced stable economic development.
Opportunities have arisen in the manufacturing, infrastructure, and the services sectors.
This positive trend is expected to continue over the next five years. The new EXIM policy
is tailored to promote exports while import duties are gradually aligning with WTO
commitments. Indian companies are now facing stiff competition from global giants, causing
them to match global standards. On the fiscal front too, the Government is taking steps to
contain inflation by channeling expenditure into priority projects and speeding up the
disinvestment of public sector enterprises. In all, the economic outlook for the country is
quite positive.

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This encouraging forecast is reflected in the increasing scale of production for the automotive
industry. The dereservation of the vehicle component market and the rising ceiling for
investment are likely to drive growth and encourage new ventures in this sector. However,
the provision of additional depreciation on new plant and machinery may discourage
technology up gradation as the industry is already plagued by excess capacities.

The Country Industry Forecast studies the country-specific factors such as politics, business
Country Industry Forecast (CIF) –
policy, and macroeconomic indicators that have an impact on the Indian automotive industry
your tool to gauge how a country’s
and its main segments. This report provides incisive analysis of the industry for 1996–2001
economic, political, and regulatory
as well as forecasts for 2002–2006.
environment impacts the industry.
In a dynamic global business
environment, knowledge of
Motor Vehicle Segment to Witness Mixed Growth
country-specific factors is vital
Despite the fact that saturated western markets have forced manufacturers to contemplate
for effective decision-making -
greater production and sales in the virtually untapped markets in the Asia Pacific region,
specifically information about
inadequate infrastructure and comparatively low consumer spending could deter the growth
political situations, policy
of the motor vehicle segment. According to the report, “The motor vehicle segment is likely
decisions, and prevailing
to witness a mixed growth though a large number of manufacturers have entered the arena
economic conditions. CIF’s
after the opening up of the automotive industry. However, the market is still at the infant
integrated approach links all
stage. Consumer spending is also low due to the poor purchasing power of the rural
components of the economy
section that accounts for nearly 72 percent of the population.”
to give you industry insights
without missing out on
Multi-tiering of Industry Vital to Growth
the ‘big picture’.
The current situation requires automotive manufacturers in India to increase their
investments and revamp technologies to met global standards. The report says, “The
Created and supported by Frost &
requirement of the day is tierization of component suppliers into Tier I, Tier II, and Tier III
Sullivan’s team of analysts and
suppliers, Tier I forming the core suppliers to the original equipment manufacturers (OEM’s)
experts around the globe, the
and Tier II and III forming the suppliers to the Tier I component manufacturers as well as to
Country Industry Forecast reports
the OEM’s for specific requirements. The Indian automotive market is still in the infant
provide a unique service, which is a
stages, it is rapidly undergoing a transformation with tierization and increasing quality
must for senior-level decision-
standards to ensure becoming globally competitive.”
makers, analysts, industry observers,
and marketing professionals.
 Table of Contents C. Growth Determinants 6.2. Financial and External
Influenced by Macroeconomic Markets
1. Executive Summary
Factors and the Country- A. Foreign Trade
1.1. An Introduction to the
Industry Matrix B. Foreign Investment & Financial
Automotive Industry in India
D. Country-Industry Linkage Markets
A. Introduction
6.3. Labor
B. Scope of the Report and
4. Political Analysis and its Implications A. Population and Labor Laws
Industry Definitions
for the Automotive Industry B. Employment and Earnings
1.2. Summary of Major Findings
4.1. The Indian Political System 6.4. Prices and GDP
A. Country Trends and Forecasts
A. Political System A. Prices
B. Industry Trends and Forecasts
B. Government Agenda B. GDP
4.2. Political Analysis - Implica- 6.5. Economic Analysis -
2. Overview of the Automotive
tions for the Automotive Implications for the Automotive
Industry in India
Industry Industry
2.1. Global Overview
A. Implications of the Domestic A. Influences of Consumption
A. Introduction to the Industry
Political Stance on the Automo- B. Influences of External Markets
B. Global Overview of the
tive Industry C. Influences of Financial
Automotive Industry
B. Implications of the Interna- Markets
2.2. Industry Overview
tional Political Stance on the D. Influences of the Economy
A. Regional Overview
B. Country-Industry Overview: Automotive Industry
7.Trends and Forecasts for the
Share in Domestic Output
5. Business Policy Analysis and its Automotive Industry in India
C. Country-Industry Overview:
Implications for the Automotive 7.1. Industry Trends
Share in Trade and Employment
Industry A. Industry Trends
5.1. Business Policies in India B. Industry Growth and
3. Structure of the Automotive
A. Domestic Policies Revenues
Industry and the Key Industry
B. External Policies 7.2. Trends and Forecasts for the
Parameters
5.2. Business Policies - Implica- Key Industry Parameters
3.1. Industry Structure
tions for the Automotive A. Motor Vehicles Segment
A. Industry Structure
Industry B. Vehicle Parts and Accessories
B. End-User Segment Analysis
A. Domestic & Foreign Policies Segment
3.2. Key Industry Parameters
A. Key Industry Parameters for the Automotive Industry
B. Impact of Domestic & Foreign 8. Industry Progression Index
B. Key Industry Parameters for
Policies on the Automotive 8.1. Methodology for the
the Motor Vehicles Segment
Industry Industry Progression Index
C. Key Industry Parameters for
A. Methodology
the Vehicle Parts and Accessories
6. Economic Analysis and its B. Weights Assigned to the Key
Segment
Implications for the Automotive Industry Parameters
3.3. Country-Industry Linkage
Industry 8.2. Industry Progression Index
A. Growth Determinants
6.1. Consumption and Invest- A. Index for the Automotive
Influenced by Political
ment Industry and its Segments
Factors
A. Consumption B. Implications for the Automo-
B. Growth Determinants
B. Investment tive Industry and its Segments
Influenced by Business Factors
 Fact Sheets
1. Country Fact Sheet
A. Geography Demography and
Infrastructure
B. Economic Indicators
2. Regional and Industry Fact Sheets
A. Asia Pacific: Regional Fact
Sheet
B. India: Automotive Industry
Fact Sheet
Appendices
1. Appendix for the Indian Economy
A. Appendix for the Indian
Automotive Industry
2. Appendix for the Indian Automotive
Industry
A. Index for the Key Industry
Parameters 1996-2001
B. Index for the Key Industry
Parameters 2002-2006
References
1. List of References for the
Indian Economy
2. List of References for the
Automotive Industry in India
List of Figures
Production and Sales of Vehicles (World),
2000
Share of Vehicle Production and Sales by
Countries (Asia Pacific), 2001
Share of Automotive Industry in Gross
Domestic Output (India), 1996-2001
Share of the Automotive Industry in
External Trade (India), 1996-2001
Automotive Industry - Revenues of the
Motor Vehicles and Vehicle Components
Segments (India), 1996-2001
Nature of Impact of the Growth Determi-
nants on the Key Industry Parameters of
the Automotive Industry (India), 1996-2006
Revenue and Expenditure of the Govern-
ment (India), 1996-2001
Central Plan Expenditure by the Govern-
ment (India), 1996-2001
Peak Tariff Rate (India), August 1, 1998
FDI Policy in Selected Sectors (India), 2001
Sector-wise Share of FDI (India), 1991-
2001
Trends and Forecasts for Consumption
Expenditure and Its Components (India),
1996-2006
Trends and Forecasts for Gross Savings
and Its Components and Household
Savings Rates (India), 1996-2001
Trends and Forecasts for Gross Domestic
Investment and its Components (India),
1996-2006
Wholesale Price Index, Consumer Price
Index, and Inflation (India), 1996-2006
Population and Unemployment (India),
1996-2006
Trends and Forecasts for Foreign Direct
Investment and Foreign Portfolio Invest-
ment (India), 1996-2006
Bank Rate of the Reserve Bank (India),
1996-2000
Trend and Forecasts for Exports and
Imports (India), 1996-2006
Trends and Forecasts for Current Account
Deficit and Foreign Exchange Reserves
(India), 1996-2006
Indian Rupee against the Dollar, 1996-
2000.
Trends and Forecasts for GDP (India),
1996-2006
Proportion of Personal Disposable
Income Spent on Automotive Products
(India), 1996-2006
Consumer Finance (India), 1996-2006
Vehicles in Operation and Vehicle Scrap-
page Rate (India), 1996-2006
Composition and Direction of Exports for
the Motor Vehicles Segment (India), 1996-
2006
Composition and Direction of Exports for
the Vehicle Components Segment (India),
1996-2006
Composition and Direction of Imports for
the Vehicle Components Segment (India),
1996-2006
Production of Transportation Equipment
and Parts (India), 1996-2006
Input Costs for the Transportation
Equipment and Parts Industry (India), 1996-
2006
Agricultural Output and Growth of the
Agricultural Sector (India), 1996-2006
Revenues for the Automotive Industry and
its Segments (India), 1996-2006
Trends and Forecasts for the Key Industry
Parameters of the Motor Vehicles Segment
of the Automotive Industry (India), 1996-
2006
Trends and Forecasts for the Key Industry
Parameters of the Vehicle Components
Segment of the Automotive Industry
(India), 1996-2006
Weights Assigned to the Key Parameters
of the Motor Vehicles and Vehicle Compo-
nents Segments of the Automotive
Industry (India)
Consumption Multiplier (India), 1996-2001
Index of Key Parameters by Segment of the
Automotive Industry (India), 1996-2001
Index of Key Parameters by Segment of the
Automotive Industry (India), 2002-2006
GDP and Economic Growth Rate (India),
1996-2006
Progression Index for the Segments in the
Automotive Industry and the Industry as a
Whole (India), 1996-2006
Country Fact Sheet (India), 2002
Regional Fact Sheet (Asia-Pacific), 2000
Automotive Industry Fact Sheet (India),
1999-2000
C a t e g o r y o f u s e r- g r o u p s
CIF is an indispensable tool for the following
Automotive Equipment Manufacturers
groups:
Senior Executives
COO s and CEOs
Presidents and Vice Presidents
Trade and Business Associations
Industry and Manufacturers Associations
Banks and Multi-National Corporations
Trans-National Corporations
Financial Institutions
Asset Management Companies
CIF is beneficial for companies:
Venture Capitalists
Analysts
Industry Observers
Planning Boards
Business Development Managers
Country Managers
Forecasters and Economic Trackers
Merchant Bankers
The CIF Advantage
• Senior level decision-makers and
planners who formulate company
strategies for various industries.
• Industry analysts and industry
observers who look for country-
specific industry intelligence.
• Marketing professionals who want
to know the ‘lay of the land’ and
the ‘pulse of the market’.
• Entering a new geographical
market
• Making strategic decisions on
alliances, mergers, and acquisitions.
• Learning how the non-market
forces affect your company’s
present performance in a country.
• Judging the extent of competition
faced by various industries in a
country.
• Shaping and fine-tuning future
strategies based on new market
opportunities.
• Preparing contingency plans based
on the likely scenarios.
• Making in-depth micro research on
various industries.
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