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2. Foreign presence
a. According to a joint study by ACMA and Mc Kinsey, Indian exports
comprise of just 1% of overall global exports.
b. The report suggests that the Indian suppliers are well positioned
and exports should increase four times to $ 40bn from $ 10.2bn by
2020. (Source: Funds India Report)
c. Key exports include: Hydraulic Power Steering Systems & Steering
Gear Systems, Gear boxes, Parts of diesel engines, Drive-axles and
parts, Spark Ignition and parts, parts for automobiles, Suspension
systems and parts, Crank shaft for engines, Toothed wheels and
Brakes.
d. Therefore, a humungous opportunity lies ahead to tap the export
market.
4. OEM vs Replacement
a. OEM sector holds a market share of 84.3% as compared to 15.7% in
the Replacement sector
b. Replacement demand is steadier and provides a hedge against the
downturn in economy as well as the cyclicity
c. Battery, tyres, lubricants have shorter shelf lives and have strong
replacement demand
d. Replacement goods are set to see a larger growth as compared to
flat sales growth in OEM
5. Auto-Component Turnover
2800 40.00%
2600 35.00%
2400 30.00%
2200 25.00%
2000 20.00%
1800 15.00%
1600 10.00%
1400 5.00%
1200 0.00%
1000 -5.00%
25000
20000
15000
10000
5000
Equipments; 10%
Electrical
Drive Transmission
Parts; 9% and Steering Parts; 19%
Others; 7%
9. Auto Component Supply to OEMs
2 wheelers; 22%
Backhoe Loaders; 2% Others; 2% Tractors; 8%