Auto-Auto Ancillary Sector

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Magnificent MaharashtraOpportunities Unlimited

Knowledge Partner

Auto/Auto Ancillary Sector

Putting Maharashtra on Fast Lane


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Maharashtra Profile

With 9.4% of Indias population, Maharashtra has 18.4%of industrial production.

Social

Economic

Industrial

Maharashtra:

Highest State Domestic Product

Highest aggregate bank deposits and gross credits

Highest contribution to Indias corporate tax

collections (61%)

Most urbanized State

Social

Economic

* Maharashtras GSDP contribution to Indias GDP is at current prices

Source: Socio-Economic Review , Maharashtra 2010-11;

Annual Survey of Industries 2008-09

42.4

76.9

8.5

8.7

0.0 20.0 40.0 60.0 80.0 100.0

Urbanization

Literacy Rate

Industry growth rate

GSDP growth rate

Percentage in Maharashtra

9.4

9.4

14.7

15.3

18.4

27

30

33

38

87

Geographical Area

Population

GDP contribution

Employment

Industrial Output

Exports

Software Export

Bio Tech

Auto & Auto Components

Wine

Percentage of Maharashtra in India


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Maharashtra Profile

Road Road Connectivity India MaharashtraTotal Length of National Highway (in km): 70,934 4,376

Total Length of State Highway (in km): 1,31,899 34,102

Total Length of Major District Roads(in km): 4,70,000 49,901

Total Length of Other District and Village Roads (inkm):

26,50,000 1,51,661

- 97.5 % of the villages are well connected with all weather and 2 % by fair weather roads in the state.

Railway Railway Connectivity India MaharashtraTotal Length of Railway network (in km): 64,755 5,983

-The state encompasses 2 major railway zones; the Central and Western

- 9.4 % of total railway network in the country

-The railway route length per 1,000 sq. km of geographical area is 19.44 km in the State as against 19.69 km in

the country. (as on 31st March, 2010)

Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department.



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Maharashtra Profile

Airport Airport Connectivity India MaharashtraTotal No. of Airport: 449 22

Total No. of International Airports: 17 3

Total No. of Domestic Airports: 114 5

- JNPT in Maharashtra is India's largest container port (59.4%).

- 20.5% of the total cargo traffic of the major ports in India is handled by the state (3rd highest)

Port Port Connectivity India MaharashtraCoast-line (in km): 7,517 720

No. of Major Ports: 12 2

No. of Minor and intermediate Ports: 187 48

Container traffic (in TEU million): 6.89 4.15

-Maharashtra is well connected to major cities in the USA, EU,Asia and other Indian metropolitan cities.-The state has the highest number of airports in the country .

Source: MIDC, AAI and MADC

Source: GoM (2010),Economic Survey of Maharashtra 2009-10,

Mumbai: Directorate of Economics and Statistics, Planning Department.


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Maharashtra Profile

Power Power Facilities India MaharashtraElectricity Generation Capacity (in MkWh): 77,15,510 81,345

Installed Capacity (in MW): 1,73,626 19,166

-Out of 1396 Government ITIS being developed in India in PPP mode, 266 are in Maharashtra

- Indias 18% of ITIs is in the state with a 20 % seating capacity

IT/ ITeS IT/ITeS Facilities India MaharashtraTotal no. of Industrial Training Institutes: 2,133 388

Total no. of Industrial Training Centres: 5,906 297

Total seating capacity: 11,15,628 1,21,744

- Maharashtra has the largest installed electricity generation capacity

Source: dget.nic.in, April 2010

- Highest number of approved SEZ in the country are in Maharashtra

SEZ Special Economic Zones India Maharashtra

Notified SEZs: 377 63

Approved SEZs: 738 143

Source: http://www.sezindia.nic.in/index.asp & Maharashtra Industries Department, September 2010

http://www.sezindia.nic.in/index.asphttp://www.sezindia.nic.in/index.asp


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GLOBAL AUTOMOTIVE

SECTOR


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Global Automotive Industry

Global Automotive Industry - Production statistics 2010

(Provisional)

CountryPassenger

Vehicle

Commercial

VehicleTotal % change

China 13,897,083 4,367,584 18,264,667 32.4%

Japan 8,307,382 1,318,558 9,625,940 21.3%

USA 2,731,105 5,030,338 7,761,443 35.4%

Germany 5,552,409 353,576 5,905,985 13.4%

S. Korea 3,866,206 405,735 4,271,941 21.6%

Brazil 2,828,273 820,085 3,648,358 14.6%

India 2.814,584 722,199 3,536,783 33.9%

France 1,922,339 305,403 2,227,742 8.8%

Spain 1,913,513 474,387 2,387,900 10.0%

Mexico 1,390,163 954,961 2,345,124 50.2%

Canada 968,860 1,102,116 2,071,026 39.0%

Iran 1,367,014 232,440 1,599,454 14.7%

UK 1,270,444 123,019 1,393,463 27.8%

Russia 1,208,362 194,882 1,403,244 93.5%

CzechRep 1,069,518 6,867 1,076,385 9.5%

The global automotive industry is currently registering record

production levels driven by an increasing demand and export

dynamism in developing economies.

In 2010, With over 77 million motor vehicles produced in more

than 40 countries, the industry has witnessed a growth of

approximately 25.8% percent.

North America, Western Europe and Japan, (Triad) are the mature

automotive market

Emerging automotive markets are BRIC nations

United States is to become a significant net importer of cars, owing

to the higher cost of domestically manufactured products

Germany, India, Brazil and South Korea are expected to be second

lead of producer with outputs of 4 million to 7 million units per

year

The major automotive players worldwide are: Toyota Motors, Porsche

Automobiles Holdings, Volkswagen AG, Ford Motor Company, Daimler AG,

Honda Motors Co. Ltd., Nissan Motors etc .

Source: OICA

Indian automobile market is one of the fastest growing in the world


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Indian automotive industry: a key contributor to the

economic growth

Worlds 2nd largest two wheeler market

Asias 3rd largest passenger vehicle market

Worlds 4th largest commercial vehicle market

Worlds 4th largest Tractor Market in the World

Worlds 5th largest bus and truck market (volume)

Worlds 2nd largest producer of compact cars

Indian automotive industry has attracted a cumulative

FDI ofUSD 5.9 billion during Apr 2000 Mar 2011

Industrys turnover is estimated to touch a level of

USD 145 billion by 2016

Expected to be the worlds 7th largest automobilemarket by 2016 and world's 3rd largest by 2030, only

behind China and the US

Overall production of automobiles increased from 8.7

million units in 200405 to 14.06 million units in

200910Sources: IBEF, Department of Industrial Policy and Promotion (DIPP), SIAM

India trend -Automobile Exports (Volume)

India trend Domestic Sales of Automobile Industry

Source: SIAM

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11Passenger Vehicles Commercial Vehicles

Three Wheelers Two Wheelers

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,00016,000,000

18,000,000

Two Wheelers

Three Wheelers

Commercial Vehicles

Passenger Vehicles

Indian automobile sector is a global growth engine


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Indias automotive sector market scenario

India Auto component Industry

Contribution of Automotive sector to GDP (%)

Year Share in GDP

2006 5.2

2010 E 7.2

2016 E 10.4Source: IBEF

Indias automotive cluster

Kolkata- Jamshedpur

Belt

Delhi Gurgaon - Faridabad

MumbaiPuneNashik

Aurangabad

ChennaiBengaluruHosur

Automotive sector - Segment wise market share (2010-11)

9

3.8

22

0

5

10

15

20

25

Investment Exports Turnover

2009-10 2009-10 2009-10

USD billion

Source: ACMA

Auto Componentindustry to grow four-

fold by 2020; to cross

USD 113 billion

16%4%

4%

76%

Passenger Vehicles Commercial Vehicles

Three Wheelers Two Wheelers


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MAHARASHTRA

AUTOMOTIVE SECTOR


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Maharashtra Automotive Sector

Maharashtra accounts for approximately 38% of the

countrys output of automobiles by value

Major automobile clusters in the state are Pune, Nashik,Aurangabad and Nagpur

The state is the leading producer of heavy and commercial

vehicles in the country

Major OEMs and auto ancillary units such as Daimler

Chrysler, Fiat, Skoda Auto, John Dierre, Tata Motors,

Mahindra & Mahindra, Bajaj Auto, Kinetic Engineering, andBharat Forge, have their presence in the state

Pune is the largest auto hub of India with over 4,000

manufacturing units only in Pimpri-Chinchwad region

Auto & auto ancillaries contributes to 9% of

Maharashtras manufacturing strength

Pune is home to large players like Bajaj Auto

Limited, Daimler Chrysler Limited,Tata Motors, etc.

Nashik is home to India's largest multi-utility

vehicle manufacturer, Mahindra & Mahindra Limited

To Goa

To Gujarat

To Andhra Pradesh

ToChhattisg

arh

To Karnataka

To Madhya Pradesh

Mumbai

Pune

Aurangabad

Maharashtra Automotive Hub

Nashik

Source: www.automotiveproductsfinder.com /

Maharashtra is a major hub of Indiasautomotive sector
http://www.automotiveproductsfinder.com/http://www.automotiveproductsfinder.com/


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Maharashtra Automotive Sector

Industrial Scenario

Maharashtra Key Automotive Cluster and SEZ

The major automobile centres

in Maharashtra include Pune

and in around area

(Chakan, Rajgurunagar),

Nashik, Aurangabad and

Nagpur

Pune , Ranjangaon, Talegaon, Chakan has around53 large

companies and around 7,000 auto ancillary units

Legend

National Highway

Railway

International Airport

Domestic Airport

Major Ports

Key Locations

Industry Cluster

Notified Multi-

Product SEZ as on

March 2011MSEZ

Notified Multi Product SEZs

1 Navi Mumbai SEZ Pvt Ltd, Thane

2 Sunny Vista, Bhokarpada, Panvel

3 Navi Mumbai SEZ Pvt Ltd., Ulwe,Navi Mumbai, Thane

4 Indiabulls Industrial infrastructure Ltd, At Gulvanch, Musalgaon

5 Bharat Forge Ltd. (JV MIDC), Village Gulani, Dist Pune

6 MADC, Nagpur

The total FDI investment in the Automobile sector sector til l

September 2010 was INR 895 croreFDI


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Maharashtra Automotive industry Value

Chain

Supply ofAuto Parts

Assembly ofAuto Parts

Marketing/Exports

EngineeringResearch

and Design

RawMaterials

Auto PartsProduction

Mumbai

Pune

Aurangabad

Nashik Shendre

Chakan

Strong Medium

Pune

Aurangabad

Shendre

Chakan

Nagpur

Pune

Mumbai

Kolhapur Ahmadnagar

Pune

Nashik

Mumbai

Pune

Mumbai

Maharashtra has strongly emerged as the top destination in India

for automobile sector, with a strong presence across the value chain

The Auto and Component industry has strong backward (components, basic material) and

forward (finance, insurance, oil, roads, after-sales-service, retailing)linkages. These sectors

offer enormous potential for enterprise & employment


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KEY PLAYERS


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Centre of Automotive Industry

TataTataMotorsMotors

Car/Trucks

Corporate Headquarter R&D Centre

Manufacturing facility

Bajaj AutoBajaj Auto Two Wheeler Corporate Headquarter


ForceForce

MotorsMotors

3 Wheelers,

Tractors, LCVs and

Large Trucks


MahindraMahindra

TwoTwo

WheelerWheeler

Scooters, Mopeds

and Bikes Manufacturing facility

MercedesMercedes--

BenzBenzCars


Assembly facility

GeneralGeneral

MotorsMotorsCars Manufacturing facility

JCBJCBIndustrial

equipment


Design facility

VolkswaVolkswa

gengenCars Manufacturing facility

MahindraMahindra

&&

MahindraMahindra

SUV,

Commercial

Vehicle


CumminsCummins

EnginesEnginesDiesel Engines

and Generators


Design centre

BridgestoBridgestonene

Tyres Manufacturing facility

HyundaiHyundaiConstruction

Equipment Manufacturing facility

FiatFiat Car Manufacturing facility

R&D centre

PremierePremiere

MotorsMotors

Car, Trucks,

Vans Manufacturing facility

JohnJohn

DeereDeere

Car, Trucks,

Vans Manufacturing facility

R&D centre


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Research Institutes, Suppliers &

Infrastructure Players

Software & Information

TechnologySiemens, PTC, Ansys, Geometric and KPIT Cummins

PARI Robotics &

Automation

PARI is one of the leading industrial automation companies and have setup factory

automationsystems at many global manufacturing facilities

Sandvik Sandvik is a world leader in cutting tools, The facility is present since last 50 years in Pune

Bharat Forge

Tata Auto components

R & D Centre

ARAI (Automotive

Research Association

of India)

OEM

Cutting tools tech.

Automation firm

IT in Automative

Bharat Forge is one of the top forging companies in the world, involved in

manufacturing of Auto component. The facility in Pune includes HQ, Design Center and

Manufacturing Facility Tata Auto components in Pune is a signinficant player in manufacturing and designing

Auto parts

ARAI is a the premier research and certification institution for the automotive industry in

India, located at Pune


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AUTOMOTIVE EDUCATIONINFRASTRUCTURE


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All embracing Educational Support

Manpower strength in Maharashtra

Sector Institutions Capacity Admitted

Students

Engineering 784 2,61,625 2,09,025

ManagementSciences

366 34,995 28,644

Industrial Training

Institutes

726 1,49,156 1,34,712

NATRiP centre in Maharashtra

Vehicles Research &

DevelopmentEstablishment (VRDE),

Ahmednagar

Research, design, development

and testing of vehicles Centre of excellence for

photometry, electromagnetic

compatibility (EMC), test tracks

Automotive Research

Association of India

(ARAI), Pune

Services to all vehicle categories.

Centre of excellence for power

train development and material.

Maharashtra has a strong skilled labor base supporting

the automotive industry

The state offers a strong educational infrastructure

with technical institutions providing automobile

engineering courses across the state

IBM has set up a Global Delivery Center in Pune to

provide auto majors business consulting and

application services

India's premier automotive R&D, testing and

certification organisation, Automotive Research

Association of India (ARAI) is present in Pune

Indias first Auto Cluster Development and Research

Institute is in the state

Source: "Economic Survey 2010-11, Directorate of Economics and Statistics website, http://mahades.maharashtra.gov.in/, accessed 1 June 2011

Strong technical manpower in Maharashtra is fuelling growth in the state
http://mahades.maharashtra.gov.in/http://mahades.maharashtra.gov.in/


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AUTOMOTIVE SECTOR -POLICY


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Policy and regulatory support

Auto Policy 2002

Automotive Mission Plan (AMP)

20062016

National Automotive Testing and

R&D Infrastructure Project

(NATRiP)

Department of Heavy Industries

and Public Enterprise

Incentive Regimes

Union Budget 201011

Automatic approval for foreign equity investment of up to 100 per cent for manufacturing of

auto components

Setting up of a technology modernization fund, with special emphasis on SMEs and

encouragement to establish development centres for SMEs

Increasing exports and related infrastructure and streamlining training/research institutions

around auto hubs.

Setting up ofautomotive training institutes and auto design centres, special auto parks andauto component virtual SEZs

To enhance and upgrade the testing and validation infrastructure and establish centres of

excellence for automotive R&D.

Lowering of excise duty on small cars, increasing budgetary allocation for R&D activities

and lowering duty regime in general

Weighted increase in the in-house R&D expenditure from 150% to 200% and from 120%to 175% on outsourced R&D expenditure

Ad valorem component of the excise duty is increased to 22% on large cars, multi-utility vehicles and

sports-utility vehicles.

The excise duty on electric cars is reduced from 8 to 4 % and customs duty is fully exempted.

Promotion of automobile exports through focus market scheme (FMS) and focus product scheme

(FPS)

Special policies for Auto industry makes it a lucrative investment sector


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MAJOR OPPORTUNITIESAND INVESTMENTS


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Opportunities boundless

Maharashtra Automotive

Sector

Demand Supply

A large consumer pool A low cost manufacturing base

Domestic demand

Export potential

Frugal Engineering capability

Low cost labor base

Skilled workforce

Cost effective supplier base

Increased focus on Infrastructure

Vehicle retailing

Partnership and alliances for

Auto Component sector

Emerging Opportunities

Low cost vehicles (ULCC)

Diversification in two

wheeler segmentCVs to benefit from increasing infrastructure

activity and heightened international interest

Auto financing R&DDesign Centres


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Calling Investments

Key upcoming projects in Maharashtra automotive sector

Company Project Proposed

Investment

Location

Atul Auto Ltd. Manufacturing plant for four

wheeler goods carrier

INR 2.3

billion

Pune

Bajaj Auto Ltd. Expand its capacity to raise the

overall capacity by one fourth to

5, 000,000 units by 2012

NA Aurangabad,

Chakan

Bridgestone

Tyres India

Setting up radial tyre plant INR 2.6

billion

Chakan

CEAT Tyres Enhance Nashik facility INR 5.9

billion

Nashik

DANA Holding

Corp.

Gear manufacturing facility INR 1872

million

Chakan

General Motors Engine and transmission plan andexpansion of power train project

INR 9.36billion

Talegaon

Mahindra &

Mahindra

Expand capacity from 250, 000 to

500,000

INR 20

billion

Chakan

Volkswagen Expand production capacity to

110,000

NA Chakan

Source: Ernst & Young Auto Track June 2010

Brembo Group,Mercedes-Benz, Norma,ElringKlinger Group,Cosma Internationalrecently started itsoperation at differentlocations in Maharashtra.


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KEY CONTACTS


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Connecting further

Principal Secretary Industries

Room No. 114, 1st floor,

MantralayaAnnex, Mumbai

Maharashtra - 400032

Directorate of Industries

New Administrative Building,

2nd floor Opp. Mantralaya,

Mumbai - 400 032

Maharashtra Industrial Development Corporation (MIDC)Head office

Maharashtra Industrial

Development Corporation

Udyog Sarathi,

Mahakali Caves Road,

Andheri(E), Mumbai-400 093

Principal office

Maharashtra Industrial

Development Corporation

4(A), 12th floor, World Trade Centre

Complex, 1 Cuffe Parade, Colaba,

Mumbai -400005

Auto-Auto Ancillary Sector

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