Perspectives on Importance of
Automotive Industry
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 3 AUGUST 2013
Foreword
The Indian Automotive industry, at ~US$ 80 billion turnover and with a rapid growth rate of
~15% for the last five years, has been a significant pillar of the India growth story. While the
current economic conditions have challenged the short term growth scenario of the sector, the
long term prospects are expected to remain robust owing to strong fundamental demand and
supply factors. In this regard it is essential to recognize the various contributions of the
Automotive industry and the role it could play in reviving the overall Indian economy.
The economic contribution of the sector is significant. The industry contributes ~22% of
India's manufacturing GDP and ~7% of India's overall GDP. To the state exchequer it
provides ~18% of the excise duties. Further, the industry has attracted FDI investments to the
tune of ~US$ 7 billion over the last decade and has helped establish a significant presence in
international markets with a year on year increase of ~18% in exports over the last 5 years.
The sector has also contributed to social development and benefited local communities. It is
one of the leading employers in the country and has helped create nearly 19 million jobs
through direct and indirect employment. The creation of automotive hubs across the country
has led to development of ecosystems around the industry with the rise of urban settlements
and strengthening of civic amenities of education and healthcare.
The Automotive industry has also been instrumental in the growth of R&D in the country
through localization and indigenization of technology over the past few decades. Several
players have undertaken acquisitions and forged alliances with multinational firms to gain
technical know–how and fast–track their progress on the technology roadmap.
We capture in this report some of these contributions and assess the potential of the sector
through global benchmarks. More importantly, we present a call for action for industry, as
well as for the policy makers, to ensure that a vibrant automotive sector continues to remain
the growth engine for India in the years ahead.
Mr. Sharad Verma
Partner & Director
The Boston Consulting Group
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 4 AUGUST 2013
Contents
1. Automotive industry – Starting position ........................................................................ 5
1.1. Overview of Automotive industry in India ................................................................. 5
1.2. Contribution of Automotive industry to India's economy ........................................... 8
2. Economic contribution ..................................................................................................... 9
2.1. Driver for India's GDP growth .................................................................................... 9
2.2. Contributor to the state exchequer and FDI .............................................................. 10
2.3. Contributor to India's BoP through exports .............................................................. 10
3. Social contribution .......................................................................................................... 12
3.1. Creator of direct and indirect employment opportunities ......................................... 12
3.2. Facilitator for development of urban hubs ................................................................ 12
4. Technological contribution ............................................................................................ 14
4.1. Contributor to R&D spend ........................................................................................ 14
4.2. Driver for technology adoption ................................................................................. 15
4.3. Facilitator for new vehicle design and development ................................................. 15
5. Ten point agenda for Government and Industry ......................................................... 16
6. Bibliography .................................................................................................................... 18
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 5 AUGUST 2013
1. Automotive industry – Starting position
1.1. Overview of Automotive industry in India
Over the past five years the Automotive industry in India has evolved significantly and
witnessed high growth. The turnover of the overall industry is ~US$ 80 billion, covering both
vehicles and components, and has exhibited an annual growth of ~15% during this period.
India has emerged as the second largest base for two wheelers and buses globally. India has
also become the third largest heavy truck manufacturer and the sixth largest passenger car
manufacturer in the world. On the global map, India has developed as the hub for small car
development and established itself as a best cost country sourcing location for automotive
components and engineering services.
Domestic sales across all vehicle segments have exhibited double digit growth in India. The
commercial vehicle segment witnessed a growth rate of ~20% p.a., while the passenger
vehicle and two wheeler segments have seen a growth rates upward of ~15% p.a. The three
wheeler segment grew at ~10% p.a. in this time period.
12 1318 21 22
33
43
5860 58
0
20
40
60
80
100
US$ billion
Components
Vehicles
FY13
80
FY12
81
FY11
76
FY10
56
FY09
45
+15%
Exhibit 1: Automotive industry's turnover in India (2009–13)
Source: SIAM; BCG analysis; ACMA and ATMA; Press search
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 6 AUGUST 2013
While the current economic scenario has challenged the short term growth story of the
Automotive industry, we believe that this only a temporary deviation in the overall roadmap.
The long term prospects are expected to remain robust given strong fundamental drivers such
as favourable consumer demographics, increasing spends and continuing need for mobility
across the country.
0
2,000
4,000
Units ('000s)
+15%
FY13
2,686
FY12
2,630
FY11
2,520
FY10
1,951
FY09
1,553
1,000
500
0
Units ('000s)+20%
FY13
793
FY12
809
FY11
676
FY10
533
FY09
384
20,000
10,000
0
Units ('000s)
+17%
FY13
13,798
FY12
13,409
FY11
11,790
FY10
9,371
FY09
7,438
MotorcyclesScooters
1,000
500
0
Units ('000s)
+11%
FY13
538
FY12
513
FY11
526
FY10
440
FY09
350
Goods carrierPassenger carrier
LCVsM&HCVs
Exhibit 2: All vehicle segments have grown steadily in the last
5 years
Domestic sales: Passenger vehicles Domestic sales: Commercial vehicles
Domestic sales: Two wheelers Domestic sales: Three wheelers
Source: SIAM
26mn
(9%)
11mn
(4%)
80mn
(28%)
66mn
(23%)
103mn
(36%)
124mn
(66%)
47mn
25%)
11mn
(6%)
3mn
(2%)
2.3mn
(1%)
Affluent
$18.5k-$37k
Aspirers
$7.4k-$18.5k
Next Billion
$3.3k-$7.4k
Strugglers
<$3.3k
121mn
(51%)
72mn
(30%)
34mn
(14%)
10mn
(4%)
4mn
(2%)
Elite
>$37k
Annual gross
HH income1
6,393 18,4482,441
Average
Nominal HH
income ($)
202020102000
Number and % of households in different income brackets
Income growth
Exhibit 3: Significant increase in average income levels
expected in the current decade
1. Annual gross income based on 2010 pricesNote: 1 US$ = INR 46; Years represented as calendar year Source: NCAER income distributions; EuroMonitor; Indian Readership Survey 2005 and 2010; BCG analysis
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 7 AUGUST 2013
Further, the industry has matured significantly over this time period. This has exhibited in the
form of reduced ownership period for cars and more frequent model refreshes creating a
strong impetus to demand.
Supply side variables such as investments in road infrastructure by the Government through
public funds, rise of PPP models and capacity expansions announced by multiple OEMs,
who have plans to enter India or expand existing capacities, will further stimulate demand.
Global benchmarks also indicate significant headroom for future growth. India currently has
~13 cars per 1,000 people while the global average for developed countries is ~400–500 cars
per 1,000 people1.
However, to ensure that the growth trajectory of the Automotive industry is revived and the
above mentioned potential of the industry is realised all the stakeholders including the
government and the industry need to act in consort.
Given this context, it is critical at this juncture to review the contribution and the impact of
the Automotive industry on the Indian economy; to step back and take stock of the
challenges faced by the industry and to align on an action agenda to refuel the growth engine.
1 Global Insights; EIU; SIAM; BCG analysis
Unit sales of passenger vehicles
2,6862,6302,520
1,951
1,553
0
1,000
2,000
3,000
4,000
'000 units
+15%
FY13FY12FY11FY10FY09
Exhibit 4: Global benchmarking indicates headroom for future
growth
Source: Global Insight; EIU; BCG Analysis; SIAM
India still significantly lags several
economies in car penetration
0
100
200
300
400
500
600
700
0 10,000 20,000 30,000 40,000 50,000
Cars per 1,000 people
GDP per–capita
United States
United Kingdom
South Africa
Singapore
Russia
Poland Japan
Italy
GermanyFrance
Czech Republic
Canada
Brazil
AustriaAustralia
Argentina
IndiaChinaNigeria
Thailand
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 8 AUGUST 2013
1.2. Contribution of Automotive industry to India's economy
The Indian Automotive industry plays a critical role in the Indian economy. Its importance
and impact on the overall growth scenario can be assessed across three key dimensions:
Economic contribution through factors such as GDP, exports, FDI, domestic
investments, taxes and duties etc
Social contribution through indicators such as direct and indirect employment and
benefits to local communities and clusters around automobile hubs
Technological contribution through new technologies introduced in the country,
localization and indigenization of the same and spends on R&D
Indian economic growth
Exhibit 5: Indian Automotive industry has three key
contributions towards Indian economy
Economic
contribution
• GDP
• Taxes
• FDI
• Export
Social
contribution
• Employment
• Development
Technological
contribution
• Technology
adoption
• R&D spend
• New vehicle
design &
development
Indian Automotive industry
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 9 AUGUST 2013
2. Economic contribution
2.1. Driver for India's GDP growth
Automotive sector is one of the key contributors to India's GDP. At ~US$ 80 billion, the
automotive sector accounts for ~22% of India's manufacturing GDP and ~7% of India's
overall GDP. Given the current industrial slowdown, over the past 12–18 months, the
sector's importance in reviving the manufacturing industry cannot be overstated.
It has also been one of the key drivers for India's GDP growth rate. While the Indian
economy has grown at ~8% p.a in the last five years, the Indian automotive sector has grown
at ~15% p.a. during the same period.
Currently, India's automotive demand as a percentage of GDP is substantially low compared
to several other leading developed and developing countries. This indicates significant
opportunity for greater value addition as is evidenced in other countries.
Exhibit 6: Automotive industry has huge potential to increase
its share of value addition in the overall country GDP
30
58
62
81
28
73
26
22
9003001000
US$ billion
India
232
Thailand
346Japan
842 842United States
Brazil 82
154
Russia
346
China
83
Germany
37
254
0 5 10 15 20
India 3%
China 3%
United States 6%
Japan 7%
Brazil 7%
Russia 7%
Germany 9%
Thailand 15%
Automotive demand as % of GDP Increase in automotive demand
20122007
3
8
Source: Economist Intelligence Unit; BCG Analysis
20
33
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 10 AUGUST 2013
2.2. Contributor to the state exchequer and FDI
The Automotive industry contributes ~18%2 to India's excise duty collection. The sector also
attracts huge foreign investment. The Automotive industry is the 4th largest industry in terms
of FDI inflow into India. The FDI inflow for the last decade has been ~US$ 7 billion3 and
represents ~4% of the overall FDI inflow into the country. Given the potential of India, most
auto majors have announced plans to grow and strengthen their India manufacturing and
engineering bases, implying further potential flow of FDI.
2.3. Contributor to India's BoP through exports
India is emerging as a major export hub for the global automotive industry. During FY13,
automotive exports from India amounted to ~US$ 17 billion, ~ 5.5% of India's overall
export4. Exports have increased by ~18% p.a. in the last 5 years, representing an increasing
share of the exports base for the country. Both vehicle and component exports grew at a
similar growth rate of ~18% p.a with the growth consistent across vehicle segments.
Most global OEMs have also set up purchase organizations in India. Currently more than 40
IPOs of OEMs and automotive component players exists in India.
2 SIAM
3 DIPP; Ministry of Commerce; GoI
4 SIAM; OICA
5.1 4.26.7
8.8 9.7
3.7 4.8
6.0
7.37.1
0
5
10
15
20
US$ billion
+18%
FY13
16.8
FY12
16.1
FY11
12.7
FY10
9.0
FY09
8.8
185.3 178.8
251.1
306.0 300.3
0
100
200
300
400
FY11FY10FY09 FY12 FY13
US$ billion
Automotive
exports as a %
of Total India's
exports
4.7 5.0 5.3 5.65.0
Exhibit 7: Automotive exports in India have shown very
strong growth
Exports: Automotive Vs Total
Automotive exports
Vehicle and Auto Components
Source: SIAM; BCG Analysis
8.8 9.0
12.7
16.1 16.8
Automotive exports Total exports Vehicle exports Component exports
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 11 AUGUST 2013
Currently, only 14% of total passenger cars and commercial vehicles produced in India are
exported. This is substantially lower than Japan and Germany, where exports account for
~30–50%5 of automotive sales respectively. The global opportunities represent a significant
potential for growth of the Automotive industry in India. These range from small car exports
to Europe; addressing vehicle markets in other emerging markets such as Africa, Latin
America, South East Asia; to establishing presence in developed markets and becoming a
primary source of automotive components to the Western OEMs.
5 OICA
1,000
500
0
Units ('000s)
FY13
555
FY12
509
FY11
453
FY10
446
FY09
336
+13%100
50
0
FY09
43
Units ('000s)+17%
FY13
80
FY12
92
FY11
76
FY10
45
Exports: Passenger vehicles Exports: Commercial vehicles
2,000
1,000
0
Units ('000s)+18%
FY13
1,961
FY12
1,975
FY11
1,540
FY10
1,140
FY09
1,004
MotorcyclesScooters
400
200
0
Units ('000s)+20%
FY13
303
FY12
362
FY11
270
FY10
173
FY09
148
Goods carrierPassenger carrier
Exports: Two wheelers Exports: Three wheelers
LCVsM&HCVs
Exhibit 8: All vehicle segments have shown robust growth in
exports in the last 5 years
Source: SIAM; BCG Analysis
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 12 AUGUST 2013
3. Social contribution
3.1. Creator of direct and indirect employment opportunities
The Automotive industry has generated jobs not only through direct employment at OEMs
and automotive component companies, but also through indirect employment in allied
activities. The Automotive industry directly employs ~1 million people. In addition it also
provides employment to approximately another 18 million people through associated
industries such as vehicle finance, motor insurance, repair and service stations, drivers etc.
Thus the Automotive industry represents ~ 4% of India’s total labour force.
Further the nature of employment generated by the Automotive Industry is inclusive in
effect, as a significant share of employment is for workers with limited educational
qualification. Nearly 80% of workers indirectly employed through the automotive sector do
not have a graduate degree.
3.2. Facilitator for development of urban hubs
The manufacturing footprint of the Automotive industry in India has led to the development
of multiple automotive hubs. Over the past decade hubs have developed in Gurgaon, Pune,
Chennai and now Gujarat. When an automotive hub is developed, an entire ecosystem grows
around it. Automotive component suppliers establish their base near OEM manufacturing
locations and logistics centers get developed in the vicinity. This results in creation of new
Exhibit 9: Automotive sector generates large–scale and
inclusive employment opportunities
Automotive industry employs a workforce
of ~19 million
Employment provided by automotive sector
well spread across educational qualification
Source: SIAM; National Skill Development Council – Automotive sector report
18
1
0
5
10
15
20
million
Indirect labourDirect labour
49
33
18
100
0
20
40
60
80
100
Total
workforce
12th pass
or below
ITI or diploma
engineer
Graduate
or above
% of workforce
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 13 AUGUST 2013
jobs and brings about socio–economic development to the region. Further to facilitate this
ecosystem, residential settlements evolve and civic amenities like education and healthcare
are strengthened. Thus social infrastructure gets created, fast forwarding the process of
urbanisation and development. These clusters also create positive feedback loops and further
enhance the efficiency and growth prospects of the core industries established.
The Michigan Case Study – economic and social impact of the Automotive industry
The Automotive industry has been at the centre of Michigan’s growth ever since the first
Ford Model T rolled off the assembly plant from Ford’s Piquette Avenue Plant in Detroit in
1908. Over the years, the Automotive industry has had significant influence over the
economic fortunes and social fabric of the state of Michigan.
Automotive plants attracted workers in thousands to Michigan in the early part of the 20th
century. Detroit region’s population jumped over 5.5 times between 1900 and 19506. In
1978, the Automotive industry employed more than 250,000 who worked in the Detroit
region. Other cities like Flint, Lansing also prospered due to the automotive boom.
Automotive plants provided workers with 20% to 50% higher wages than prevailing
manufacturing wages and fuelled the rising American middle class7.
In 2006, Automotive industry contributed to 10% of Michigan’s Gross State Product and
6% of its employment, not including the larger benefits in linked industries such as
transportation, logistics, finance, metal manufacturing etc8.
The financial crisis of the last decade hit the Automotive industry hard and in turn Michigan
as well. However, the Automotive industry has also been pivotal in the economy’s revival.
Auto industry contributed 18% of the 2.2% rate of growth of the US GDP between 2009 and
2012 (Q2)9. Michigan, which produces nearly 22% of vehicles manufactured in US, has
been pivotal in this growth10
.
The US economic recovery has been enabled by the Automotive industry. Working in GM’s
factory in Orion, Michigan, a 30 year old worker says she feels much happier than she did
working at a nursing home for a paltry US$ 9 per hour. Her job at GM’s factory pays her
US$ 16.78, significantly lower than the pre–crisis automotive wage levels. However as she
puts it – “It’s just an opportunity for me, It’s a better life for my kids”.
6 Combined Statistical Area (CSA)
7 Bloomberg
8 Automotive Cluster in Michigan (USA)(2009) – Michael E. Porter et al
9 Bloomberg
10 “Michigan is Auto”(Detroit Regional Chamber) (2013)
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 14 AUGUST 2013
4. Technological contribution
4.1. Contributor to R&D spend
The total R&D spend in India is much lower (~ 0.9% of GDP) than several countries across
the world. However, automotive R&D spend at ~2.6% of its revenues, is much higher than
several other industries in India.
The above spend on R&D by Automotive Industry in India, is still lower than that seen in
developed countries. US and European automotive companies invest ~4% of their revenues
in R&D11
. As R&D requires significant upfront investments and entails risk, government
further support in R&D will be beneficial for the industry. In an effort to boost Automotive
R&D in the country, the Indian government has set up several centres of excellence under the
aegis of National Automotive Testing and R&D Infrastructure Project (NATRiP) in
collaboration with the state governments and the automotive sector12
.
11
ACEA 12
Batelle report on Global R&D Expenditure 2012; GDP figures taken from EIU country database at 2005
prices for real GDP
Exhibit 10: Total R&D spend in India much lower than global
benchmarks
0.0 1.0 2.0 3.0 4.0 5.0
40
80
400
120
0
R&D expenditure in FY11 (US$ billion)
R&D as % of GDP in FY11 (%)
United StatesJapan
Germany
ChinaFrance
South Korea
Israel
Sweden
FinlandSwitzerlandDenmark
AustriaAustralia
Taiwan
Singapore
Mexico
Poland
India
Turkey Russia
Brazil
SA
Italy
UK
Canada
Czech R
Netherlands
Spain
Norway
Belgium
Spend on R&D by different countries
Note: GDP values taken at real valuesSource: Batelle report on Global R&D Expenditure 2012; GDP figures taken from EIU country database at 2005 prices for real GDP
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 15 AUGUST 2013
4.2. Driver for technology adoption
Given the nature of the Automotive industry, domestic supplies form a significant share of its
manufacturing. As a result substantial technology for the industry, over the past decades, has
been absorbed and indigenized. Further the imperative for localization of manufacturing is
significant, given severity of competition necessitating need to save on import duties and cost
of transportation. Automotive companies have formed joined ventures and signed technical
agreements in order to obtain knowledge of modern manufacturing processes, product design
and development.
Several acquisitions have also occurred in the automotive space in recent years as another
method to acquire technology and product portfolios. Over the last five years 25% of the
deals done by value in the industrial goods space have taken place in the automotive sector13
.
4.3. Facilitator for new vehicle design and development
India has developed as a small car manufacturing hub for the rest of the world. Leading
players in this segment use the local manufacturing base in India to export to their home
markets. The existence of a well established supply chain for small car manufacturing also
enables significant design and product innovation to take place in India.
Most global OEMs have established engineering centers in India and the concept of frugal
engineering has now become mainstream in several companies. Several companies are now
manufacturing products specifically designed for customers in the Indian market and then
using these products as base models for other similar emerging markets.
13
Capital IQ
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 16 AUGUST 2013
5. Ten point agenda for Government and Industry
The growth of the Automotive industry is critical to ensure revival of the industrial sector of
the Indian economy.
We have created a ten point agenda for the government and the industry to work together to
reignite this growth engine.
1. Stimulate demand through schemes such as fleet modernisation – At present,
India does not have a robust national policy on retirement of vehicles or end-of-life of
vehicles. As a result, vehicle users in India tend to continue the usage well beyond the
expected life of the product. Such vehicles have high emission content, low fuel
efficiencies and also have lower safety standards. The government with the OEMs
can promote an incentive scheme to drive vehicle owners to replace older vehicles
with new generation products. In addition fleet modernization of government
departments can also be included in this program. This would not only help revive
new demand but also lead to ~15% reduction in carbon monoxide emissions. Further
fuel savings so caused will also benefit the exchequer by reducing petroleum imports.
2. Promote exports and provide funding support – To increase the share of Indian
Automotive sector in global exports, the government needs to support the exporters
financially and at the same time carry out soft promotions overseas, especially in
emerging markets in Africa and Latin America. The government can explore
extending export line of credit at attractive conditions and supporting brand
development of India based products.
3. Develop infrastructure to drive demand and reduce supply chain costs – The
government has announced infrastructure plans of ~US$ 400 billion to foster growth
and development. Automotive demand in several segments has a strong co-relation to
road development and increasing mobility and connectivity. India has one of the
highest logistics cost as percentage to GDP in comparison to other countries. Singular
focus on high quality execution and removing regulatory hurdles for infrastructure
projects would both drive demand for automobiles as well as improve supply chain
and logistics costs for automobile companies.
4. Improve availability of rural finance – Availability of attractive finance is one of
the key drivers of automotive demand. With demand share increasing in rural
markets, the government and the automotive sector needs to explore innovative ways
of making automotive finance available and cheaper than the informal sector. Some
potential methods include working closely with micro-finance institutions,
establishing tie-ups with institutions such as the Post Office etc.
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 17 AUGUST 2013
5. Adopt innovative business models for Tier 3/4 cities – There is a significant
number of Tier 3/4 cities emerging which have a small but sizeable middle class
population and median income levels at par with leading cities in India. The
consumers in these cities have a clear aspiration for mobility, however are not
homogenous in terms of needs, preferences and behaviour. The industry must evolve
its sales and distribution models to reach these customers and create a profitable
model which can operate at lower scale than Metros and Tier 1 cities.
6. Evolve new product development models – Competition in the Indian market has
increased significantly over the last decade across segments. To drive demand and
increase market shares there has been a significant increase in new model launches,
which in the short term co-relate well with sales spikes for the automobile companies.
In this scenario, it becomes critical for the OEMs to evolve newer product
development approaches which have lower timelines and platform strategies which
commonalize parts and reduce costs. An effective multi-generation product plan is
critical to enable companies to balance return on investments with market needs.
7. Drive productivity improvement – India's labour productivity has not kept pace
with increasing costs. As a result there is an increasing threat of dilution of the India
advantage on structural costs. There is a clear need for developing vocational training
models in collaboration with educational institutions to drive skill development as
well as productivity increases. Further, power in India for industrial units is expensive
and the quality and reliability is also uncertain. Several of the auto hubs are facing
acute power shortage. Resolving coal availability and utility pricing issues on the
production side and driving distribution reforms on supply side are critical steps to
ensuring that India remains competitive on power costs.
8. Develop clusters for cost competitiveness – Clusters help the economy by ensuring
development of the overall ecosystem. The Government working with industry can
help setup these automotive clusters and drive cost competitiveness through shared
facilities, local supply chains and common development and testing centers.
9. Incentivize investment in technology and innovation – Government can explore
methods to incentivize industry to invest in research and development of new
products. Methods include incentives on commercialization of IP, cash deferral
schemes for SMEs and greater co-ordination with educational institutes on specific
subjects to develop an ecosystem of research and innovation.
10. Reform national fuel policy – The Automotive industry's investment plans are
heavily dependent on the fuel policy devised by the government. A long term fuel
policy roadmap covering various aspects of fuel emission, subsidies, availability etc
would provide clarity to the industry and reduce risk to capital. Further, the roadmap
can include benefits provided by the Government on incentives for the development
of fuel efficient vehicles and electric and hybrid vehicles.
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 18 AUGUST 2013
6. Bibliography
This section outlines all references used while developing the report:
Report by National Skill Development Corporation, "Human Resource and Skill
Requirements in the Auto & Auto Components sector (2022)"
Report by Department of Heavy Industry, Ministry of Heavy Industries and Public
Enterprises, "Report of the Working Group on Automotive Sector for the 12th Five
Year Plan (2012–2017)"
Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises
(2006), "Automotive Mission Plan (2006–2016)"
Invest India website, "http://www.investindia.gov.in"
SIAM industry statistics
Eurostat by European Commission (2011), "Report on R&D expenditure"
WIPO statistics database, "http://www.wipo.int"
Economist Intelligence Unit Country Database
World bank website, "http://www.worldbank.org"
UN comtrade website, "http://www.comtrade.un.org"
Indiastat website, "http://www.indiastat.com"
IDEMA website,"http://www.idema.org"
IMTMA website, "http://www.imtma.in"
TMMA website, "http://www.tmmaindia.net"
Or, Ng & Chan Lawyers website, "http://www.onc.hk/pages/index.asp"
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 19 AUGUST 2013
Society of Indian Automobile Manufacturers,
SIAM, a not-for-profit organization, is the apex
national industry body representing all major
vehicle and vehicle engine manufacturers in India.
Members include manufacturers of Passenger
vehicles, Commercial vehicles, Three wheelers,
Two wheelers and Engines.
SIAM aims to promote sustainable development of
the Indian automobile industry and enable India to
become a global automotive hub. It endeavors to
improve industry’s competitiveness, create an
environment to promote mobility, internationalize
the industry and promote India as a global hub for
Research & Development.
SIAM provides a window to the automobile
industry in India. The Society works closely with
all stakeholders in the formulation of the policies,
regulations and rules related to the Indian
automobile industry. It is a link between the
industry and other bodies including the
government. It works with various international
bodies like OICA, IMMA, UNECE, etc and
counterpart associations like VDA, SMMT, JAMA,
TAIA, AFM, ANFIA, etc.
SIAM works towards holistic development of the
industry with its activities spanning over three
broad areas – Economic & International Trade
Policy, Technical Policy and activities related to
Environment & Safety Awareness. Environment
protection and safety are the key driving principles.
Dissemination of information is an integral part of
the Society’s activities. It publishes monthly
industry statistics, other reports and organizes
various informative seminars/workshops.
Auto Expo, a biennial auto exhibition, is one of the
major activities of the society. It is planning other
regional and segment shows across the country and
abroad.
SIAM aspires to be a catalyst in the sustainable
development of the automobile industry in India.
PERSPECTIVES ON IMPORTANCE OF AUTOMOTIVE INDUSTRY 20 AUGUST 2013
Note to the Reader
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About the authors
Sharad Verma is a Partner and Director at BCG, based at the firm's New Delhi office.
Sachin Kotak is a Principal at the firm's New Delhi office.
We gratefully acknowledge the contribution of Anupama Pande, Rakshika Sharma and
Vivek Jain from BCG India for a pivotal role in the conceptualization and writing of this report.
We would also like to thank Saroj Singh for his contributions to the editing, design and
production of this report.
For further contact
If you would like to discuss the themes and content of this report, please contact:
Sharad Verma
BCG New Delhi
+91 124 459 7025
Sachin Kotak
BCG New Delhi
+91 124 459 7128
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08/13