Auto/Auto Ancillary Sector

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Maharashtra Profile
Percentage in Maharashtra
Economic GSDP growth rate Industry growth rate Literacy Rate Urbanization 0.0 20.0 40.0 42.4 60.0 80.0 100.0 8.7 8.5 76.9

Maharashtra:
Highest State Domestic Product Highest aggregate bank deposits and gross credits Highest contribution to Indias corporate tax collections (61%) Most urbanized State

Social

Percentage of Maharashtra in India

Industrial Wine Auto & Auto Components Bio Tech Software Export Economic Exports Industrial Output Employment GDP contribution Social Population Geographical Area 15.3 14.7 9.4 9.4 18.4 27 30 38 33 87

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

* Maharashtras GSDP contribution to Indias GDP is at current prices

Source: Socio-Economic Review , Maharashtra 2010-11; Annual Survey of Industries 2008-09

Maharashtra Profile
Road
Road Connectivity
Total Length of National Highway (in km): Total Length of State Highway (in km): Total Length of Major District Roads(in km): Total Length of Other District and Village Roads (in km):

India
70,934 1,31,899 4,70,000 26,50,000

Maharashtra
4,376 34,102 49,901 1,51,661

- 97.5 % of the villages are well connected with all weather and 2 % by fair weather roads in the state.
Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department.

Railway

Railway Connectivity
Total Length of Railway network (in km):

India
64,755

Maharashtra
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.

Maharashtra Profile
Airport
Airport Connectivity
Total No. of Airport: Total No. of International Airports: Total No. of Domestic Airports:

India
449 17 114

Maharashtra
22 3 5

-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

Port

Port Connectivity
Coast-line (in km): No. of Major Ports: No. of Minor and intermediate Ports: Container traffic (in TEU million):

India
7,517 12 187 6.89

Maharashtra
720 2 48 4.15

- 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)
Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department.

Maharashtra Profile
Power
Power Facilities
Electricity Generation Capacity (in MkWh): Installed Capacity (in MW):

India
77,15,510 1,73,626

Maharashtra
81,345 19,166

- Maharashtra has the largest installed electricity generation capacity

Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department.

IT/ ITeS

IT/ITeS Facilities
Total no. of Industrial Training Institutes: Total no. of Industrial Training Centres: Total seating capacity:

India
2,133 5,906 11,15,628

Maharashtra
388 297 1,21,744

-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
Source: dget.nic.in, April 2010

SEZ

Special Economic Zones

Notified SEZs: Approved SEZs:

India
377 738

Maharashtra
63 143

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

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

GLOBAL AUTOMOTIVE SECTOR

Global Automotive Industry

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

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

Global Automotive Industry - Production statistics 2010 (Provisional)

Country Passenger Vehicle Commercial Vehicle Total % change

China Japan USA Germany S. Korea Brazil

13,897,083 8,307,382 2,731,105 5,552,409 3,866,206 2,828,273 2.814,584 1,922,339 1,913,513 1,390,163 968,860 1,367,014 1,270,444 1,208,362 1,069,518

4,367,584 1,318,558 5,030,338 353,576 405,735 820,085 722,199 305,403 474,387 954,961 1,102,116 232,440 123,019 194,882 6,867

18,264,667 9,625,940 7,761,443 5,905,985 4,271,941 3,648,358 3,536,783 2,227,742 2,387,900 2,345,124 2,071,026 1,599,454 1,393,463 1,403,244 1,076,385

32.4% 21.3% 35.4% 13.4% 21.6% 14.6% 33.9% 8.8% 10.0% 50.2% 39.0% 14.7% 27.8% 93.5% 9.5%

United States is to become a significant net importer of cars, owing India to the higher cost of domestically manufactured products France 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
Spain Mexico Canada Iran

The major automotive players worldwide are: Toyota Motors, Porsche Automobiles Holdings, Volkswagen AG, Ford Motor Company, Daimler AG, UK Russia Honda Motors Co. Ltd., Nissan Motors etc.
CzechRep

Source: OICA

Indian automotive industry: a key contributor to the economic growth

Indian automobile sector is a global growth engine

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

India trend - Automobile Exports (Volume)

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Source: SIAM

Indian

automotive industry has attracted a cumulative FDI of USD 5.9 billion during Apr 2000 Mar 2011
18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0

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

Industrys Expected

turnover is estimated to touch a level of USD 145 billion by 2016

India trend Domestic Sales of Automobile Industry

to be the worlds 7th largest automobile market by 2016 and world's 3rd largest by 2030, only behind China and the US production of automobiles increased from 8.7 million units in 200405 to 14.06 million units in 200910

Two Wheelers Three Wheelers Commercial Vehicles Passenger Vehicles

Overall

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

Indias automotive sector market scenario

Automotive sector - Segment wise market share (2010-11) Indias automotive cluster
16% 4% 4%

Delhi Gurgaon - Faridabad

76% MumbaiPuneNashik Aurangabad

Passenger Vehicles Three Wheelers

Commercial Vehicles Two Wheelers

Kolkata- Jamshedpur Belt

India Auto component Industry

25 20 15 10 5 0 Investment 2009-10
Source: ACMA

USD billion

22

9 3.8

Auto Component industry to grow fourfold by 2020; to cross USD 113 billion
Turnover 2009-10
Source: IBEF

ChennaiBengaluruHosur

Contribution of Automotive sector to GDP (%) Year 2006 2010 E 2016 E Share in GDP 5.2 7.2 10.4

Exports 2009-10

MAHARASHTRA AUTOMOTIVE SECTOR

Maharashtra Automotive Sector

Maharashtra is a major hub of Indias automotive sector
To Gujarat

Maharashtra Automotive Hub

To Madhya Pradesh

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, and Bharat Forge, have their presence in the state
To Goa Mumbai Pune

To Chhattisgarh

Nashik

Aurangabad

To Andhra Pradesh

To Karnataka

Pune is the largest auto hub of India with over 4,000 manufacturing units only in Pimpri-Chinchwad region Auto & auto ancillaries contributes Maharashtras manufacturing strength to 9% of

Pune

is home to large players like Bajaj Auto Limited, Daimler Chrysler Limited,Tata Motors, etc. is home to India's largest multi-utility vehicle manufacturer, Mahindra & Mahindra Limited
Source: www.automotiveproductsfinder.com/

Nashik

Maharashtra Automotive Sector Industrial Scenario

Maharashtra Key Automotive Cluster and SEZ
Legend National Highway Railway International Airport Domestic Airport Major Ports Key Locations Industry Cluster

The major automobile centres in Maharashtra include Pune and in around area (Chakan, Rajgurunagar), Nashik, Aurangabad and Nagpur

MSEZ

Notified MultiProduct SEZ as on March 2011

Notified Multi Product SEZs 1 2 3 4 Navi Mumbai SEZ Pvt Ltd, Thane Sunny Vista, Bhokarpada, Panvel Navi Mumbai SEZ Pvt Ltd., Ulwe,Navi Mumbai, Thane Indiabulls Industrial infrastructure Ltd, At Gulvanch, Musalgaon Village Gulani, Dist Pune

5 Bharat Forge Ltd. (JV MIDC), 6 MADC, Nagpur

FDI

The total FDI investment in the Automobile sector sector till September 2010 was INR 895 crore

Pune , Ranjangaon, Talegaon, Chakan has around 53 large companies and around 7,000 auto ancillary units

Maharashtra Automotive industry Value Chain

Maharashtra has strongly emerged as the top destination in India for automobile sector, with a strong presence across the value chain

Raw Materials

Engineering Research and Design

Auto Parts Production

Supply of Auto Parts

Assembly of Auto Parts

Marketing/ Exports

Mumbai Pune Aurangabad Nashik Shendre Chakan

Pune Aurangabad Shendre Chakan Nagpur

Pune Mumbai Kolhapur Ahmadnagar

Pune Nashik Mumbai

Pune Mumbai

Strong

Medium

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

KEY PLAYERS

Centre of Automotive Industry

Tata Motors
Car/Trucks

Corporate Headquarter R&D Centre Manufacturing facility Corporate Headquarter Manufacturing facility Manufacturing facility

Volkswa gen
Mahindra & Mahindra

Cars SUV, Commercial Vehicle Diesel Engines and Generators Tyres

Manufacturing facility

Manufacturing facility Manufacturing facility Design centre Manufacturing facility Manufacturing facility

Bajaj Auto

Two Wheeler 3 Wheelers, Tractors, LCVs and Large Trucks Scooters, Mopeds and Bikes

Force Motors Mahindra Two Wheeler MercedesMercedesBenz General Motors

Cummins Engines Bridgesto ne

Manufacturing facility

Hyundai
Cars

Construction Equipment

Manufacturing facility Assembly facility

Fiat
Cars

Car

Manufacturing facility R&D centre Manufacturing facility

Manufacturing facility

Premiere Motors
Industrial equipment

Car, Trucks, Vans Car, Trucks, Vans

JCB

Manufacturing facility Design facility

John Deere

Manufacturing facility R&D centre

Research Institutes, Suppliers & Infrastructure Players

R & D Centre
ARAI (Automotive Research Association of India)
ARAI is a the premier research and certification institution for the automotive industry in India, located at Pune

OEM

Bharat Forge Tata Auto components

Cutting tools tech.

Sandvik

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

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

Automation firm
PARI Robotics & Automation
PARI is one of the leading industrial automation companies and have setup factory automation systems at many global manufacturing facilities

IT in Automative
Software & Information Technology
Siemens, PTC, Ansys, Geometric and KPIT Cummins

AUTOMOTIVE EDUCATION INFRASTRUCTURE

All embracing Educational Support

Strong technical manpower in Maharashtra is fuelling growth in the state

Maharashtra has a strong skilled labor base supporting the automotive industry

Manpower strength in Maharashtra

Sector Institutions Capacity Admitted Students

The state offers a strong educational infrastructure Engineering 784 2,61,625 2,09,025 with technical institutions providing automobile Management 366 34,995 28,644 engineering courses across the state Sciences IBM has set up a Global Delivery Center in Pune to Industrial Training 726 1,49,156 1,34,712 provide auto majors business consulting and Institutes application services NATRiP centre in Maharashtra India's premier automotive R&D, testing and certification organisation, Automotive Research Vehicles Research & Research, design, development and testing of vehicles Development Association of India (ARAI) is present in Pune of excellence for Establishment (VRDE), Centre photometry, electromagnetic Indias first Auto Cluster Development and Research Ahmednagar compatibility (EMC), test tracks Institute is in the state Services to all vehicle categories. Automotive Research Centre of excellence for power Association of India train development and material. (ARAI), Pune
Source: "Economic Survey 2010-11, Directorate of Economics and Statistics website, http://mahades.maharashtra.gov.in/, accessed 1 June 2011

AUTOMOTIVE SECTOR POLICY

Policy and regulatory support

Special policies for Auto industry makes it a lucrative investment sector
Auto Policy 2002 Automotive Mission Plan (AMP) 20062016
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 of automotive training institutes and auto design centres, special auto parks and auto component virtual SEZs To enhance and upgrade the testing and validation infrastructure and establish centres of excellence for automotive R&D.
Lowering

Department of Heavy Industries and Public Enterprise

National Automotive Testing and R&D Infrastructure Project (NATRiP)

Ad

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

Incentive Regimes Union Budget 201011

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)

MAJOR OPPORTUNITIES AND INVESTMENTS

Opportunities boundless
Maharashtra Automotive Sector
Demand A large consumer pool
Domestic demand Export potential

Supply A low cost manufacturing base

Frugal Engineering capability Low cost labor base Skilled workforce Cost effective supplier base

Emerging Opportunities
Partnership and alliances for Auto Component sector Vehicle retailing

Increased focus on Infrastructure

Low cost vehicles (ULCC) Diversification in two wheeler segment R&D

CVs to benefit from increasing infrastructure activity and heightened international interest Design Centres Auto financing

Calling Investments
Key upcoming projects in Maharashtra automotive sector
Company Atul Auto Ltd. Bajaj Auto Ltd. Project Manufacturing plant for four wheeler goods carrier Expand its capacity to raise the overall capacity by one fourth to 5, 000,000 units by 2012 Setting up radial tyre plant Enhance Nashik facility Gear manufacturing facility Engine and transmission plan and expansion of power train project Expand capacity from 250, 000 to 500,000 Expand production capacity to 110,000 Proposed Investment INR 2.3 billion NA Location Pune Aurangabad, Chakan Chakan Nashik Chakan Talegaon Chakan Chakan

Bridgestone Tyres India CEAT Tyres DANA Holding Corp. General Motors Mahindra & Mahindra Volkswagen

INR 2.6 billion INR 5.9 billion INR 1872 million INR 9.36 billion INR 20 billion NA

Brembo Group, Mercedes-Benz, Norma, ElringKlinger Group, Cosma International recently started its operation at different locations in Maharashtra.

Source: Ernst & Young Auto Track June 2010

KEY CONTACTS

Connecting further
Principal Secretary Industries Room No. 114, 1st floor, Mantralaya Annex, 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