INDUSTRY PROFILE

The Automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. In 2009, India emerged as Asias fourth largest exporter of automobiles , behind Japan , South korea and Thailand. Following Economic liberalization in India in 1991, the Indian automotive industry has restrictions. Several Indian automobile manufacturers such as Tata motors, Maruti Suzuki and Mahindra & Mahindra, expanded their domestic and international operations. Indias robust economic growth led to the further expansion of its domestic automobile market which attracted significant Indiaspecific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units. Embryonic automotive industry emerged in India in the 1940s. Following the independence , in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However , the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow ,but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. Automobile industry in india was witnessed a tremendous growth in recent years and is all set to carry a momentum in the foreseeable future. Indian automobile industry has come a longway since the first car ran on the streets of Bombay in 1898. Today ,

automobile sector in India is one of the key sectors of the economy in terms of the employment. Directly and indirectly it employs more than 10 million people and if we add the number of people employed in the auto-component and auto ancillary then the number goes even higher. The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors); passenger cars; and two-wheelers. Heavy vehicles section is dominated by Tata-Telco, Ashok Leyland, Eicher motors, Mahindra & Mahindra and Bajaj. The major car manufacturers in India are Hindustan motors, Maruti Udyog, Fiat India Private Ltd.,Ford India Ltd, General Motors India pvt ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd, and Skoda India private ltd., Toyota Motors ,Tata Motors etc. The dominant players in the two-wheeler sector are Hero Honda, Bajaj ,TVS, Honda Motorcycle & Scooter India (pvt) ltd., Yamaha etc. In the initial years after independence Indian automobile industry was plagued by unfavourable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800. The automobile sector in India underwent a metamorphosis as a result of liberalization policies initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations , reduction of tariffs on imports and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s , the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world. Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments . India is on every major global automobile players radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their

manufacturing bases in India. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon. Some of the major characteristics of Indian automobile sector are; Second largest two-wheeler market in the world. Fourth largest commercial vehicle market in the world . 11th largest passenger car market in the world Expected to become the worlds third largest automobile market by 2030, behind only China and the US.

The automobile industry in India currently worth US $35 billion is projected to grow to US $ 145 billion by 2016. In the same time exports are estimated to grow to US $ 35 billion from US $ 4.1 billion presently. Employment in the automotive sector is expected to increase by 25 million. Auto industrys contribution to the Indian GDP (gross domestic product ) is estimated to be between 30%-35%, an improvement of 20%-25% as of now. The factors contributing to the growth of the automobile industry in India are: Indias massive geographic extension Road developments like construction of the Golden Quadrilateral, the NorthSouth and East-West corridors Higher disposable income in services sector employments Availability of easier finance schemes Higher GDP growth Auto Part Industries Auto Parts Industry is an important ancillary industry serving the OEM and the open market segments. Lucky Enterprises is a renowned auto component manufacturer and supplier in India and abroad. Auto component manufacturers and suppliers are classified in accordance to the product category. The product categories include: aluminum die casts, precision components, heat exchangers, control cables, bushes, clutch components, engine valves, fasteners, molds and dies, cylinder liners, sheet metal parts, sub-assemblies and rubber parts Lucky

Enterprises manufactured automobile parts include sheet metal components like rings, neck rings and connectors, nuts and bolts, reducers, adopters, and flanges. Indian Auto component Industry In India the auto component industry is growing at an encouraging rate in tandem with the growth of the automobile industry. The turnover has increased from US $ 8700 million in 2004-05 to US $ 12,000 million in 2008-09. Exports during the corresponding period increased from US $ 1400 million to US $ 2100 million, and imports from US $ 1450 million to US $ 1900 million. The investment in this auto parts industry has risen from US $ 3750 million in 2004-05 to US $ 4400 in 200809. Industries in this segment have become quality conscious, so as to produce materials conforming to international standards. 524 companies are ISO 9001 certified, followed by 342 acquiring TS16949 certification, 154 are ISO 14001 certified, 81 are having QS 9000 certification, while 47 companies are OHSAS 18001 certified.

COMPANY PROFILE Lucas TVS is a joint venture between Lucas industries plc, UK and TV Sundaram Iyengar and sons at Chennai, and was started in the early 60s to manufacture automotive electrical systems. Lucas TVS has grown as a leading manufacturer in the auto electrical field manufacturing starter motors, wiper motors, alternators, small motors, ignition coils, blowers/fan motors, head lamps, dynamo regulators, diesel fuel injections, fuel injection equipment, electronic ignition systems and automotive lighting products for passenger cars, jeeps, utility vehicles, offhighway vehicles, industrial engines, earth movers, tractors and two/three wheelers. Plants Padi-Chennai, Pondicherry, Rewari-Haryana Man Power Above 1000 Product Development 3D software such as Pro/E, Catia, Unigraphics are carried out in product design as required by the customers for easy interaction and online design reviews, while designing the LTVS products for the engine and vehicle systems of the customers. Based on the concurrent engineering, design for manufacturing and assembly, design to target cost, design for reliability, meeting the requirements of TS16949 is carried on in LTVS for the process of New Product Development. To upgrade to a world class level to ensure customer satisfaction, New Product Development process has been developed with the help of Japanese consultants. Several new breakthrough products are under development in advance engineering section to meet the requirements of OEM The Engineering R&D team transforms the technical requirements of customers into new products.

 For Product Design and Development, computer aided manufacturing is extensively used through computerized electromagnetic design, motor design, motor design, stress and fatigue analysis, optimization of design , reliability engineering etc. Process Design A full-fledged material and process development lab in the engineering centre, where research on the use of new materials, to improve quality and reliability of products and add value to the customer in meeting their everincreasing demands. Working together with the customer from the initial stages of the vehicile development, ensuring that the customer requirements are thoroughly understood and built the product. To ensure the customer friendly technology development, teams of highly qualified scientists, engineers, technicians continuously keep in contact with the customers. To meet the specific requirements of LTVS new products, manufacturing processes such as for enhancing electrical insulation, improving corrosion resistance, metal joining, forging and casting etc are also developed in the lab. Tool Design and manufacture Has a machine tool centre to design, develop and manufacture special purpose machines, test rigs. To meet the stringent product quality and reliability requirements of new products, there is a single piece flow manufacturing lines for the contemporary technology and lean manufacturing systems of LTVS. Lucas TVS Limited located in India provides: Air Freight services, Alternators, Headlamp Washing Systems, Ignition Coils, Motor Bases and Starter Motors. Product Range Starter Motors Alternators

Wiper Motors Ignition Coils Blower/fan Motors Head lamps Dynamo regulator Diesel fuel injection Dynamos Fuel injection equipment Electronic ignition system and Automotive lighting products.

Some of its prestigious customers For cars/utility Vehicles GM-General Motors, India Honda Motors Fiat India Hyundai Motors, India Ford India Mahindra Renault

For LCVs/CVs Tata Motors Swaraj Mazda Eicher Motors For Tractors HMT Tafe Escort JohnDeere

Export For OE customers

Arctic cat, UK Commercial Vehicle group, USA Iveco, Italy Proton, Malaysia Wabco, Germany

COMPANY MISSION To be a repeated supplier in the global auto industry, by developing innovative products and solutions of value o customers through creative skills and involvement of employees, suppliers and dealers and use of contemporary technology. COMPANYS VISION To be a supplier of choice of all leading vehicle manufacturers in India To be a recognized OE supplier in Asia Pacific and Middle East markets To achieve global recognition for its innovative approach to products and solutions By 2010,sell INR 1400 crores [USD 300 Million] of products and solutions with a third to customers outside India.