1 The Indian Automotive Industry A Perspective. 2 Global Auto Industry – An Analysis Indian Auto Industry Two Wheelers Three Wheelers Passenger Cars Commercial

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<ul><li>Slide 1</li></ul> <p>1 The Indian Automotive Industry A Perspective Slide 2 2 Global Auto Industry An Analysis Indian Auto Industry Two Wheelers Three Wheelers Passenger Cars Commercial Vehicles Indian Auto Component Industry Emerging Opportunities Overview of Indian Economy TATA Motors Organisation Structure Slide 3 3 Organization Structure TATA Motors Senior Management Team R N Tata (Chairman Tata Motors) R N Tata (Chairman Tata Motors) Ravi Kant (Managing Director) Ravi Kant (Managing Director) Rajiv Dube (Sr Vice President Passenger Cars) Rajiv Dube (Sr Vice President Passenger Cars) P P Kadle (ED Finance &amp; Corporate Affairs) P P Kadle (ED Finance &amp; Corporate Affairs) P M Telang (President Light and Small Commercial Vehicles) P M Telang (President Light and Small Commercial Vehicles) A P Arya (President Heavy and Medium Commercial Vehicles A P Arya (President Heavy and Medium Commercial Vehicles Engineering Research Centre Slide 4 4 Global Auto Industry An Analysis Indian Auto Industry Two Wheelers Three Wheelers Passenger Cars Commercial Vehicles Indian Auto Component Industry Emerging Opportunities Overview of Indian Economy TATA Motors Organisation Structure Slide 5 5 Source : OICA.net Asias share of the world vehicle production is growing significantly.. Data excludes 2-wheelers where Asia is not only the largest producer, but is also the largest market Slide 6 6 State of the Global Automotive Industry Intense Product &amp; Price Competition Stagnant Sales except in Asia Industry Margins Under Pressure Over Capacity in most Regions Most of Industry EVA negative Global Focus to Asia for growth Slide 7 7 Global Auto Industry An Analysis Indian Auto Industry Two Wheelers Three Wheelers Passenger Cars Commercial Vehicles Indian Auto Component Industry Emerging Opportunities Overview of Indian Economy TATA Motors Organisation Structure Slide 8 8 INDIA : An Introduction Population :1080 million 296 million States :28 50 (+ 7 Union Territories)(+14 dependent areas) Geographical Area:3.3 mn sq km9.6 mn sq kms GDP - Nominal:US $ 0.67 trillion US $ 11.73 trillion Per Capita Income - Nominal:US $622US $39,935 Per Capita Income :US $ 3080US $ 39,496 (at Purchasing Power Parity) India USA Estimates for 2004 Sources: IMF Data, The World Factbook, CIA Current Exchange Rate: 1 USD = INR 45 Exchange Rate (PPP) : 1 USD = INR 10 (approximately) Slide 9 9 After decades of indifferent growth, Indias economy is accelerating in the new millenium.. Slide 10 10 Rapid increase in population in the last fifty years have negated the impact of economic growth in the past Slide 11 11 Indian Economy already ranks 4 th in the world in terms of GDP adjusted for Purchasing Power Parity Goldman Sachs predicts India to be the third largest economy in the world in absolute terms by 2025 GDP Growth Forecast % India Brazil China Russia Slide 12 12 Source: The World Factbook, CIA Although it is the most populous country, because of Beijings long-standing one-child policy, Chinas working age population will begin to decline in the next 10 years. Meanwhile, Indias youthfulness - 350 million citizens are under age 15 - ensures its workforce will expand for decades, potentially enabling it to outstrip Chinas economic pace through sheer weight of numbers. Time Magazine, Issue dated Dec 05, 2005 Indias Demographic Dividend India has one of the youngest population amongst all nations Slide 13 13 Sources: Statistical Outline of India 2004-05 India has transitioned from a predominantly agrarian to a service-based economy in line with the growth trajectory followed by major developed economies.. The Indian Economy is now more broad-based and thus resilient.. Slide 14 14 Global Auto Industry An Analysis Indian Auto Industry Two Wheelers Three Wheelers Passenger Cars Commercial Vehicles Indian Auto Component Industry Emerging Opportunities Overview of Indian Economy TATA Motors Organisation Structure Slide 15 15 Automobile production in India has doubled in 4 years, with growth seen across all four major segments.. By numbers, two wheelers are the dominant segment of the Indian Automotive market Slide 16 16 In many ways, the Indian Automotive Market is unique Harsher operating conditions pose unique challenges for product conceptualization, design and development: Road inadequacy and quality High Traffic density Poor Fuel quality &amp; variety (Gasoline, Diesel, CNG &amp; LPG) Manufacturing complexity higher despite lower volumes compared to global standards Large product portfolios Product obsolescence policies not articulated and enforced, entailing longer product life. Firms able to maintain profitability even at low volumes. Slide 17 17 Personal Mobility is positively correlated to per capita GDP Slide 18 18 India is expected to achieve mass motorization status in 2014 Vehicle Density vs. GDP/capita Note: The above includes both Passenger Vehicles and Commercial Vehicles Sources:Wards Auto Yearbook 2002, EIU, Goldman Sachs BRICs report, DRI 2002, A.T. Kearney analysis Inhabitants/Vehicle 10 Per Capita Income (US$ 000) 50 100 Mature Markets Developing Markets USA Italy Brazil Mexico South Korea Czech Republic Spain China in 2002 India in 2014 UK Australia Sweden Germany Japan Belgium France Austria Canada Poland India in 2002 Argentina 22025303515 $1,000 0 40 China in 2014 Inhabitants/Vehicle 02 India100 China82 Slide 19 19 Key Challenges facing the industry Increasingly Stringent Emission &amp; Safety Regulations Technological capability Cost Increase in input prices Ferrous &amp; Non-Ferrous Metals Crude oil &amp; derivatives Natural rubber Rising Customer Expectations Product features Quality &amp; reliability Integration with Global Markets Lowering product life cycles Reducing time-to-market for new products Threat of new competition Slide 20 20 Global Auto Industry An Analysis Indian Auto Industry Two Wheelers Three Wheelers Passenger Cars Commercial Vehicles Indian Auto Component Industry Emerging Opportunities Overview of Indian Economy TATA Motors Organisation Structure Slide 21 21 Within 2-Wheelers, Motorcycles contribute 80% of the segment size CAGR 15% Slide 22 22 Indian 2-Wheeler Market Competitive Scenario Motorcycle 50%30%13%4%1%2%</p>