1. Automotive Industry On Fast Track

2. Indian Automotive Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

3. India - An Introduction  Population  States/UTs  Geographical Area  Languages recognised  Business language  Per Capita Income**  GDP** Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005) Source:CSO Statistics

4. India - Fast pace Growth  Largest democracy  4th largest economy by PPP index  6th largest energy consumer  ForEx reserves skyrocket from USD 42 bn (2001) to US$ 133 bn ((February, 2005)  GDP growth to continue between 6-8%  3rd largest economy by 2050: Goldman Sachs  Leading in IT & BPO  Oil & Gas and Biotechnology sunrise industries

5. India - Leading the world  Hero Honda - largest manufacturer of motorcycles  Moser Baer - among the top three media manufacturers in the world  Pharmaceutical Industry - 4th largest in the world  Walmart, GAP, Hilfiger sources more than USD 1bn worth apparel from India  100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler

6. Indian Automotive Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

7. Passenger Car Market Projected CAGR12.3% 2002-03 (A) Total Units - 547,083 2007-08 (P) Total Units - 975,703

8. Two Wheeler Market  Present estimated size 5.4 mn units per year  CAGR (last 5 years) 10% Average two-wheelers per 1000 people India27 China 08

9. Auto Component Market Estimated market size US$ 6.7 bn Estimated market size (2012) US$ 17 bn Projected CAGR 15%

10. 16 Cos 237 Cos 1 ~ 5 Mill US $ 5 ~ 50 Mill US $ 50 ~ 500 Mill US $ 149 Cos Auto Component Industry Structure

11. Indian Automotive Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

12. Home to global players ProductPlayers Cars/SUVsSuzuki, Honda, Toyota, Mitsubishi, GM, Ford, Daimler- Chrysler, Skoda, Fiat, Hyundai, Tata, M&M Two-wheelersTVS, Hero Honda, Bajaj, Yamaha, Kinetic, LML CVsTata, Ashok Leyland, Tatra, Eicher- Mitsubishi, Swaraj-Mazda, M&M, Volvo TractorsEscorts, M&M, L&T, Punjab Tractors, New Holland, ITL- Renault, John-Deere, Steyr

13. Manufacturing Hub for Vehicles  Hyundai - Export Base for Small Cars  Mitsubishi & Yamaha - Hub for 125 cc Motorcycles  HMSI - Hub for Two Wheelers Exports  Ford exporting CKDs of Ikon to South Africa & other countries  Maruti Suzuki- Exports cars to EU  Skoda - Hub for exports of Cars to neighbouring countries

14. Hyundai Motors India  Second largest player in passenger car market  Market Share20%  Santro & Accent - Run away success stories  Made India its global sourcing base for small cars  Turnover (approx.)US$ 1 billion

15. Indian Automotive Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

16. Invest in India Excellent Source for IT based Engineering Solutions - for Product & Process Integration Scaling Costs Optimising Resources Twin Indian Advantages…

17. India - Manufacturing Hub for Components Fiat sourcing components Ford full fledged component sourcing team Toyota Motors Global Hub for Transmissions Daimler Chrysler sourcing > 70 million Euro

18. Export from India Passenger Cars

19. Export from India Auto Components expand markets abroad

20. Buy from India  General Motors, USA - Global Purchasing Team (Halol)  Volvo, Sweden - Global Buying Team (Bangalore )  International Truck & Engine Co - Global Purchasing  Cummins, USA - Global Purchase Team (Pune)  Caterpillar, USA - Global purchase staff (Delhi)  Delphi, USA - International Purchase Office  Motorola Automotive Electronics Division, USA  Visteon exporting India-made components worldwide Major OEMs/ Tier 1 suppliers buying auto-components from India for their global requirements

21. Sell to India Low car penetration ratio 5 per thousand persons This ratio projected to double by 2007-08 Large latent demand as…

22. Partner with India OEMs leverage local manufacturers for Contract Manufacturing  Mitsubishi and Ford tie-up with Hindustan Motors  Kawasaki ties-up with Bajaj

23. Indian Automotive Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

24. Advantage India  5th Largest Commercial Vehicle Manufacturer in the World  4th Largest Car Market in Asia - crossed the 1 million mark  # 1 Global Motorcycle Manufacturer is in India  Largest Two-Wheeler Manufacturer in the World  2nd Largest Tractor Manufacturer in the World

25. Industry Milestones 2003-04  Car production crosses 1 million mark  Car exports cross US$ 1 million mark  Auto component exports cross US$ 1 bn mark

26. The Cost & Skills Advantage

27. The Market Advantage Fast paced urbanisation to rise from 28% to 40% by 2020 Middle class expanding by 30 - 40 million every year Growing working population Upward migration of household income levels

28. The Quality & Productivity Advantage Auto Companies achieving high productivity through best practices: T Q M T P M Six Sigma Toyota Production Systems / Lean Companies growing in ranks can offer PPM levels of quality

29. The Policy Advantage  Auto Policy 2002 promotes an integrated automotive sector  2001- Quantitative Restrictions were removed  Incentives for R & D  Stringent environmental controls

30. Emission Compliance From April 1, 2010 Bharat Stage IV From April 1, 2005 From April 1, 2008 From April 1, 2005 Bharat Stage III Already introduced in Metros: Mini- Metros from Sept, 2003 From April 1, 2005 Already introduced in Metros:Mini- Metros, from Sept, 2003 Bharat Stage II C V’sTwo WheelersCars Emission Standards Status Bharat Stage II, III, IV (Euro II, III and IV equivalent)

31. Indian Automotive Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

32. Contact in India Society of Indian Automobile Manufacturers (SIAM) Core 4B, 5th Floor, India Habitat Centre Lodi Road New Delhi - 110 003.India Tel: 0091 11 24647810- 12, 24648555 Fax: 0091 11 24648222

33. Contact in India Automotive Component Manufacturers Association of India (ACMA) 6th Floor The Capital Court, Olof Palme Marg, Munirka, New Delhi - 110 067 Tel.: 0091 11 2616 0315, 2617 5873, 2618 4479 Fax: 0091 11 2616 0317 E-mail: acma@vsnl.com Website: www.acmainfo.com