Automotive Engineering Show New Delhi: Countries & their Manufacturing Capacity

Worl
d
Rank
1

Countr
y

Manufacturi
ng Capacity

China

24,503,326

USA

12,100,095

Japan

92,78,238

Known
vehicle
brands
1. Changan
2. Geely
3. Chery
4. Great Wall
Motors
5. JAC

1. General
Motors
2. Ford
3. Chrysler
4. Jeep
5. Chevrolet

6. Toyota
7. Mitsubishi
Motors
8. Daihatsu
9. Nissan
10. Suzuki

Recent news on Indian Connection

Chinas Changan Automobile Company, Chinas 4th largest carmaker, is planning to

set up its first India factory, with a capacity to manufacture 200,000 vehicles a
year. The company recently visited Andhra Pradesh and Tamil Nadu and, according
to sources, is looking for a local partner. The move is believed to have been
motivated by stagnating sales in the Chinese domestic market and stiff competition
from global brands.
Other car brands such as Chinas top carmaker SAIC Motor Corp and Great Wall
Motor, its biggest maker of SUVs, are spearheading the country's first major push
into India, one of the world's fastest growing auto markets, as growth at home
stagnates.
One of the largest tractor manufacturers in the world and one Indias top
automakers, Mahindra & Mahindra Ltd. is reportedly building an SUV for the
American market. A recent report in The Wall Street Journal said the company has
cobbled together an engineering team to set up a unit near Detroit, home of much
of the US auto industry.
Mahindras new staff has been carefully poached from US giants such as Ford Motor
Co.and Tesla Motors Inc.
JETRO is the official promotion body for trade and investment with Japan and has
73 offices all around the world, including a network in India spanning four cities
New Delhi, Mumbai, Chennai and Bangalore. Takehiko Furukawa, director general,
JETRO Mumbai, said: Japanese companies are noticing huge business
opportunities in Pune, and the flourishing automobile industry in this region
provides a major investment opportunity for Japanese auto component
manufacturers in the proposed industrial zone. At the moment, some 27
companies have already shown interest in the dedicated Japanese zone and
more are coming in.
The arrangement works in everyones favour while participating Japanese
companies will get a piece of the auto components pie in the region, it will not only
generate more opportunities for Tier 2 and 3 suppliers and enable them to further

German
y

6,033,164

1.
2.
3.
4.
5.

Audi
BMW
Porsche
Volkswagen
Daimler AG

South
Korea

4,555,957

1. Hyundai
2. KIA
3. SsangYong
Motor

India

4,125,744

1. Mahindra &
Mahindra
2. Tata Motors
3. TVS Motors
4. Ashok
Leyland
5. Eicher
Motors

develop on a strong base of advanced technology in manufacturing, but also

empower OEMs with better quality components.
Germany, the global machine tool power house, is exploring opportunities to enter
into joint ventures with Indian machine tool manufacturers. VDW, the German
Machine Tool Builders Association, has worked closely with the German-Indian
Chamber of Industry and Commerce. A recent seminar held to encourage this
relation had 240 customers from the automotive industry and its component
suppliers, the general mechanical engineering sector and other allied sectors. Mr.
Klaus-Peter Kuhnmnch, Manager General Affairs, German Machine Tool Builders
Association (VDW), said 50 per cent of the German machine tools are going
for the automotive segment, the VDW members are very optimistic about
Indias success story with its accelerated growth in the segment.
With Indias 12th position in the global machine tools industry and the Germany
exporting 68% of its production, there is a good chance of new entrants of
technology in India.
Kia Motors, subsidiary of Korean auto giants Hyundai, is all set to enter India.
The company, which sells cars across Europe, China, US and in Korea itself, feels
that India will help them become the third biggest car market globally by 2020. A
report by the Hindu suggests that Kia is even ready select the plant site in India.
The move would enable Kia to leverage the existing supplier base of its affiliate
Hyundai Motor Co, Indias second-biggest automaker by sales. The proposed
factory would start production in 2019 and eventually have capacity to make
300,000 Kia vehicles a year.
With the carmakers planning to invest $500 million will also help South Korean
technology firms to set up shop in India. Other South Korea companies looking to
invest in India include Daihatsu
The machine tool industry is key to the governments flagship Make in India and
Skill India initiatives, given that it makes the machines required for the
manufacturing sector. The industry is expected to touch $1 billion by 2016. With a
direct relation of machine tool product and automotive manufacturing, the auto
sector will increase in size.
Indian machine tool manufacturers should expand their reach to international
markets as German and European markets presented lot of export opportunities to
them, a top official of German Machine Tool Manufacturers' Association (GMTMA)

said on Tuesday.
"Indian machine tool firms are currently focussing only on domestic market. They
should focus on export markets as there are enough opportunities for them in
Germany and other European countries. They have the ability to serve export
markets," GMTMA Executive Director Helmut Von Monschaw told PTI in Chennai.
Indian auto industry was the major consumer of German machine tools, Monschaw
said.
7

Mexico

3,565,469

Spain

2,733,201

Mexico, one of the farthest countries from India, is set to become the biggest
export market for Indian carmakers this fiscal, with one-fifth of all cars
shipped out of the country expected to land in the Central American country some
12,000 nautical miles away. Mexico, despite being a left hand drive market, is
expected to overtake South Africa as the topmost overseas market for India-made
cars this year, by importing about 1.3 lakh vehicles, industry insiders said.
Car exports to Mexico will increase by more than 50% to 1.32 lakh units in 2015-16,
as against 82,000 vehicles for the same period last year.
Europe's largest carmaker Volkswagen alone is expected to ship more than 55,000
cars from India to Mexico, while General Motors will ship over 45,000 units of Beat
small car, which is sold as Spark in that market. Hyundai's i10 Grand and Xcent,
Ford's Figo and Figo Aspire, and Maruti Suzuki's Ciaz are among the other Indian
cars headed for Mexico.
1. SEAT

Companies from Basque Country, Spain, are making a beeline for India,
attracted mainly by the vast market for auto components, machine tools
and capital goods in the country. Elisa Gonzalez, a deputy minister in Basque,
said yesterday that Mondragon Group, a conglomeration of co-operatives having a
turnover of $5 billion, had set up an office in New Delhi to scout for partners,
source goods from India and also find market for Spanish goods. Speaking at
Federation of Indian Chambers of Commerce & Industry (Ficci), Gonzalez said that
Spain, particularly Basque Country, had been focusing on Asia to diversify its trade
and investment.FIEM, a Pune-based company is forming a joint venture with Rinder,
a Basque-based company, for manufacturing lighting equipment for motor vehicles.
Fagor Automation India Ltd, a Pune-based subsidiary of Fagor of Basque, has joined
hands with Intel Technical Co of Pune to manufacture auto components. Nubiola is

Brazil

2,429,463

1. Agrale
2. TAC

10

Canada

2,283,474

1. CAMI
Automotive
2. Nova Bus
3. New Flyer
4. Prevost Car

21

South
Africa

615,658

negotiating with an Indian partner for manufacturing indigo. Fagor Appliances, is

also seeking a partner for making domestic appliances. Basque produces one-third
of the total auto components produced in Spain, which ranks fifth in the world and
third in Europe in this field. Basque-based companies sell auto components worth
$4 billion annually, most of which is exported to Germany, France, UK and Italy.
The 'Made in India' 1.0 litre Renault Kwid has gone official in Brazil. The car was
launched in Brazil by Renault Global CEO Carlos Ghosn who said that the series car
will be manufactured in the country too, at Renault's Ayrton Senna Industrial
Complex in Curitiba, later this year. Till then, the car will be imported from
Renault's Chennai facility while it will be assembled at its Sao Jose dos Pinhais
plant. The car will reportedly be launched at the 2016 Sao Paulo Auto Show in
Brazil. Ghosn said at Curitiba that the company is aiming at an 8 per cent market
share with the new offering, where presently it boasts of around 6.7 per cent. He
believes that there is potential to grow to 10 per cent in the coming years in South
America.
Renault's market share in Brazil grew strongly from below 4 per cent in 2009 as it
launched popular new models such as the Duster, a compact SUV, to compete with
Ford Motor Co's EcoSport.
Canadas Magna International Inc. on Wednesday said it has started production
at two facilities in Gujarats Sanand, which will supply auto parts to Ford Motor
Co. in India. The facilities are located in a suppliers park next to Fords assembly
plant in Gujarats Sanand. Jim Tobin, chief marketing officer and president of Magna
Asia said it was a multi-million dollar project with scope for expansion, without
specifying the investment in the two units. At one of the new Sanand facilities,
Magna assembles and provides just-in-time deliveries of complete seat systems for
Ford. The 215,000-sq. ft plant is expected to employ approximately 200 people at
full production, building approximately 240,000 complete seat systems per year.
Both units will together employ around 600 people. As for the seating systems
plant, it will have an initial capacity to make car seats for 240,000 cars per year
that can be expanded to 500,000 car seats per year on a two-shift basis.At the
second facility in Sanand, Magna will build body and chassis systems for Ford.
The Indian motor vehicle industry is seen as the fastest growing exporter to Africa,
which includes South Africa, where the number of imported models is growing
rapidly. These vehicles come from both the major global companies manufacturing
bases in India, as well as from the major Indian domestic brands, Mahindra and
Tata, who are also on the move internationally. In the 10 years since 2003 the

16

Czech
Republi
c

1,303,603

1. koda

18

Italy

1,014,223

1. Lamborghin
i
2. Ferrari
3. Masserati
4. Fiat
5. Lancia

number of vehicles shipped to African destinations from India has exploded, with a
growth of over 1 000%, of which growth of 160% has been achieved since 2008
alone. During this period exports of passenger vehicles
from India to Africa increased by a staggering 2 400%, as previously many of
the vehicles coming to Africa from India were light commercials. The current
situation was certainly not envisioned in India in the 1980s when permission was
first granted to a foreign company at that stage only Suzuki in a joint venture with
the Indian government to form Maruti Suzuki to set up an assembly plant in 1982.
India is one of the Czech Republic's most important trade partners in Asia. It also
plays a prominent role from the global perspective, figuring among the top twelve
priority countries for Czech exports.
Czech-Indian trade relations have a tradition dating back to pre-war
Czechoslovakia, when the main export products were machine-tools.
During the last fifty years, Czech companies have made approximately a hundred
capital equipment deliveries to India which, in many cases, have led to the
emergence of new Indian industries, such as the manufacture of tractors, steam
turbines, industrial boilers and motorcycles, and the establishment of engineering
metallurgy plants. Traditionally, Czech companies have also supplied India with
diesel generators, machine-tools, textile machinery, printing machinery, and foodprocessing technology.
Czech Republic is betting big on India market with special focus in the sectors like
civil aviation, automobile and defence.
Major imports from Czech to India are cars, machinery, energy facilities, turbines
and chemicals
Indian companies like Reliance Industries, Thermax, Mahindra and Mahindra, L & T
and Infosys have expanded their businesses in Czech Republic.
Italian exports to India increased from US$ 814 million in 1997-98 to US$ 1088
million in 1998-99 but ever since then, Italian exports to India have been
decreasing consistently. In 2000-01, Italian exports to India had dwindled to US$
714 million and to US$ 406 million in 2002-03. The main items exported by Italy to
India are:
Machinery and capitals goods
Engineering items
Precision tools
Semi-finished goods are slowly making their way into the list of commodities

27

Taiwan

351,085

1. Ford Lio Ho
2. Honda
Taiwan
3. Kuozui
Motors
4. Yulon
Motors
5. China Motor
Corporation

exported to India by Italy. Fiat Auto and Tata Motors are moving ahead for
manufacturing car parts together.
Buoyed by the improving business sentiment here, Taiwanese machine tool
industry companies are firming up plans to invest in manufacturing facilities in
India. The move comes in the wake of the strong bilateral trade, which swelled to
US$ 6 billion in 2014, while number of Taiwanese companies rose to over 70 since
2013. Taiwan was among top five machine tool suppliers in 2014 in India, and is
expected to go up this year as well. We are extremely keen on supporting the
make-in-India programme," Taipei Economic and Cultural Center's executive
director Guann-Jyh Lee said in a statement. Lee indicated that Taiwanese
companies can offer their machine tools in a broad spectrum of industries spanning
aeroplanes, automobiles, watches, computers, auto ancillary, wind turbine parts,
medical equipment and precision mould and help fuel India's growth.
According to a recent report, Trade between India and Taiwan is increasing rapidly
with Taiwans machine tools exports to India growing by 11.6 % in the first two
quarters of 2015 (January to June ). Taiwanese exports to India contributed USD
1.28 billion while imports India touched US$ 828 million.

Sources:
1.

2.
3.

China
http://www.livemint.com/Home-Page/ZRLw1JmPwv3cZDyVa6iDAI/Chinas-Changan-Auto-exploring-India-entry.html
Reuters: http://in.reuters.com/article/india-china-autos-idINKCN0X30U7
USA: http://www.mahindra.com/news-room/press-release/1348031089
Japan: http://www.livemint.com/Industry/rmt6D1zNHDQeA5tFBkMZwJ/Japanese-auto-component-firms-eye-bigger-pie-of-Indianmarke.html
4. Germany: http://www.livemint.com/Industry/xb8MWIanyCFxZm1ICcm8uN/Germanys-ZF-Friedrichshafen-to-set-up-technologycentre-in.html
5. South Korea: http://www.ibtimes.co.in/kia-motors-set-india-entry-by-2019-hyderabad-rd-centre-develop-india-spec-models690433#VSSbELlhDD9Z75Kw.97
6. India
7. Mexico: http://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/cars/mexico-set-to-become-the-biggestexport-market-for-indian-carmakers-this-fiscal/articleshow/48521482.cms
8. Spain: http://www.plasticsnews.com/article/20160307/NEWS/160309879/indias-minda-acquires-lighting-business-of-spains-rindergroup

9. Italy: http://www.business-standard.com/article/companies/italy-s-agri-machinery-manufacturer-enters-india112092000193_1.html
10. Canada: http://www.theglobeandmail.com/report-on-business/small-business/going-global/canadian-auto-parts-makers-see-greenopportunity-in-india/article542735/
11. South Africa: http://www.business-standard.com/article/news-cd/made-in-india-cars-market-share-on-the-rise-in-africa113091000480_1.html
12.Czech Republic: http://www.business-standard.com/article/companies/czech-republic-eyes-india-for-investments115051201458_1.html
13.Taiwan: http://economictimes.indiatimes.com/auto-components/taiwan-based-auto-parts-traders-to-visitdelhi/articleshow/41872428.cms
14. India: http://economictimes.indiatimes.com/industry/auto/news/industry/automobile-companies-are-betting-big-on-india-investingin-building-new-capacity/articleshow/47621633.cms