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Potential market analysis of the Indian automobile and motor

The next few years, Indian government will invest hundreds of millions of funds for infrastructure construction, providing many opportunities for the development of Chinese enterprises in India. Confederation of Indian Industry data show that 41 industry growth is expected to reach 20% of the 121 manufacturing, specially in air conditioning, tractors, fertilizers, construction equipment and tire industry. India provide free approval procedures for foreign investment in the engineering industry,

1.Cars, motorcycles and parts

India is one of the fastest growing countries in the global automotive sales growth. In 2010, the Indian automobile industry up to $ 48 billion. by 2016, India is expected to become the world's seventh largest car producer. According to statistics, in the year 2010/2011, the Indian automobile production close to 3 million ,motorcycle production reached 133.76 million, at a 27% increase.

In recent years, India by virtue of the relatively low labor costs (10% to 20% lower than the U.S., and 50% lower than in Europe), as well as the national language ability and professional and technical advantages have attracted international car manufacturers to India procurement Auto Parts and Accessories. India's auto parts industry exports to the EU accounted for about 30% of its export proportion; second largest export region is Asia, accounting for 20%; North America as its third-largest export region, accounting for of 10%.

India is committed to become the world's auto and auto parts manufacturing center. Expected to 2016, the output value of the Indian automobile and auto parts industries will achieve the target of 10% of GNP, and the creation of 25 million jobs for the domestic. India Auto Parts Manufacturers Association is expected to 2015, the auto parts of the Indian automobile and auto parts market potential transaction volume will reach 40 billion to $ 45 billion, enabling India to become an important global market for automobiles and auto parts .

India's major automobile and parts industry gathered in the following regions: northern Gurgaon, Pune in the west, south of Chennai, Calcutta in the east and central India Dole. Among them, about 1/3 of the automobile and spare parts manufacturing enterprises located in Chennai, Tamil Nadu, and the surrounding areas.

In addition to Hyundai Motor (factories in Chennai, southern India, the scale of investment of $ 522 million), the U.S. Ford, Mitsubishi, Japan, Germany, BMW, Nissan - Renault and other major international car and spare parts manufacturers in Chennai and its The surrounding area has a production base. Chennai also because of the booming auto industry, coupled with the major car firms and supporting vendors stationed full of cars, motorcycles and spare parts supply chain industry cluster. In addition, near Mumbai, Pune has become India cars, motorcycles and spare parts production base, major car prices - India Bajaj car company, India's Tata Motors, Daimler - Chrysler Corporation, plum race Mercedes - Benz car companies are located here. Malu Di - Suzuki, automobile manufacturers, as well as the world's largest motorcycle maker Hero - Honda in Gurgaon region.

About 3/4 of the Indian automobile spare parts market share controlled by several manufacturers, and these manufacturers get technology from large international Automobile spare parts manufacturing in India, the main technical partner is Japan, followed by Germany, the United Kingdom and the United States. India mainly spare parts manufacturing plant Amtek, Sona, Mahindra and Bharat casting company in order to continue to expand its market share, positive related corporate mergers and acquisitions in Europe, the United States and other countries. Small parts plant in India to acquisition of enterprises in Europe, the United States, Japan and other countries existing production lines, equipment, machinery as a prerequisite for its mergers and acquisitions. Thus, not only can shorten the construction period, reduce costs, but also can speed up production, so as to effectively expand production capacity and market share.

Small car is the best selling in Indian market. To enter the Indian market International car manufacturers , designed specifically for India, its unique market models. Currently, many Indian car manufacturers already have their own automobile engines and safety systems, India's automotive electronics, automotive sensors in the automotive electronics market the proportion is still low. With the continuous development of the Indian automobile industry as well as government departments to strengthen auto safety and consumer pay more attention to the added value of the car, the Indian automotive electronics manufacturing capacity will soon reach the international level.

There is a large market demand for automotive and motorcycle spare parts in India markt.International Mould & Metal & Plastic Industry Suppliers Association Secretary-General Luo Baihui that India has established its own car, motorcycle spare parts supply system, all kinds of spare parts required by the domestic car prices, from a factory (TIER-1 ). To obtain the qualifications to provide spare parts to the automobile companies in India, must go through the tedious testing and validation procedures, and a longer period, which is equivalent to setting a higher threshold for foreign manufacturers. In order to enter this field only actively seek cooperation with such a plant, be possible to get to the car prices in India to provide opportunities for automobile and motorcycle spare parts, fasteners, mold and other products.

2. Lathe
India is the world's 12th largest machine tool consumer, the machine tool industry in the global ranking 17. India has about 400 machine tool manufacturers.Machine tool companies in the top ten take up the output value of more than 70% . State-owned enterprises HindustanMachineTool (HMT) is India's leading enterprises of the machine tool industry, market share of 32%. According to the statistics of the Ministry of Commerce and Industry of India, from 2008 to 2009, India's machine tool output value of 14.2 billion rupees (about 310 million U.S. dollars), exports of machine tools 8.9 billion rupees ($ 020 million), and imported machine tools amounted to 62.7 billion rupees (U.S. $ 13.9 billion U.S. dollars), the domestic market demand of about 76 billion rupees (about 1.69 billion U.S. dollars), shows that India's dependence on imports of machine tools has more than 80%.

"The development of upstream raw material part of the machinery and equipment manufacturing industry in India is quite perfect, in addition to domestic production for iron ore, is one of the world's major steel-producing countries; steel material in the middle reaches of the secondary processing industry, casting, forging industry technical threshold does not exist issues, and India's primary labor costs low, many countries turned to the Indian foundry procurement, especially the more serious problem of pollution foundry industry; downstream with the industry due to India is not a traditional industrial countries, developed countries and regions of the industrial division of labor model in India impossible to achieve. "International Mould & Metal & Plastic Industry Suppliers Association Secretary-General Luo Baihui that the continued growth of the Indian machine tool industry, depends mainly on the domestic auto parts mold industry brought about by the rapid development of the huge demand. Machine Tool Industry in India is relatively backward, will not want to seek qualified Precision Component Supply, if investment in the field of machinery and equipment in India, compared with the feasibility of the project or imported parts assembled like.

According to the Society of Indian automotive component is expected, from 2010 to 2018, the Indian automobile and motorcycle parts industry will need at least $ 1.5 billion purchase of production equipment every year. In addition, the Government of India is actively increasing infrastructure construction efforts, such as the construction of railways, airports and highways required for construction machinery, transportation machinery, and the production of textile, clothing, shoe machinery, and so will become the future to promote growth in demand for machine tools in India Major sources.
 
3 Electronic

In recent years, India has become one of the major markets of the global electronic products. According to the Federation of Indian electronics industry research shows that practitioners of the electronics industry in India is 350 million, 3,500 enterprises with more than 10 employees, 250,000 of otherwise small and micro-enterprises. The scale of the industry is too small become huge obstacles restricting the development of the electronics industry in India. Such as the well-known brand in India, Wipro, HCL, TVS and Tata have been engaged in the production of non-critical IT products, and will focus on the software and services industry. The rapid expansion of software design and application of emerging enterprises have not yet integrated into the hardware industry, led to the development of the IT industry in India is not balanced.

Internationally renowned brands such as Nokia, Samsung and LG Electronics in India built a production line, driving small and medium enterprises in India have joined the ranks of the hardware manufacturers. Consumer electronic products in India is mainly dominated by refrigerators, washing machines, air conditioners, microwave ovens, household appliance market still large foreign household electrical appliance enterprises. In the field of industrial electrical and electronic equipment, due to the Indian domestic power supply and voltage instability, all kinds of generators, wire and cable, power strips, power transmission equipment, capacitors, power meters, transformers, voltage regulators, UPS and inverter The control products have a greater demand.

Limited the competitiveness of the Indian electronics manufacturers, as well as many international 3C (computers, communications and consumer electronics) manufacturers in India engaged in related production, local enterprises are unable to meet the huge demand for its electronic components. For this opportunity, conditional electronic parts manufacturers can actively take the opportunity to explore the Indian market.

With the rapid increases in India, domestic demand for electronic products, to further increase the local consumption of semiconductor products. ISA and Frost & Sullivan2009/2011 year report shows that the compound annual growth rate of the overall semiconductor market in India and overall effective market were 22.1% and 34.8%, respectively, in 2011, the overall market increased to $ 8.04 billion from $ 5.29 billion in 2009 The overall effective market increased to $ 4.84 billion from $ 2.66 billion in 2009. As India's rising demand for electronic equipment, and therefore there is a huge semiconductor consumption potential. At the same time, many non-urban areas of India for the electronics industry is also attractive. Particularly telecommunications and wireless applications. Growing mobile phones, consumer electronics and telecommunications markets, improved operating income for the electronics industry, will also create more opportunities for the Indian semiconductor production.

4 Chemical

Indian chemical industry, annual production value of up to $ 35 billion, ranked third in Asia, 12 in the world ranking. The products are mainly basic chemicals. Such as the chemical industry since the refining of crude oil to be made dye bonding agent chemicals or PE, PET of chemicals is divided into three stages of the middle and lower reaches, India can master only downstream or midstream processing industry , still need to rely on imports of raw materials they need. In recent years, Sino-Indian trade in chemical products between frequent. Chemical products in the 2010 Sino-Indian trade, is the fourth major Indian exports to China, India's imports from China, the second largest category of products, but the trade of chemical products in China, India has been in a deficit in the state.

In fact, China's exports of chemical products in India, mostly low-end traditional chemicals with great homogeneity and competitive with the local industry in India, the Indian industry efforts to crack down on China's chemical products.

India is the largest countries of the anti-dumping of chemical products to China. Gold-mode network understand that the Government of India to support their own industries, respectively, for a variety of imported chemical products and plastic materials filed anti-dumping investigations, chemical products exported to India, the implementation of anti-dumping measures against China. From 1979 to 2011, foreign chemical products to China were launched 260 anti-dumping investigations, the highest in India, up to 72, accounting for 27.7% of the total number of anti-dumping investigations of the chemical products Foreign. From 1994 to 2011, the number of anti-dumping investigation of China chemical products in India accounted for 34.1% of the chemical products abroad to China over the same period the number of anti-dumping investigations. Over the same period, India initiated 152 anti-dumping investigations, only cases involving chemical products accounted for 47.4%, ranking first in all kinds of products.

Chinese enterprises exporting the products to India, it is necessary to grasp the potential business opportunities in the market to maintain a high degree of vigilance, but also a means of self-protection on the Indian counterparts.


5. power equipment

China is India's largest trading partner. According to Chinese customs statistics, in 2011, 1 to 10 months, China's exports to India accumulated $ 54.5 billion, a year-on-year growth of 26%; imports of $ 37.2 billion, a year-on-year growth of 8.9%.

Power equipment and other machinery products are the main products exported by China to India. In order to revive its manufacturing and to limit the import of its country, the Indian government formally approved by the new moves in the foreign trade policy adjustment is designed to accelerate the development of the domestic manufacturing industry and the national manufacturing policy to stimulate employment. India on the one hand the introduction of new measures to stimulate exports of labor-intensive industries enterprise development, on the other hand plans to impose tariffs on power equipment from China, the situation of intent to reverse the trade deficit with China


In fact, the economic growth of China and India, as well as bilateral economic and trade cooperation brought tangible benefits more importantly,  while other traditional economic powerhouses of economic growth is stalled, the growth of emerging economies such as China and India to make the world economy see more hope.

Ernst & Young accounting firm's data show that in 2011, an increase of 105% foreign investment in the renewable energy sector in India. The fields of road and highway construction in India is also the rapid development of its real estate development more foreign provide huge investment opportunities. The report published by PricewaterhouseCoopers in 2011, the Asia-Pacific real estate emerging trends ", 2011, after all, a good choice to invest in real estate in Mumbai and New Delhi, India. China and India's comparative advantage in the international market has a very strong complementarity, and India with the fastest-growing economy and large energy demand, dependence on overseas oil and gas resources is relatively large. With the deepening of the strategic cooperation between the two countries, the pace of the energy sector of the Sino-Indian strategic cooperation is gradually increasing.




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