Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Morgan Stanley India Summit 2013
23 slides from Tata Motors Passenger Vehicles's conference presentation, June 2013
Slide 1: Morgan Stanley India Summit Keynote Address: Lead the Future..
Morgan Stanley India Summit Keynote Address Lead the Future.. Karl Slym MD, Tata Motors 1
Slide 2: The story thus far..
The story thus far.. 2
Slide 3: The Auto industry in BRIC markets over the years..
The Auto industry in BRIC markets over the years.. Then Now 3
Slide 4: The new age saw the steady rise of the BRIC markets
The new age saw the steady rise of the BRIC markets through the global economic crisis.. Even then penetration remain low.. GDP Growth rate (%) Passenger car penetration per 1000 population1) 259 2005 2006 2007 2008 2009 2010 2011 200 Brazil 3.2 4 6.1 5.2 -0.3 7.5 2.7 Russia 6.4 8.2 8.5 5.2 -7.8 4.3
Slide 5: Automotive industry's contribution to GDP in India has not grown significantly
In India, the Automotive industry has not yet had the significant growth in contribution to GDP the AMP aspired to.. Sector wise contribution to GDP1) Sector wise contribution to GDP2) 6% 5.2%3) 14% 18% 14% 19% 2% 15% 3% 17% 14% Automotive industry Automotive industry 15% 7% 8% 2% 8% 2% 18% 16% 8% A
Slide 6: The Automotive Mission Plan 2006-16 was expected to lay down the rules of the industry
The Automotive Mission Plan 2006-16 was expected to lay down the rules of the industry Government to examine the Tax holiday for Automobile tariff rate for commercial Industry for investment vehicles and MUVs exceeding INR 500 crore Road infrastructure- Further road development; Developing urban One
Slide 7: The Automotive Mission Plan 2006-16 was expected to lay down the rules of the industry
The Automotive Mission Plan 2006 -16 was expected to lay down the rules of the industry Encouragement to fuel efficient vehicles Working hours to be increased from 48 to 60 per week from 9 to 11 per day spread over from 10.5 to 13.0 Infrastructure for Testing, hours per day to Certification and enha
Slide 8: Great! All is well in the world, growth is guaranteed!..
Great! All is well in the world, growth is guaranteed!.. 8
Slide 9: ..Or is it?
..Or is it? Three years from the end of the AMP, are we where we wanted to be? 9
Slide 10: ..Or is it??
..Or is it?? Auto Industry Growth has tapered down. Both passenger and commercial sectors were flat in 2012-13. 30,00,000 25,71,551 25,78,572 24,48,834 25,00,000 20,00,000 18,86,972 15,17,959 15,00,000 Passenger Vehicles Commercial vehicles 10,00,000 890579 903245 731053 577629 5,00,000 413441 0 200
Slide 11: Commercial Vehicles
Commercial Vehicles SCV sales now contribute 40% of the industry as compared to 29% 5 years ago 400000 350000 300000 SCV sales 29% of 250000 industry IMHCV 200000 LCV SCV 150000 SCV sales 100000 40% of industry 50000 0 2008-09 2009-10 2010-11 2011-12 2012-13 11
Slide 12: Passenger Cars
Passenger Cars The UV+ MPV segment now contributes 26% of PV sales as compared to a consistent 20% over the last five years 25,00,000 20,00,000 UV sales 20% of PV UV sales 15,00,000 sales 26% of PV sales UV / MPV Cars 10,00,000 5,00,000 0 2008-09 2009-10 2010-11 2011-12 2012-13 12
Slide 13: Indian Exports
Indian Exports Indian passenger car exports are continuing to grow steadily 6,00,000 5,00,000 4,00,000 3,00,000 CV exports PV exports 2,00,000 1,00,000 0 2008-09 2009-10 2010-11 2011-12 2012-13 13
Slide 14: So What happened?
So What happened? Action Impact > Excise duty on SUVs increased to 30% from 27%. All > SUVs and luxury cars get costlier. Consumers luxury vehicles to attract 100% import duty as against unwilling to buy, leading to sluggish sales 75% > High borrowing cost, higher fuel prices, slowdown in > April 20
Slide 15: What's in store for 2013-14
What’s in store for 2013-14 Growth Forecast for 2013-14 Comments > The Organisation for Economic Cooperation and Development (OECD) has lowered its earlier projection of Gross Domestic Product (GDP) growth on India from 5.9% to 5.3% in 2013 > But OECD has pegged India's growth at a higher 6.4% in 20
Slide 16: Outlook for auto industry in 2013-14
Outlook for auto industry in 2013-14 Passenger Vehicles1) Commercial Vehicles1) +7% +9% +5% +7% 2.83 2.88 0.85 0.87 2.7 0.80 2012-13 2013-14 2012-13 2013-14 > Passenger Car segment is pegged to grow at a > Commercial Vehicle segment is pegged to grow rate of 5-7% in 2013-14 according to SIAM at a ra
Slide 17: Can we get back the explosive growth rates of the BRIC countries?
Can we get back the explosive growth rates of the BRIC countries? 17
Slide 18: Learnings from other BRIC markets
Learnings from other BRIC markets Facts Trends > BRIC Countries expected to account for 30% of > Fuel efficient cars by using materials like carbon global auto sales in 2014 fiber, steel, aluminum, titanium, magnesium and plastics > China to increase its share in BRIC auto sales volume from 53% to 6
Slide 19: What we need..
What we need.. Key Enablers for the Automotive Industry > A Mobility Roadmap for India > A Technology Roadmap on what would work best for India – Electric / Hybrids / Fuel cells? > National Electric Mobility Mission Plan was launched in India to put 6-7 mn EV’s on the roads by 2020. But will it achi
Slide 20: TML Product portfolio – CNG, hybrids, EV's, fuel cells..
TML Product portfolio – CNG, hybrids, EV’s, fuel cells.. which is the way to go? 20
Slide 21: TML – activities on skill development
TML – activities on skill development 135 ITI’s Adopted and 8 driver training institutes established.. Still woefully short of requisite skills 21
Slide 22: The road ahead..
The road ahead.. The future of the auto-industry- which way do we take it? 60,00,000 - Mobility roadmap 50,00,000 - Technology roadmap - Strong Government focus - Pipeline of skilled workforce.. 40,00,000 30,00,000 - Lack of clear direction 20,00,000 - Limited Government support - Lack of skilled ma
Slide 23: Lead the Future! Thank You
Lead the Future! Thank You 23