Slide 1: Executive Summary

Macro Economic Indicators

Slide 2: GDP at Factor Cost: Quarterly (2010-11 - 2013-14), Inflation Rate: Monthly (Jul-Dec 2013)

Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 - Jul 2013), Exchange Rate: Half Yearly (Oct 2013- Mar 2014)

Slide 4: Lending Rate: Annual (2008-09 - 2011-12), Trade Balance: Annual (2010-11 - 2013-14), FDI Annual (2009-10 - 2012-13)

Market Overview

Slide 5: Auto Ancillary Market - Transition

Slide 6: Auto Ancillary Market - Overview

Slide 7: Auto Ancillary Market - Market Size & Growth (2008-18), Market Segmentation - Sector wise

Slide 8: Auto Ancillary Market - Contribution to Employment Generation (2009 - 2020e), Contribution to GDP (2009 - 2020e)

Slide 9: Auto Ancillary Market - Future Outlook (2011-21e)

Slide 10: Value Chain Analysis

Slide 11: Opportunity for Players

Segments

Major Segments

Slide 12: Auto Ancillary Market - Segmentation

Slide 13 -15: Auto Ancillary Market Major Segments - Outlook, Sub-segments

Major Sub-Segments

Slide 16-53: Auto Ancillary Market Major Sub-Segments - Demand (2010-11 - 2019-20e), Product Variation, Major Players & Strategic Alliances, Market Segmentation

Opportunity Areas

Slide 54: Opportunity Areas - Summary

Slide 55-71: Opportunity Areas - Major Automobile Production Hubs, Auto Industry Scenario and Growth Drivers

Export- Import

Slide 72: Exports - Overview, Exports (Value) (2009 - 14), Country-wise Exports (2013-14)

Slide 73: Imports - Overview, Imports (Value) (2009 - 14), Country-wise Imports (2013-14)

Drivers & Challenges

Slide 74: Summary

Slide 75- 82: Drivers

Slide 83-86: Challenges

Government Initiatives

Slide 87-90: Government Initiatives

Trends

Slide 91: Summary

Slide 92-97: Key Trends

Competitive Landscape

Slide 98: Market Competition - Porter's Five Forces Analysis

Slide 99: Public Trading Comparables (2014)

Slide 100-103: Competitive Benchmarking

Slide 104- 153: Major Public Players

Strategic Recommendation

Slide 154: Summary

Slide 155-161: Strategic Recommendations

Appendix

Slide 162: Appendix

Slide 163: Sources of Information

The report highlights the analysis of the drivers and explains the factors for growth of the industry. Growing Automotive industry, the auto after market demand, the healthy economic outlook also opportunities from new US IT Compliance Law, are the key drivers of this market. Auto makers are placing bulk orders for supply of auto parts to the auto parts manufacturers. India is also an attractive destination for the foreign investors with consistently increasing FDI in the automobile sector. The original equipment manufacturers (OEMs) and the aftermarket or replacement market are the two prime source of demand for auto components in India but Strong aftermarket provides better sales stability and higher operating margins than an OEM.

There are various challenges too that the Auto Ancillary industry faces, Rising labor costs, Counterfeit Market, Technical Inefficiency and depreciating currency are the major challenges faced by the auto ancillary industry. Rise in steel prices further adds to the cost disadvantage as steel is a primary raw material for the auto ancillary industry. Organized sector facing serious threats from rapidly growing counterfeit market in India, Fake auto parts hold a considerable amount of share of the total aftermarket. Since the finishing and packaging of fake parts closely replicate the original products, consumers fail to differentiate between the fake and original parts. Depreciating currency has adverse impact on the imports resulting in declining profits for the import dependent auto parts manufacturers. However, on the positive side, it has increased the cost-competitiveness of exports and also OEMs will look towards sourcing from local players due to higher price of imports

Government has plans of setting up the National Automotive Board (NAB) which will act as a catalyst between the government and the auto parts industry. Auto Component manufacturing companies should identify the long term growth pockets and enhance global competitiveness accordingly. They should diversify into adjacent fields of business, such as defense, construction, farm implements etc. They should also cooperate with government to enhance country competitiveness.