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2019/AD1/010 Agenda Item: 3.8

Indian Automotive Industry Market Situation

Purpose: Information Submitted by: SIAM

30th Automotive DialogueBali, Indonesia

25 to 28 June 2019

26 06 2019 – Indonesia

Presented by

Sugato Sen, SIAM

Copyright © 2018 APEC Secretariat

Indian Automotive IndustryMarket Situation

Agenda -4.1

Categories Total No.

of Manufactures/Companies

Total No. of New Entry Companies

in 2017

Total No. of Direct Employment

Automobile Manufacturers

30 -2 million

(8 million in OEM, Components and Dealerships including Service Centres)

Motorcycle Manufacturers

13 -

Parts Manufacturers 747 NA

Industry Overview

Indirect Employment: 29 million

Production Global Ranking

As per OICA 2018 Statistics

Cars & Commercial Vehicles

Ranking Country Volume (Nos)

1 CHINA 2,78,09,196

2 USA 1,13,14,705

3 JAPAN 97,28,528

4 INDIA 51,74,645

5 GERMANY 51,20,409

6 MEXICO 41,00,525

7 SOUTH KOREA 40,28,834

8 BRAZIL 28,79,809

9 SPAIN 28,19,565

10 FRANCE 22,69,600

Largest Two & Three Wheeler manufacturer followed by China and Indonesia.

Automotive Production (Nos. in million)

Industry Overview

FY13 FY14 FY15 FY16 FY17 FY18 FY19

3W 0.84 0.83 0.95 0.93 0.78 1.02 1.27

2W 15.72 16.88 18.50 18.83 19.93 23.15 24.50

CV 0.83 0.70 0.70 0.79 0.81 0.90 1.11

PV 3.23 3.09 3.22 3.47 3.80 4.02 4.03

YOY Growth 4% 9% 3% 5% 15% 6%

0%2%4%6%8%10%12%14%16%

0.00

5.00

10.00

15.00

20.00

25.00

30.00

FY = April to March

Industry Overview

Automotive Sales (Nos. in million)

FY13 FY14 FY15 FY16 FY17 FY18 FY19

3W 0.54 0.48 0.53 0.54 0.51 0.64 0.70

2W 13.80 14.81 16.00 16.46 17.59 20.20 21.18

CV 0.79 0.63 0.61 0.69 0.71 0.86 1.01

PV 2.69 2.50 2.60 2.79 3.05 3.29 3.38

YOY Growth 3% 7% 4% 7% 14% 5%

0%2%4%6%8%10%12%14%16%

0.00

5.00

10.00

15.00

20.00

25.00

30.00

FY = April to March

Industry Overview

Automotive Exports (Nos. in million)

FY13 FY14 FY15 FY16 FY17 FY18 FY19

3W 0.30 0.35 0.41 0.40 0.27 0.38 0.57

2W 1.96 2.08 2.46 2.48 2.34 2.82 3.28

CV 0.08 0.08 0.09 0.10 0.11 0.10 0.10

PV 0.55 0.60 0.62 0.65 0.76 0.75 0.68

YOY Growth 7% 15% 2% -4% 16% 14%

-10%-5%0%5%10%15%20%25%30%

0.000.501.001.502.002.503.003.504.004.505.00

FY = April to March

GST Rates for Vehicles (September 2017 onwards)

Vehicle Category GST Rate

Electric Vehicles 12%

Compensation Cess on various categories vary

Vehicle Category GST Cess Applied Duty

Passenger vehicles (petrol, CNG, LPG) <4m in length and <1200cc engine 28% 1% 29%

Passenger vehicles (diesel) <4m in length and <1500cc engine 28% 3% 31%

Mid-size PVs (>4m in length with <1501cc engine) 28% 17% 45%

Large PVs (>4m in length with >1500cc engine) 28% 20% 48%

SUVs (>4m in length with >>1500cc engine & >169mm ground clearance) 28% 22% 50%

Hybrid cars (except small hybrid cars) 28% 15% 43%

>350cc two-wheelers 28% 3% 31%

10 – 13 seater public transport vehicles 28% 15% 43%

Custom Duty Structure- Conventional Vehicles

Tax RateType CBUs SKDs CKDs

- Commercial Vehicles (Trucks & Buses) 25% 25% 15%

- Cars with CIF value less than $40,000; or with engine capacity less than 3000 CC for Gas engine and less than 2500 CC for Diesel engine

60% 30% 15%

- Cars with CIF value of more than $40,000; or with engine capacity more than 3000CC for Gas engine and more than 2500CC for Diesel engine

100% 30% 15%

- 2 Wheelers 50% 25% 15%

Custom Duty Structure- Electric Vehicles

Import Duty on Battery cell has been raised from Nil to 5%

Tax Rate

DefinitionBuses & Trucks

Passenger VehiclesTwo-

wheelersAs a Knocked Down kit containing all the necessary components, parts or subassemblies, for assembling a complete vehicle with, -

(a) disassembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake system, Electric Compressor not mounted on chassis;

10% 10% 10%

(b) pre-assembled Battery Pack, Motor, Motor Controller, Charger, Power Control Unit, Energy Monitor Contractor, Brake System, Electric Compressor not mounted on a chassis or a body assembly

15% 15% 15%

Fully Built Electric Vehicles (CBUs) 25%

60%- for CIF value less than $40,000;

50%100%- for CIF value more than $40,000

Free Trade Agreements

Agreements Concluded

Regional: SAFTA, ASEAN

Bilaterals: Japan, The Republic of Korea, Malaysia, Singapore, Sri Lanka,Thailand, Bangladesh, Bhutan, Serbia/Montenegro, Chile

Under Negotiation: Australia, New Zealand, Canada, RCEP, EU, EFTA, Mercosur, SACU, Israel, Peru, Sri Lanka, ETCA, Korea CEPA Upgradation

Guiding Policy

GDP

Employment

Turnover

Auto Industry

contribution

4.5%

10

1,65,000

2006

Actual

10%

+25

6,67,000

2016

Target

7.1%

+22

6,12,000

2016

Actual

12%

+65

17,00,000

2026

Target

INR

Cr

INR

Cr

INR

Cr

INR

Cr

mnmnmnmn

AMP 2006-16 AMP 2016-26

Source: SIAM

Electric Vehicle Policy

Faster Adoption & Manufacturing of (Hybrid &) Electric Vehicles (FAME)- Phase II

• Launch of Phase-II of FAME-India Scheme:

– Valid for 3 years from 1st April 2019

– Outlay INR 100 Billion (1.4 Billion USD)

• Incentive based on battery capacity

– Rs 10,000 per KWh

– Cap at 20% ex-showroom price for 2W

• Prescribed comprehensive qualifying criteria:

– Vehicle fitted with only advanced battery like lithium.

– Localization roadmap for xEV critical components

– High cost 2W NOT eligible (> INR 150,000 ex-factory)

– Low speed 2W are NOT eligible

– 1 million electric 2W to be incentivized

Thank you for your attention!!!

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