The Automotive sector is the fore-runner amongst the engineering sectors which have shown impressive growth.
With the addition of fourteen new entrepreneurs, there are now 32 automobile units in assembling business, supported by over 1000 tier-1 vendors and 2400 tier-11 vendors engaged in manufacturing auto parts.
According to conservative estimates provided by the industry resources, around 200-250 million USD have been invested by the OEMs and vendors during the last 3 years.
Resultantly, not only the local production capacities have built up but also the indigenization level has significantly increased along with sharp increase in exports of auto parts.
As per PAAPAM, the exports of auto parts have increased by 20% to US$ 27.5 million during 2002-03. This growth scenario has created additional employment opportunities for around 100,000 people in automotive sector during the last 3 years.
Based on July-February 2003-04 figures, the car industry has registered a phenomenal growth of 67 percent, followed by motorcycles 64 percent, tractors 56 percent, trucks 11 percent. The bus manufacturing has, however, declined by 11 percent during this period.
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Installed 2002-03 July-February Percentage
Capacity Change
2002-03 2003-04
=================================================================
Cars 110,000 62,893 36,195
60,047 66
LCVs 23,000 12,548
7,554 8,510 13
Buses 1,900 1,346 951 899 5
Trucks 12,500 1,954 1,146 1,223 7
Tractors 40,000 26,501 15,001 *24,500 63
Motocycles 340,000 176,591 112,246 *227,667 103
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Including production of units other than members of PAMA
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CAR INDUSTRY
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Estimated Demand Projected Production
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2003-04 115,000 95,000
2004-05 135,000 130,000
2005-06 155,000 160,000
2006-07 170,000 180,000
2007-08 190,000 200,000
===============================================
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DELETION LEVELS IN AUTOMOTIVE SECTOR
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S June June June June
No PRODUCT 2001 2002 2003 2004
% % % %
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1 CARS
Cat. 1, Upto 800 cc 70.00 70.00 70.25 70.50
Cat 2, Above 800 cc Upto 1200 cc 55.00 58.00 61.00 64.00
Cat. 3, Above 1200 cc 50.00 53.00 56.00 59.00
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2 TRACTORS
---------------------------------------------------------------------
Cat. 2, Above 40 & Upto 55 HP (2x2) 82.50 83.00 83.50 84.00
Cat. 3, Above 55 & Upto 80 HP (2x2) 60.25 62.50 62.75 63.00
Cat. 4, Above 55 & Upto 80 HP (4x4) 48.00 50.00 50.00 54.00
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3 MOTORCYCLES
---------------------------------------------------------------------
Cat. 1, Upto 70 cc 83.00 85.00 86.50 88.00
Cat. 2, Above 70 Upto 100 cc 82.00 83.00 85.00 85.50
Cat. 3, Above 100 Upto 175 cc 74.00 81.00 82.00 83.00
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4 COMMERCIAL VEHICLES
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Cat. 1, Pickup 2 Ton GVW 63.00 65.00 67.00 69.00
Cat. 2 (A), Pickup S/C, 4x2, GVW Above 38.00 43.00 48.00 51.00
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2 Tons Upto 5T
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Cat. 3, Rigid Truck 4x2, 5 to 8 Tons 49.00 49.50 50.00 50.50
Cat. 4, Rigid Truck 4x2, Above 8T 53.00 54.00 55.00 56.00
Cat. 5(A), Rigid Truck 6x2, Above 8 50.00 51.00 51.50 52.00
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Tons Upto 30 Tons
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Cat. 5(C), Truck, Tractor / Prime mover 42.70 42.70 42.70 42.70
4x2, GCW, Upto 30 tons
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5 BUSES
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Cat. 1, Mini Bus Upto 30 Passengers 44.70 45.80 47.00 48.00
Cat. II, Above 75 Passengers 46.50 47.50 48.50 50.00
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6 SPORTS UTILITY VEHICLE (SUV)
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SUV, 4x4 4.00 43.00 45.00
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7 ALL TERRAIN VEHICLE
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Jeep Type 40.00 44.00 48.00
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Investment in Auto Sector (Rs in Billion)
===========================================
Description Current Projected 2006
===========================================
Vendors 35.00 70.00
Cars 8.50 12.50
Motorcycles 3.00 4.50
Commercial Vehicles 2.00 2.00
Tractors 3.50 4.00
Total 52.00 93.00
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Source: PAAPAM
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Contribution to GDP (Rs in million)
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Description Current Projected 2006
===========================================
Vendors 12.0 15.0
Cars 32.0 41.0
Motorcycles 10.5 17.5
Commercial Vehicles 5.8 8.0
Tractors 14.0 16.5
Total 74.3 98.5
===========================================
Source: PAAPAM
===========================================
Revenue to GOP (Rs in billion)
===========================================
Description Current Projected 2006
===========================================
Vendors 3.8 5.5
Cars 10.5 13
Motorcycles 3.7 6.0
Commercial Vehicles 1.8 2.5
Tractors 4.2 5.0
Total 24 32
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Source: PAAPAM
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Import substitution (US$ in million)
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Description Current Projected 2006
===========================================
Vendors 180 255
Cars 512 650
Motorcycles 98 170
Commercial Vehicles 105 130
Tractors 360 425
Total 1,255 1,600
===========================================
Source: PAAPAM
===========================================
Foreign Exchange Savings (US$ in million)
===========================================
Description Current Projected 2006
===========================================
Vendors 95 130
Cars 200 300
Motorcycles 60 75
Commercial Vehicles 65 70
Tractors 280 325
Total 700 900
===========================================
Source: PAAPAM
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