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Table of Contents

1. SECTOR VIEW ...... 3 2. SECTOR SNAPSHOT: SALES ...... 4 2.1. PASSENGER VEHICLES ...... 4 2.2. TWO-WHEELER ...... 6 2.3. COMMERCIAL VEHICLES ...... 6 2.4. THREE WHEELER ...... 9 3. REGULATORY UPDATES ...... 10 4. TECHNOLOGY ...... 11 5. INTERNATIONAL NEWS ...... 12 6. AUTOMOTIVE COMPONENTS SECTOR ...... 13 7. SUMMARY ...... 17 8. DISCLAIMER ...... 18 9. CONTACT INFORMATION ...... 18

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1. SECTOR VIEW

India becomes 4th largest auto market in the world

India surpassed Germany and became the fourth largest automobile market in 2017. Automobile sales, including passenger and commercial vehicles in India, Asia’s third largest economy raised 9.5% as compared to the previous year. India sold around 4 million units as compared to 3.8 Million units by Germany.

In India, the demand for passenger vehicle is led by utility vehicles. Market players like , Vitara Brezza and Hyundai Creta showed robust sales volumes. Upcoming new launches in this segment are Tata’s Nexon, Jeep Compass, VW’s Tiguan and Skoda’s Kodiaq.1

Automobile sector seeks price hike from April 2018

Post the budget announcement, hike in CBU customs duty is the reason for Automobile companies to implement price hike plans in March with effect from April 1, 2018.

Market players like Nissan, , and Audi have already announced their price hike plans. Luxury companies like, Mercedes Benz and BMW are on the verge of announcing price hike. Most companies are increasing prices in the range of 3.5 to 5%.

Increase of input costs like steel price hike is another reason for surge in prices for less-import-heavy vehicles.2

Hero Motocorp plans to diversify interests/ enter into electric mobility segment

Hero Motocorp is planning to enter into electric mobility segment. The company is developing electric motorcycles and scooters which will be launched under their own brand for which the R&D work is currently on- going. They have also invested Rs 205 Cr. in Bengaluru-based start-up Ather Energy, which will soon launch its brand and products.

Hero Motocorp declared its 8th factory at Sri City in Andhra Pradesh. They have invested Rs. 1,600 Cr. in the new plant having the capacity of 1.8 million units. The plant will start its operation by December 2019. After installation of the Sri city plant the capacity of the company will increase to 11 million units. The plant is expected to cater the domestic demands and also target new export markets like Mexico. 3

1 Source: https://auto.economictimes.indiatimes.com/news/industry/india-pips-germany-ranks-4th-largest-auto-market-now/63438641

2 Source:https://auto.economictimes.indiatimes.com/news/industry/passenger-commercial-vehicle-firms-hike-prices/63531741 3Source:https://auto.economictimes.indiatimes.com/news/industry/hero-motocorp-plans-aggressiveto-enter-electric-vehicles-market/63438731

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2. SECTOR SNAPSHOT: SALES

2.1. PASSENGER VEHICLES

. Passenger vehicles have shown a growth of 9.4% during March 2018 on an average, with the total numbers standing at around 270,000 units, against 246,000 units in the same month last year by top 6 carmakers.

. Maruti Suzuki India sold 160,598 units (139,763 units) in March 2018. Their total domestic sales during the month was 148,582 units (127,999 units), an increase of 16.1%. In total passenger vehicle domestic sales were 147,170 units (127,695 units), a growth of 15.3%.

. The utility vehicle segment comprised Gypsy, Vitara Brezza, and S-Cross, which drove the growth with a sales 24.3% at 22,764 units (18,311 units). Vitara Brezza is on the top. The new S-Cross sales have also increased after the refreshed model hit the Nexa outlets.

. The mini segment, which included the Alto and WagonR, was in the 2nd slot with a growth of 21.1% at 37,511 units.

. Then came vans – Omni and Eeco – with a growth of 17.7% at 13,689 units.

. Hyundai Motor India reported the domestic sales of 48,009 units (44,757 units), growing 7.3%.

. Mahindra & Mahindra, in the passenger vehicles segment, which includes UVs, cars and vans, sold 26,555 vehicles (25,523 units) in March 2018, a growth of 4%.

. Tata Motors sold 20,266 units in March 2018 compared to 15,433 units during the month under review, grew by 31% over last year in the PVs segment. This was due to the improved performance of its new models – the Tiago, Tigor, Nexon and Hexa.

. Sales of declined 28.36% during March 2018 at 13,574 units as compared to 18,936 units. The company’s competitive models were the new City with sales of 4,680 units, WR- V with 4,411 units during the month under review, while the Amaze sold 761 units. The Jazz has been recording sales numbers of 2,473 units. Honda plans to launch three big models i.e. the new Amaze, CR-V and Civic which may lift the demand in FY19.

. sold 12,539 units as compared to 13,796 units in the domestic market this month a decline of 9.11%.

. American carmaker ’s combined domestic wholesales and exports in March 2018 which were 27,580 vehicles increased from 24,832 vehicles in the same month last year. The company’s domestic wholesales stood at 9,016 vehicles as compared to 8,700 vehicles, an uptrend of 3.63%.

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YEAR ON YEAR COMPARISON

Year-on-Year Comparison (units sold) OEM Mar-18 Mar-17 Growth%

Passenger Vehicle

Maruti Suzuki 147170 127695 15.30%

Hyundai 48009 44757 7.30%

M&M 26555 25523 4%

Tata Motors 20266 15433 31%

Toyota 12539 13759 -9.11%

Honda Cars India 13574 18936 -28.30%

Ford India 9016 8700 3.63%

(Source: ET Auto | April 03, 2018)

MONTH ON MONTH COMPARISON

Month-on-Month Comparison (units sold) OEM Mar-18 Feb-18 Growth%

Passenger Vehicle

Maruti Suzuki 147170 136,648 8%

Hyundai 48009 44505 8%

M&M 26555 22389 19%

Tata Motors 20266 17771 14%

Toyota 12539 11864 6%

Honda Cars India 13574 11650 17%

Ford India 9016 9041 0%

(Source: ET Auto | April 03, 2018)

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2.2. TWO-WHEELER

. Domestic two-wheeler sales reported a growth of 22.2% to 265,166 units (216,995 units). Scooter sales of the company grew by 20% from 84,173 units in March 2017 to 100,972 units in March 2018 while Motorcycles sales increased 40.5% from 95,671 units in March 2017 to 134,412 units this March.

. Hero MotoCorp reported the highest-ever monthly sales of 730,473 units (609,951 units) in March 2018, a growth of 20 per cent. During this month, the company started construction at its 8th manufacturing facility at Chittoor in Andhra Pradesh. The company’s cumulative capacity increased to 11 million units annually. The market share of the company in the domestic motorcycle segment is 50% and has reported its highest-ever annual sales of 7,587,130 units (6,664,240 units) in FY18 with a strong double-digit growth of 14 per cent.

. , reported a 23% increase in the total sales at 334,348 units in March, against 272,197 units in the same month last year. Overall domestic sales increased 20% to 203,600 units against 169,279 units in March last year.

. TVS Motor Company grew 27% in terms of total sales, increasing from 256,341 units in March 2017 to 326,659 units in March 2018. Total two-wheeler sales were up by 25.8% to 315,765 units (250,979 units).

. reported the sales of 76,087 motorcycles as compared to 60,113 motorcycles in March 2018, increased 27% over the same period last year. The domestic sales was 74,209 units as compared to 58,549 units in March 2017, up by 27%.

. Suzuki Motorcycle India’s total sales was 51,858 units (36,029 units) with a y-o-y growth of 23.2% during the month March 2018.

YEAR ON YEAR COMPARISON

Year-on-Year Comparison (units sold)

OEM Mar-18 Mar-17 Growth% Two-wheeler Hero Motocorp 730473 609951 20.00% TVS 265166 216995 22.20% Bajaj 158987 151449 5.00% Suzuki Motorcycles 51858 36029 23.20% Royal Enfield 74209 58549 27.00%

(Source: ET Auto | April 03, 2018)

MONTH ON MONTH COMPARISON

Month-on-Month Comparison OEM (units sold) Mar-18 Feb-18 Growth% Two-wheelers Hero Motocorp 730473 629,597 16.00% TVS 265166 489591 -46.00% Bajaj 158987 280942 -43.00% Suzuki Motorcycles 51858 46147 12.00% Royal Enfield 74209 71354 4.00%

(Source: ET Auto | April 03, 2018)

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2.3. COMMERCIAL VEHICLES

. Domestic sales of Tata Motors’ commercial vehicles category during March 2018 reported 49,174 units, an increase of 37% compared to 35,876 units in March 2017. The growth was due to government’s push towards infrastructure development, restrictions on overloading, road construction and mining activities, along with increasing demand from e-commerce and FMCG applications.

. The M&HCV truck segment continued to observe a stable growth with 16,886 units, higher by 21% as compared to the same period of last year. The Tipper segment drove the demand and grew over 58% due to increased requirements for aggregate, sand and coal movement across the country in road construction and mining activities.

. The LCV truck segment reported sales of 5,737 units, and grew by 9%, over last year.

. The SCV cargo and pickup segment reported 19,464 units, increased by 52% as compared to the last year. The volumes for this segment were aided by government/municipal applications, high private consumption led growth in both rural and urban markets and general uptick in buying sentiment.

. Commercial passenger carriers posted the highest sales for the year with 7,087 units, growing 13% as compared to the last year. This was due to the demand for school buses with the onset of the annual school season, the new passenger vehicle norms and the ambulance body code implementation from 1 April.

. Ashok Leyland reported an increase of 20% during March 2018 to 22,453 units (18,701 units) with light commercial vehicles up by 58% at 5,396 units (3,424 units), while medium & heavy commercial vehicles grew in double digits at 12% to 17,057 units (15,277 units).

. Volvo Eicher Commercial Vehicles (VECV) registered its highest-ever monthly sales with 9,411 units (7,327 units) in March 2018, up by 28%. This includes 9,245 units of Eicher and 166 units of the Volvo brand.

. Ropar-based SML Isuzu de-grew 2.7 per cent to sales of 1,770 units (1,819 units). The entire fiscal was bogged down by negative sales, except for November 2017, when it posted a growth of 6.6 per cent.

. In the commercial vehicle segment, M&M posted sales of 25,496 vehicles (22,908 units), registering an 11 per cent growth.

. Sales of Bajaj Auto’s commercial vehicles in the domestic market increased 150% to 44,613 units, from 17,830 units in March 2017.

. Maruti Suzuki’s Super Carry LCV sales was 1,412 units in March 2018 as compared to 304 units during the month March 2017.

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YEAR ON YEAR COMPARISON

Year-on-Year Comparison (units sold)

OEM Mar-18 Mar-17 Growth%

Commercial Vehicles

Tata Motors 49174 35876 37.00%

Ashok Leyland 22453 18701 20.00%

M&M 25496 22908 11.00%

VECV 9411 7327 28.40%

SML Isuzu 1770 1819 -2.70%

Bajaj Auto 44613 17830 150.00%

Maruti Suzuki 1412 304 364.47%

(Source: ET Auto| April 03, 2018)

MONTH ON MONTH COMPARISON

Month-on-Month Comparison (units sold) OEM Mar-18 Feb-18 Growth%

Commercial Vehicles

Tata Motors 49174 41222 19%

Ashok Leyland 22453 18181 23%

M&M 25496 20946 22%

VECV 9411 6882 37%

SML Isuzu 1770 965 83%

Bajaj Auto 44613 -

Maruti Suzuki 1412 1252 13%

(Source: ET Auto| April 03, 2018)

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2.4. THREE WHEELER

. The industry sold 635,698 units in the year 2017-2018, increased about 24.19% (FY2017: 511,879 units), which comprises of 517,423 passenger carriers and 118,275 goods carriers.

. Bajaj Auto which is the three-wheeler market leader sold 369,637 units in 2017-2018, an increase of 8.7% which comprises of 346,846 passenger carriers and 22,791 goods carriers.

. TVS Motor Co, was the only other company which managed to increase its market share. It sold a total of 16,429 units, increased by 33.82%, due to which the market share increased to 2.58% (+0.18%) Y-o-Y.

. Piaggio Vehicles, second largest player in the segment sold 152,879 units, an l increase of 1.16%.

YEAR ON YEAR COMPARISON

Year-on-Year Comparison (units sold)

OEM Mar-18 Mar-17 Growth%

3-wheelers

M&M 54,625 52,306 4.43%

TVS 16,429 12,277 33.82%

Scooters India 2,795 6,536 0.44%

Atul Auto 39,333 36,507 7.74%

Bajaj Auto 369,637 253,147 46.02%

Piaggio Vehicles 152,789 151,106 1.17%

(Source: ET Auto| April 03, 2018)

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3. REGULATORY UPDATES

Government to introduce mandatory E-way bill from 1st April, 2018

The Government of India has informed that the E-way bill will be implemented on April 1, for transporting of the goods between states whose value exceeds Rs. 50000. In addition, the Central Board of Excise and Customs (CBEC) has also reported the requirement of filing summary return GSTR-3B till June, 2018. The e-way bill is necessary to be presented to a GST inspector and is being pushed as an anti-evasion measure and would help to boost tax collections by fixing down on trade that currently happens on cash basis. Regarding returns, the council will mull over ways of simplification of the bill with states who have difference of opinion about it. The current filing system will be used by businesses that will continue to file summary sales returns under GSTR-3B and final sales return under GSTR-1 till 4 June, 2018.

Vehicle scrappage policy receives go ahead from PMO The Vehicle scrappage policy has received green light from the Prime Minister’s office. As per the draft released on May 26, 2016 by Ministry of Road Transport and Highways (MORTH) vehicles older than 15 years were eligible for benefits under the scrappage scheme. However, as per the new draft policy, the age of vehicles has been revised to 20 years. The policy will be implemented from April 1, 2020. The new rule will coincide with implementation of BS-VI norms. The benefits of the scrappage policy will be muted as the benefits offered under the policy are expected to be around 15 per cent but rising fuel prices will nullify profits. The policy is awaiting approval from the Goods and Services Tax (GST)

Council.5

4 Source: https://auto.economictimes.indiatimes.com/news/policy/e-way-bill-rollout-from-apr-1-gstr-3b-to-be-filed-till-june/63444639 5Source: https://auto.economictimes.indiatimes.com/news/policy/scrappage-policy-may-not-increase-demand-significantly-crisil/63380827

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4. TECHNOLOGY

UPES student develops technology which prevents deaths in vehicular accidents On Board Diagnostic Data Analysis System – OBDAS, technology for automobile sector is developed by an engineering student of University of Petroleum and Energy Studies (UPES), Archit Agarwal. OBDAS is a low-cost universal solution for vehicles. It is beneficial in sending location of the vehicle in case of an accident to emergency services that may prevent deaths due to vehicular accidents. This technology is based on data interpretation and diagnostic of a vehicle through on-board diagnostic system. With the help of this technology the automobile and auto insurance companies will be able to track real-time data of a car from the dedicated embedded system which can further be used in system diagnostics and performance evaluation of the car. OBDAS can also be used by automobile companies to track customers’ car performance on real time basis and help them to provide them car maintenance service. While the auto insurance companies can use the system to obtain real time telematics about history of the customer’s car and take exact decisions on insurance policies. The technology also has an in-built anti-theft and surveillance functionality. Archit was awarded the ‘Most Innovative Product’ category for his technology by the Gandhian Young Technological Innovation Award 2018 held at Festival of Innovations (FOIN) in New Delhi.6

6Source:https://auto.economictimes.indiatimes.com/news/auto-technology/technology-developed-by-upes-student-can-prevent-deaths-in-vehicular- accidents/63488059

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5. INTERNATIONAL NEWS

Ryder to launch asset-sharing platform for commercial vehicles

Ryder System Inc, U.S. based truck leasing and Rental Company is launching asset-sharing platform for commercial vehicles, starting the platform for owners to rent out under-utilized vehicles from vans to big rigs, similarly as the consumers use apps to share cars and homes. The company is testing its platform named “COOP” since January in Atlanta area with 100 vehicle fleet owners and formally launch in April. 2018. Miami-based Ryder expects to roll it out in several other major U.S. markets in 2019. COOP handles insurance, compliance with federal requirements and payments, which Ryder says have hampered past efforts to grow peer- to-peer asset-sharing services. Ryder's new service will charge a percentage of the rental revenue. Automakers are rushing to develop car-sharing services in the belief that future consumers would rather make short-term use of those assets than own them outright. Rentals on COOP range from one day up to 30 days. The system uses an app showing renters the location and size of available vehicles in their area.7

Ford intends to rebuild trust with Chinese partners as sales decline U.S. automaker Ford is trying to foster its partnerships with Changan Automobile Group and Jiangling Motors Group. The company has decided for a new product and campaign to localize management in China after recent drop in sales. In 2017, the company’s sales declined by 6 per cent even when the sale of vehicles in China increased by 3 per cent. For told the Chinese counterparts that it plans to fill a majority of expat positions with local managers in the next four years, cutting the number of foreigners by 70 percent by 2021. It will take Ford almost a year to regaining momentum in China after the new cars hit the showrooms.8

7Source:https://auto.economictimes.indiatimes.com/news/industry/ryder-launches-asset-sharing-platform-for-commercial-vehicles/63485302

8 Source: www.autonews.com/.../ford-aims-to-rebuild-trust-with-china-partners-as-sales-slip

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6. AUTOMOTIVE COMPONENTS SECTOR

EV charging solutions at Elecrama 2018 - Delta Electronics

Delta Electronics India Pvt. Ltd a power and energy management company, launches its complete range of energy efficient (EV) charging solutions including DC Quick, AC Chargers and Site Management System at Elecrama 2018. The advanced EV charging solutions will support the ecosystem to keep pace with the growing demands for a robust electric automobile infrastructure.

Delta also to partner with the government to power India’s growing economy by launching a manufacturing plant in Krishnagiri, Tamil Nadu which will start it operations by 2019 and help to fulfil the needs of

employment in several states in India. Delta also has invested over $150 million for this project with an R&D center in Bengaluru. Delta will be showcasing its Energy Storage Solutions, Renewable Energy Solutions, and Telecom Network Energy Solutions to name a few at the Elecrama 2018.9

Indian auto cos offered support by Lithium-rich Argentina Lithium will be needed in abundance to produce lithium-ion batteries to meet India's demand for EVs. Argentina one of the largest lithium reserves in the world approached Indian government and companies to invest in lithium mines in the South American nation.

Argentina has one of the largest lithium reserves in the world. Mario Osvaldo Capello, Undersecretary of Mining Development, Ministry of Energy and Mining, Government of Argentina says, Argentina is ready to meet India's growing demand for lithium as India is planning to set up large lithium-ion battery plants to meet the demand for EVs. Mario Osvaldo Capello who currently is in India, has met top officials in the government including those from Ministry of Commerce and Industry and Mining and the corporates working on battery development and EV projects which include representatives from Maruti Suzuki, Tata Chemicals and Su Kam battery.

By 2030 India planning to have all- fleet to cut on its oil imports bills and tackle environmental pollution problems. Along with this government-run Indian Space Research Organisation and DRDO are also working on development of low-cost lithium-ion batteries that can be used in EVs and other equipment.10

9 Source: https://economictimes.indiatimes.com/industry/auto/news/industry/delta-electronics-launches-complete-range-of-ev-charging- solutions/articleshow/63285156.cms 10 Source: https://auto.economictimes.indiatimes.com/news/auto-components/lithium-rich-argentina-invites-indian-firms/63328473

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ROHM plans to bring silicon carbide-power devices in India

Japan-based ROHM Semiconductor is in thoughts of introducing its silicon carbide (SiC) power devices in India over the next 3 years as demand is growing considering its advantages.

Currently, the company supplies the SiC chip to Tesla’s battery-operated cars, which it uses in onboard chargers. ROHM pegs the global market for silicon carbide chips to be $60 billion by 2030 as countries like India have announced plans to go electric in terms of transportation. SiC leads to over 2 per cent more efficiency in the power device and also is light in weight by 6 kg, and ensures 30 per cent more mileage for the vehicle it also enables fast charging which can charge 75 per cent of the vehicle battery in 2 hours compared to a normal charging of 6 hours using a silicon chip.

As the demand for SiC rises it is expected to drop in price compared to its present price which is six to eight times that of a silicon chip. Based on a research report the chips are now mostly used in high-end cars globally and have seen price drop by 30 per cent for use in electric vehicles in 5 years. It has also be noted that the drop could be still steep as the mass market segment also starts utilizing SiC-power devices for electric vehicles.

At present, India uses silicon chip for charging units, inverters, DC-DC converters and electric vehicles as it is less costly compared SiCs. On the other hand, the company is in sync with an electric two-wheeler company in India to which it will supply the silicon chipset to rolling out its first electric scooter in India early next year which will provide functional safety and will show the gear position, battery level, side stand indication and speed leveraging. This will ensures functional safety of both the rider and vehicle.

ROHM already has its silicon chipsets adapted in two wheelers and four wheelers in India in a limited way. As the EVs pick rise in India and the chipset will be in more use the company is in discussions with OEMs, for tier I and II suppliers. In view of the growth potential in the Indian market, ROHM will increase the manpower strength to 60 in two years compared to its existing team of 30 R&D members, who are designing small innovations in sync with the Japanese R&D team at Bangalore. Currently, about 20,000 EVs are on the road in India. And the ROHM team designs the silicon chips in India but are not manufactured locally. ROHM is also working with an Indian company that is developing charging stations. It will supply the battery chip to recharge batteries at charging stations. With global share of 65 per cent in on-board chargers which results in a quick recharge of the EV battery.11

11 Source: https://auto.economictimes.indiatimes.com/news/auto-components/rohm-plans-to-bring-silicon-carbide-power-devices-in-india-in-3- years/63429100

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As the EVs are emerging, will oil demand fall?

Vehicle industry remains the largest contributor of fuel demand growth in 2017 despite of the increase of EV sales. International Energy Agency believes that increasing EV sales may not affect the fuel demand. As the EV is catching its pace so it can help in maintaining cost, cut oil consumption, and reduce pollution. But based on the numbers, recently released by International Energy Agency (IEA), it unfolds a different story. As IEA report shows, the world oil demand rose by 1.6 per cent (or 1.5 million barrels a day) in 2017. This rate was more than twice the annual average seen over the last decade. Which also became one of the main growth drivers in the transport sector. The reason of this massive growth was because of the increasing share of sport-utility vehicles and light trucks in major economies and demand from the petrochemicals sector. Even though there is a strong growth in electric car sales but it fails to lower the oil demand growth. This was particularly visible in the US where there was increase in share from 47 per cent in 2011 to around 60 per cent of total sales in 2017. The European Union, also reported oil demand increased by 2 per cent, the highest rate of growth since 2001. China, which is leading global sales for Electric cars are making rapid inroads in many markets. Another reason behind the huge demand in oil growth is the use of petrochemicals feedstock. Petrochemicals are the fastest- growing source of oil demand, mainly in the US as well as in China and in other emerging economies where demand for plastics and other petrochemical products is growing rapidly. Around 60 per cent of the growth in oil demand came from Asia. Even though China is the leading global market for the sales of electric cars, it was also the top contributor to oil demand growth, followed by India. Meanwhile, oil demand in the Middle East, was flat due to oil-to-gas switching. While there can be a slowdown in oil demand growth in the coming years, but there are no signs of a peak in demand anytime soon.12

Opinion: Will the green drive be a threat to Indian auto components industry?

The Indian auto components industry is 20 times bigger employer than original equipment manufacturers (OEMs) with its share in the country’s annual GDP with almost & per cent. These facts are enough to explain that how important is the industries in terms the overall growth of the economy but changing industry dynamics are scaring the leaders of this industry as the government is trying to push the electric vehicles and because of which the industry can’t meet with its future goals. The internal combustion engine (ICE) of most of the cars works on more than 2,000 moving parts, while the engine of an electric vehicle doesn’t require more than 20 similar parts/components. This industry is all set to become the third-largest in the world by 2025. The industry players believe that once electric vehicles start replacing petrol/diesel based automobiles; there will be a sudden fall in the demand of auto components such as cylinder blocks, filters, transmitters, plugs, etc. Based on various industry experts, the auto components industry is on the verge of losing glory, but transformation is not possible before 2040. Arvind Kapur, MD & CEO of Rico Auto says, “I think it will take another 20-25 years for electric vehicles to flourish in India. During any disruption, the industry has to face some inconvenience, but that should not stop them from making investments.” According to the Automotive Component Manufacturers Association of India (ACMA) informs that the Indian auto components industry is quite close to a turnover of $100 billion by 2020 because of improved exports, which is expected to reach almost $100 billion by 2026, nearly 10-times higher than the current

12 Source: https://auto.economictimes.indiatimes.com/news/oil-and-lubes/with-evs-will-oil-demand-fall-find-what-number-says/63464870

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export value. Due to rising numbers of OEMs, the industry is expected to maintain 8-10 per cent growth in the current fiscal. Despite fears and threats, the investment made by private equity investors in the automobile component sector has increased 607 per cent between January-May 2017, as per the latest report by Department of Industrial Policy and Promotion. In this same period the industry has witnessed $ 254.8 million mergers and acquisition too. In countries like India which are hugely populated a complete green revolution is least to happen which makes dual-fuel technology the most viable option. Hence, statistics as well as the economic scenario of the country, reveal that the sky is just partially clouded and the rest is covered with brilliant stars.13

13 Source: https://auto.economictimes.indiatimes.com/news/oil-and-lubes/with-evs-will-oil-demand-fall-find-what-number-says/63464870

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7. SUMMARY

. India’s automobile industry is one of the largest industry in the world.

. It accounts for 7.1 per cent of India’s Gross Domestic Product (GDP).

. Two Wheelers segment :

 80 per cent market share of the automobile segment.

 Leader of the Indian Automobile market due to a growing middle class and a young population.

. Passenger Vehicle (PV) segment:

 14 per cent market share of the automobile segment.

. India is a leading auto exporter and expects strong export growth for the near future. The exports of automobile sector grew 15.81 % y-o-y between April-February 2017-18.

. The government of India has shifted their focus on electric cars in order to meet the emission reduction targets.

. Mahindra has launched its new electric car and Tesla motors is also set to enter the Indian market. Suzuki Motors is setting up a battery plant in Gujarat. Electric buses from Tata Motors are in testing phase.

. The sales of India's electric vehicle (EV) surged to 25,000 units during FY 2016-17 and are poised to rise more on the back of cheaper energy storage costs.

. The vision of The Government of India is to see 6 Million electric and hybrid vehicles in India by the year 2020.

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8. DISCLAIMER

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and that it should be relied upon, as such Polymerupdate does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the users / transmitters / distributors of this publication.

The views expressed in this report are one way of analysis and could differ from other viewpoints. No part of this report may be reproduced in any form or by any means without the permission of Polymerupdate.

9. CONTACT INFORMATION

Hetal Yagnik

General Manager – Strategy & Operations

(91-22) 6177 2000 | +91-9920744206| [email protected]

Priya Kothari

Financial Analyst,

(91-22) 6177 2000 | +91-7208074809 |

[email protected]

Polymerupdate.com

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