India's Automotive Mission 2007-2016

Alchemist · #1 30th January 2007, 09:26 AM

Prime Minister Dr. Manmohan Singh has launched a ten year plan for the automobile sector, with an aim to make India a global hub for manufacturing and designing automobiles and related components.

The plan's goal is to achieve a turnover of $145 billion for the automobile industry by 2016 and attract $35-45 billion of fresh investments.

Some of the key recommendations of the plan are:

-Tax breaks for new investments.
-Single window clearnance for new FDI in automobile sector.
-Special Automobile Zones enjoying similar benefits as Special Economic Zones(SEZs)
-Special emphasis on exports with incentives and tax breaks for exporters.

If everything goes as planned, 25 million people will be employed in the automobile industry by 2016.

man4urheart · #2 18th February 2008, 07:32 PM

A nice read on Indian + Global Automobile sector

The auto rut

http://www.business-standard.com/gen...&autono=314045

man4urheart · #3 22nd February 2008, 02:51 PM

Further reading

Aut0 Ancillaries
http://www.equitymaster.com/research...or-info/autoc/

Automobile
http://www.equitymaster.com/research...tor-info/auto/

man4urheart · #4 25th June 2008, 07:36 PM

Interesting analysis on Auto sector

Quote:

Steel accounts for close to 60% of a car’s weight and ~65% of its material costs. The impact of spiralling steel prices on automakers’ margins is well known, but that of other metals (aluminium, iron castings) and crude-derived products (plastics, rubber) has not got the merited attention. We estimate that increases in price of steel and other components translate to increases of Rs6,200 and ~Rs3,300, respectively, in a car’s production cost. Considering that Maruti’s EBITDA per car was Rs33,878 in 1QFY08, this Rs9,500 increase in costs could potentially take 28% off EBITDA per car.

Note: This is text taken from analysis on Auto sector from PDF attached in link

http://www.moneycontrol.com/india/ne...l/16/10/344152

attachment name: tfp20080625.pdf