SALES ACHIEVEMENT AGAINST BUDGET

140%

Need for
Contingency
plan

Consistent Failures Needs

review

120%

100%

80%

60%

40%

20%

0%
Auto

NA

Export
03-04

04-05

05-06

Retail
06-07

Roller

120%

QUARTERWISE PERFORMANCE AGAINST BUDGET

Can we even out
The sales
Performance during Q3 and Q4
Possibility?
Generally lower than Q1 and Q2

100%

80%

60%

40%
22%

25%

26%

27%

Q2

Q3

Q4

20%

0%
Q1
04-05

05-06

06-07

Budget Patern

AUTO INDUSTRY GROWTH vs SI GROWTH

Segment

03-04

04-05

% Growth

05-06

Cars

781764

960505

23%

1045881

9%

1211996

16%

MUV's

206776

249149

20%

263032

6%

298348

13%

LCV's

109122

138890

27%

171781

24%

221115

29%

HCV's

166102

211143

27%

219297

4%

289558

32%

1263764

1559687

23%

1699991

9%

2021017

19%

3W

340729

374414

10%

434424

16%

555817

28%

2W

5624950

6526547

16%

7600801

16%

8468431

11%

Sub total

5965679

6900961

16%

8035225

16%

9024248

12%

G Total

7229443

8460648

17%

9735216

15%

11045265

13%

SI Sale

5573

6833

23%

7497

10%

9053

21%

SI Sale *

5573

6711

20%

7249

8%

8590

18%

Sub total

Segments of Highest
Growth Our presence
Is minimum

% Growth

How do we
improve

06-07

% Growth

MARKET OPPORTUNITIES
90 %
Opportunity

90%

80%

We are at
9000 Lakhs

70%

60%

50%

40%

12000
s
Lakh

16500
s
Lakh

50000
s
Lakh

5000
s
Lakh

30%

20%

10%
Passenger Car

MUV's
03-04

Commercial
04'05

05-06

0607

2/3 W

COMPONENT VALUE PER VEHICLE

450

How do we arrest
This trend

441
430

430

426

425

05-06

06-07

Rs

410

390

370

350
03-04

04-05

SALE VALUE PER VEHICLE MAJOR OEMS

M a n u f a c tuDr eerta il
V e h ic le
MUL

0 4 -0 5

% G r o w th0 5 - 0 6

401928 465211

% G r o w t h0 6 - 0 7

% G ro w th

16%

512601

10%

650716

27%

35%

3094

14%

3662

18%

S a le s

2021

2724

R s /V e h

503

586

V e h ic le

31827

34077

7%

36383

7%

42750

17%

397

402

1%

268

-3 3 %

300

12%

1247

1180

T K M L S a le s
R s /V e h
V e h ic le
TM L

0 3 -0 4

117518 154313

S a le s

183

229

R s /V e h

156

148

604

563

737

702

31%

169695

10%

190320

12%

25%

285

24%

257

-1 0 %

168

135

SALES PERFORMANCE NON AUTO SEGMENT

S e g m e n t 0 3 - 0 4 0 4 - 0 5 % G r o w t 0h 5 - 0 6 % G r o w t h0 6 - 0 7 % G r o w t h
WG

108

88

-1 9 %

79

-1 0 %

98

24%

In d

145

172

19%

244

42%

380

56%

T h e rm a l

98

74

-2 4 %

113

53%

85

-2 5 %

D e fe n c e

233

258

11%

514

99%

619

20%

G T o ta l

584

592

1%

950

60%

1182

24%

Dependence
On this
Segment is
High

Estimated potential of
Rs. 400 Cr. on
Industrial Products

COMPONENT VALUE PER MACHINE

2.5

Approx Reqt per M/c

Is Rs. 110
2.0

8
7

Million Nos

6
1.5
5
4
1.0
3
2

0.5

1
0.0

0
03-04

04-05

05-06
Washing M/c

Rs / Mc

06-07

AFTER-MARKET TRENDS

Market in excess
Of 400 Crores

R e g io n

0 3 -0 4

0 4 -0 5 % G r o w th 0 5 -0 6 % G r o w t h 0 6 - 0 7

S o u th

458

604

32%

536

-1 1 %

649

21%

N o r th

197

168

-1 5 %

198

18%

243

23%

East

40

37

-8 %

28

-2 4 %

60

114%

W est

95

94

-1 %

144

53%

191

33%

Growth in South is low

- In spite of Brand Value

% G r o w th

Is range a impediment
To growth???

VEHICLE INDUSTRY PERFORMANCE

1400000

1200000

1000000

Nos

800000

600000

400000

200000

0
Cars

Muv's

LCV's
Segment

2003-04

2004-2005

2005-2006

2006-2007

M & HCV's

VEHICLE INDUSTRY PERFORMANCE

8000000

7000000

6000000

Nos

5000000

4000000

3000000

2000000

1000000

0
Scooters

Motorcycles

Mopeds
Segment

2003-04

2004-2005

2005-2006

2006-2007

3-wheelers

PASSENGER CAR INDUSTRY - PLAYERS

700000

600000

500000

Nos

400000

300000

200000

100000

0
Force
Motors

Fiat

Ford

GM

HM

Honda

Hyndai

M&M

MUL

Manufacturer
2003-2004

2004-2005

2005-2006

2006-2007(F 07)

Mercedes

TKML

Telco

CV INDUSTRY - PLAYERS
350000

300000

250000

Nos

200000

150000

100000

50000

0
AL

HM

Telco
2003-2004

Volvo
2004-2005

Force
2005-2006

Eicher
2006-2007

M&M

Mazda

2&3 W INDUSTRY - PLAYERS

3500000

3000000

2500000

Nos

2000000

1500000

1000000

500000

0
Atul

Bajaj

Force

HHML

KEL

2003-2004

LML
2004-2005

M&M
2005-2006

MAL

Piaggio

2006-2007(F 07)

Enfield

TVSMC

Yamaha

INFORMATION OF INTEREST - MUL

5 new models introduced in the last 2.5 years

2 of these models have the highest local content
Entry into diesel segment
Sale of Alto model alone is more than the sum total of Hyundai
Growing exports
Forbes Ranking : 5th In the world and 2nd in India
Plan for 2010 : One Million Cars over all , Export at 200,000 Cars

INFORMATION OF INTEREST - MUL

Highest ever production 2950 cars per day

Cost down in spite of increasing commodity prices
Cost of stoppages due to quality Rs 150 Million during 2006-07
Domestic Car warranty: Ist Year Rs. 25 / car, 2nd Year Rs. 34 / car
53% of suppliers: > 100 ppm, 18% suppliers: 30-100 ppm, 29% suppliers
are < 30 ppm

IMPLICATIONS TO SUPPLIERS

Increase in volumes of existing models

Introduction of new models
Long term partnership
Capacity enhancement
Sub supplier may become a constraint for growth

EXPECTATIONS FROM SUPPLIERS

World class quality
Cost competitiveness
Capacities to meet global volumes
Robust production system
Design and development capabilities
Manpower development and control, retention
Enhanced project management
Participation in Design reviews and problem solving

CHALLENGES FOR SUNDARAM INDUSTRIES

30% REDUCTION IN PPM

10% REDUCTION IN WARRANTY COSTS
VA/VE GENERATION 7.5% OF THE BUYING & 1.5% MIN IMPLEMENTATION
COST REDUCTION 4% TARGET FOR SWIFT DIESEL, 4% FOR SX4
Y-O-Y COST REDUCTION MINIMUM OF 2% ON ALL MODELS