Automotive Component Outsourcing: Market Research Report

April 2012 | 375 pages | ID: A782161559DEN
Global Industry Analysts, Inc

Abstracts

This report analyzes the worldwide markets for Automotive Component Outsourcing in US$ Billion.

The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World.

Annual estimates and forecasts are provided for the period 2009 through 2017.

Also, a six-year historic analysis is provided for these markets.

The report profiles 75 companies including many key and niche players such as Meritor, Inc., Amtek India Limited, AGC Flat Glass Europe, Benteler International AG, Autoliv Inc., Bharat Forge Limited, BorgWarner Inc., BorgWarner Turbo Systems GmbH, Continental AG, Cummins Inc., Delphi Automotive LLP, Denso Corporation, Faurecia SA, Honeywell Turbo Technologies, Johnson Controls, Inc., KIRCHHOFF Automotive GmbH, Lear Corporation, Magna International Inc., Michelin Group, Rane Group, Robert Bosch GmbH, Shriram Pistons & Rings Ltd., Sundaram Fasteners Limited, Takata Holdings Inc., Tenneco Inc., ThyssenKrupp Steel Europe AG, TRW Automotive Holding Corp., Visteon Corporation, Valeo Group, and ZF Friedrichshafen AG.

Market data and analytics are derived from primary and secondary research.

Company profiles are primarily based upon search engine sources in the public domain.

Contents

I.INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations
Disclaimers
Data Interpretation & Reporting Level
Quantitative Techniques & Analytics
Product Definitions and Scope of Study

II. EXECUTIVE SUMMARY

1.INDUSTRY OVERVIEW

Automotive Manufacturing Industry – A Review

Table 1. Emerging Dominance of OEMs From Developing Countries in the Global Automotive Manufacturing Market (2008 & 2020): Percentage Share Breakdown of Number of OEMs by Origin - OEMs from Developed Automotive Markets & OEMs from Emerging Automotive Markets (includes corresponding Graph/Chart)

Table 2. Emerging Dominance of OEMs From Developing Countries in the Global Passenger Car Market (2008 & 2020): Percentage Share Breakdown of Regional & Foreign OEMs by Region/Country (includes corresponding Graph/Chart)

Automotive Component Outsourcing: A Quick Primer
Modularization of the Automotive Supply Chain Encourages Outsourcing
Outsourcing: A Critical Clock Speed Based Strategy for Success
Market Traits

Table 3. World Production of Passenger Cars: Breakdown of Annual Production Figures in ‘000’ Units for Years 2009 through 2017 by Geographic Region/Country (includes corresponding Graph/Chart)

Table 4. World Production of Commercial Vehicles: Breakdown of Annual Production Figures in ‘000’ Units for Years 2009 through 2017 by Geographic Region/ Country (includes corresponding Graph/Chart)

Market Scenario
Recession Veers Automotive Industry Off Course
Factors Responsible for Decline in New Passenger Cars
Factors Responsible for Decline in New Commercial Vehicles
Sports Cars: The Recession’s Biggest Casualty

Table 5. US Sports Car Market (2005 & 2010): Breakdown of Annual Volume Sales (In Units) of Select Leading Brands (includes corresponding Graph/Chart)

Implications for Component Outsourcing/Manufacturing
The World Beyond Recession
Key Trends & Issues
Automotive Software Outsourcing Rises in Popularity

Table 6. Increasing Electronic Content in Automobiles: A Comparative Analysis of Electronic Component & Software Value As a Percentage of Total Vehicle Value for Years 1975, 2000 & 2010 (includes corresponding Graph/Chart)

Opportunities Galore for Electronic Manufacturing Services (EMS)
Increased Outsourcing Complicates the Supplier Industry’s Structure
Tier-1 Suppliers
Tier-2 and Tier-3 Suppliers
Developing Low Cost Countries: Hot Spots for Outsourcing
Outsource Suppliers Face Tight Margins
Increased Outsourcing Encourages the Rise of Co-located Supplier Clusters
Supplier Parks in the US for Major Automotive Manufacturers
Supplier Parks in Europe for Ford
Market Share Findings

Table 7. World Market for OEM Auto Parts/ Components (2008): Breakdown of Revenues for Leading Manufacturers (in US$ Billion) (includes corresponding Graph/Chart)

Key Statistical Findings On the European Market

Table 8. Western European Automotive Market (2007 & 2008): Breakdown of Number of New Vehicle Registrations by Vehicle Type (includes corresponding Graph/Chart)

Table 9. Western European Passenger Cars Market (2008): Percentage Share Breakdown of Number of New Passenger Car Registrations by Segment (includes corresponding Graph/Chart)

Table 10. Western European Passenger Cars Market (2008): Percentage Share Breakdown of Number of New Passenger Car Registrations by Body Type (includes corresponding Graph/Chart)

Focus on Emerging Outsourcing Hubs
India
Indian Automobile Industry: An Overview

Table 11. Passenger Car Production in Asia-Pacific (2010): Percentage Breakdown of Unit Production by Country - for Australia, China, India, Indonesia, Malaysia, South Korea, Taiwan, Thailand, and Rest of Asia-Pacific (includes corresponding Graph/Chart)

Table 12. Commercial Vehicle Production in Asia- Pacific (2010): Percentage Breakdown of Unit Production by Country - Australia, China, India, Indonesia, Malaysia, South Korea, Taiwan, Thailand, and Rest of Asia-Pacific (includes corresponding Graph/Chart)

Development of Road Infrastructure: Critical to Growth in Automobile Demand

Table 13. Road Network in India: Breakdown of Length (in KM) of Road Network by Type of Roads (includes corresponding Graph/Chart)

Encouraging Outlook for Passenger Cars

Table 14. Indian Market for Passenger Vehicles (Febr Indian Passenger Cars Market (2009): Percentage Share Breakdown of Volume Sales by Category uary 2010): Percentage Share Breakdown of Volume Sales by Leading Players (includes corresponding Graph/Chart)

Small Cars Rule the Indian Passenger Car Market

Table 15. Indian Passenger Cars Market (2009): Percentage Share Breakdown of Volume Sales by Category (includes corresponding Graph/Chart)

High Price Models Gradually Gaining Popularity
Overview of the Commercial Vehicle

Table 16. Indian Commercial Vehicle Market (2009): Percentage Share Breakdown of Medium & Heavy Commercial Vehicle (Passenger) by Company (includes corresponding Graph/Chart)

Table 17. Indian Commercial Vehicle Market (2009): Percentage Share Breakdown of Medium & Heavy Commercial Vehicle (Goods) by Company (includes corresponding Graph/Chart)

Indian Automotive Parts Sector – A Review
Dynamics of Component Manufacturing in India: A Review

Table 18. Indian Automotive Components Market (2007): Breakdown of Number of Companies Accredited with Quality Certifications by Certification Type

Table 19. Indian Automotive Components Market (2010): Percentage Share of Organized & Unorganized Players (includes corresponding Graph/Chart)

Table 20. Auto Components Industry in India: Breakdown of Annual Production (In US$ Million) for Years 2005 Through 2008 (includes corresponding Graph/Chart)

Table 21. Auto Components Industry in India (2011): Percentage Production Breakdown by Component Type (includes corresponding Graph/Chart)

Table 22. Indian Automotive Components Market 2007): Percentage Market Share Breakdown by End-Use Market (includes corresponding Graph/Chart)

Table 23. Indian Automotive Components Market (2007): Percentage Market Share Breakdown of Sales by Vehicle Type (includes corresponding Graph/Chart)

India Emerges Into a Global Manufacturing Hub
Indian Small and Medium Scale Industries: Ready for Expansion
India’s IT Expertise to Boost Component Outsourcing Market
Major Market Segments

Table 24. Auto Parts and Accessories Market in India (2010): Percentage Share Breakdown of Dollar Sales by Product Segment (includes corresponding Graph/Chart)

Consolidation: Essential to Survive Competition
Transition towards Being an Integrated Systems Supplier
Effect of ‘Automotive Mission Plan’
Investment Scenario

Table 25. Auto Component Industry in India: Breakdown of Annual Investments in US$ Million for the Years 2005 through 2008 (includes corresponding Graph/Chart)

China and Thailand: Pose Potential Threat for India

Table 26. Automotive Components Outsourcing Industry (2007): A Comparative Analysis of Power Costs (Cost/kwH in US$) and Interest Costs (% Annual Lending Interest Rate) by Leading Outsource Destinations - India, Brazil, China and Thailand (includes corresponding Graph/Chart)

Table 27. Automotive Components Outsourcing Industry (2007): A Comparative Analysis of Labor Cost (US$/Day) by Country - India, Brazil, China and Thailand (includes corresponding Graph/Chart)

Table 28. Indian Automotive Components Industry (2007): Breakdown of Excess Costs Incurred (in %) for Engine Parts, Transmission & Steering, Suspension & Braking, Electricals, Equipment and Other Components by Expense Type - VS – China and Thailand (includes corresponding Graph/Chart)

Table 29. Indian Automotive Components Industry (2007): Breakdown of Cost Savings (in %) for Engine Parts, Transmission & Steering, Suspension & Braking, Electricals, Equipment and Other Components by Expense Type - VS – Brazil (includes corresponding Graph/Chart)

Auto Engineering & Design Oozes Opportunities in the Outsourcing Services Sector
Key Statistical Findings

Table 30. Auto Components Industry in India: Breakdown of Exports (In US$ Million) for Years 2005 through 2008 (includes corresponding Graph/Chart)

Table 31. Indian Auto Components Export Market (2008): Percentage Share Breakdown of Exports by Destination Region (includes corresponding Graph/Chart)

Table 32. Indian Auto Components Export Market (2008): Percentage Share Breakdown of Exports by End-Market

China
Chinese Automotive Industry: An Overview
Regional Perspective
Commercial Vehicles: A Strong Segment

Table 33. Commercial Vehicles Market in China (2010): Percentage Share Breakdown of Unit Production by Vehicle Type - Light Commercial Vehicles, Medium/ Heavy Commercial Vehicle, and Buses (includes corresponding Graph/Chart)

Competition

Table 34. Leading Car Makers in China (2008): Percentage Share Breakdown of New Motor Vehicles Sold by Leading Manufacturers (includes corresponding Graph/Chart)

Auto Component Manufacturing in China: A Review
Consolidation Catches Fire

2.SERVICE OVERVIEW

Definition
Brief History
Advantages of Auto Component Outsourcing
Achieve Cost Benefits without Risking Quality
Lower Cost of Production & Lower Cost of the Final Product
Aids in Globalization of Business Operations
Latest Technology at Lower Price
Disadvantages of Auto Components Outsourcing
Importance of Supply Chain Management
Factors, which drive home the importance of effective supply chain management include
Overview of Car Components

3.RECENT INDUSTRY ACTIVITY

BorgWarner Secures Turbocharger Supply Contract from Ford Motor
General Automotive Company Acquires S.P.E.C.
Nippon Steel To Purchase Automotive Steel Subsidiary of Toshida
Wonder Auto Technology Purchases Stake in Applaud, Jinheng Automotive
Paccar to Introduce MX Engine in US
Toyota-Kirloskar Plans to Produce Engine Components For Etios
Jumpstart Inks Pact for Powercam’s Car and Driver Brand
Johnson Controls to Take Over C Rob Hammerstein
Wonder Auto Technology Acquires Minority Stake in Applaud Group
Hyundai Sources Transmission Components from BorgWarner
BorgWarner Establishes New Turbocharger Facility
Volvo Employs BorgWarner's R2S® Turbocharging System
Alpha To Construct New Plant for Automobile Door Handles
Mobileye and Visteon Partner to Co-Develop Advanced Lighting Control Systems
BeijingWest Industries Acquires Delphi's Unit
Denso Develops Radiator Tank Made of Plant Resin
Jinzhou Wanyou Acquires Friend Birch
SAIC Motor Inks Agreement with Magneti Marelli
Ruia Group Acquires Henniges Automotive Grefrath
Tong Yang Tong Yang Merges with Taiwan Kai Yih
Magna Steyr Secures Engineering Contract from Mercedes-Benz
Daimler Buses Wins Two Contracts from Netherlands
ZF and Bosch Offer Parts for Latest Audi A4
Tata Nano Selects Phoenix Headlamps
Bharat Forge To Acquire Groupe Sifcor
SGL Establishes Joint Venture With Benteler
Rico Establishes a Production Unit
ArvinMeritor Starts Production in Romania
ArvinMeritor Gains Supply Contract
Ford Selects Honeywell to Develop Turbochargers
Delphi Supplies Active Safety System for New Models by European Automaker
Argentum Motors Purchases Majority Stake in Heuliez

4.FOCUS ON SELECT GLOBAL PLAYERS

Meritor, Inc. (USA)
Amtek India Limited (India)
AGC Flat Glass Europe (Belgium)
Benteler International AG (Germany)
Autoliv, Inc. (Sweden)
Bharat Forge Limited (India)
BorgWarner Inc. (USA)
BorgWarner Turbo Systems GmbH (Germany)
Continental AG (Germany)
Cummins, Inc. (USA)
Delphi Automotive LLP (USA)
Denso Corporation (Japan)
Faurecia SA (France)
Honeywell Turbo Technologies (USA)
Johnson Controls, Inc. (USA)
KIRCHHOFF Automotive GmbH (Germany)
Lear Corporation (USA)
Magna International Inc. (Canada)
Michelin Group (USA)
Rane Group (India)
Robert Bosch GmbH (Germany)
Shriram Pistons & Rings Ltd (India)
Sundaram Fasteners Limited (India)
Takata Holdings, Inc. (Japan)
Tenneco, Inc. (USA)
ThyssenKrupp Steel Europe AG (Germany)
TRW Automotive Holding Corp (USA)
Visteon Corporation (USA)
Valeo Group (France)
ZF Friedrichshafen AG (Germany)

5.GLOBAL MARKET PERSPECTIVE

Table 35. World Recent Past, Current & Future Analysis for Automotive Component Outsourcing by Geographic Segment – US, Canada, Japan, Europe, (France, Germany, Italy, UK, Spain, Russia and Rest of Europe); Asia-Pacific (Australia, China, India, South Korea, Thailand & Rest of Asia-Pacific); Latin America (Argentina, Brazil, Mexico, and Rest of Latin America) and Rest of World Markets Independently Analyzed with Annual Revenue Figures in US$ Billion For Years 2009 through 2017 (includes corresponding Graph/Chart)

Table 36. World Historic Review For Automotive Component Outsourcing by Geographic Segment – US, Canada, Japan, Europe, (France, Germany, Italy, UK, Spain, Russia and Rest of Europe); Asia-Pacific (Australia, China, India, South Korea, Thailand & Rest of Asia-Pacific); Latin America (Argentina, Brazil, Mexico, and Rest of Latin America) and Rest of World Markets Independently Analyzed with Annual Revenue Figures in US$ Billion For Years 2003 through 2008 (includes corresponding Graph/Chart)

Table 37. World 15-Year Perspective For Automotive Component Outsourcing by Geographic Segment – Percentage Share Breakdown of Dollar Revenue for US, Canada, Japan, Europe, (France, Germany, Italy, UK, Spain, Russia and Rest of Europe); Asia-Pacific (Australia, China, India, South Korea, Thailand & Rest of Asia-Pacific); Latin America (Argentina, Brazil, Mexico, and Rest of Latin America) and Rest of World Markets for Years 2003, 2011 & 2017 (includes corresponding Graph/Chart)

III. COMPETITIVE LANDSCAPE

Total Companies Profiled: 75 (including Divisions/Subsidiaries - 80)
The United States (22)
Japan (5)
Europe (47)
- France (2)
- Germany (11)
- Italy (2)
- Rest of Europe (32)
Asia-Pacific (Excluding Japan) (5)
Africa (1)