Global trends in low cost vehicles and implications for indonesia

1. Worldwide Trends in Low Cost Vehicles and Implications for Indonesia May 2010 2. Ice & Sullivan is a worldwide Growth Consulting CompanyThe Growth Consulting Company• Founded in 1961• Over 1,700 Consultants/ Analysts over 38 worldwide locations• 10,000+ customers overall including developing organizations, the worldwide 1000, and the venture community• Offer the elite Growth System including: Growth Partnership Services, Growth Consulting and Growth Team Membership• Developers of the Growth Excellence Matrix – industry driving development situating device for corporate executives• Developers of T.E.A.M. Technique, exclusive methodology to guarantee that customers get a 360o point of view of innovation, markets and development opportunities 2 3. Ice & Sullivan: The Global Growth Consulting Company Founded in 1961 in US, now working in all mainlands Best Practices Over 10,000+ customers, 1,700 Consultants/ Analysts over 35 worldwide areas Growth Consulting Offer the restrictive Growth System including: Growth Partnership Services, Growth Consulting and Growth Team Membership Growth Partnership Subscription Developers of T.E.A.M. Technique, restrictive procedure covering innovation, financial aspects, application and advertising behind Growth Opportunities Key Clients 3 4. Ice & Sullivan's Positioning & Thought Leadership High Research Capabilities Global Coverage Balance of Consumer think-tanks Frost & Sullivan area learning and Low High research Automotive Domain information capacities General Consulting over the Automotive information and Companies estimate suppliers globe Local Low Sought after by media over the globe 4 5. Minimal effort Cars : Top level vital actuality sheet • Global suppliers are cooperating progressively with neighborhood territorial suppliers for ease fitness and comprehension of nearby market know-how • notwithstanding neighborhood players, all key European, Japanese and American VMs are anticipating colossal ventures to make India as a minimal effort auto hubGlobal Market Position of Low-cost autos VMs, 2007 Global Production of Low-cost autos – by Country, 2007 Low-cost innovation aptitude High 5.00 Tata Motors Million units Renault Group 3.75 Suzuki 2005 2013 Maruti Toyota Group 2.50 Chery General Motors BYD Source: Frost & Sullivan Hyundai Group 1.25 Volkswagen Group Ford 0.00 Africa Asia Eastern Middle North South Western Europe East America Europe Base Year is 2007. Source: Frost & Sullivan Regional Presence Global Presence Note: Arrows speak to future bearing of the VM's business 5 6. Vehicle Purchasing Patterns in Developingcountries BRIC, Eastern Europe and Asia will be the development motors for auto creation in the following 10 years Price Range for Low-cost autos – by Country, 2007 50,000• Emerging economies have a low United States infiltration of autos – India and China have GDP in light of PPP - Per capita enormous open doors, with under 37,500 10 individuals every 1,000 owing an auto UK Opportunity for VMs• The Indian and Chinese car Germany 25,000 commercial enterprises have been developing at an above normal CAGR of more than 15% and 30% individually somewhere around 2004 and 2006 China Poland (development of vehicle unit volumes) 12,500 Russia• Many worldwide vehicle makers (VMs) Brazil have arranged limit extensions in India by 2010, while China has effectively seen 0 200 400 600 an immense surge underway limit Passenger Cars (Per 1,000 individuals) Source: Key Development Data & Statistics, The World Bank World Economic Outlook Database, October 2007 6 7. Meaning of Low-cost Vehicles" Low cost autos are seen as vehicles with a corner center indulging the end-client inclination of a particular locale or portion " • A minimal effort vehicle is constructed for a crowd of people that has comparable shopper conduct and buying force • Expectations are far distinctive for a customer base of first-time auto purchasers in rising nations, contrasted with those of a purchaser in created economy • for instance, the target fragment of the Tata Nano, estimated at generally $2,500 is a first-time auto purchaser who are up-reviewing from a bike to an auto • Demand for ease autos is a specialty advertise in formed markets particularly considering the needs and obtaining force of the shoppers in these countriesManufacturer & Model Country Built Target Group Price Range Indian working class – First time auto buyerTata Nano India US$ 5,000 owning a motorbikeDacia Logan – Renault Romania Eastern European purchasers US$ 10,000Chery QQ3 China Chinese purchasers US$ 7,500 7