4-Assessing-InQ-Innovation-Quotient-of-Indian-Auto-Comp-CIS-report-Manoj-Mishra

MANAGEMENT DEVELOPMENT INSTITUTE GURGAON Assessing Innovation Quotient (InQ) Of Indian Auto Component Manufacturers (ACM) (An Exploratory Study under CIS) Under the guidance of Prof A Sahay Prof Rajen Gupta By Manoj Mishra EFPM 07 Executive Fellow Program in Management Contents Topic Introduction and broad intent of the CIS Literature Review and Research Gaps Page Number 4 Research Questions Research Methodology 13 14 Innovation Quotient Measurement Attribute study InQ Attribute Mapping of organisations Proposed Conceptual Model for InQ Measurement Exploratory Case Studies- Organisation details, 15 17 19 19 10 11 12 13 14 Observations and Discussion Conclusions Limitations of the Study Benefits & Contributions References Annexure A: A note on the Indian Auto OEM and 21 23 24 25 28 Auto Component Manufacturing Industry 1) Introduction and broad intent of CIS: The business landscape and context is drastically changing worldwide as a consequence of globalization, IT revolution and the emergence of new business models Business organisations are increasingly experiencing the heat of competition and Darwinian challenge for survival is only possible through continuous innovation and application of newer technologies Unless organisations develop binocular vision and alert antenna, to scan the ever changing technological scenario and develop appropriate action agenda, their very survival, leave alone the growth, will be at stake Innovation is an imperative today as a key tool for Creating Winning Organisations globally With many global auto players setting up operations in India in last 10 years; Indian companies are now exposed to manufacturing excellence techniques used globally They need to scale up on innovations to remain competitive and create winning organisations It would also be important to assess where we stand, identify areas of improvements with respect to Global benchmarks and then workout an action plan to have a transition to Global levels to build winning organisations Thus, it is vital to: (a) Understand the process of innovation; (b) What drives innovations; (c) Where we stand and (d) How we carve out a proper Innovation strategy to build competitive edge The broad intent of my work in the Course of Independent Study (CIS), is to identify drivers of Innovation through a cross sector and exploratory empirical study Further, it will attempt to probe as to where does Indian auto component Industry stand on Innovation by suggesting a measurement tool for Innovation Quotient (InQ) and then measuring them over InQ; identify what are the enablers and barriers of innovation and what strategy should the industry and the Company in specific adopt to accelerate innovation and have transition to reach global benchmarks to create world class winning sustainable organisations The work done in the CIS will prepare the ground work for future research on this subject Literature Review and research Gaps: a) Innovation as imperative for Auto Industry: In the present context of severe competition, where even survival itself is not a easy task, the growth and even faster growth is imperative and is the biggest challenge for all top management executives The captions-“Innovate or perish”, “If you not Innovate, someone else will and you will be out of the race” and “Faster, Better, Cheaper” are gathering relevance today.(Business standard-The Strategist, Dec18, 2007; Interview, Tucher, R., 2007) In a global survey of top management executives, Innovation is rated as one of the top agendas of the Global CEOs (Business Standard, Jan 28, 2008; Carrier Executive, Jan 2008) In another survey of world’s top 1250 R&D spending companies having total R&D spend of 500 Billion $, only Indian companies found their place in the list with just 1.2% of total R&D spend (Business Standard, Nov 05, 2007) The long term growth will only be the outcome of sustainable competitive advantage which can be achieved only through Innovation in Product, Processes and Strategy All types of innovation namely Incremental (Continuous), Modular and Architectural as well as Break through and Disruptive will be required in organisations Its selection will depend on severity of competition, urgency and scale of growth required and the gap with respect to bench marks in various organisational efficiency parameters (Tushman, 1997) Indian Auto Industry forms over 5% of GDP With automobile penetration of passenger vehicles (which accounts for 70% of auto industry sales) of 7/1000 people as compared to over 400/1000 in developed nations, industry is slatted for growing at over 20% CAGR till year 2015 (ACMA-Mc-Kinsey report, 2005.Vision 2015) The study, further has confirmed that capability of auto component will be the key success factor to this growth This has seen emergence of many Indian auto component MNCs These companies are expanding organically as well as inorganically through domestic and overseas Mergers and acquisitions As growth of auto industry in developed nations has come down to a dismal 2-3 % per year, they plan to grow by going global They are setting up manufacturing base in India and other developing nations for meeting local demand and for using India as base for cost effective exports capitalizing on India’s Low Cost Country(LCC) advantage This has also prompted many global players to enter India for component manufacturing The competition is heating up from other LCCs, global manufacturers setting up local mfg base and Indian manufacturers trying to expand local and global (ACMAMc-Kinsey report, 2005.Vision 2015; Government of India, 2005-India auto vision 2015) Though Indian Auto component manufacturers (ACM) have started focusing on innovation as strategy for last years, practically no research has been done on Indian Innovation climate and that too in emerging auto component industry in India The development of technological and innovation capabilities thus are the defining strategies to survive the severe competition and also accelerate the growth Although some work in US and Europe has been done on defining and measuring Innovation Quotient (InQ), (also referred as Innovation Index in some researches), not much work has been done on Indian innovation status and still less for ACM Most of the work done relate to measuring the InQ of individuals for the purpose of hiring (Irving H.Buchen, 2005) or defining innovation or competitiveness of Nations Joyce Wyckoff has defined a test to assess InQ through a 10 point questionnaire which has very few attributes and thus lacks width Similar work by Ilan Mochere in Sept, 2002 through a 20 point questionnaire has attempted the same but with less coverage of attributes Although more focused on new product related innovations, Higgins through his work on Achieving Innovation, the core competencies (Higgins 1996) has tried to offer a good inventory of 40 innovation attributes which are categorized in Mc Kinsey’s 7S framework Govindrajan’s (2008) work attempts clarifying myths behind innovation and clarifies don’ts of innovation and can be used to build few attributes from the paper Drivers of imitation (not innovation) have been mapped by Eric Bonabeau (HBR, June 2005) but cannot be applicable for the innovation climate and InQ mapping Most of the other works on Innovation Index has been at country level mapping and hence donot find relevance to this work (George K.Beard, 2007) World economic forum also uses various macro-economic indicators like FDI, GDP growth, levels of productivity etc, to define competitiveness These all factors are more relevant for assessing innovation and competitiveness of nations It cannot be applied to innovation assessment of organisations In the same way, Competitiveness of American companies (Porter, 2006) also reviews all factors of competitiveness and can be considered for innovation assessment, but has country level perspective Thus there is a need to work out an Index for assessing innovativeness of companies which is simple to understand, customizable to various industry sectors, applicable across geographies and can help organisation to plan their strategy to improve innovation after their assessment of status b) Innovation, Entrepreneurship, Creativity and Profitability: Auto Component Industry profitability has been very low traditionally and more so in last years due to severe domestic competition, entry of global players forcing local manufacturers to cut prices in spite of increasing costs and pressure from OEM on price reduction to ensure their own competitiveness The Profit after Tax (PAT) and Earnings before Interest, Depreciation and Taxes (EBIDTA) margins of ACM with respect to other industry players were collected by ACMA and are very low (Please see table below) This further emphasizes the need for Innovation required in the ACM in areas of product, process and Strategy so as to improve these margins Industry wise Profit After Tax (PAT) & Earnings Before Depreciation, Interest and Taxes (EBIDTA) of Top three companies in ACM in various technology category and other industry sectors S no Average Industry SME PAT Average EBIDTA Auto component-Sheet metal-Below Rs Billion sales/yr 0.4% Sheet Metal Assembly 6% (Large companies-Rs 3 Billion sales/yr) Forging/ Casting High-tech Assembly Precision Machining IT- Software Real Estate- 6% 8% 10% 12% 20% 14% 16% 18% 22% 26% construction Food -catering Food - Restaurant 30% 25% 35% 40% 30% 42% Realizing the importance of an employee working like an entrepreneur; today organisations speak of creating an entrepreneurial culture and mind set for their employees Entrepreneurship build on the bedrock of innovation which has creativity as its main ingredient The Innovation, Entrepreneurship and creativity are inter-twined in an organisation and result in a sustainable profitable organisation Various studies have been done on relationship between Innovation, Entrepreneurship (Considered here as Entrepreneurial Manager/Employee) and Creativity These studies throw light on how we nurture and increase the innovation climate in the organisation and improve profitability Findings from some of these studies are given below to derive attributes of Innovation, Creativity, relationship of them, their impact on profitability etc Innovation can be defined as the successful implementation of creative ideas (Brazeal and Herbert, 1999) Innovation is the phase in which new ideas are developed and it includes the ability to change an idea into a money-generating activity Innovation is seldom a systematic, structured process in the case of the small business venture Creativity is the starting point of innovation (Pretorius et al., 2006) Innovation has also been defined by Ireland, Hitt, Camp and Sexton (2001) as the sum of invention and the commercialization of that invention Innovation thus involves having the idea and turning that idea into an opportunity through commercialization Opportunity exploitation for an entrepreneur therefore involves innovation Ireland et al (2001) further postulate that, to be effective, an innovation has to be simple, and it has to be focused Effective innovators usually start small, often trying to one specific thing Innovation is work (implementation) rather than genius, requiring knowledge, ingenuity and focus; if an innovation does not aim at industry leadership from the outset, it might not be innovative enough Innovation should be pursued systematically and not left to chance (Pretorius et al., 2006) According to Jun and Deschoolmeester (2003), entrepreneurs' innovativeness is demonstrated by their willingness and capability to create a paradigm shift in science and technology and/or market structure in an industry from a macro perspective From a micro perspective, innovativeness is the willingness and the capability of entrepreneurs to influence the firm's existing marketing resources, technological resources, skills, knowledge, capabilities, or strategy Schumpeter defined the entrepreneur as the founder of a new firm and as an innovator, who breaks up established routines and opposes the old way of doing things Schumpeter’s entrepreneur only undertakes those ventures which turn out to be successful (Brouwer, 2000) The entrepreneur’s special leadership qualities enable him to see the right way to act Others will follow in his wake In order to introduce his innovations, the entrepreneur needs to withstand the opposition of the environment, which is usually hostile to deviating behavior and novelty The Schumpeterian definition (Shumpeter, 1934) of innovation states that the commercialization of all new combinations is based upon the application of any of the following: new materials and components, the introduction of new processes, the opening of new markets, and the introduction of new organisational forms Only when a change in technology is involved is it termed an "invention", but as soon as the business world becomes involved, it becomes an "innovation" (Janszen, 2000) According to this definition, innovations are the composite of two worlds, namely the technical world and the business world Innovation in this sense can be seen as an event: the introduction of something new to the business world as well as a process In other words, innovation leads to change being introduced in the business environment by the entrepreneur In Drucker’s view innovation is what entrepreneurs It involves changing the value and satisfaction obtained from resources by the customer Innovation represents the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or different service (1985) Drucker argues that there is a need for constant innovation because of the challenge of ever-changing customer needs, technology, and competition The two primary functions of business are to innovate and to market Marketing creates a customer, whereas innovation involves doing something better to enhance organizational performance Entrepreneurship does both and involves doing something different in order to better utilize resources and to expand markets At its core, entrepreneurship is market-focused and market-driven In sum, the phenomenon of entrpreneurship is a complex interplay of opportunity ( Shane and Venkataraman, 2000), human action (Kirzner, 1973), learning (Minniti and Bygrave, 2001), and creativity and innovation (Ward, 2004) Each of these elements cannot be examined in isolation Drucker (1985) challenges the notion that entrepreneurship and innovation are innate or represent personality-based characteristics or represent the domain of select individuals or scientists Instead he describes innovation and entrepreneurship as behaviors that most people are capable of learning Drucker (1985) argues that innovation rarely arises from "flashes of genius" but rather innovation is purposeful and involves an organized, systematic process of monitoring these sources of innovation for innovative opportunities He identifies and describes seven sources of innovative opportunity: The Unexpected, Incongruities, Process Need, Industry and Market Structures, Demographics, Changes in Perception, and New Knowledge Overall, the seven sources represent symptoms of change or "highly reliable indicators of changes that have already happened or can be made to happen with little effort" (p 35) The role of the entrepreneur is to identify these changes and opportunities and respond through action The first four of the sources are related to the enterprise or industry; the second three are outside the enterprise or industry Drucker also provides a set of principles of innovation representing what he calls "the hardcore of the discipline" (p 134) He identifies things that should be done (do's), things that should not be done (don'ts), and conditions The first is that Finally going down at the attribute level to workout the status w.r.t bench marks and plan improvements It would be important to note that since every organisation’s score at total, category and attribute level may be different, the strategy for improvement of InQ has to be organisation specific Also, benchmarking with Industry InQ and InQ of successful global organisation can be done to assess gap in InQ of their own organisation in total and in each category, with respect to these good organisation so as to devise strategies for improving the InQ Although recommendations and suggested strategy for each organisation will differ based on the analysis of total InQ w.r.t Industry InQ and w.r.t Bench marks of best organisations in that technology, the trigger to work to improve will come from InQ score Further, to reach a strategy and area of improvement, organisation will have to work on category and then attribute score However, as a generic strategy for Indian ACM, it must look at increasing the size of the organisation, have technology access through own R&D or JV/Technology partners and also promote improvement culture through kaizen and strong incentive schemes to reward innovations A regular training on technology aspect and also attending seminars will help them build competence for innovation A further analysis through the questionnaire and exploratory interview is suggested for all units and can further be studied by author himself to analyse the improvement aspects in detail 10) Limitations and Direction for future research: Following are the limitations and directions for future research – The spectrum of the companies studied although represent western ,northern and central India , representation from the companies of south and eastern India also need to be built in to generalize the study ,specially considering that south India has many good ,successful and advanced auto component and OEM companies like TVS group companies, Lucas, Mico, Simpson, Wheels and axle India, Amalgamation group companies-Rane group companies etc Further exploratory study can be done through interviewing the sample respondents to understand the causality of innovation drivers Study of key successful companies in various technology segments can also be done to study the effect of innovation climate across technology and tiers e.g Machining, forging, casting, sheet metal etc as well as Engine assembly, axle assembly, gear box assembly, steering assembly etc Bench marking through successful innovating companies of western developed nations as well as Japanese companies can also be done to arrive at recommendations learning from their experiences The study has not been statistically tested and verified for validity due to small sample size and is case study based The various attributes and categories are taken using rating and clubbed for simplicity to arrive at Innovation Quotient (InQ) using relative weightages of each category and attribute These can be further studied to arrive at actual weightages in a broad based exploratory study and further through benchmarking study of successful global companies on innovations Since many attributes may also be related and may have a stronger corelation among them, a large scale study with 100 companies minimum may be taken up to reduce the attributes and come out with factors through Factor analysis and co-relation method No foreign company or subsidiary of a foreign company was taken If taken, it will further improve the case for generalization Authors plan to extend study further to broad base the current study, validate statistically the findings and arrive at stronger road map to accelerate innovations in auto component sector of India Thus the study could be taken further as a Fellowship thesis for deeper study 11) Benefits & Contributions: This study will help organisations understand status of innovation in their own organisation Further it will also facilitate bench marking innovation status on various categories and attributes with respect to global and domestic bests This will help them identify gaps overall and in various categories and attributes to devise strategies for improving specific attributes of innovation When extended, the benchmarks can be taken beyond specific sectors for best in class for carious categories and attributes so as to create best practices irrespective of which sector one operates Even Industrial associations and Government bodies may use the study for devising surveys, assessing innovation climate and areas needing improvement so as to develop local industries to global levels 12) References: ACMA-McKinsey Report (2005), Vision 2015 for the Indian Automotive Components Industry Brazeal, D.V and Herbert, T.T (1999) The genesis of entrepreneurship Entrepreneurship: Theory and Practice, 23 (3): 29-45 Brouwer, M (2000) Entrepreneurship and uncertainty: Innovation and competition among the many Small Business Economics, 15(2), 149-160 Business Standard (2007, Oct.2) Interview of Tucker, R If you donot innovate, some one else will Business Standard (2007, Dec.18) A McKinsey global survey-How companies approach innovation Business Standard (2007, Nov.15) Indian Cos among world’s 1250 top R&D investors Business Standard (2008,Jan 28); Carrier Executive (2008,Jan).Top 10 priorities of the Global CEOs Clifford, M A., P G., Nixon, R D., Coyne, K P (Eds.), Dynamic strategic resources (pp 373-401) Chichester: Wiley Drucker, Peter F (1985) Innovation and entrepreneurship: Practice and principle New York : Harper Business 10 Eisenhardt, K.M (1989) Building theories from case study research Academy of management Review, 14, 532-550 11 Eric Bonabeau (2004) The perils of imitation age Harvard business review,June,2004 12 George k.Beard (2007) ‘What’s your Innovation quotient’ downloaded from web site of Government technology’s www.prbliccio.com on Mar.17,2008 13 Government of India,2005.Auto Vision 2015,2005 14 Govindarajan, V & Trimble, C (2005) 10 rules for strategic innovators: From idea to execution Boston, MA : Harvard Business School Publishing 15 Govindrajan V (2008) Ten Myths of Innovation Business Today, April 2008 16 Hamel, G (2007) The future of management Management Today, Sept., pp 48-51 17 Hamel, G (2000).Leading the revolution Boston, MA: Harvard Business School Press 18 Higgins, J (1996) Achieving Innovation,the core competencies, R&D Innovator.Volume 5,Number 19 Hindustan Times (2007, Nov.5) World’s best R&D companies 20 Hitt, Michael A , Ireland, Duane R, Camp, Michael S, & Sexton, Donald L (2001).Guest editors' introduction to the special issue: Strategic entrepreneurship: Entrepreneurial strategies for wealth creation Strategic Management Journal, 22(6/7), 479-491 21 Ilan Mochare ‘What’s your innovation factor’ downloaded from www.inc.com on mar.17,2008 22 Innovation Index downloaded from web site www.innovationindex.ms on Mar.17,2008 23 Ireland, R D., Hitt, M A., Camp, S.M & Sexton, D.L (2001) Integrating entrepreneurship and strategic management actions to create firm wealth The Academy of Management Executive 15(1): 49-64 24 Irving H.Buchen ‘Developing an Innovation quotient’ down loaded from web site www.clomedia.com on Mar.17,2008 25 Janszen, F (2000) The Age of Innovation London: Prentice Hall 26 Joyce Wycoff ‘What is your organisation Innovation Quotient’ down loaded on Mar.17,2008 from web site www.thinksmart.com 27 Kirzner, I (1997) Entrepreneurial discovery and the competitive market process : An Austrian approach Journal of Economic Literature, 35, pp 6085 28 Kirzner, I.M (1973) Competition and Entrepreneurship Chicago, IL: The University of Chicago Press 29 Lee, H., Smith, K G., Grimm, C M., Schomburg, A (2000) Timing, order and durability of new product advantages with imitation Strategic Management Journal 21(1), 23-30 30 McLean, J (2007) The art of thinking outside the box The British Journal of Entrepreneurship 31 Minniti, M and Bygrave, W (2001) A dynamic model of entrepreneurial learning Entrepreneurship Theory 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Annexure A A note on the Indian Auto Industry : Indian Auto Industry forms over 5% of GDP With automobile penetration of passenger vehicles (which accounts for 70% of auto industry sales) of 7/1000 people as compared to over 400/1000 in developed nations, industry is slated for growing at over 20% CAGR till year 2015 (ACMAMc-Kinsey report, 2005.Vision 2015) Government of India has worked out an Auto Mission Plan (AMP) with a vision to take the industry contribution to 10% of GDP ,generate additional 25 Million employment and have a sales revenue of 145-180 Billion US$ The contribution of Auto Component sector is also likely to go from current 18 Billion US$(2006) to a whopping 40 Billion US$ by 2016 The exports are also likely to grow from Billion US$ to over 15 Billion US$ including aftermarket sales There are almost 10000 ACM out of which only 10% are organized players and only 860 are members of ACMA (Auto Component Manufacturer’s Association) The graphs and tables below represent growth of Indian OEM and Component auto Industry which comprises of Cars, Multi Utility and Utility Vehicles, Wheelers (Motor Cycle and Scooters), Commercial Vehicles (which included Heavy, Medium and Light Commercial vehicles— HCV, MCV and LCV), Wheelers and Tractors As per statistics of Society of Indian Automotive Manufacturers (SIAM), the industry has a Compounded Annual Growth rate (CAGR) of 12 % for domestic sales while of 30% for Exports, over last years.In the same way as per ACMA, the CAGR of ACM have been 20% In ACM sector, 65% of the share of sales comes from Domestic OEMs, 20% from After Market sales and balance 15 % comes from exports Please refer tables below to see the growth trends, capacity, vehicle category wise sales growth etc for OEMs and ACM sectors Trend of Vehicle sales in India (Source SIAM,India) CARS 2000-01 5,17,90 MULTI UTILITY VEHICLES 2001-02 5,64,05 1,25,93 1,05,66 63,86 LCVs BUSES TRUCKS & 65,75 88,18 8,79,75 SCOOTERS MOTOR CYCLES MOPEDS 3WHEELERS TRACTORS Total 2/3 Wheelers 9,37,50 21,83,43 6,94,97 4,27,49 2,03,23 20,83 1,20,08 27,34 1,62,50 2,02,94 2,75,04 48,18 5,00,59 3,52,83 80,35,22 5 5,56,12 2,96,08 69,04,27 4,30,82 82,86 96,75 59,78,96 3,79,98 4,34,42 2,49,07 65,03,53 7 1,52,05 53,52,94 65,75 88,18 1,91,63 71,12,28 3,79,57 3,74,44 10,74,93 3,56,22 9,43,94 62,01,21 3,48,43 2,91,11 4 1,66,88 44,84,07 63,86 2,76,71 3,32,29 2,94,25 10,20,01 51,93,89 2,54,06 4 2,07,32 39,61,39 3,51,61 2,12,74 43,55,16 2,25,72 2,19,29 9,87,49 2,44,64 8 8 9,35,27 38,76,17 1,71,78 2,14,80 2007-08 14,16,48 2,22,49 2,48,07 LCVs BUSES & TRUCKS ALL CVs(H,M & LCVs) 8,48,43 29,06,32 1,38,89 1,66,12 2006-07 12,38,02 1,96,37 1,08,91 1,20,50 2005-06 11,12,54 1,82,01 83,19 96,75 2004-05 10,27,85 1,46,32 5 2003-04 8,43,23 1,14,47 2002-03 6,08,85 90,22,79 85,26,64 Existing capacity and plans of Auto OEMS- Non Two Wheelers Srl Name Product Locations Capacity New Tata Car/SUV LCV MCV/HCV Leyland Eicher Bajaj Maruti Mahindra MCV/HCV LCV MCV/HCV LCV Wheeler Car/SUV Car/SUV Car/SUV Tractor Wheeler Hyundai Toyota GM LCV MCV/HCV Car/SUV Car/SUV Car/SUV Pune Singrur Pune Utrakhand Lucknow Pune Jamshedpur Chennai Hosur Alwar Chennai Pithampur Pithampur Pune Pune Gurgaon Nasik Mumbai Utrakhand Nagpur Utrakhand Zahirabad Zahirabad Pune Chennai Bangalore Halol Pune Existing 250000 250000 300000 100000 100000 150000 80000 20000 10000 5000 25000 400000 900000 150000 20000 50000 20000 100000 25000 10000 300000 60000 80000 50000 by 2010 100000 250000 200000 200000 50000 100000 100000 50000 20000 10000 50000 15000 40000 200000 250000 600000 50000 25000 10000 50000 25000 20000 20000 600000 140000 20000 50000 Total 350000 500000 500000 200000 150000 200000 250000 130000 40000 20000 50000 20000 65000 600000 250000 1500000 200000 20000 75000 30000 150000 50000 30000 20000 900000 200000 100000 100000 Existing capacity and plans of Auto OEMS- Non Two Wheelers Capacity Capacity new Srl 10 11 12 13 14 Name Ford Mercedes Nissan Hero-Daimler Sonalika Locations Chennai Pune Chennai To decide Hoshiarpur Baddi Chandigarh Noida Chennai to decide Pune Aurangaba Existing 50000 5000 Punjab tractor New Holland Mitsubishi BMW Volkswagen Product Car/SUV Car/SUV Car/SUV MCV/HCV Tractor Car/SUV Tractor Tractor Car/SUV Car/SUV Car/SUV 15 16 17 18 19 20 Audi Car/SUV 21 22 Skoda Fiat-Tata Car/SUV Car plnd Total 50000 20000 50000 30000 10000 5000 5000 By 2010 50000 5000 400000 100000 50000 30000 20000 10000 5000 5000 2010 100000 10000 400000 100000 100000 50000 50000 50000 20000 10000 10000 d Aurangaba 5000 5000 10000 d Ranjangaon 20000 10000 300000 30000 300000 by Two Wheelers: Capacity of Two wheelers is 10 Million including scooters which is likely to be raised to 18 Million by 2014 The share of capacity is 60%, 25% and 20% by Hero Honda, Bajaj Auto and TVS Motors Balance % is shared by Honda Motor Cycle and Scooters Limited, Suzuki Auto, Yamaha Motors, Kinetic Honda etc Some more manufacturers (Local and Global) are also exploring entering Indian market Sales in Million US$ of Auto Component Industry Export Sales in Million US$ of Auto Component Industry Domestic OEM Sales in Million US$ of Auto Component Industry Turnover of Automobile Industry 1999-00 to 2004-05