Executive Briefings

Indian Automotive Supply Chain Faces Challenges

The country's automotive supply chain is likely to get affected due to various factors, including escalation of costs to supply chain operations and shortage of professionals, a study has revealed.

Indian Automotive Supply Chain Faces Challenges

The study on "Building world-class automotive supply chains in India" was undertaken by industry body CII and A.T. Kearney. The report was released during the conference on Auto Supply Chain Management 2013.

It said short- and medium-term volatility would continue, despite India set to become the world's third largest auto-manufacturer by the year 2020.

Escalating costs of supply chain operations would also have its impact in the supply chain industry as India's logistics costs are 30 percent higher than those in China and other large automotive markets, it said.

"As supply chain functions become more strategic, the industry is likely to face a major shortage of senior professionals in Supply Chain Management capabilities," it said.

However, on a positive note, the study said the strong double-digit growth in the aftermarket, driven by more vehicles produced would offer opportunities for OEMs and large suppliers.

In order to exploit India's export growth potential, the study said, the internal supply chain needs to be integrated with external network.

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The study on "Building world-class automotive supply chains in India" was undertaken by industry body CII and A.T. Kearney. The report was released during the conference on Auto Supply Chain Management 2013.

It said short- and medium-term volatility would continue, despite India set to become the world's third largest auto-manufacturer by the year 2020.

Escalating costs of supply chain operations would also have its impact in the supply chain industry as India's logistics costs are 30 percent higher than those in China and other large automotive markets, it said.

"As supply chain functions become more strategic, the industry is likely to face a major shortage of senior professionals in Supply Chain Management capabilities," it said.

However, on a positive note, the study said the strong double-digit growth in the aftermarket, driven by more vehicles produced would offer opportunities for OEMs and large suppliers.

In order to exploit India's export growth potential, the study said, the internal supply chain needs to be integrated with external network.

Read Full Article

Indian Automotive Supply Chain Faces Challenges