The Confederation of Indian Industry (CII) recently organised the ‘International Automotive Supply Chain Conclave 2017’ (IASC Conclave 2017) in New Delhi to highlight some of the emerging supply chain trends in the automotive sector in India and globally.
Mr. Girish Shankar, Secretary, Ministry of Heavy Industries and Public Enterprises, in his address, said that the auto industry is the single greatest engine of economic growth in India. Under the Automotive Mission Plan 2016-2026, it is projected that India will be the third largest manufacturer of automobiles in the world and will contribute 12 per cent of the GDP and create 65 million direct and indirect jobs in the country by 2026. The automobile market rebounded strongly after a short blip seen in sales in the immediate aftermath of the demonetisation drive in November 2016.
The three aspects of automotive supply chain – Product Development, Operations Management and Supply Chain – are key areas that directly benefit from the advent of smart technology.
The role of suppliers is noticeably increasing and OEMs will also have to deal with rising production volumes. Building a local supplier base, creating an enhanced supply chain and bolstering capacities are the result of this development, he added.
Mr. D.K. Sethi, Chairman, International Automotive Supply Chain Conclave 2017, and Executive Director (Supply Chain), Maruti Suzuki India Ltd., said that in today’s environment a superior supply chain helps in creating a competitive advantage for the automaker. With rapid changes in technology and in meeting stringent Government regulation on Safety, Emission and Environment, all OEMs need support of their supply chain partners in meeting the forthcoming emission and safety regulations. Automotive Supply Chain is also undergoing a major technology shift. Future mobility solutions would have a shift towards electric vehicles, hybrids, autonomous driving and connected cars.
Mr. Rattan Kapur, President, ACMA, and Chairman & Managing Director, Mark Exhaust Systems Ltd., said India is poised for huge growth and hybrid and electric will define the future of the automotive sector and companies should prepare themselves in working with their supply chain aggressively. Further, GST rates on hybrid vehicles have to be rationalized in order to really give a boost to this segment.
Mr. Kamal Bali, Managing Director, Volvo India Pvt. Ltd., observed that, despite global complexities, all the key economic drivers in India demonstrate a positive uptrend. India is really viewed differently and positively at the global level.
In his address, Mr. MaCdonald, CEO & Managing Director, Renault Nissan Automotive India Pvt. Ltd., said that there is need for focusing on localization. Renault is satisfied with the skills availability situation in the country. The focus is on risk management by putting in special teams to manage risks. All said and done, technology would be the key driver of the automotive industry while staying customer-focused.
Mr. Collin Noronha, Senior Consultant, Mobility (Automotive & Transportation) Practice, Frost & Sullivan, said: “This white paper throws light on the opportunities and challenges that come with being a critical part of the global automotive supply chain, and also covers the competitive advantage that India has as part of this supply chain. With ‘digitization’ being a key element of the current phase of India’s economic transformation, we have covered the relevance, importance and barriers to digitization in Indian supply chains, thereby bringing awareness to short-term challenges that need to be addressed in order to facilitate a smooth transition to digital platforms. We have also attempted to highlight the key trends that are expected to impress upon the automotive industry in India over the next 5 years.”
The conclave was addressed by speakers from Rane, Bosch, Fiat India, Delphi, Volkswagen and HeroMotocorp and was well attended by over 300 delegates.