India, considered a major hub for the automotive industry, is expected to emerge the third largest in the world by 2020, next only to China and the US, with strong growth potential. However, demand would continue to be volatile amid prevailing economic uncertainty, according to Mr. Tom Chackalakal, Executive Director, Manufacturing, Ford India.
Addressing a two-day conference on “Auto SCM 2013 — World-class automotive supply chains – accelerating enablers in India,” organised by the CII Institute of Logistics in Chennai, Mr. Chackalakal said that the Indian automotive industry is bogged down by escalating costs of supply chain operations with their huge impact on the industry performance because of India’s widespread use of road transport for moving vehicles. Lack of multi-modal transportation and shortage of specialised railway wagons to move cars are adversely affecting movement of vehicles within the country and for export.
Earlier, in his welcome address, Mr. R. Dinesh, Co-Chairman, CII Institute of logistics, Event Chairman and JMD, TVS & Sons, observed that in order to encourage companies to keep upgrading their service providers and the user industry, the CII Institute has introduced a new initiative known as SCALE Award to rate and rank a company in its performance in different sectors and to determine companies’ different practices, covering every aspect of the supply chain. The new initiative will be launched by January 2014.