An Analysis on Recent Trends In Indian Automotive Industry: Significance on Supply Chain Management |

ABSTRACT:

The Indian automotive industry, comprising vehicle and componentmanufacturers, has grown steadily since the economic liberalization of theearly 1990’s. The arrival of major global auto companies has galvanized thedomestic sector into adopting Supply Chain best practices. This has enhancedcompetitiveness leading to a quantum growth in exports. However, the Indianautomotive industry has to operate in an unique environment further posingchallenges to the already complex automobile supply chain. Therefore, a need isfelt to continually study supply chain practices in this sector from acontemporary, practitioner’s viewpoint in order to identify key factors ofdifferentiation which would ultimately provide competitive advantage. Thispaper seeks to understand the present status, complexities and challengesfacing the Indian automobile sector. It examinestrends such as visibility and innovation, collaboration and supply networks andevolving leadership roles impacting supply chain effectiveness. Strategiesfor overcoming challenges are presented as also a framework for further studyand analysis. The automotive companiesin the world are facing new and pressing challenges. In future due toglobalization, the automotive supply chain should focus on exploring innovativemethods to reduce operating costs, lead times and inventory to sustain theirgrowth rate in market. Globalization will foster a substantial industrialreorganization in the automotive industry.