Supply Chain Management-Suzuki
Indian Automobile Industry
Accounting for approximately 4 % of GDP, Automobile Industry is the significant contributor to the growth of Indian economy. The last few years have seen greater integration of the Indian players with their global counterparts. What is interesting about this is its almost democratic nature, in that a large part of the industry has seen significant changes. While the changes have been more visible in the auto component part of the industry, with key players having a significant export contribution today, Original Equipment Manufacturers (OEMs) too have been undergoing their own set of changes. The change process started with overseas OEMs wanting to enter the country. A natural fall-out of this was the large suppliers who entered the country as part of the ‘follow source’ doctrine. The last couple of years have seen significant interest from Indian players who are actively looking at exciting markets to enter as well as attractive targets to acquire.
Going forward, OEMs as well as auto component players will evolve further as they become more and more ‘global’ in nature. For OEMs, this would mean rising competition in the domestic market, and hence the need to diversify out of India. For auto component players, this would mean the need to achieve global manufacturing standards and emerge as supplier of choice for global companies. These changes would have a significant impact on the automotive supply chain. Clearly the need of the hour is for various players to identify key challenges facing the industry and develop strategies to help mitigate these.
The objective of this report is to analyze the key advancements in automotive supply chain and the unique practices followed by major players in India. Finally balanced scorecard framework would be used to build the strategic map for Automobile players.
Global automobile manufacturers are consistently streamlining their business process by outsourcing their non-core activities to
Accounting for approximately 4 % of GDP, Automobile Industry is the significant contributor to the growth of Indian economy. The last few years have seen greater integration of the Indian players with their global counterparts. What is interesting about this is its almost democratic nature, in that a large part of the industry has seen significant changes. While the changes have been more visible in the auto component part of the industry, with key players having a significant export contribution today, Original Equipment Manufacturers (OEMs) too have been undergoing their own set of changes. The change process started with overseas OEMs wanting to enter the country. A natural fall-out of this was the large suppliers who entered the country as part of the ‘follow source’ doctrine. The last couple of years have seen significant interest from Indian players who are actively looking at exciting markets to enter as well as attractive targets to acquire.
Going forward, OEMs as well as auto component players will evolve further as they become more and more ‘global’ in nature. For OEMs, this would mean rising competition in the domestic market, and hence the need to diversify out of India. For auto component players, this would mean the need to achieve global manufacturing standards and emerge as supplier of choice for global companies. These changes would have a significant impact on the automotive supply chain. Clearly the need of the hour is for various players to identify key challenges facing the industry and develop strategies to help mitigate these.
The objective of this report is to analyze the key advancements in automotive supply chain and the unique practices followed by major players in India. Finally balanced scorecard framework would be used to build the strategic map for Automobile players.
Global automobile manufacturers are consistently streamlining their business process by outsourcing their non-core activities to