Automotive Supply Chain Essay

547 words - 3 pages


Automotive supply chain likely to get affected, says study - The Economic Times

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Automotive supply chain likely to get affected, says study
By PTI | 19 Sep, 2013, 06.15PM IST
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CHENNAI: 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. The study on "Building world-class automotive supply chains in India" was undertaken by industry body CII and ATKearney. The report was released during the conference on Auto Supply Chain Management 2013 that began here today. 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.
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In order to exploit India's export growth potential, the study said, the internal supply chain needs to be integraed with external network. "To increase component exports, suppliers will need to scale up their global footprint, integrate with global network of large OEMs", it said. According to study, export volumes grew by 19 per cent CAGR from one million units in 2007 to 2.9 million units in 2013. "This trend is expected to continue, due in large part of growth in compact cars and two-wheelers and exports for commercial vehicles and OEM components", it said.
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