Make in India - Mechanical Engineering Products and Components

Automotive/Automobile Industry - Prospects

The Indian automotive industry is experiencing an interesting evolutionary phase.


India is the sixth largest automotive producer in the world (with an average annual production of 24 million vehicles in 2016, of which 3.6 million exported).

Production volumes are expected to reach 36.4 million units by 2020 registering 8% annual growth.

India is the second largest two-wheeler manufacturer and the largest motorcycle manufacturer.

The automotive industry accounts for 45 per cent of the country’s manufacturing gross domestic product (GDP), 7.1 per cent of the country’s GDP and employs about 19 million people both directly and indirectly.

300 car models will be in production and total production will be 6 million cars.

By 2026, India is expected to be the third largest automotive market by volume in the world.

The Government of India’s Automotive Mission Plan (AMP) - 2026

The vision statement of AMP 2026 is “Vision 3/12/65”.

3: By 2026, the Indian automotive industry will be among the top three of the world in engineering,
manufacture and export of vehicles and auto components,

12: Over the next decade, the Indian automotive sector is likely to contribute in excess of 12 % of the country’s GDP and  comprise more than 40 % of its manufacturing sector.

65: The potential for incremental number of both direct and indirect jobs to be created by the Indian automotive industry over the next decade is nearly 65 mn.

Growth targets:AMP 2026 envisages that the Indian automotive industry will grow 3.5-4 times in value from its current output of around `464,000 cr (circa 2015, at 2004-05 constant prices)
which is one year before the end of the Mission Plan period) to about `1,616,000-1,888,500 cr by 2026.



According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-components industry is expected to register a turnover of US$ 66 billion by FY 15–16 with the likelihood to touch US$ 115 billion by 2020  and US$ 200 billion by 2025. In addition, industry exports are projected to reach US$ 12 billion by FY 15–16 and add up to US$ 30 billion by 2020 further rising to US$ 80 billion by 2025.

The first edition of AUTO SCM Summit organised by Indian Transport & Logistics News (ITLN) held from December 6-7, 2016 at Chakan, Pune  The theme of the maiden summit was ‘Transforming the future of India’s automotive supply chain’.

Panelist on the session ‘Enhancing Auto Components Supply Chain’
Santosh Bhanu, Manager, Supply Chain, Ford India;
Nikhil Khairnar, Sr. Manager, Logistics and Sourcing, Supply Chain Management Division, Tata Autocomp Systems;
Pramod Kumar, Head of EDC Maharashtra & Goa, Gati KWE
Muralidhar Wadappi, Head of Supply Chain Management, Benteler Automotive India.

Enhancing the supply chain is important. Vendor Managed Inventory is a traditional concept and Vendor Owned Inventory (VOI) will be the next age concept.
Maintaining service level at the same time in a cost-effective manner is the key.

The session ‘Finished Vehicle Logistics’
The inadequacy of infrastructure has by far been the biggest challenge in the transportation of finished vehicles.

The session panelists

Rakesh Pathak, Professor of Supply Chain & Logistics Management, International Institute of Management Studies, Pune
Nidhish Kuchhal, General Manager, Logistics, Mahindra & Mahindra
Jiten Munot, Head Sales Admin & Logistics, Force Motors.



Session on ‘After Market Supply Chain: Challenges and Opportunities’

Pankaj Chandak, Head, After Sales & Parts, FCA India Automobiles.
Rakesh Pathak, Professor of Supply Chain & Logistics Management, International Institute of Management Studies, Pune
Mandar Palsule, Head of solutions, Spear Logistics.

The session discussed thin line between “DIFM” (do it for me) and DIY (do it yourself) segment. DIFM constitutes a majority of aftermarket size.



The session on ‘Transforming the Future of Supply Chains Through Disruptive Innovation’
Reji John, Editor, ITLN
Suhail Kazi, Deputy Commission Customs, Pune;
Pankaj Narang, General Manager, Central Purchase, Supply Chain Management Division, Tata Autocomp Systems
Dirk Schusdziara, Senior Vice President, Cargo, Fraport AG.

New concepts discussed
Internet of Things,
Advanced robotics
Driverless electric automobile
3D printing




AT Kearney Report

http://www.itln.in/auto-scm-summit-2016-deliberates-on-transforming-future-of-indias-auto-supply-chain-2/


20 Most Profitable Mechanical Engineering Business Opportunities
http://muvsi.in/mechanical-engineering-business-opportunities/


Air Conditioners - Demand, Production and Industry in India
http://guide-india.blogspot.com/2017/04/air-conditioners-demand-production-and.html