India’s automotive industry promises to be very different by 2025. Explosive population growth will more than double sales of passenger vehicles, commercial vehicles, and two- and three-wheelers—going from 18 million units in 2015 to 46 million by 2025. Most of the global automakers will call India home—heating up competition and making India a major hub for global operations. This will spark suppliers to quickly build up and improve their own global operations.
The CII-AT Kearney study attempts to identify the key trends that will impact the Indian automotive industry over the next 10 years. It is brought out that the automotive supply chain of the future is likely to evolve and look ‘different’ in response to the shifting trends in the industry, eco-system and macro-economic scenarios.
Material flows will improve with the implementation of GST, infrastructure upgrades will drive multimodal transportation, and advanced supply chain assets will shift India’s automotive industry into high gear. Also as the industry adopts more stringent environmental norms and a focus on sustainability, reverse logistics will become as important as forward logistics.
The report was released at the AUTO SCM 2014: "Automotive Supply Chain of the Future" organized by the CII Institute of Logistics on 24-25 July, 2014 at Pune.