Automotive Industry to contribute 12% of GDP and create 65 million jobs by 2026

NEW DELHI (INDIA): Confederation of Indian Industry (CII) organised’International Automotive Supply Chain Conclave 2017′ (IASC Conclave 2017) at Hotel Le Meridien, New Delhi, today. The Conclave aimed to highlight some of the emerging Supply Chain trends in India and Globally in the Automotive Sector.nnGirish Shankar, Secretary, Ministry of Heavy Industries and Public Enterprises, Government of India said that auto industry is the single greatest engine of economic growth in India. Under the Automotive Mission Plan 2016-2026, it is projected that India will be the 3rd largest manufacturers of automobile in the world, contribute 12% of the GDP and create 65 million direct and indirect jobs in the country.nnHe mentioned that the automobile market rebounded strongly after a short blip seen in sales in the immediate aftermath of the Demonetisation drive in November 2016. He added that three aspects of automotive supply chain ? Product Development, Operations Management and Supply Chain are key areas that directly benefit from the advent of smart technology. He further added that he Role of Suppliers is noticeably increasing and OEMs will also have to deal with rising productions volumes. Building a local supplier base, creating an enhanced supply chain and bolstering capacities are the result of this development.nnMr D K Sethi, Chairman, International Automotive Supply Chain Conclave 2017 & Executive Director (Supply Chain), Maruti Suzuki India Ltd said that in today?s environment a superior supply chain helps in creating a competitive advantage for the automaker. He added that with rapid changes in Technology and in meeting stringent Government Regulation on Safety, Emission and Environment, all OEMs need support of their supply chain partners in meeting the forthcoming emission and safety regulations. Automotive Supply Chain is also undergoing a major Technology shift. Future mobility solutions would have a shift towards Electric vehicles Hybrids, Autonomous Driving and connected cars said, Mr Sethi.nnRattan Kapur, President, ACMA & Chairman & Managing Director, Mark Exhaust Systems Ltd mentioned that India is poised for huge growth and hybrid and electric will define the future in the automotive sector and companies should prepare themselves in working with their supply chain aggressively. Mr Kapur also touched upon GST rates on hybrid vehicles which have to be rationalized in order to really give a boost to this segment.nnKamal Bali, Managing Director, Volvo India Pvt Ltd mentioned despite global complexities all the key economic drivers of the country demonstrate a positive uptrend. India is viewed differently and positively globally.nnMaCdonald, CEO & Managing Director, Renault Nissan Automotive India Pvt Ltd said that we need to strongly focusing on localization and in terms of supply chain have robust supplier reviews. He mentioned that Renault is satisfied with skills situation in the country. He also emphasized that they focus a lot on risk management by putting in special teams to manage risks. He too maintained that technology will be the key driver of in the automotive industry while staying customer focused.nnCollin Noronha, Senior Consultant, Mobility (Automotive & Transportation) Practice, Frost & Sullivan says, “This whitepaper throws light upon the opportunities and challenges that come with being a critical part of the global automotive supply chain, and also covers the competitive advantage that India has, as part of this supply chain. With ‘Digitization’ being a key element of the current phase of India’s economic transformation, we have covered the relevance, importance and barriers to digitization in Indian supply chains, thereby bringing awareness to short term challenges that need to be addressed in order to facilitate a smooth transition to digital platforms. We have also attempted to highlight the key trends that are expected to impress upon the automotive industry in India over the next 5 years.”nnThe Conclave marked the presence of speakers from Rane, Bosch, Fiat India, Delphi, Volkswagen, HeroMotocorp and was well attended by over 300 delegates.