Transforming the future of​​​​​​​ India's automotive supply chain
Indian Transport & Logistics News|November/December 2016

India’s economic landscape has been witnessing tremendous change and the automotive sector is a significant growth driver. With the ongoing introduction of the Goods and Service Tax (GST) and the government’s latest 10-year Automotive Mission Plan, the sector has been on top gear.

Transforming the future of​​​​​​​ India's automotive supply chain

According to a research report by Deloitte, the automotive logistics industry has evolved much faster in India compared to logistics in other sectors. Almost all the players in the automotive industry use 2PL for a part of their logistics operations. A trend towards creating a perfect blend of in-house and outsourced service components to effectively manage supply chains is leading to the emergence of 4PL services.

However, there are significant challenges driven by supply chain complexities resulting in inefficiencies which in turn lead to cost increases. The challenges of managing complexity and costs for the automotive logistics industry are likely to increase.

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