DHL has unveiled its industry road map to power India’s automotive industry.
DHL has unveiled its industry road map to power India’s automotive industry.
It identified three core areas: inbound to manufacturing, aftermarket and international supply chain, which would determine the auto success stories in India in the near and long term.
It was unveiled during the Automotive India Conference 2009 in Pune hosted by DHL recently. It pointed out that the expert opinion predict that over 50% of growth in the automotive sector will occur in emerging markets through 2015, and India is at the forefront of this trend, playing an increasingly prominent role in the global industry; its automotive sector is expected to contribute 10% to its GDP by 2016.
“With the changing automotive landscape in the country, there is a need for closer collaboration for the OEMs (Original Equipment Manufacturer) and logistics service providers”, said Kalpesh Pathak, assistant vice president, corporate supply chain management, Fiat India.
It pointed out that developing auto markets are under the spotlight as traditional centres of production and consumption are shifting to these developing markets and are heightened by a number of factors.
“The current crisis has escalated the need for change and re-engineering of auto supply chain to drive out cost. DHL, along with its domestic arm Blue Dart, is working with customers to manage through these difficult times ensuring that their priorities are addressed – by delivering scalable and sustainable solutions to capitalise on the opportunities,” said Bill Olver, vice president for automotive, DHL Global Customer Solutions, Asia Pacific.
Speaking to more than 50 key customers from leading automotive companies at the conference, DHL senior executives identified that much of this growth will be driven by country’s expansion as a small car hub, increased sourcing of component parts, expansion of the domestic dealer network, development of higher volume production plants and an increasingly global presence.
DHL also laid out the challenges India faces including its domestic transport infrastructure, pressure to reduce costs yet make critical investments to compete with established automotive centres, while meeting newer, more stringent international regulatory guidelines. Within India, DHL has dedicated automotive teams that provide strategic consulting for a variety of customers —from international players to indigenous companies.