By India’s automotive industry is gearing up for the future, with an increasing focus on building resilient supply chains to navigate the complexities of globalisation, localisation, and innovation. At the SIAM Automotive Sourcing Conclave 2024, held under the theme “Towards Building a Resilient Supply Chain,” industry leaders, government officials, and supply chain experts gathered to discuss strategies for creating a more sustainable and competitive automotive sector.
Fostering a Self-Reliant and Robust Supply Chain Ecosystem
The conclave was a significant event that underscored the growing importance of localisation and sustainability in India’s automotive supply chain. The discussion centred around how the sector can align with India’s vision of Aatmanirbhar Bharat (self-reliant India), which aims to reduce the country’s dependence on imports and increase domestic production capabilities.
The automotive industry, which plays a critical role in driving India’s economy, is undergoing significant transformation. The need to innovate, diversify, and strengthen supply chains has never been more pressing, particularly as India strives to establish itself as a global hub for electric vehicle (EV) manufacturing. The conclave’s sessions focused on addressing these challenges while offering practical solutions to make India’s automotive supply chain more resilient and future-ready.
One of the key objectives of the event was to highlight how strengthening supply chain ecosystems could help the country meet its Aatmanirbhar Bharat targets, boost local production, and support the growth of new technologies. Several industry leaders discussed how India can be at the forefront of manufacturing while balancing the need for sustainability and regulatory compliance.
Key Themes and Strategic Discussions
The conclave featured three pivotal sessions that were tailored to address both current and future challenges within the automotive supply chain:
- Strengthening the Supply Chain Ecosystem for Electrified Vehicles: With the growing demand for electric vehicles, ensuring a robust supply chain for EV components is a pressing issue. This session explored strategies for streamlining the sourcing of critical EV parts like batteries, motors, and power electronics, while also focusing on localising production to reduce reliance on imports.
- Preparedness for Futuristic Technologies: As the automotive industry moves towards autonomous and connected vehicles, the supply chain needs to adapt to new technologies such as AI, 5G, and advanced sensors. Experts discussed how suppliers can prepare for the adoption of these technologies while maintaining cost efficiency and scalability.
- Balancing Regulatory Compliance vis-a-vis Supply Chain Resilience: Regulatory compliance is often seen as a challenge for supply chains, particularly in a fast-evolving market like India’s. The session focused on how companies can balance stringent regulations with the need for flexibility and speed, ensuring supply chains are both resilient and compliant with government standards.
Insights from Government and Industry Leaders
Dr. Hanif Qureshi, Additional Secretary at the Ministry of Heavy Industries, delivered a keynote address that emphasized the critical role of the automotive sector in India’s economic growth. He noted that government policies, such as the PM eDRIVE scheme, are designed to promote local production, enhance R&D, and reduce reliance on imports. These initiatives are helping to create a more self-reliant industry that can better withstand global disruptions.
Dr. Qureshi also highlighted that the localisation schemes have led to a significant increase in investments, with Rs 18,000 crore invested in the sector by March 2024. Furthermore, he shared that the government is revising the list of critical components under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) schemes. The reduction of this list to just eight or nine components, with the rest now being manufactured domestically, signals the country’s growing capacity to produce advanced automotive components locally.
Localisation and Technological Innovation at the Forefront
A key takeaway from the conclave was the shift towards increasing localisation within the automotive supply chain. The discussions surrounding localisation schemes are vital as they not only help reduce India’s dependence on foreign imports but also encourage innovation and foster competitiveness within the industry.
The automotive sector’s transition to electric vehicles (EVs) presents a unique challenge in this regard. To remain competitive, the supply chain must be agile enough to handle the sourcing of high-quality components while supporting sustainable manufacturing practices. Innovations in battery technology, for instance, are crucial to the success of EVs in India. Local manufacturing of batteries and other critical components is expected to reduce costs, boost local job creation, and make EVs more accessible to consumers.
At the same time, the implementation of future-proof technologies will require seamless collaboration between industry stakeholders. From automotive manufacturers to suppliers of software and sensors, a resilient supply chain must be adaptable to new trends such as automation, artificial intelligence, and connected car technologies.
The Road Ahead for India’s Automotive Sector
Looking forward, the automotive sector in India is expected to continue its transformation, with supply chain resilience playing a central role. As the industry adapts to new technologies and increasingly stringent regulatory requirements, ensuring that the supply chain remains both efficient and sustainable will be crucial for maintaining India’s competitive edge in the global market.
With a clear focus on localisation, innovation, and the rapid adoption of future technologies, the industry is on track to meet the needs of a changing market. The government’s continued push for Aatmanirbhar Bharat and its support for local manufacturers will provide the necessary momentum for India to emerge as a global leader in automotive production.
The SIAM Automotive Sourcing Conclave 2024 not only provided valuable insights but also set the stage for further collaboration between government agencies, industry leaders, and experts to build a more resilient and future-ready automotive supply chain in India.