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Regional report: India

The growth for local as well as export demand out of India is making the need for supply chain improvements a must. While progress is slow, Namrita Chow finds some hope on the horizon, from tax reform to an increase in returnable packaging.
Read full story, page 34
   

Demand for passenger and commercial vehicles within India continue to soar while small car exports from the country to mature markets are also on the rise. According to JD Power’s Automotive Resources Asia, light vehicles sold in India are up 34% in the first quarter of this year compared to last year. Exports are up close to 50%.
 
The increase in exports is attributed to the demand for small cars and government incentives in Europe, says Mohan Bhambani, senior trade and investment adviser for India’s airports, ports, railways and automotive sectors at the British Deputy High Commission in Mumbai.
 

“The growth is also an indicator of India moving closer to becoming a manufacturing hub for global players–Ford, GM, Toyota, Hyundai and Suzuki have all been present in the Indian market for over a decade now. New players who are establishing their base in India include Volkswagen, Nissan, Renault and BMW,” says Bhambani.
 
As sales rise and more players enter the arena, effective supply chain logistics become crucial for OEMs looking for ways to maximise profits and minimise waste of resources and costs. But bad roads, inadequate port facilities and slow lead times are holding back the industry. India is still a long way off from global best practice delivery standards, despite considerable progress in the last decade.
 
                                                                                                                                            Read full story, page 34

 

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