Automotive

The automobile industry in India, one of the country’s largest manufacturing sectors, is facing a plethora of procurement and supply chain challenges. Some common challenges, such as a fragmented supplier base and inconsistent product quality, create complexities for the procurement team, leading to significant waste of man-hours, while rising raw material and logistics costs put considerable pressure on margins. Compliance with strict emission norms and the pursuit of carbon neutrality also add another layer of difficulty for companies. Logistics challenges such as port congestion and over-reliance on road transportation cause further delays.

At the same time, limited digitization and visibility across the supply chain, and dependence on imports, especially for electronics, chips, and EV batteries, put the auto industry in a highly volatile environment. Rising ESG and demand for greener supply chain, while focus on EVs leaves the auto industry to rely heavily on imported components. All these challenges combined make supply chain transformation a top priority for the industry.