The automobile supply chain stakeholders and regulatory authorities came together to discuss the challenges and their expectations to enable efficiency in supply chain operations.
As the government plans to make the Indian automotive industry a pillar of industrial exports, the automotive supply chain stakeholders and regulatory authorities came together at the Auto SCM Summit 2018 to discuss its changing landscape and the role of logistics.
Sponsored by Frankfurt Airport, Europe’s leading cargo airport for the third time in a row, the event was held in Chakan, Pune, a premier auto manufacturing hub in India. Roland Weil, VP-Sales Cargo, Fraport AG, said, “There is a lot of automotive business in and around Frankfurt. We are looking at improving connections to India. Frankfurt has nonstop connections to five Indian airports.”
The event was inaugurated by Subhash Agrawal, Commissioner of customs, Jawaharlal Nehru Customs House, who urged automotive and logistics industry players to go for Direct Port Delivery (DPD) scheme, Authorised Economic Operator (AEO) status, and eSanchit to save costs and speed up the supply chain processes.
On the other hand, airports, custodians and airlines revealed that they are contemplating freighter operations from the airport in Pune, and also between domestic cities, as there is a good demand from the automotive segment as well.
B K Mehrotra, COO, AAI Cargo Logistics & Allied Services, said, “A big segment of automobiles is transported within the country by road. Sending a car from Delhi to Chennai could take 8-12 days which is long. To be able to exploit the air mode, airlines need to work on their tariff.” Mehrotra envisages air cargo playing a bigger role in importing technologies from European countries for batteries to meet the demand for electric cars in India.
The Automotive Mission Plan 2026 predicts that the Indian automotive manufacturing industry will grow nearly four times in size from $66 billion in 2016 to $230 billion in 2026.
Commenting on whether there will be need for importing new technologies with new emission norms and the mission electric, Prasoon Singh, deputy GM, procurement & logistics, VE Commercial Vehicles, said, “The import content of the European cars in India has come down mainly because they have indigenized not just the vehicle but also all parts. A lot of new technologies will be imported from Europe and the Far East, but indigenization will also not be far behind.”
The automotive manufacturers also expect the logistics industry to provide customized solutions for different products instead of having a one-size-fits-all solution.
"For us as 3PL service providers,” said Huned Gandhi, Managing Director, Air & Sea logistics, Indian sub-continent, Dachser, “it is important to understand where our customers in the automobile industry are heading, in terms of technological advancement, in order to meet their expectations. Industry 4.0 talks about IoT, which has set in.”
The panel discussions ranged from the changing dynamics of the auto industry, just-in-time trend, after sales services, infrastructure and skills gap, technology’s role, policy and compliances for better growth, etc.
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January - February 2019