Auto companies need to map vulnerabilities, realign supply chains to meet challenges: Report
Auto companies need to map vulnerabilities, realign supply chains to meet challenges: Report
Automobile companies in India will need to map vulnerabilities and realign their supply chains to meet current challenges in the wake of the coronavirus pandemic, according to a report by consultancy firm EY.
With the supplier base of a majority of components in the Indian auto industry not diversified, the report Non-linear automotive supply chain - COVID-19 and Beyond said the impact of the global health crisis on the industry has been deep-rooted.
December 21, 2020
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The key challenge for the Indian automotive supply chain would be to manage the cost escalation year-on-year, driven by rising fuel costs. Original equipment manufacturers (OEMs), therefore, need to explore the ability of key suppliers to fulfil orders from alternative locations, said a report on Monday.
Traditionally, logistics costs in India have been comparatively higher than its other neighbouring nations. The Indian auto industry needs to deploy crisis management, governance and supply chain intelligence, it said.
According to an EY India report titled ‘Non-linear automotive supply chain - Covid-19 and beyond’, the Indian automotive supply chain and manufacturing segment has been evaluating mid- and long-term impacts of Covid-19.