Government officials and industry officials said the day after the government approved a production-linked incentive (PLI) scheme worth 25,938 rupees that India could take advantage of plans by multinational corporations to become an integrated manufacturing hub for the global automotive supply chain. Technology that is cutting edge. The proposal, which was adopted on Wednesday, intends to hasten the transition to electric and hydrogen fuel cell cars, which are projected to become commonplace in the next several years. The percentage of advanced automotive technology in the local automotive sector is now at 3%, compared to the global average of 18%. By 2030, the share of sophisticated automotive technology is expected to rise by up to 30%.

India is the world's greatest manufacturer of motorbikes, tricycles, and tractors, according to government officials, and despite being the world's top producer of passenger cars and commercial vehicles, it ranks 11th in terms of value. The PLI plan is anticipated to assist the industry in effectively manufacturing sophisticated automotive technology goods and moving away from mass-market low-value low-tech products. The plan also focuses on deepening localization and reducing imports.

Last year, the Indian automobile sector bypassed the BSVI emissions requirements due to government opposition at the time. The PLI plan does not "stifle" previous investments, but rather highlights the centre’s commitment to decreasing oil imports and increasing green mobility.

Some Trends that might affect the automotive supply chain in India:

• Growth and volatility throughout the long run: While India is on track to become the world's third-largest automaker by 2020, short- to medium-term volatility will persist in an uncertain economic climate.  Supply chain experts will face hard challenges in creating a distribution network that is capable of managing long-term development while also being flexible and responsive enough to deal with short-term fluctuations. 
• Rising costs of supply chain activities: Because of inefficiencies and significant inflation in cost drivers such as gasoline and labour, India's logistics costs as a percentage of sales are at least 30% higher than those in China and other big automotive markets. To preserve profits, the sector will need to keep costs down.
• Product proliferation is on the rise: As the industry expands and client groups evolve, the automotive supply chain will need to prepare for a potential increase in the number of products—from approximately 165 to over 300—over the next six to eight years.
• Increased Exports: Exports from India are expected to rise by double digits this decade, particularly in small automobiles, two-wheelers, commercial vehicles, and components necessitating a more internationally connected and customised value chain.
• Scarcity of qualified candidates to fill important positions: As supply chain activities grow more important, senior professionals with strategic and functional supply chain management competencies are expected to be in short supply.
• Regulatory opportunities and problems: Looming regulatory changes like as the Goods and Services Tax (GST), recall management, and sustainability will necessitate new skills and a redesigned supply chain.

The PLI plan, according to Vikram Kirloskar, vice-chairman of Toyota Kirloskar Motor, will offer the needed push for manufacturing in India. The incentive programme will cut imports and allow India's automobile sector to advance up the value chain towards higher-value-added technology. “It will help attract global investments as several automotive players are looking to diversify their supply chains owing to the pandemic and emerging geopolitical scenarios,” he said.

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https://www.kearney.com/automotive/article/?/a/building-world-class-automotive-supply-chains-in-india

https://autobala.com/indian-manufacturing-india-can-become-a-manufacturing-hub-in-the-global-supply-chain-of-automotive-senior-officials/179762/

https://economictimes.indiatimes.com/industry/auto/auto-news/india-can-become-a-manufacturing-hub-for-auto-global-supply-chains-senior-officials/articleshow/86263009.cms