Indian auto-makers need to revamp production process: PwC

Tags: News
Vehicle manufacturers in the country need to revamp production process and focus on product differentiation as customers are looking for more value and features across vehicle segments, according to a report by global consultancy firm PwC.

"The Indian automotive industry can achieve a long-term growth by revamping manufacturing models and focusing on product differentiation, which will be the game changer in the next 10 years as the consumer looks for more value and features in both premium and hatchback segments," PwC said in its Autofacts global report.

Observing that Indian manufacturers may face challenges in planning ahead, the report said these auto-makers will have to rely on and consistently review their demand driven forecasts (DDF) to analyse and estimate future demand.

With a low vehicle penetration, growth opportunities for auto makers are plenty in the medium-to-long term in Indian auto industry, it added.

"The key for success is not only having better products, it's equally important as to how services are rendered and brand is defined in the marketplace," automotive expert and partner PW Abdul Majeed said in the report.

According to PwC, vehicle manufacturers have to design a premium service experience for each consumer section and the service business will see a shift from solid revenue stream to a brand building factor.

The report also pointed out that developing strategies to address capacity issues during slowdown in the local market is a high priority for domestic auto-makers.

They should look at emerging ASEAN countries like Thailand, Indonesia, Vietnam and Myanmar to set up manufacturing plants and leverage India's bilateral trade agreements (FTA) to export vehicles, according to the report.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Rajgopal Nidamboor

Let the spirit of sport pervade everyday life

Sport, like meditation, is nothing short of a spiritual act. ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture