Evaluation of operational models for world-class manufacturing in the Indian automotive components industry

Abstract

The automotive industry in India is among the largest sectors in the country's econony in terms of revenue and employment. Several global auto brands are looking to make inroads into one of the fastest growing economies in the world. Global auto manufacturers today are looking to set-up a manufacturing base in India to export products to markets in Asia, Europe and the U.S. To support the interest of global auto players in the Indian market, it is imperative to upgrade the manufacturing ecosystem in the country to meet global product standards. Tier 1 auto components manufacturers have played an important role in the industry by bridging the gap between indigenous manufacturing capabilities and global requirements. For the industry to progress and grow it is important to enhance the operational skillsets of tier 1 firms to have a percolating effect into lower tiers in the supply chain, thereby improving the overall environment. Through depth interviews with industry experts and surveys based on Schonberger's World Class Manufacturing framework, this thesis aims to understand the current state of operations in the Indian auto components industry and unravel what needs to be done within the next decade for the industry to become truly world-class.