OEMs (Other Equipment Manufacturers) are one of the major contributors to the Gross Domestic Product of India. The predictive economic growth anticipated for India suggests a progressive time for the OEMs. The automotive component companies in India can seek the opportunity to make the best out of it. The potential growth that is seen cumulatively by the multiple stakeholders is possible to accomplish showing adherence to a rational blueprint.
The prospective growth that an industry estimates is done by analyzing the various financial reports released by multiple, national and international, agencies. The growth is a result of a shift within the operating paradigm of an industry. There are multiple trends that are looked upon for bringing about the changes. For an automotive components manufacturer, understanding the economy, the changes at the global level, and emerging trends is crucial. Merging it together, it would be possible to apply the modifications at industrial and individual scales to witness the much-needed transformations.
Changing Economy of India
On June 12, 2023, the Finance Minister of India confirmed that India has become the 5th largest economy in the world. The service sector’s excellent performance has been credited majorly for helping the nation to witness such a moment. The growth is going to extend to all the economic sectors and each of these has to strategically move forward for a bright future.
The automotive component manufacturing industry of India stands in a strong position in the current scenario. Being at the vanguard of multiple segments, exceeding expectations in segment A automobiles, tractors, and two-wheelers. The industry aspires to double its current sales. However, to expand and multiply the sales, there are certain trends that the industry can adhere to to perform better.
Evolving Trends of the Domain
The changing trends are expected to endow a newer paradigm to the automotive component companies in India. The stakeholders of the industry can shift their methods based on the changing trends to observe the prospective growth. The industry has to understand the changing dynamics of the market. Focusing on the domestic demands and operation models is necessary as they are constantly redesigning the domain of OEM.
Demands of the customers must be identified who might be looking for more agility and faster revamping if needed. The technical changes would require the different participants of the industry to adapt the same. The altering norms and regulations that are an outcome of growth have to be comprehended and absorbed to improve their performance.
The Checklist for Growth
The changing scenario can scale the business opportunities for the manufacturers. There are things that are going to be seen by the OEM industry.
- Component-Categories: To better the vehicle cost, the manufacturers may keep their manufacturing process specific to categories. The stakeholders would definitely benefit from this opportunity.
- Modification as per demand: Based on the understanding of shared vehicle penetration, the manufacturers may design and make components that could further their demand.
- Indigenous Cost Benefit: The procurers can benefit by getting access to the upscale features of components at national prices. Therefore, the industry is going to become price-effective for the buyers.
- Improved Partnerships: A nurturing ecosystem established within the industry can benefit all the stakeholders. They can seize the presented opportunities by forming productive partnerships.
- Serving Adjacent Industries: The producers can extend their services to the adjacent industries. The move will not only increase the revenue but would help in broadening the portfolio of the involved participants as well. Moving further, these opportunities would help in developing substitutions for the imports.
Summing Up
Looking optimistically at the increasing potential of the industry is valuable to serve the purpose of growth. However, each automotive components manufacturer needs to contribute to this movement. Adapting to the trends and making the changes aggressively is of utmost importance. Therefore, a strategic blueprint has to be laid out for viewing the changes that are needed to be integrated for upgrading the manufacturing processes.
