Indian auto components: How the sector can compete harder in the global economy

Abstract

Purpose

The purpose of this paper is to review research into the Indian auto component sector, which offers advice on the strategies that can best be adopted to improve the industry's competitiveness.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments.

Findings

Over the last 40 years the supply of auto parts has become a significant component of the Indian economy. Once restricted to the home sector only, since a change in policy in 1991 the industry has been free to trade with global nations and has seen demand increase enormously as a result. Exports increased at 11 per cent between the 1986‐1987 and 1996‐1997 with much of this supply going to Asia and Africa, and thanks to improved quality in recent years developed countries are now ordering components from Indian manufacturers. Despite this, the sector is still very small by global standards. China exports ten times more than India and Thailand three times as much. India's chance to catch up over the coming decade will depend on whether or not it can widen the service on offer and rise to the higher demands coming from the west.

Practical implications

Indian organizations are offered a series of priorities that they should seek to meet in order to improve their competitive position globally.

Originality/value

Will help companies in India rethink strategy to improve their performance and competitiveness.

Citation

(2008), "Indian auto components: How the sector can compete harder in the global economy", Strategic Direction, Vol. 24 No. 4, pp. 24-25. https://doi.org/10.1108/02580540810860922