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Article
Publication date: 25 February 2020

Debashis Chakraborty, Julien Chaisse and Shameek Pahari

This paper aims to analyze whether the domestic policy reforms in India would suffice, or there is a need to conform to stricter international standards as well. The paper is…

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Abstract

Purpose

This paper aims to analyze whether the domestic policy reforms in India would suffice, or there is a need to conform to stricter international standards as well. The paper is arranged along the following lines. First, the paper offers a brief review of the cooperation in the field of harmonization of vehicle regulations which is provided by the so-called WP.29 Forum. Second, the United Nations Economic Commission for Europe (UNECE) standards and their membership along with Indian participation in the forum are presented. Third, reforms in India through the “Make in India” (MII) initiative and its trade in the auto-component segment are analyzed. Fourth, the possible non-tariff barriers (NTBs) on imports of auto-components in select partner countries is computed and presented. Fifth, the penetration pattern of partner countries in India’s automotive sector export value chain is analyzed. Finally, based on the observations, key policy conclusions are drawn both from global and Indian perspectives.

Design/methodology/approach

This paper blends expertise in law and economics and enables readers to have a finer understanding of the automotive sector which is one of the most internationalized product groups in world trade, characterized by not only cross-border movement of final products, but also of intermediate products like auto-parts and components as well as major global investment and relocation decisions. This paper focuses on India for four crucial reasons, which makes India both a key player (and potential disruptor) at global level and the rather complex approach chosen by the country vis-a-vis many regulations (including UNECE and WTO), reflecting its tendency to rely on domestic consolidation through measures such as the 2014 MII initiative.

Findings

The data analysis in the current paper indicates that after conforming to the UNECE 1998 standard, India’s relative trade with these countries has increased both in terms of auto-components and automobile products. Moreover, the value contribution from these partner countries in India’s exports is rising. On the other hand, the relative share of the UNECE 1958 countries in India’s trade basket has declined and a mixed trend is noticed for the common contracting parties (CPs). In addition, the share of the countries without accession to any of the UNECE agreements in India’s trade has shown an upward trend. The observation indicates that the divergence in automotive product standards might crucially influence India’s trade flows. It seems that in the short run, an orientation for exporting to UNECE 1998 partners and non-members emerges as a dominant strategy, underlining a specialization in medium-quality segment. Nevertheless, the long-term robustness of such a move deserves closer analysis, particularly by focusing on whether India may need to join the UNECE 1958 agreement to sustain its export growth. Before joining UNECE 1998, the sector has enjoyed protection through high tariff barriers. Given the differing perspective on opening-up, automobile sector earlier emerged as an obstacle in conclusion of EU–India Bilateral Trade and Investment Agreement (BTIA), which is being negotiated since 2007. However, after entry into an regional trade agreement (RTA), tariff preference in itself may not provide a country the requisite market access. The recent standard-setting exercises in ASEAN, a group with which India is deepening trade integration since 2010, may be considered as a case in point.

Research limitations/implications

The analysis so far indicates that absence of participation in UNECE 1958 standard may restrict future options for India. Presently, Indian vehicle exports are reaching UNECE 1998 member countries (e.g., Ford India sending Ecosport to USA). It is also directed towards African and Latin American countries, presently not part of any agreement. However, the ASEAN countries, currently partnering India through free trade agreement (FTA), are increasingly moving towards UNECE 1958 standards. India’s sectoral trade surplus with ASEAN countries over 2009-2013 to 2014-2018 has declined from US$548.44mn to US$529.53mn, respectively. The potential challenges in reaching ASEAN and other UNECE 1958 member countries, in turn, may influence the relocation decisions of global auto majors in India, defeating the core purpose of MII initiative.

Practical implications

Given the scenario, a number of policy choices for India emerge. First, joining UNECE 1958 may not be a short-run option for India, but after evaluating the evolving trade pattern, in the long run, the country may consider adopting certain core 1958 standards, in line with its economic interests. Such a move may facilitate greater export flows from India to UNECE 1958 countries. The experience of Indonesia and Vietnam, who have conformed to select UNECE 1958 standards in spite of not being formally part of any agreement, deserves mention in this regard. Second, it is observed that India’s trade balance (TB) is not improving for several Regional Comprehensive Economic Partnership (RCEP) member countries, in spite of obtaining tariff preferences through an existing trade bloc. Part of the poor performance has been explained by Indian exporters often using the most favoured nation route rather than the preferential route, to avoid the associated compliance-related complexities. The standards and mutual recognition agreements (MRAs) conformance provisions in ASEAN–India FTA are also found to be weaker vis-à-vis the comparable provisions for other ASEAN-centric bilateral RTAs with other RCEP members. This underlines the need for both rules of origin (ROO) reforms and agreement on MRAs, which may enhance the trade potential in general and in automotive sector in particular. In the short run, India should therefore attempt to enhance exports to the UNECE 1998 members and CPs, given the commonality in standards. However, in the long run, there is a need to explore harmonization with certain core 1958 standards, to promote exports in general and even within its RTAs in particular.

Originality/value

The automotive sector is one of the most internationalized product groups in world trade. It is known that harmonization of product standards with partner countries can facilitate bilateral trade flows. Presently, three agreements exist for harmonization of automotive standards relating to passenger and vehicle safety under the aegis of UNECE – UNECE 1958, UNECE 1997 and UNECE 1998. Through a series of reforms and launch of the MII initiative in 2014, India has deepened its presence in world automotive sector trade and aspires to play a bigger role in coming days. Moreover, India is a WTO member and has joined the UNECE 1998 standard in 2006, which means that several important conventions regulate and bind the country. The current paper intends to analyze whether the domestic policy reforms in India would suffice in promoting the exports from this sector, or there is a need to conform to stricter international standards. The data analysis reveals that India’s relative trade orientation is deepening towards the UNECE 1998 members and countries not part of any UNECE agreements. On the other hand, the relative trade share of the UNECE 1958 countries in India’s trade basket has declined and a mixed trend is noticed for the common CPs. The analysis indicates that the divergence in automotive product standards might crucially influence India’s trade flows in general and participation in international production networks in particular. The paper argues that in the long run, India needs to consider adherence to certain UNECE 1958 standards as well as speeding up the pending domestic reforms.

Details

Journal of International Trade Law and Policy, vol. 19 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Article
Publication date: 21 February 2020

Saumyaranjan Sahoo

The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits…

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Abstract

Purpose

The purpose of this paper is to investigate the status of lean manufacturing in Indian automotive sector, component manufacturing industries in terms of lean adoption, benefits, motivation, and challenges of implementing lean manufacturing practices.

Design/methodology/approach

The research objectives were achieved by conducting a qualitative multicase study approach. Fourteen Indian automotive component manufacturing small and medium-sized enterprises (SMEs) were chosen based on their different product offerings as well as differing approaches to the introduction and implementation of lean initiatives. Data were collected through in-depth, semistructured interviews supported by shop-floor observations.

Findings

The findings from the present study suggest that some of the participating automotive component manufacturing SMEs have a relatively good understanding of lean concepts and philosophy. However, there is room for further improvement for most SMEs. Major top five lean practices being implemented were found to be cellular manufacturing, total productive maintenance, 5S, work standardization, and quality management practices. Also, leadership and organizational culture were found to be crucial factors for the success of lean manufacturing.

Research limitations/implications

The fact that the data collected for the research study is based on subjective business evidence obtained from company representatives comprises the main limitation of the present study. So, the results should be considered with caution, as far as the lean adoption in Indian automotive component manufacturing sector is concerned.

Practical implications

Based on the present study, suggestions can be made regarding the successful adoption of lean principles, not only for the participating SMEs but also for the whole of the automotive component manufacturing sector. More specifically, by determining the strength and weakness of automotive component manufacturing SME's effort to adopt lean, suitable managerial initiatives can be undertaken by these companies as well as the whole sector to fully adopt lean and derive the respective benefits.

Originality/value

This paper explores the status of lean adoption in Indian automotive component manufacturing SMEs. Considering the unique characteristics of the automotive component manufacturing industry, the present research would be helpful for making strategies to implement lean in automotive component manufacturing industry setups.

Details

Benchmarking: An International Journal, vol. 27 no. 3
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 11 October 2023

S. Nandha Gopan and M. Balaji

The present paper examines the barriers hindering the implementation of circular economy practices in Indian automotive industries and identifies the most critical barriers to be…

Abstract

Purpose

The present paper examines the barriers hindering the implementation of circular economy practices in Indian automotive industries and identifies the most critical barriers to be eradicated during the circular economy implementation.

Design/methodology/approach

Using a questionnaire survey-based analytic hierarchy process (AHP) approach, 21 barriers to circular economy implementation are identified through a literature review and ranked using the opinions of relevant industrial experts.

Findings

Barriers, minimal or no proper economic incentives, difficulty in ensuring product quality and costing of CE products are identified as top barriers to be eliminated first to boost the chances of successful implementation of circular economy practices in Indian automotive industries.

Practical implications

The study not only offers a roadmap on the order of elimination of barriers towards a circular economy but also provides insights from industrial experts on how these barriers can be eradicated and the ill effects of each barrier from an automotive industry perspective.

Originality/value

The authors develop a theoretical framework for barrier analysis for circular economy implementation in the Indian automotive sector using the classic AHP approach to identify the most critical barriers against successful implementation. Further, this study offers managerial implications on how these barriers can be eradicated in real.

Details

Management Decision, vol. 61 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 10 August 2020

Abhilasha Meena, Sanjay Dhir and Sushil

This study aims to identify and prioritize various growth-accelerating factors in the Indian automotive industry. It further develops a hierarchical model to examine the mutual…

1291

Abstract

Purpose

This study aims to identify and prioritize various growth-accelerating factors in the Indian automotive industry. It further develops a hierarchical model to examine the mutual interactions between the factors, their dependence and their driving power.

Design/methodology/approach

This study first identifies the growth-accelerating factors and then uses the modified total interpretive structural modeling (m-TISM) framework, which is an extended version of TISM. It further uses MICMAC analysis to analyze the mutual interrelation between the identified factors.

Findings

This study highlights the interrelation amongst the factors using m-TISM model. A hierarchical model shows the level of autonomous, dependence, linkage and independent factors considering the Indian automotive industry. This study also provides the understanding related to the interdependence of growth-accelerating factors.

Research limitations/implications

The government and practitioners could evaluate the growth-accelerating factors which have higher driving power for implementing efficient policies and strategy formulation. By implementing m-TISM model in the Indian automotive industry, auto manufacturers can become more productive and profitable. Future studies could use other methods such as expert opinion to derive the factors, and further model could be verified using structural equation modeling technique.

Originality/value

This study uses a novel m-TISM framework for the analysis of growth-accelerating factors in the context of the Indian automotive industry. It further provides a detailed theoretical and conceptual understanding relating to the philosophy and establishes an interrelation amongst these under-researched growth-accelerating factors.

Article
Publication date: 14 November 2008

Rajesh K. Pillania

New knowledge creation has gained currency in the global knowledge economy. It is important not only for big firms, but for small and medium size enterprises (SMEs) also. Indian

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Abstract

Purpose

New knowledge creation has gained currency in the global knowledge economy. It is important not only for big firms, but for small and medium size enterprises (SMEs) also. Indian automotive components sector is one of the fastest growing sectors of Indian economy and is dominated by SMEs. This research work aims to study the knowledge creation and categorization in SMEs in Indian automotive components sector.

Design/methodology/approach

This paper uses a survey method to collect primary data to study knowledge creation and categorization in automotive components manufacturers.

Findings

Among various kinds of knowledge, knowledge about customers is given most importance. Though new knowledge creation is gaining importance, research and development spending as percentage of turnover are very low. International automotive components manufacturers have a better perception about knowledge creation compared to the prevalent view in Indian firms. In terms of relevance, latest and timeliness, Indian and international automotive components manufacturers pay little credence to the knowledge available through government institutions and industry associations. Industry associations and governments need to have a re‐appraisal of their practices and make their working more useful, fast and updated.

Practical implications

This work has policy implications for government and industry associations. Corrective measures are suggested for industry associations and government bodies for contributing to knowledge creation and implementing knowledge management in organizations.

Originality/value

First of its kind study in SMEs, particularly automotive components sector in India. It studies the current state of knowledge creation and categorization and suggests guidelines for improving knowledge creation in SMEs.

Details

Management Decision, vol. 46 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 January 2006

Mohammed Saad and Bhaskar Patel

The purpose of this paper is to investigate the relevance of the concept of supply chain performance in developing countries. The research also attempts to identify performance…

7202

Abstract

Purpose

The purpose of this paper is to investigate the relevance of the concept of supply chain performance in developing countries. The research also attempts to identify performance measure sets for supply chain performance in the context of a developing nation.

Design/methodology/approach

The research focuses on supply chain practices in the Indian automobile sector. It identifies and discusses the main motives and determinants for the adoption and implementation of supply chain management concepts. It reviews the relevance of the main models to measure the performance of supply chain in developing countries. The research is based on a combination of qualitative and quantitative methods. Primary data were collected through semi‐structured interviews and an exploratory survey. Performance measure sets were identified through factor analysis.

Findings

This research proposes that the concept of supply chain performance is not fully embraced by the Indian automobile sector and highlights the difficulties associated with its implementation.

Research limitations/implications

Further research involving other sectors and industries needs to be undertaken in order to gain an in‐depth understanding of the key factors associated with the implementation of supply chain performance practices in India. This could also help develop a generic model to measure supply chain performance.

Originality/value

The paper provides an attempt to adopt the concept of supply chain performance to the Indian context and culture.

Details

Benchmarking: An International Journal, vol. 13 no. 1/2
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 6 November 2017

Gourav Dwivedi, Samir K. Srivastava and Rajiv K. Srivastava

A spurt in the usage of additive manufacturing (AM) is observed in industrial applications to produce final parts along with rapid prototyping and rapid tooling. Despite the…

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Abstract

Purpose

A spurt in the usage of additive manufacturing (AM) is observed in industrial applications to produce final parts along with rapid prototyping and rapid tooling. Despite the potential benefits of on-demand and on-location production of customised or complex shape parts, widespread implementation of this disruptive production technology is not yet visible. The purpose of this paper is to examine the various barriers to implement AM in the Indian automotive sector and analyse interrelations among them.

Design/methodology/approach

Based on the extant literature and discussions with industry experts, ten major barriers are identified. The authors use a modified Fuzzy interpretive structural modelling (Fuzzy-ISM) method to derive strengths of relationships among these barriers, develop hierarchical levels, and thereafter group and rank these barriers.

Findings

ISM diagraph is developed to demonstrate how the barriers drive one another. Production technology capabilities and government support emerge as the most critical factors, with high driving power and medium dependence.

Research limitations/implications

While identified barriers may be similar across the automotive industry, generalisation of results for interrelationships and ranks in other industries may be limited.

Practical implications

The findings may be useful to managers to develop suitable mitigation strategies, and take more informed decisions, with individual focus, level focus or cluster focus.

Social implications

Findings clearly establish that the role of management and government is crucial in mitigating workers’ resistance to AM implementation.

Originality/value

This paper contributes to AM literature by the structured presentation of the barriers to implement AM in the Indian automotive sector. It also extends the Fuzzy-ISM method by presenting calculation of indirect relations using the appropriate max-product composition and in ranking the barriers.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 31 January 2018

Kavilal E.G., Shanmugam Prasanna Venkatesan and Joshi Sanket

Easily employable quantitative supply chain complexity (SCC) measures considering the significant dimensions of complexity as well as the drivers that represent those dimensions…

Abstract

Purpose

Easily employable quantitative supply chain complexity (SCC) measures considering the significant dimensions of complexity as well as the drivers that represent those dimensions are limited in the literature. The purpose of this paper is to propose an integrated interpretive structural modeling (ISM) and a graph-theoretic approach to quantify SCC by a single numerical index considering the interdependence and the inheritance of the SCC drivers.

Design/methodology/approach

In total, 18 SCC drivers identified from the literature are clustered according to the significant dimensions of complexity. The interdependencies established through ISM and inheritance values of SCC drivers are mapped into a Variable Permanent Matrix (VPM). The permanent function of this VPM is then computed and the resulting single numerical index is the measure of SCC.

Findings

A scale is proposed by computing the minimum and maximum threshold values of SCC with the help of expert opinions of the Indian automotive industry. The complexity of commercial and passenger vehicle sectors within the automotive industry is measured and compared using the proposed scale. From the results, it is identified that the number of suppliers, increase in spare-parts due to shortened product life-cycle and demand uncertainties increase the SCC of the passenger vehicle sector, while number of parts, products and processes, variety of products and process and unreliability of suppliers increase the complexity of the commercial vehicle sector. The result indicates that various SCC drivers have a different impact on determining the SCC level of these two sectors.

Originality/value

The authors propose an integrated method that can be readily applied to measure and quantify SCC considering the significant dimensions of complexity as well as the interdependence and the inheritance of the SCC drivers that contribute to those dimensions. This index further helps to compare the complexity of the supply chain which varies between industries.

Details

Journal of Manufacturing Technology Management, vol. 29 no. 3
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 10 June 2024

Sandeep Gajendragadkar, Rachna Arora, Rushabh Trivedi and Netra Neelam

This study aims to explore the impact of “Performance Expectancy” (PE) on the performance of Indian automotive manufacturing employees through their “Behavioural Intention” (BI…

Abstract

Purpose

This study aims to explore the impact of “Performance Expectancy” (PE) on the performance of Indian automotive manufacturing employees through their “Behavioural Intention” (BI) in the context of digital learning within the volatile, uncertain, complex and ambiguous (VUCA) world.

Design/methodology/approach

A descriptive research design was adopted to gather data from 211 employees of Indian automotive manufacturing companies. Structural equation modelling was applied for data analysis and obtaining results.

Findings

Largely, the findings indicate that BI does mediate the relationship between PE and employee performance (EP) in the context of the Indian automotive manufacturing sector. The findings would help in boosting digital learning initiatives, improving EP and fostering organizational success in the VUCA world.

Research limitations/implications

The current study focused on the Indian manufacturing industry. Extending the research beyond the manufacturing sector to other industries in India could possibly help in generalizing the findings, and thereby enhance knowledge of the broader consequences of digital learning on EP.

Practical implications

Digital learning platforms can enhance sustainable industrialization in the manufacturing sector by providing employees with access to digital learning opportunities. Managers must provide employees with access to digital learning opportunities for making them more creative and innovative, so that they can become real change agents, and can handle real-world problems more efficiently, leading the organization to deal with the complexities and unpredictability in this VUCA world.

Originality/value

Within the ambits of Indian automotive manufacturing organizations, there have been limited research studies that have used two constructs of the UTAUT2 framework to see their impact on EP in terms of digital learning. Thus, based on the limited information available, this research stands as a pioneering effort in the realm of digital learning within the Indian automotive manufacturing industry, where the relationship between PE and EP is examined through the mediational role of BI of employees. Moreover, this research possibly would pave the way for further research studies on exploring the role of potential factors influencing the strength and direction of the relationships between these variables (PE and EP).

Details

Journal of Workplace Learning, vol. 36 no. 5
Type: Research Article
ISSN: 1366-5626

Keywords

Article
Publication date: 22 July 2020

Girish Kumar, Rajesh Kr. Singh, Rishabh Jain, Raman Kain and Naveen

The purpose of this study is to understand the different types of risks affecting the demand for the automotive sector in India. The study is further trying to illustrate an…

Abstract

Purpose

The purpose of this study is to understand the different types of risks affecting the demand for the automotive sector in India. The study is further trying to illustrate an approach for analyzing the relative intensities of these risks in the present uncertain business environment.

Design/methodology/approach

Risk on the overall demand is assessed by a combined Bayesian – multi-criteria decision-making approach. Data related to the different factors, affecting their product demand is collected from major automobile firms. Then, weights for these factors are evaluated by applying the analytic hierarchy process approach. Further, these weights are used in the Bayesian analysis network to evaluate the risk intensity for different subgroups, namely, political, economic, social, technological and environmental.

Findings

From the literature and experts’ opinion, total 16 risk factors have been finalized and these are further grouped into 5 categories i.e. political, economic, social, technological and environmental. It is observed that the demand for organizations functioning in the automotive sector is more vulnerable to economic risk as compared to other risks considered in the study.

Practical implications

Managers and decision makers of associated organizations can use the proposed framework to assess the demand risks so as to pre-evaluate their demand corresponding to future changes. Factors can be added or removed and importance could be assigned to different risk factors according to the prevailing business environment for an organization or sector. This will also help the organizations to conduct a more effective risk management in an uncertain business environment.

Originality/value

The study will help in better understanding of the various demand risks prevalent in the Indian auto sector. The methodology used, provides a novel approach for assessing the macroeconomic demand risks and can be used by the firms working in the automotive sector. The proposed methodology could be used for assessing supply chain risk or any other business initiative risk. The suggested approach will help managers in devising flexible management techniques so as to mitigate the risk.

Details

International Journal of Organizational Analysis, vol. 30 no. 4
Type: Research Article
ISSN: 1934-8835

Keywords

1 – 10 of over 4000