Indian auto-makers need to revamp production process: PwC
Mumbai: 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.