DHL presents industry roadmap at Automotive India Conference 2009

DHL unveiled its industry roadmap to power India's automotive sector to a broad cross section of industry leaders at the Automotive India Conference 2009 in Pune hosted by DHL.

DHL identified the key logistics factors in the three core areas of inbound to manufacturing, aftermarket, and international supply chain that would determine the auto success stories in India in the near and long term.

Developing auto markets are under the spotlight as traditional centers of production and consumption are shifting to these developing markets and heightened by a number of factors. First, the industry has had a problem of overcapacity and the current crisis accelerates the sizing issue. Coupled with increasing environmental pressures, government interventions, and fuel spike, change is in the air. Experts predict that over 50 per cent of growth in the automotive sector will occur in emerging markets through 2015, and India is at the forefront of this trend, playing an increasingly prominent role in the global industry; its automotive sector is expected to contribute 10 per cent of its GDP by 2016.

Speaking to more than 50 key customers from leading automotive companies at the conference, DHL senior executives identified that much of this growth will be driven by India's expansion as a small car hub, increased sourcing of component parts, expansion of the domestic dealer network, development of higher volume production plants and an increasingly global presence.

"With the changing automotive landscape in India, there is a need for closer collaboration for the OEMs (Original Equipment Manufacturer) and Logistics service providers. DHL has come in at the right time to provide an interactive platform where all the companies come together to have an open exchange of our challenges and solutions", remarked Kalpesh Pathak, Assistant Vice President Corporate Supply Chain Management, Fiat India.

The current crisis has escalated the need for change

DHL also laid out the challenges India faces including its domestic transport infrastructure, pressure to reduce costs yet make critical investments to compete with established automotive centers, while meeting newer, more stringent international regulatory guidelines.

Recognizing that these opportunities and challenges are resulting in longer, more complex supply chains requiring more control, DHL emphasizes the need to maximize on economies of scale, re-engineer manufacturing productivity and boost logistics efficiency for the growth and as the automotive market recovers.

"The current crisis has escalated the need for change and re-engineering of auto supply chain to drive out cost. DHL, along with its domestic arm Blue Dart, is working with customers to manage through these difficult times ensuring that their priorities are addressed - by delivering scalable and sustainable solutions to capitalize on the opportunities. Our goal is to maximize our customer's ability to take advantage of the turn when it comes." remarked Bill Olver, Vice President for Automotive, DHL Global Customer Solutions Asia Pacific.

Within India, DHL has dedicated automotive teams that provide strategic consulting for a variety of customers - from international players seeking to expand their presence in the domestic market, to indigenous companies aiming to go global, servicing more than 50,000 customers across India. Customers can rely on DHL's unique depth and breadth including DHL Express, Global Forwarding, Supply Chain and Blue Dart to provide them with integrated solutions and enhance their businesses and tap the vast potential of the Indian market.

DHL's auto capabilities have been endorsed by local and global companies, like Jaguar and Land Rover who conferred the 'Best Business Process Quality Improvement Project' award to DHL.