HT Auto Leaderboard Awards 2026: Auto OEMs, top-tier suppliers need to help lower-tier players to come up in ecosystem

To make India the true global manufacturing hub, automotive component manufacturers need to make new-age, technology-intensive components here in the country. For this, there is a requirement for a two-fold investment strategy: investment in engineering and investment in infrastructure. Both of these are currently a challenge for the lower-tier Indian component manufacturers, who should be helped by the auto OEMs and top-tier suppliers, believes Ravindra Patki, Managing Partner, Vector Consulting Group. Speaking at the inaugural HT Auto Leaderboard Awards 2026, powered by HPCL and knowledge partner Vector Consulting Group, which took place in New Delhi on September 30, he said the suppliers in the segment lack the investment vision.

While talking at the panel discussion themed ‘Make for the World: Is India ready to Become the World’s Auto Powerhouse?', Patki said that while the component manufacturers are supplying the parts to the OEMs, they are not investing in the engineering or technology. He also said that if this situation doesn't change, it will be a challenge for India to become an auto powerhouse for the world.

Patki also said that the OEMs and tier one suppliers need to take initiative to help the lower-tier suppliers. “75-80% of automotive suppliers in India are tier 2 or tier 3 suppliers, and they have to be brought along," he explained, adding that the way auto OEMs helped the current tier one suppliers to grow decades ago, they should now help the lower-tier suppliers to come up in the ecosystem.

Patki further explained where the lower-tier companies are struggling. According to him, the investments are done in operations, but returns are not so high, which is creating a hindrance for these companies to be able to reinvest in talent hiring as well as creating infrastructure for new technologies. He believes this is where the auto OEMs and top-tier automotive suppliers should come forward to help the lower-tier companies in the ecosystem.

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