Need alternate, localised option to mitigate supply chain crisis: Hyundai
There is a need to develop an alternate and localised supply chain to mitigate the impact of disruption and push localisation in the domestic automotive sector, Hyundai Motor India MD and CEO SS Kim said on Thursday.
Delivering a keynote address at the Automotive Component Manufacturers Association of India (ACMA) annual session, Kim noted that for true localisation in the country, the industry needs to strongly focus on setting up infrastructure to enhance the sub-tier downstream value chain.
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"This strategy will ensure a greater level of competence and stability for the entire industry in India and for our export operations," Kim noted. To create such a robust sub-vendor ecosystem, government intervention and support will go a long way in making India a true manufacturing hub, he added.
The importance of an alternate and localised supply chain was clearly evident to help mitigate supply disruption and build greater resilience in the ecosystem, Kim said. He noted that Hyundai was the first mass-market OEM to begin operations in May 2020, and this was a result of detailed and robust plans encompassing the safety of employees and suppliers; maintaining operational efficiency, and integrating responsiveness across the value chain.
"As a result, we have created a more adaptable business structure to be well prepared during any business volatilities," he added.
Kim noted that the scope to increase car penetration and the potential for motorisation in India remains very high. "As urbanisation continues to grow in India, personal mobility holds high growth potential and business opportunity," he added.
The automaker, which sells models like Creta and Venue in the domestic market, said it would focus on four business platforms to usher in a new era for the automotive industry. "We will continue to devote resources for the development of MECA which is Mobility, Electric, Connected and Autonomous technologies. In the mobility sphere, we will focus on further improving quality time of ownership and shared mobility unique experience with innovative features and service solutions," Kim noted.
The company is also focusing very keenly on developing affordable zero-emission vehicles, he added. "Our transition as an alternative energy vehicle manufacturer will be gradual, but accelerated in order to facilitate the creation of a resilient value chain and help the industry achieve the ideal volumes for economies of scale. “We will continue to focus on advanced technologies such as Hydrogen fuel cell, while also improving our current portfolio of powertrains that includes both BSVI compliant petrol and diesel engines offering superior fuel efficiency and reduced emission levels," Kim stated.
Under the domain of autonomous driving technologies, the automaker would focus on developing capabilities in the areas of advanced information sensing, intelligent and real-time processing with precision assistance control to realise unique solutions for India.
"Furthermore, with autonomous driving technologies, we will enhance active safety with advanced driving assistance systems to mitigate risks involved due to the negligence or human error, thereby making the driving experience safer and enjoyable," Kim said.
The Indian automotive component manufacturers will have to play a pivotal role in shaping the future of this industry, with sustained investment in technology, innovation and R&D, he noted. Kim said the government' subsidisation programme towards augmenting growth of the auto sector and priorities to decarbonise by 2050 with the National Hydrogen Mission will be instrumental in playing a crucial role towards scaling up the fervour of the automobile sector across multiple fronts.
"As an industry, it is crucial that component manufacturers and OMs collaborate to convert these initiatives into successful business avenues. Investment in innovative technology will play a pivotal role in catalysing future growth and sustainability, thus helping the industry realise the vision of an 'Aatmanirbhar Bharat'.
“This will also help the industry understand the needs and aspirations of millennial and Gen Z customers, making us well prepared for the future," he added.