AUTO SCM 2024 emphasises localisation and collaboration for progress

The 8th edition of the Auto SCM Summit, presented by Indian Transport & Logistics News, a STAT Media Group publication, concluded on 5th December at the Sheraton Grand Hotel in Pune. Industry leaders gathered to share valuable insights during a series of business sessions and presentations.

Various aspects of the automotive industry were discussed during the panels, such as supply chain management, technological advancements in logistics, the push for localisation, challenges facing the industry, and the effect of geopolitical tensions.

In his opening remarks Roland Weil, Vice President Sales-Cargo, Frankfurt Airport gave an update on the growth and development when it comes to air cargo and infrastructure at the Frankfurt Airport such as adding a Runway number 4 which gave the increase of 50% in airside capacity, he mentioned that the airport is adding new warehouses and airside facilities over the next 10 to 15 years to support the growth of air cargo. He also mentioned the plans of Frankfurt Airport to launch freighter services from Pune airport considering Pune as an automotive hub to Frankfurt airport.

The first panel focused on the topic, "India emerging as a manufacturing and exporting hub for global automakers," where the panelists discussed the current challenges faced by the Indian automotive industry, supply chain issues, and the impact of geopolitical tensions.

Sanjay Suranglikar, Senior General Manager - Central Purchase at TATA AutoComp Systems, highlighted the reluctance surrounding supply chain dependency on China, stating, "There is a little reluctance when it comes to the supply chain from China."

Om Vijayvargiya, Head – SCM & Logistics at Schaeffler India, pointed out the challenges arising from geopolitical tensions, particularly in regions like the Red Sea. He emphasised how these tensions are creating significant difficulties for the industry. Atit Mahajan, Managing Director at CMA CGM India, highlighted the challenges in sea freight, such as rerouting due to tensions, which have contributed to the rise in freight costs.

The second panel discussed the topic, "How is technology transforming India’s automotive supply chain management," where the panelists explored various issues, including the role of technology in creating sustainable supply chains, the problem of counterfeit products, traceability within the supply chain, alternative modes of transportation such as electric vehicles (EVs), and global regulations in the automotive sector.

Aritra Ghosh, Vice President - Manufacturing Engineering at Mercedes-Benz Research and Development India, shared his insights on the evolving market, stating, “Automotive market in India is maturing.” He also spoke about the role of digital innovations in the automotive industry.

Nitish Rai, Founder and CEO of FreightFox, emphasised the importance of technology in the sector, saying, “Technology is an enabler. Everything is evolving in technology.”

The next session was a fireside chat on the topic, "Fueling the future: LNG technology and its path towards automotive sustainability," featuring two panelists, A. Ramasubramanian, Chief Technology Officer of Blue Energy Motors, and Charles Devlin D'Costa, Vice President of GreenLine. Both panelists discussed the importance of LNG in the Indian transportation sector and explored LNG as a fuel option, as well as the future of LNG-powered vehicles in India.

Charles Devlin D'Costa spoke about the unique features of GreenLine trucks, which are powered by LNG. He also highlighted how safety features, such as cameras, now assist truck drivers, enhancing their safety on the road.

The panel on "Air cargo’s role in the growth of India’s automotive sector" featured panelists such as Thakur Purushottam Singh, Business Head – GMR Goa Air Cargo, Hemant Rai, Head of Auto Division at Tiger Logistics, and Huned Gandhi, Managing Director – ASL Indian Subcontinent at Dachser. The panelists highlighted the strategic role of air freight in enabling faster and more reliable connections across global markets. They also discussed the current infrastructure at Indian airports and the potential of upcoming new airports to increase India’s air cargo exports.

Singh, from GMR Goa Air Cargo, spoke about the development of new facilities at airports under the GMR Group. Rai, from Tiger Logistics, emphasised the importance of collaboration within the automotive industry, stating, “I think we are on the right track when it comes to air cargo, we just need to educate the customer so they are aware of the scheme, and we should also focus on building strategic collaborations.”

Panel 4, titled “From spare parts to accelerating beasts: How is logistics as a sector fueling automotive manufacturing in India?”, focused on the importance of localisation in India, particularly in the automobile sector. Kedar Rele, Managing Director, Umicore Autocat India and Thailand said, “India has a lot to offer to the world. Localisation and the aspirations of its youth are on the rise. Collaboration within the industry is improving, which will drive India's progress further.”

Mudit Dobhal, Senior Vice President - Strategy & Business Development at IndoSpace Development Management, discussed warehouse automation, stating, “Warehouse automation is expected to grow significantly in the coming years, with projections indicating an increase of 25-30%.”

The last panel focused particularly on EV logistics. Deepak S, Head of Logistics, Ather Energy Limited said, “EV reverse logistics has been challenging in the last few months, particularly since April 2024. Logistics companies have hesitated to do it since then.” while Manjula Girish, Business Head EVCS, PVI, Delta Electronics India said, “EV charging is an unorganised and unstandardised industry. The uncertainty makes it challenging to predict, planning, and logistics.” Panelists also discussed the government regulations and schemes driving the growth of EVs in India.

Auto SCM Summit 2024 was presented by Frankfurt Airport, with CMA CGM as the Gold Partner, DACHSER as the Silver Partner, Acviss and FreightFox as Associate Partners, and CargoFL as the Exhibiting Partner.

Overall, the AUTO SCM Summit 2024 highlighted the vital importance of logistics in driving the growth of the automotive industry. The discussions not only addressed the challenges but also showcased the vast opportunities for collaboration and innovation.