Page 38 - ITLN January - February 2025

Event Report
Auto SCM
Summit 2024

“To help businesses advance their ESG
goals, we provide a green certificate
that directly contributes to their
sustainability reports.”

India's auto growth relies on air
cargo expansion
The third panel discussion underscored
the essential role of air cargo in
supporting the expansion of India’s
automotive industry. Moderated by
Roland Weil, Vice President Sales- (L-R) Thakur Purushottam Singh of GMR Goa Air Cargo, Hemant Rai of Tiger Logistics, Roland
Cargo, Frankfurt Airport, the discussion Weil of Frankfurt Airport (Moderator) and Huned Gandhi of Dachser.
explored infrastructure development,
multimodal transport, strategic space, along with bonded trucking as The panellists discussed how global
advantages of air freight, market part of a multimodal strategy, provide supply chain disruptions, such as the
volatility and regulatory complexities. effective mitigation strategies. The Red Sea crisis, have underscored the
A key focus was on India's growing investment by global companies need for flexibility and resilience. Sahil
emergence as a reliable manufacturing in India’s automotive sector reinforces Seshadri, Head of Global Sourcing -
hub within global supply chains. the need for robust and efficient India & SEA, Knorr-Bremse Systems for
Thakur Purushottam Singh, Business logistics solutions. Commercial Vehicles India, shared how
Head of GMR Goa Air Cargo, Cost-effectiveness in logistics was his company quickly reconfigured supply
emphasised the significant capacity recognised as a key consideration. While chains during the disruption.
offered by the new greenfield cargo speed and reliability are vital, pricing “We can’t just worry about what
terminal at Mopa International Airport remains a significant factor. Although air we are buying and from where — we
in Goa and its proximity to automotive freight is generally more expensive than must also consider how it will reach
manufacturing hubs. other modes, the potential cost savings us,” he said. While sea freight remains
Hemant Rai, Head of Auto Division at from reduced downtime, optimised the preferred mode, geopolitical
Tiger Logistics, provided insights into the inventory management, and faster uncertainties require companies
evolving dynamics of cargo movement, time-to-market can often justify the to diversify sourcing strategies and
noting a current split of 60 percent ocean higher investment. The improving road evaluate options like re-routing and
and 40 percent air. However, he stressed infrastructure in India is also making alternative suppliers.
that air cargo accounts for approximately trucking a more competitive option for Seshadri stressed the importance
80 percent of market share by certain routes, especially when air freight of preparing for future challenges:
value, highlighting its critical role in prices experience significant spikes. “Especially for critical components
transporting high-value automotive that cannot be fully localised, a diverse
components and finished vehicles. How logistics is driving India’s sourcing strategy is essential to keep
The panel explored the specific automotive manufacturing growth? supply chains running smoothly, even if
advantages of air freight within the The fourth panel discussion titled “From one part of the world is affected
automotive supply chain. Its speed is spare parts to accelerating beasts: by disruptions.”
paramount for time-critical shipments, How is logistics as a sector fuelling Beyond cost considerations, timely
such as sample parts for product automotive manufacturing in India?” delivery and resilience have become
development and urgent replacement delved into logistics's critical role in paramount. Panelists emphasised the
parts to prevent costly production line transforming the automotive industry. need to plan for potential geopolitical
disruptions. This “just-in-time” approach The session brought together experts disruptions, ensuring that supply chains
is crucial for minimising downtime and to share insights on the evolving supply can withstand shocks.
maximising manufacturing efficiency. chain, the impact of technology, and Kedar Rele from Umicore Autocat
The impact of global events on air strategies to navigate global disruptions. explained, “Our supply chain is still
freight was also addressed. Instances While setting the stage, Pathak struck dependent on global networks because
of geopolitical instability, such as the a note comparing the Indian automotive precious metals used in production are
Red Sea crisis, have caused congestion industry to a “musical symphony not found in India. To mitigate risks,
and price increases at major seaports of parts, people, and processes,” we’ve built a chain of tie-ups across
and airports. However, panellists noted highlighting logistics as the backbone different stages of the supply chain,
that alternative routes and carriers, ensuring this symphony runs on time allowing factories to continue operations
including those with available belly and efficiently. even during major crises.”
36
January - February 2025 www.itln.in