The world's top car makers are increasingly turning to India for components for their vehicles. Riding this success and capitalizing on the spiraling demand of domestic auto companies, the Indian automobile components industry is strengthening the demand for third party logistics (3PL) and is emerging as one of India’s fastest growing manufacturing sectors, and a globally competitive one.
New analysis from Frost & Sullivan (transportation.frost.com), Strategic Analysis of 3PL Markets in the Indian Auto Components Sector reveals that the market earned revenues of $172.0 million in 2006 and it is likely to reach $900.6 million in 2013.
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"The encouraging growth in global and intra-Asian level trade of Indian auto components sector has created many avenues for 3PL adoption and more can be expected due to India’s active participation in the regional free trade agreements," notes Frost & Sullivan Research Analyst, Srinath Manda. "This is bound to improve prospects for auto components 3PL market."
With India emerging as an auto components sourcing hub, several opportunities lie with professional import/export logistics services for the intra Asian trade.
The steady growth of sales in automotive market is increasing pressure on its supply chains thus necessitating auto component makers to improve their efficiencies to grab greater orders to auto makers. This is leading to the increase of 3PL usage in auto components sector.
There is a reasonably good level of positive attitude among the Indian auto component companies towards the 3PL providers, hence it is easier for the providers to achieve greater penetration of 3PL usage in this sector.
However, it is important for 3PL providers to deliver high quality services and to their auto components clients, on a consistent basis in order to gain higher business from Indian auto components sector. Service providers also need to provide integrated logistics services at affordable prices to match the increasing demands of clients.
"3PL service providers need to effectively tackle the challenges involved in shortage in skilled manpower, meeting customer expectations, and unorganized competition to establish their market presence," cites Manda. "Service providers which can help their clients realize significant savings in logistics cost and improving efficiencies in the supply chains are bound to witness greater success in this highly potential market."
The Strategic Analysis of 3PL Markets in the Indian Auto Components Sector is part of the Automotive and Transportation subscription, which also includes research in the following markets: strategic analysis of 3PL in the Chinese automotive, retail, and FMCG sectors, strategic analysis of the ASEAN 3 third party logistics, strategic analysis of 3PL markets in the Indian retail and FMCG sectors, third party logistics in India, strategic analysis of 3PL in the Malaysian FMCG sector, ASEAN 4 logistics users – trends and preferences, strategic analysis of 3PL in the Indonesian automotive and FMCG sectors. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.
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