The Indian automotive industry can achieve long-term growth by revamping manufacturing models and focusing on product differentiation. Product differentiation, says PwC India, will be the game-changer in the next 10 years as the consumer seeks more value and features in both the premium and hatchback segments. According to PwC, connecting and engaging with customers will be a key task for Indian companies in the next five years. 

According to Abdul Majeed, partner, PwC India, “With low vehicle penetration, growth opportunities for automakers are aplenty in the medium to long term in the Indian auto industry. The key for success is not only having better products; it’s equally important as to how services are rendered and brand is defined in the marketplace.” 

To ensure growth, vehicle OEMs will have to design a premium service experience for consumers which in turn will see a shift from a revenue stream to a brand- building factor.

Due to the market slowdown in the past two years, capacity utilisation was down for some automakers and given the formation of a stable government, improved market sentiment and overall growing sales across vehicle segments, things should be better this year.

PwC says Indian OEMs should also explore setting up manufacturing plants in emerging ASEAN markets like Thailand, Indonesia, Vietnam and Myanmar and leverage India's bilateral trade agreements (FTA) to export vehicles.

The consulting firm says Indian manufacturers will have to rely on and consistently review their demand driven forecasts (DDF) to analyse and estimate future demand. This will involve modifying production process, developing a sound model across vehicle lifecycle and more collaboration with suppliers to integrate a high level of standardisation into platforms.