Flexible Manufacturing Core Supply Chain Requirement for OEMs, says Maruti's Deepak Thukral 

Flexible manufacturing is emerging as a central requirement for automotive supply chains as vehicle makers expand capacity and prepare for higher production volumes, according to Deepak Thukral head of supply chain at Maruti Suzuki India.

He noted the auto component industry grew by around 10% last year from $74 billion to $80 billion, and passenger vehicle production is projected to rise from 5 million units last year to over 7 million units by 2030.

As vehicle manufacturers increase their capacity, suppliers will need to align their own expansion plans to keep pace.

“To keep pace, we request you to provide your capacities also with our capacities to timely assessment and capacity addition,” he said, while speaking at the 66th ACMA Excellence Awards.

With higher volumes and changing technologies, the nature of supply chain expectations is shifting, he said.

“As all OEMs have new capacities, we need to focus on flexible manufacturing which has become a key expectation,” he said.
He added that flexibility must go beyond plant design.

“Flexibility is not about designing plants. It is also about creating manufacturing and assembly lines that can absorb volatility without impacting cost or quality."

Thukral said the global automotive supply chain is facing increased complexity due to tariff barriers, export restrictions and semiconductor shortages. Commodity prices of metals such as copper and aluminium have also risen, adding to cost pressures.

“In this respect, we need to make a shift in our approach. We need to simplify value chain, prioritize localization and at the same time increase value chain,” he said.

He said better visibility of the supply chain would help companies respond more quickly to disruptions. Digitalisation and artificial intelligence can support this effort, but companies must adopt these tools carefully and responsibly.

At the same time, the industry is undergoing a technology transition. There is a shift toward a mix of gasoline and alternative fuels, including flex fuels and biofuels, along with hybrids and other energy-efficient technologies. Consumers are also demanding vehicles with advanced features at affordable cost.

He said the next phase of India’s automotive leadership will depend not only on what is manufactured but how it is manufactured and how well supply chains adapt.

“Supply Chain 2.0 is not just about incremental improvement, it's about reimagining how we create value together,” he said.

As the industry scales up, he said building resilience, flexibility and sustainability across the supply chain will be essential to ensure business continuity and maintain quality while meeting rising demand.