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Automotive manufacturing industry in India
is one of the most promising and competitive in the world market and this sector
is having huge potential to progress in the near future. Despite demonetization
and implementation of GST the GDP growth is on the right track and economical wealth
have improved during the last decade which has increased purchasing power of
the Indian purchaser specially in  the
car segment, which is most promising sector and has shown remarkable growth
rate in the recent time in terms of production, sales and exports (Equicom
Research-2013). Despite slowdown in economy due to demonetization and GST, shortage
of skilled labor, diminishing export and saturating domestic urban markets this
sector has shown marvelous growth rate in recent decades .The passenger vehicle
market, which constitutes around 80 per cent of automobile sales, has shown
significant growth potential as passenger car in 2011 which is around 13 per thousand
 persons (Delloite, 2011) is increased to
around 18 to 20 per thousand people in 2012-13 (Trefis, 2013). According to a
recent study by the International Energy Agency (IEA), passenger car ownership
in India will grow by more than 700 % over the next two decades .According to President,
Nissan India operations, the income tax rebate for individual tax payers which earn
under Rs 5 lakh/annum will create a positive sentiment among likely first time
buyers for entry level and small cars. The Indian automotive sector is
estimated to grow more than a rate of 10-15 per cent to reach US$ 16.5 billion
by 2021 from around US$ 7 billion in 2016. This industry has the potential to
generate up to US$ 300 billion in annual revenue by 2026 and automobile sector
generated 65 million additional jobs and contribute over 12 per cent to India’s
Gross Domestic Product.

As
automobile industry is one of the important and key drivers of economic growth in
our country. The manufacturers in the field of automotive sector have to takes
up a leading role in terms of quality expectations of customers, product
variety and complexity in manufacturing process. Driven by globalization and
increasing customer expectation the manufacturers are trying to offer a large
range of vehicle models and options to their customers. The enormous product
variety-induced complexity and the pressure from outside players the competition
is very tough and makes it hard to ensure effective & efficient logistics. Due
to this reason entire supply chain in automotive industry from allocation,
storage of raw materials, timely procurement of spare parts, manufacturing of
finished goods and delivery to customer is very important aspect .

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The
use of best supply
chain management practices is one of the major challenges to automakers for
achieving competitive advantage, especially in emerging markets like ours.
Therefore it is required to examine various aspects of automobile supply chains
in an emerging market which has its own peculiarities. The present research
seeks to bring out challenges and complexities in automobile supply chains and presenting
emerging trends from the global automotive industry and its applicability in indian
context.  This study mainly concentrate on
the issue that directly & indirectly impact the design and practices of
supply chain strategy and supply chain flexibility dimensions on the supply
chain performance. Every company has a target to set best strategy &
flexibility to enhanced performance. 

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