In the backdrop of the current economic slowdown severely hurting the auto industry, among others, Tata Motors CEO and managing director Guenter Butschek has said that the demand environment would remain volatile for some more time.
“Today’s situation is far more complex,” Mr. Butschek told auto component makers at the Auto Component Manufacturers Association of India’s annual general meeting held in Delhi.
‘About to collapse’
“The Indian opportunity is about to collapse due to low economic activity, leading to subdued demand, initially triggered by the liquidity crisis and the increased axle load regulation,” he said. “Customers are confused and need education to take informed decisions. We need to take these challenges as opportunities and explore feasible options for us/ the industry, because that is the need of the hour,” he added.
He said the company’s standard operating processes had to drive supply chain efficiencies and with the use of ‘analytics and Industry 4.0’, the company ought to target higher productivity, efficiency and effectiveness in operations across the entire value chain.
“We have to be careful, to protect our future investments. The winners would be the ones who are able to leverage investments in platform developments by enabling modularity and higher economies of scale,” the Tata Motors MD said.
“New rule of the game is to get exclusive by being inclusive,” he added.