The Indian automotive industry has had a lot of potential to grow in the last 25 years. However, it has not lived up to that promise. Manish Varghese looks at the the outlook for the sector.

The industry has traditionally pinned its hopes on labour arbitrage and the unmatched demographic dividend to drive its growth. However, with the economy growing and inflation rates rising, labour costs have also shot up, which has offset that advantage to an extent. Lack of automation and investment in technology and talent has resulted in higher costs, lower efficiencies and stunted growth.

Read 'Gearing up to accelerate'

Manish Varghese

Manish Varghese is a Consultant in the India office of Odgers Berndtson. He co-leads the Industrial practice for the firm in India and has a specialist focus on the Automotive, Discrete Manufacturi...

Insights

Insight

The MNC’s guide to understanding India - Part 1

In India, multi-national companies are finding huge market potential, an entrepreneurial spirit a...

Insight

British bosses take tough line on a hard Brexit

Our poll of a hundred top UK business leaders, mostly chairs and chief executives of FTSE compani...

Insight

Barely 1% of UK top bosses support a “Hard Brexit” whilst 75% fear negative impact on their companies

A hundred top UK business leaders, mostly chairs and chief executives of FTSE companies have deli...