Integrated logistics for India’s automotive sector

When one thinks of global automotive leaders, it’s generally either Japan and Germany that comes to mind. However, interestingly, India is emerging as a leader in the sector, especially in the heavy vehicles niche. For tractors, buses and heavy trucks, India is the first, second and third largest manufacturer in the world, respectively. India manufactures over 22.9 million vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers, and quadricycles. 5.6 million such vehicles are exported to other markets. The automotive industry in India is worth over $222 billion, contributes 8% of the country’s total export, and accounts for 7.1% of India’s GDP. By 2030, the Indian automotive industry is all set to become the 3rd largest in the world.
And committed to driving India’s automotive sector to greater success are leading supply chain solutions providers like Allcargo Group, who specialize in catering to the industry’s specific requirements.
Owing to the high stakes, large scale of production and the punctilious coordination required for varied components to come together to deliver safety and excellence on the road, supply chains assume critical significance for the automotive sector. Government initiatives such as the Automotive Mission Plan 2026, scrappage policy and production-linked incentive scheme, have only added to the need and demand for optimizing efficiencies with ingenious supply chain solutions.
“Considering the projected growth curve in the coming years, the automotive supply chain requires razor sharp precision within the warehouse and innovative solutions across road routes and trade lanes, with flexibility built-in to the supply chain at every step. This will enable the sector to capitalise on ripe market conditions and it is exactly what we are perfectly geared to offer our customers”, says Mr. Santosh Burkhe, Vertical Head – Auto & Engineering, Allcargo Group.

End-to-end automotive logistics solutions

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Powered by nearly three decades of expertise in logistics, an in-house team of industry leading experts at Allcargo Group’s contract logistics division, crafts customized solutions to match and exceed the expectations of customers. 
Allcargo Group offers auto and spare parts manufacturers the entire gamut of services that are required in the automotive supply chain.
Be it production logistics, line-feeding and quality checks, product line packaging, VOR, ITM, CKD, aftermarket distribution, reverse logistics services, yard management, order management, machine critical order management, finished goods warehousing, distribution centre management, and LLP – 4 PL services – the Group’s end-to-end capabilities offer integrated as well as stand-alone solutions, in collaboration with its group companies like Gati-KWE. In addition, value-added services such as packing, kitting and sequencing further augment the offerings for customers. 

Unleashing value for customers

Those manufacturers looking to leverage the automotive surge the country is expected to face, especially with the current focus on electronic vehicles and the government push on hydrogen powered cars, can benefit from Allcargo Group’s nationwide Grade-A warehouses benchmarked to international standards. Additionally, the ingenious solutions which optimise space utility, also help to drive down costs. Importantly, auto manufacturers can build resilience into their supply chain with the flexibility to expand or contract operations as desired. The strict adherence to the highest levels of international safety and compliance is an added feather in the cap for automotive and spare parts manufacturers. 

Complying with the digital expectations of customers is the integration of robust Warehouse Management Systems (WMS) and vehicle tracking systems. Moreover, the integration of the WMS – EDI interface with the customer’s SAP enables them to have complete and end-to-end visibility for their goods. 

Locational advantage

Being concentrated in specific clusters, manufacturers located in Delhi, Bangalore, Chennai, Ahmedabad, etc. can leverage Allcargo Group’s prominent footprint in the automotive belt and multi-client facilities, so they don’t have to look far for an integrated logistics solution provider. 
In another advantageous move, Allcargo Logistics and Industrial Parks will be expanding its footprint in the country with state-of-the-art warehouses that will come up in strategic locations such as JNPT, Farukhanagar, Lucknow, Bihta near Patna, Guwahati,  Dankuni near Kolkata, Patencheru near Hyderabad, and Malur and Hoskote near Bangalore.  

Conclusion

With excellent end-to-end integrated services across the spectrum of the automotive sector, it’s no wonder then that passenger car manufacturers, aftermarket retailers, component manufacturers, commercial vehicle manufacturers, motorbike manufacturers and tire manufacturers, rely on Allcargo Group for their automotive supply chain solutions.