NEED TO DEVELOP ALTERNATE SUPPLY CHAIN: HYUNDAI INDIA CHIEF

New Delhi, Aug. 26: There is a need to develop an alternate and localised supply chain to mitigate the impact of disruption and push localisation in the domestic automotive sector, Hyundai Motor India MD and CEO S.S. Kim said on Thursday.

Delivering a keynote address at the Automotive Component Manufacturers Association of India (Acma) annual session, Kim noted that for true localisation, the industry needs to strongly focus on setting up infrastructure to enhance the sub-tier downstream value chain.

"This strategy will ensure a greater level of competence and stability for the entire industry in India and for our export operations," Kim noted.

To create such a robust sub-vendor ecosystem, government intervention and support will go a long way in making India a true manufacturing hub, he added.

The importance of an alternate and localised supply chain was clearly evident to help mitigate supply disruption and build greater resilience in the ecosystem, Kim said.

He noted that Hyundai was the first mass-market OEM to begin operations in May 2020, and this was a result of detailed and robust plans encompassing the safety of employees and suppliers; maintaining operational efficiency, and integrating responsiveness across the value chain.

"As a result, we have created a more adaptable business structure to be well prepared during any business volatilities," he added.

Kim noted that the scope to increase car penetration and the potential for motorisation in India remains very high.