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India’s automotive industry 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. The increasing GDP 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 (The Equicom Research, 2013). Despite slowdown in
economy, 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 1,000 persons (Delloite, 2011) is increased to around 18 to 20
per 1,000 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 Mr. Guillaume
Sicard, President, Nissan India Operations, the income tax rate cut for
individual tax payers earning under Rs 5 lakh per 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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