Focused on the underlining scope for domestic transportation of finished vehicles, the Society of Indian Automobile Manufacturers (SIAM), virtually organized the 7th SIAM Automotive Logistics Conclave on Thursday.
The conclave witnessed the participation of automobile OEMs, logistics players, technology providers, consultants and esteemed government delegates who came together to jointly discuss the challenges, solutions and way forward for the Automotive Logistics industry in the country.
The conclave covered panel discussions on optimisation of logistics-related activities and mitigating problem that can pave the way for faster growth in the automotive industry.
On the occasion of the 7th Automotive Logistics Conclave, P K Agarwal, Special Secretary (Logistics), Ministry of Commerce & Industry, said “SIAM has been conducting an exclusive conclave on automobile logistics for 7 years now, thereby providing SIAM’s commitment to big improvement to automobile logistics. Automobile Logistics is an important area and we would work with SIAM to ensure issues are addressed wherever the government is involved. The idea of moving as much logistics on rail mode is a very good idea. 30 percent is an achievable target and we all are working towards it.”
Setting the context with his opening remark, Vikas Jain, Chairman – SIAM Logistics Group & Vice President, Hyundai Motor India, said “Indian automotive logistics scenario, approximately 90% of transportation is done by Road. It is heartening to note that the government is improving the road infrastructure and supporting the vibrant trucking industry. While the automobile industry is looking at a good recovery, the future also seems to be promising, with India’s economy poised for fairly good growth. Therefore, capacities have to be created looking at overall demand.
Discussing the various aspects of road transportation logistics, Jasjit Sethi, President & CEO, TCI SCS, “From Euro 1 to Euro 6, in 20 years, the cost of trucks has gone up 3 times. The distance which was covered then was around 6,000 kms and we record less than that now. Despite better roads, technology and infrastructure, we are still a bit behind.”
Achal Paliwal, CEO, TML Distribution, added to the discussion, “Transporters and contractors need to recognize drivers as employees. Machine utilisation can happen with proper networking. Driver and Machines are key resources for transporters and in their best utilisation lies the business viability.”
While discussing how various digital initiatives were influencing the automotive logistics space, Arjun Nagarajan, Co-Founder and CEO, Syook, “The pandemic forced us to innovate. Digital technologies acted as a force multiplier. With scare investments, return on investments is very important. Digital technologies are transforming the sector from being reactive to being proactive with a focus on RoI from day one.”
Focusing on what needs to be done, Sapna Ahuja, COO, MapmyIndia, said, “There are many digital initiatives taken by the Government. What needs to be done is to integrate various systems. Transporters have to calculate the cheapest, fastest, and safest route. This can be achieved once these systems are integrated.”
Moderating the session, Pratik Shah, Director, EY, had remarked, “The logistics industry constitutes about 12-13% of India’s GDP, which is quiet high comparing to some of the developed countries. Around 3 to 4% is attributed to the inefficiencies there in the system”.
Concluding the conclave, Rakesh Sen, Co-Chairman, SIAM Logistics Group & Senior General Manager, Mahindra & Mahindra, said, “The sessions were really enlightening. One of the challenges we are facing for health and safety of the drivers community, which has come to the fore. Also, the discussions have directed us to the integration of man, material, and machine.”
As digitalisation has proved to be one of the pivotal medium for businesses to bounce back in the post-COVID era, the industry’s logistical arm has also seen substantial improvement in terms of efficiency, Vehicle Location Tracking Device (VLTD) and Mandatory GPS regulations. With these developments coupled with auto industry’s recent advancements in road network and with Dedicated Freight Corridors, the industry could see drastic developments in the automotive logistics space.