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Investigating the challenges faced by Indian automotive industry for adopting technology organically

Author

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  • Mudita Dixit
  • Gopakumaran Thampi

Abstract

The Indian automobile sector is the sixth-largest producer of automobiles globally in terms of worth and volume. India has a steady trade deficit of US$ 2 billion in auto components every year. This paper critically examined reasons for India lagging in technology adoption and transfer organically in different sectors (OEM, large, medium and small enterprises) of the automotive industry (AI). A survey was conducted on 272 enterprises located in the western region of India. The result shows that the high purchasing cost of technology, lack of awareness of IT tools, availability and retainability of skilled workforce are critical issues for small and medium enterprises compared to large enterprises and OEMs. This study determines the role of government policies, state policies, and proactive measures to contribute to AI's fortune. It is observed that AI shall replicate success stories of the Indian IT industry in terms of global reach and quality arbitrage offering to the export market.

Suggested Citation

  • Mudita Dixit & Gopakumaran Thampi, 2023. "Investigating the challenges faced by Indian automotive industry for adopting technology organically," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 44(2), pages 258-284.
    • Handle: RePEc:ids:ijisen:v:44:y:2023:i:2:p:258-284
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