India, a bustling hub of auto manufacturing, is undergoing a transformative shift in its approach to vehicle production. The Internal Combustion Engine (ICE) segment, which still dominates the market, is gradually making way for Electric Vehicles (EVs), Hydrogen vehicles, and other alternative sources of propulsion. This shift is not just a reaction to global environmental trends but a proactive move towards sustainable and efficient mobility solutions.
The focus on local manufacturing and exports under the ‘Make for the World’ initiative is strengthening India’s auto manufacturing sector. The initiative positions India as a leading global auto supplier, which not only meets domestic demand but also exports high-quality vehicles and components to international markets. The result is an impressive growth trajectory, marked by technological advancements, increased investment, and a strong push towards green mobility.
However, this evolution does not come without its share of challenges. For automakers, including Original Equipment Manufacturers (OEMs) and ancillaries, expansion is critical to meeting increasing demand and staying competitive. Yet, the traditional approach of buying land and building factories is a capital-intensive and time-consuming process, often hindering growth. But it’s not the only option.
Different Roads to Operational Expansion
For OEMs and ancillaries, the decision to expand often boils down to two options: buy land and construct a factory or opt for an asset-light strategy. The former, while offering complete control, requires substantial capital investment, time, and resources. It also involves navigating complex regulatory environments, land acquisition challenges, and construction delays.
On the other hand, the asset-light strategy involves leasing a ready-to-use factory, significantly reducing upfront investment and time to market. This allows companies to focus on their core competencies, such as product development and market expansion, without worrying about infrastructure management.
Yet, finding suitable rental factories that meet specific requirements can be a daunting task for many auto manufacturers. This is where IndoSpace steps in, offering asset-light solutions that cater to the unique needs of the auto manufacturing sector.
IndoSpace’s Asset Light Solutions to Boost Growth
IndoSpace, a pioneer in industrial real estate, is revolutionizing the auto manufacturing landscape with its asset-light solutions. Offering rental factories with Ready to Move (RTM) and Build to Suit (BTS) options, IndoSpace enables auto manufacturers to kickstart their operations in a shorter time frame, without the hassles of land acquisition, regulatory approvals, and construction.
The benefits of asset-light manufacturing are manifold. Companies can save on capital expenditure, go to market quickly, enjoy operational flexibility, and respond swiftly to market changes. With IndoSpace’s grade A industrial parks, companies also gain access to strategically located facilities that are compliant with global standards and equipped with state-of-the-art features.
IndoSpace’s solutions are not just about providing space; they are about fostering growth. By taking care of infrastructure needs, IndoSpace allows auto manufacturers to focus on innovation, productivity, and expansion, propelling them towards success.
Successful Auto Manufacturers at IndoSpace
IndoSpace’s value proposition has resonated with numerous auto manufacturers. Currently, 37 auto companies have partnered with IndoSpace, leveraging its industrial parks to fuel their growth. These companies have recognized the benefits of asset-light manufacturing and the advantages that IndoSpace brings to the table.
Aptiv, an Irish-American automotive wire harness and safety component supplier, is one among many auto manufacturers that have benefited from IndoSpace’s services. Aptiv’s facility at IndoSpace Vallam, Chennai, expanded from 61,000 sq.ft. in 2017 to 1 Lakh sq.ft. in 2019. Similarly, the facility at IndoSpace Chakan I Phase II expanded from 2.5 Lakhs sq.ft. in 2020 to 3 Lakhs sq.ft. in 2021. IndoSpace’s flexibility to accommodate Aptiv’s scaled up requirements enabled the manufacturer to grow rapidly by gaining new business from various clients. Moreover, the installation of rooftop solar solutions helped Aptiv achieve its sustainability target of meeting 25% of its energy needs with renewable power.
Similarly, Autoliv, an American-Swedish automotive safety supplier, also serves as a testament to IndoSpace’s commitment to safety and compliance. Located at IndoSpace Badli, Delhi-NCR, the Autoliv facility is a 100% compliant, secure and efficient manufacturing facility that supports the safety supplier’s growth ambition.
Responsible Growth with ESG
IndoSpace’s commitment extends beyond providing high-quality industrial parks. The company’s Environmental, Social, and Governance (ESG) approach is evident in its initiatives to reduce its carbon footprint, contribute to societal goals, and ensure governance compliance.
For instance, IndoSpace was among the first businesses to adopt green warehousing and is committed to building best practices and undertaking a resource-conserving expansion journey. Furthermore, it has received several accolades for its sustainable practices, including the IGBC Platinum Rating for the Logistics Parks Category and the esteemed ‘Excellence in Design for Greater Efficiencies’ (EDGE) certification.
Moreover, IndoSpace believes in giving back to society. Through various CSR initiatives, the company contributes to the development of local communities around its parks. On the governance front, IndoSpace maintains high standards of transparency and accountability, ensuring long-term value creation for all stakeholders.
Conclusion
IndoSpace is playing a pivotal role in revolutionizing auto manufacturing in India. By providing asset-light solutions, the company is empowering auto manufacturers to grow and succeed, while also making a significant impact through its ESG practices.
The importance of warehousing for auto manufacturing in India cannot be overstated. As the industry continues to grow, the demand for efficient and advanced industrial warehousing solutions will only increase. With its rental factories and warehouses, IndoSpace can support your growth and help you navigate the evolving auto manufacturing landscape with ease.
With IndoSpace, the future of auto manufacturing looks promising. So, take the next step towards growth by exploring IndoSpace’s offerings today.
