Auto Suppliers Hold ₹98,000 Crore in Inventory

A report says Indian auto-parts companies have a lot of money tied up in products and materials sitting in inventory.

Better management could free up between ₹29,000 crore and ₹39,000 crore.

Smaller manufacturers, called MSMEs, could release ₹4,000-5,600 crore of that amount.

The report says companies using replenishment based on actual use often reduce inventory by 30-40%.

It also estimates that better productivity could help these smaller companies earn much more each year.

Many industry leaders think these businesses are not upgrading their skills and technology quickly enough.

Factories are using only part of their available capacity, even though companies say capacity is a major problem.

The report argues that using existing resources better could help suppliers invest in batteries, electronics, software and other advanced automotive areas.