India’s Automotive Sector Faces Vehicle Launch Delays Due to Late Design Changes: Key Insights, ETAuto

Missing or delayed manufacturing engineering inputs at early stages, delayed supplier feedback and unstable design freezes.India’s automotive sector is facing delays in vehicle launches, with 80 per cent of original equipment manufacturers (OEMs) reporting disruptions due to late-stage engineering changes, according to a study by Vector Consulting Group.

Impact on production and suppliers

The study found that engineering changes continue well into later phases of product development rather than declining after prototype validation. Only 6 per cent of OEMs followed the ideal trajectory, 13 per cent showed moderate deviation, while 81 per cent displayed significant misalignment.Each change, the study noted, can trigger rework in design, tooling, validations or software updates, delaying launches and increasing costs. Among suppliers, 57 per cent reported frequent rework, 76 per cent longer project lead times, 52 per cent difficulties with on-time deliveries, 43 per cent cost overruns and 83 per cent delays in new technology initiatives.

Automakers also reported challenges: 33 per cent cited ongoing issues with product quality and reliability post-launch, 20 per cent faced higher warranty costs and 58 per cent experienced delays in service and dealer network readiness.

Causes and recommendations

The research, based on insights from 36 senior executives across two-wheeler, passenger vehicle, light commercial vehicle and heavy commercial vehicle OEMs and Tier-1 suppliers, identified three main drivers of late engineering changes: Missing or delayed manufacturing engineering inputs at early stages, delayed supplier feedback and unstable design freezes.

Vector Consulting Group recommended moving from milestone-driven tracking to a flow-based execution model. It suggested earlier supplier involvement at the concept stage, limiting work-in-progress to avoid overload and structured evaluation of engineering changes to distinguish critical fixes from non-essential modifications.

The study estimated that adopting these practices could result in 20–30 per cent fewer late changes, a 30–50 per cent reduction in launch times, a 20–30 per cent improvement in supplier response times and efficiency gains of 15–25 per cent.

• Published On Sep 12, 2025 at 04:47 PM IST

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

All about ETAuto industry right on your smartphone!

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}