Why New Car Launches In India Keep Getting Delayed: Here Is What We Know | Auto

Why New Car Launches In India Keep Getting Delayed: Here Is What We Know

Automotive industry in India is facing a slowdown in how rapidly new vehicles are reaching showrooms. With nearly 80% of vehicle manufacturers (OEMs) in India are experiencing delays because of late-stage engineering changes, according to a report by Vector Consulting Group.

These are last-minute designs or technical glitch made even after the car is almost ready for production, and while they might sound small, they often compound into significant problems.

The report reveals that, contrary to expectations, engineering changes do not subside after the prototype phase. Ideally, once a prototype is built and tested, the number of changes should reduce significantly, which should drop to less than 15% in pre-production, under 8% at the production start, and below 3% once the product is stabilized after launch. However, the reality in India is different, as change levels remain high well into the later stages of the development cycle. In fact, only 6% of OEMs manage to follow the ideal trajectory, while 81% show serious deviations.

These changes which occurs late come at a cost, when every adjustment can trigger a chain reaction that requires rework in design, tooling, software updates, and validation tests. This not only delays launch schedules but also drives up costs for both automakers and their suppliers, which results in missed deadlines, frustrated teams, and delayed cars for customers waiting eagerly in the market.

Suppliers, who play a critical role in providing key components, are among the worst affected.

The report mentions that 57% of suppliers are stuck in constant rework mode, shifting resources from one project to another just to keep up with last-minute demands. As a result, 76% report longer project lead times, 52% struggle with on-time deliveries, and 43% face cost overruns. What is more disturbing is that 83% of suppliers say they have had to put new technology projects on hold, slowing down innovation that could otherwise give India’s auto industry an edge.

Automakers themselves are struggling with the consequences of these delays, as about 33% admit to ongoing problems with vehicle quality and reliability even after launch, while 20% report increased warranty costs due to issues surfacing post-delivery. Adding to that, 58% of companies face delays in preparing their dealer and service networks, which means customers might face issues even after buying a new vehicle. In most cases, these problems are corrected only after the launch, with suppliers and automakers working together under pressure.

The report also identifies the root causes behind these recurring late-stage changes and the biggest factor is the lack of manufacturing engineering input during the early design phase, cited by 60% of respondents. Another 47% blame is the delayed feedback from suppliers, while 13% highlight unstable design freezes—where designs keep changing instead of being finalized early. These issues collectively disrupt the smooth flow of vehicle development.

To fix the issue, instead of relying on a milestone-driven model, where progress is checked only at fixed points, companies should adopt a flow-based execution model, which encourages continuous collaboration and smoother progress, stated the report. Bringing suppliers and other stakeholders into the process much earlier and setting work in progress limits to prevent teams from being overloaded, and carefully categorizing engineering changes so that only the most critical fixes are prioritized.

Another important point recommended from the report is for Tier-1 suppliers to evolve from being execution-only vendors to becoming true co-development partners, which means suppliers should be part of the innovation and design process from the start, rather than just delivering parts based on instructions. Such partnerships could help automakers reduce delays, cut costs, and improve the overall quality of the vehicle.

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