Auto OEM vehicle launches delayed by 9-15 months despite digital investments: Study

Mumbai: Vehicle launches by domestic auto OEMs across the industry continue to run 9-15 months behind schedule on average, according to a white paper by Vector Consulting Group.

This is despite significant investments in digital product development tools over the past five years.

The study found that as many as 93 per cent of OEMs have invested Rs 50 crore or more in such technologies.


The research found that the majority of these issues originate during the design stage, where fitment, manufacturability, and serviceability problems can be identified and resolved in hours rather than months, and at a fraction of the cost.

Titled 'The Race is Won in the Pit Stop: 3D Maturity and the Future of New Product Development in Auto OEMs,' the white paper is based on a survey of 57 senior executives, including 41 OEM CXOs (chief experience officers) and 16 Tier-1 supplier leaders across the two-wheeler, passenger vehicle, commercial vehicle and EV segments.

According to the report, automotive development delays are created much earlier than they become visible.

While most organisations focus on resolving issues during physical builds, 34-47 per cent of total programme delays surface only after tooled-up and pilot builds begin, the study said.

Survey respondents estimated that 40-60 per cent of build-stage issues could have been prevented through stronger validation and collaboration at the design stage.

"Indian OEMs have not under-invested in fixing delays; they have invested in the wrong place. Our research shows that by the time problems surface on the shop floor, the opportunity to solve them quickly has already passed,"said Ravindra Patki, Managing Partner, Vector Consulting Group.

Noting that hard gates are relaxed under launch pressure, and that nearly four in ten programmes still reach launch with unresolved issues, it said adding that "the real lever is upstream: identifying and resolving issues digitally, long before the first physical build begins."

The white paper introduced the concept of 3D maturity and outlines five enablers to help automotive manufacturers bridge this gap, including capping concurrent development programmes to protect specialist bandwidth (98 per cent respondent agreement) and instituting an empowered.