Global value chains: Indian automobile industry

Abstract

Let us look at the automobile industry from a GVC perspective. This industry (vehicles and components combined) has been a capital intensive industry. It is one of the industries that bears the merit of having a mature supply chain & value chain – as well as a mature consumer basket. Changes in this industry happen over the course of decades and disruptions happen even farther apart. There have been 3 major disruptions in the last 3 centuries. The first being the assembly line, the second being unbundling due to steam-powered transportation, and the third being another unbundling due to communication technology.