Indo-German ESP Partnerships in Auto Industry

The multi-faceted transition in the automotive space in Germany brings several chances and challenges to all players. The OEMs as prime movers are facing increasing competition, particularly in the EV sector from Chinese companies. In the foreseeable future, these major players need to offer both traditional ICE-powered vehicles alongside EVs and other alternative drive trains, thus expanding the product range and complexity. With the move towards increasing levels of self-driving autonomy. The current situation has the makings of a “perfect storm” for the OEMs and the total supply chain.

The pressure on the OEMs to deliver to cost and on time in an increasingly competitive environment creates opportunities for both German and Indian engineering service providers to deliver at various levels and degrees of complexity. This situation offers chances for small and medium-sized Indian and German engineering service providers to form cooperation or joint ventures.

German OEMs and tier-one suppliers have used and are using Indian engineering service providers primarily for low-complexity work requiring a minimum of interaction. The need to look for higher complexity and value work from Indian ESP to meet cost underlines a further challenge. The number of well-trained engineers in Germany is decreasing following the demographic…