With a dense population and growing economies spurring demand for vehicles, the Asia-Pacific region has emerged as the largest market for the automotive sector, which is known to have one of the most sophisticated supply chains globally. Further, while the global automotive 3PL market is projected to register a CAGR of >7% between 2024-2029, Asia-Pacific accounts for the largest market share in the global automotive 3PL Market, and estimated to grow at the highest CAGR, globally.
Global automotive giants are looking for a 3PL partner who can match international standards and metrics. It’s no wonder then that one of the world’s leading auto manufacturers chose Allcargo Supply Chain to be their partner.
Supporting the automotive sector
For the automotive industry, speed and accuracy are crucial to ensuring it is business as usual. With a team of experts and digitally enabled warehouse solutions, the automotive sector is an area of specialisation for Allcargo Supply Chain.
For this specific client – one of the most respected automotive manufacturers in the world, with its manufacturing base in Pune, Allcargo Supply Chain will be providing a host of services.
While Allcargo Group’s express distribution wing, Gati already provides express distribution services from the central warehouse in Pune, Bengaluru and Gurugram for their aftermarket requirements, a milk-run solution for spare parts from Pune to Vapi, Surat, Rajkot, Baroda, etc. in Gujarat has also been created. In addition to this, Allcargo Supply Chain has been entrusted to manage their spares distribution centres in Bengaluru which is over 95,000 sq. ft., and in Gurugram that measures 1,15,000 sq. ft. Operations will go live in the next couple of months, creating a comprehensive suite of services.
The Great Indian Automotive Market
On account of large consumption markets and manufacturing capabilities, India is the world’s third-largest automobile market.
The Indian automobile industry is a reliable indicator on the economy’s performance, since it plays a crucial role in macroeconomic expansion and technological advancement. November and December 2023 saw record sales of cars in India.
In FY23, the automobile sector’s share of the national GDP increased from 2.77% in 1992-93 to around 7.1% presently. It employs about 19 million people directly and indirectly.
India being a young market sees significant demand for vehicles, this is one of the key factors that will attract even more auto manufacturers to the subcontinent.
Allcargo Supply Chain is ready to support this all-important sector with exceptional services differentiated by its customer centric approach and focus on ESG.
The ideal 3PL partner
Allcargo Supply Chain is the contract logistics division of India’s largest integrated logistics solutions provider, Allcargo Group. The company is known to offer excellent 3PL solutions for the automotive, chemical, pharmaceutical, food, and e-commerce sectors, with customer satisfaction being its USP. Allcargo Supply Chain has more than 27 multi-user chemical warehouses, offering approximately 15 lakh sq. ft. across India, serving more than 70 companies. In addition tofollowing internationally benchmarked best practices, Allcargo Supply Chain has a proven track record of providing excellent service and solutions.