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The best Automotive ERP Software in India

The best way to manage your auto dealership.

Challenges in the Automotive industry.

The automotive industry in India is going through a challenging phase. The most significant reason behind the dip in automobile sales worldwide is the Covid-19 outbreak. The trend is most likely to continue in the coming years as well. Many companies are also working on building autonomous vehicles controlled through AI and the tectonic shift from IC engine-based vehicles to electric vehicles. Let’s study these in detail.

1. The Coronavirus impact.

The Covid-19 pandemic has massively disrupted every industry, including the automotive industry. 2020 saw the biggest fall in the sales of vehicles, and there were massive layoffs. It happened primarily due to two reasons. Firstly, almost every country is heavily dependent on China to import auto components, such as drive transmission, battery technology, and steering. So when lockdowns were imposed, countries couldn’t import essential auto components from China. Secondly, there is a lack of coordination between supply chain partners, an insufficient workforce, and a shortage of capital investment for the sustainable development of this industry.

2. The growing prominence of electric vehicles.

Electric vehicles, especially those that require low human intervention, are up for the grab. Companies such as Google and Tesla are investing heavily in building intelligent applications that will make it convenient for future travelers to commute from source to destination. Some of them include internet connectivity, enhanced security features, remote parking, infotainment, Google Earth enabled navigation, hands-free support, and app to car connectivity. Are you ready for this change?

3. Drifting away from fossil fuels.

Countries worldwide are working together to bring down COx and SOx levels in the atmosphere. Governments are formulating stringent regulations for automobile companies that pollute the environment above the set threshold. Electric vehicles are emerging as a sustainable alternative to IC-engine vehicles as research shows that the former produces 50% less CO2 emissions than the latter. Customers are also becoming aware of the negative impacts of fossil fuel emissions and are gradually moving towards electric vehicles. But automotive manufacturers are struggling to build an adequate number of charging stations that will significantly boost the demand for electric vehicles.

4. Advancement in supply chain management.

The coronavirus-induced lockdowns virtually stopped all business activities. Automobile companies implemented social distancing norms for ensuring employee safety, but it had negative economic impacts because only a few employees could work at a given time inside the plant. Thus, companies need to work towards implementing digital supply chains. Tesla adopted this method for selling its electric vehicles and ditched third-party showrooms.

Sage X3 automotive ERP software is a cutting-edge solution that will help your business build market competence in the automobile industry and provide top-notch services to your customers. The following  features explain how:

a. Tracks financial and accounting activities

Sage X3 enterprise resource planning software tracks financial activities, such as quotes and cash across every department, which helps managers brainstorm effective strategies based on comprehensive financial data. It also contains intelligent tools like accounts payable, accounts receivable, general ledger, and bank management for getting a complete economic outlook. Further, it includes features that incorporate fixed assets, budgeting, depreciation schedules, and advanced reporting.

b. Monitors purchasing activities

Sage X3 enterprise resource planning software monitors each supply chain process to gather real-time information about business partners. Companies get access to intelligent tools that help oversee all exchanges with suppliers to ensure compliance with delivery dates, quality assurance, and purchase costs. Various advanced options allow delivering short-to-long processes such as PO, RFQs and responses, receiving returns and invoices, contract and blanket orders, and many more. This ERP system also manages dispute resolution and payment approval.

c. Consolidates sales activities

Sage X3 is a cutting-edge automotive industry ERP system as it manages company-wide sales activities. Your automotive business will get access to many intelligent tools such as delivery schedules, blanket orders, inventory allocation, shipping returns, and invoicing that will help you monitor short-to-long cycle sales processes. Other features include customer hold/release management, risk analysis, and statistics.

The Indian automotive industry has grown by two places, from being the seventh largest global manufacturer in 2019 to the fifth largest in 2020. Domestic automobile production increased by 2.36% CAGR and domestic automobile sales increased by 1.29% CAGR between FY 2016-2020. This sector has received a substantial FDI worth USD 25.40 billion between 2000-2020. The government has introduced the voluntary vehicle scrappage policy in 2021 that will boost demand for new vehicles. In addition, under the government’s FAME (Faster Adoption and Manufacturing of (Strong) Hybrid and Electric Vehicles) policy, 11 cities have been shortlisted to produce electric vehicles.

Future of India’s automotive industry

According to the Society of Indian Automobile Manufacturers, India took seven years to increase vehicle production from three million to four million. But the International Monetary Fund projects that the Indian automobile sector will achieve the next milestone of five million in less than five years. Here are two critical milestones that will define the future of India’s automotive industry.

Significant rise in charging outlets

India is witnessing a significant decline in the price of batteries and supporting infrastructure required to operate electric vehicles on a considerable scale. Governments and private players are investing substantially in developing charging outlets and the deployment rate will depend on the adoption speed of electric vehicles in the country. Another benefit of electrification is that people will get rid of high fuel costs and save a lot of traveling expenses. 

Massive improvement in the driver’s safety 

Statistics show that India accounts for 12% of global road deaths and more than 80% are due to driver’s negligence. Also, there is a lack of self-discipline in the driving culture causing loss of life and property. Autonomous vehicles (AVs) will decrease fatalities and reduce traffic congestion because of multiple features like driving assistance, anti-lock brake assistance, navigation service, parking assistance, and many more.

Benefits of ERP software for the automotive industry.

Automotive ERP software provides numerous benefits to companies operating in this space, from analyzing the latest market trends and managing inventory to streamlining business functions and reporting faults and failures. It also helps produce the best quality products and monitors each link of the supply chain. Here are a few benefits of ERP software:

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