Auto launches delayed despite heavy investments in digital tech: Report

Vehicle launches are running 9-15 months behind schedule despite significant spending on digital product development tools, according to a Vector Consulting Group study

Automobile manufacturers continue to face significant delays in bringing new vehicles to market, despite substantial investments in digital engineering and product development tools.

 

According to a white paper by Vector Consulting Group, vehicle launches across the industry are running 9-15 months behind schedule on average, while more complex programmes are delayed by as much as 18-24 months. This is despite 93 per cent of original equipment manufacturers (OEMs) having invested more than ₹50 crore in digital product development capabilities over the past five years.

 

The study noted that every major automaker has experienced launch delays despite the adoption of advanced digital tools and processes. "The challenge appears even more acute among automotive startups, where programme slippages are often longer. This is due to various reasons, like resource mobilisation, technology delays, and financial constraints, among others," said Ravindra Patki, managing partner, Vector Consulting Group.

 

The white paper argues that 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 the total programme delay surfaces only after tool-up and pilot builds begin. 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.

 

The study found that 39 per cent of programmes reach the start of production with fitment, serviceability, or quality issues still unresolved. Even where OEMs have introduced hard quality gates to prevent this, 47 per cent of respondents admit that these gates are relaxed under launch pressure. 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. Hard gates are relaxed under launch pressure, and nearly four in 10 programmes still reach launch with unresolved issues. The real lever is upstream: identifying and resolving issues digitally, long before the first physical build begins,” said Patki.

 

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