An automobile manufacturers body on Tuesday said that the industry was scouting for alternative transport models for Indian outbound automobile logistics.
According to the Society of Indian Automobile Manufacturers (SIAM), the sector was keen to find alternative logistics models for delivering vehicles like railways and waterways.
"Automobile industry has been playing an important role in the economic development of the country, contributing 7.1 per cent to the GDP (gross domestic product). In India, the logistics cost is estimated to be around 14 per cent of the GDP," said Vinod K. Dasari, President, SIAM and Managing Director, Ashok Leyland.
"We are keen to find out alternative ways like railways and waterways which will bring the advantage of lesser emissions and also add a safety factor."
Dasari spoke at the third automotive logistics conclave -- 'Optimizing operational efficiency in automotive logistics' which was organised here.
The automobile manufacturers body further said that road transport has played a pivotal role in the growth of India's automotive industry, however with increased volume, alternate modes have become extremely critical.
"At present more than 95 per cent of vehicle movement in India is through road transport," said Prem Verma, Chairman, SIAM Logistics Group and Chief Executive Officer of TML Distribution Company.
"With the automotive industry expected to grow at a double digit rate in the next decade it is imperative that the reliance on road transport should be minimized and considerable emphasis be given to other modes like railways, inland and coastal shipping."
SIAM added that government initiatives like logistics parks, standardisation of pricing, creation of better infrastructure and capacity building will help bolster growth in the sector.