Working Paper

Automotive in South Asia : From Fringe to Global

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collection.link.213
https://openknowledge.worldbank.org/handle/10986/11866
collection.name.213
Other papers
dc.contributor.author
Saraf, Priyam
dc.date.accessioned
2016-10-06T17:08:05Z
dc.date.available
2016-10-06T17:08:05Z
dc.date.issued
2016-10-05
dc.description.abstract
The automotive sector is one of the most important industries globally and in South Asia, contributing 19 million of direct and indirect jobs in India alone. This case study identifies both reasons for success and limits on the growth of automotive in South Asia, and recommends policies to enhance its growth. The analysis focuses primarily on the experience of India and Pakistan - two of the biggest markets in South Asia - to understand key trends for the region, and compares their performance with China and Vietnam. The study finds large productivity gaps in this sector, with most OEMs having fragmented operations with low capacity utilization, quality levels and investments in skills below international benchmarks. A second—and connected—challenge is moving up the global value chain (GVCs) through greater innovation, investment in R&D and commercialization of new products which remain below global average. The report relies on the latest available data and tools as well as new evidence collected from semi-structured surveys and primary interviews with the senior executives, middle management and plant-level technical staff in a cross-section of automotive firms. The study documents, in particular, experiences of leading auto-parts manufacturers who distinguished themselves by achieving scale and operational excellence by linking to GVCs. What did that require? How did they overcome the fixed cost to exporting? In its final section, the study summarizes policy recommendations to unblock the barriers to achieving higher productivity with job-creation, and move from a ‘domestic growth under protection’ model to a more sustainable ‘productivity driven global growth’ model.
en
dc.identifier.uri
http://hdl.handle.net/10986/25119
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
export competitiveness
dc.subject
auto sector
dc.subject
productivity
dc.subject
spatial economics
dc.subject
clusters
dc.subject
trade protection
dc.subject
industry standards
dc.subject
tax policy
dc.subject
logistics
dc.subject
SME
dc.subject
small business
dc.subject
microenterprises
dc.subject
environmental standards
dc.subject
import tariffs
dc.subject
workforce skills
dc.subject
quality tools
dc.subject
access to finance
dc.title
Automotive in South Asia
en
dc.title.subtitle
From Fringe to Global
dc.type
Working Paper
okr.associatedcontent
https://openknowledge.worldbank.org/handle/10986/25094 South Asia's Turn main volume
okr.date.disclosure
2016-10-06
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2016/10/26845778/automotive-south-asia-fringe-global-south-asia’s-turn-policies-boost-competitiveness-create-next-export-powerhouse
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b0845ff7cb_1_0
okr.identifier.internaldocumentum
26845778
okr.identifier.report
108826
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/413581475756332802/pdf/108826-WP-P146865-PUBLIC.pdf
en
okr.region.administrative
South Asia
okr.region.country
India
okr.region.country
Pakistan
okr.region.geographical
South Asia
okr.sector
Industry and trade
okr.theme
Financial and private sector development :: Regulation and competition policy
okr.theme
Financial and private sector development :: Infrastructure services for private sector development
okr.theme
Financial and private sector development :: Micro, Small and Medium Enterprise support
okr.topic
Industry :: General Manufacturing
okr.topic
Industry :: Industrial Economics
okr.topic
International Economics and Trade :: Export Competitiveness
okr.topic
International Economics and Trade :: Trade Policy
okr.topic
Private Sector Development :: Competitiveness and Competition Policy
okr.topic
Private Sector Development :: Small and Medium Size Enterprises
okr.unit
T&C GP-South Asia - IBRD (GTC06)

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