Quick Takeaways
- 80% of automakers face launch delays due to late-stage engineering and design changes.
- Suppliers hit hardest: frequent rework, resource churn, and rising costs.
- Impact beyond timelines: quality, reliability, and service readiness also suffer.
- The way forward: early collaboration, flow-based execution, and supplier co-development.
Introduction
India’s auto industry is no stranger to ambition. From futuristic EVs to tech-packed passenger cars, the drive to deliver world-class vehicles is stronger than ever. But behind the glitzy launches and prototypes lies a systemic problem—late-stage design and engineering changes.
A new study by Vector Consulting Group reveals that 80% of OEMs (Original Equipment Manufacturers) in India are struggling with launch delays because of these last-minute shifts. And the ripple effect isn’t just about schedules—it stretches supplier capacity, raises costs, and even slows down innovation.
CXO Insights at the Core
The study draws on the perspectives of 36 CXOs across leading two-wheeler, passenger vehicle, light commercial, and heavy commercial OEMs. Their inputs make one thing crystal clear — late design changes are not isolated glitches but a systemic execution gap. From unstable design freezes to delayed supplier feedback, these leaders admit the industry is caught in a cycle of constant rework, rising costs, and missed opportunities. Their voices add weight to the findings, underscoring the urgency for early collaboration and sharper discipline in product development.
At the Heart of the Problem
At first glance, one might assume that engineering changes reduce after the prototype and validation phases. Ideally, they should fall sharply before production. But the study shows otherwise:
- Instead of dropping to less than 15% before pre-production and under 3% after launch, engineering changes remain stubbornly high well into later phases.
- Only 6% of automakers manage to follow the ideal trajectory, while 81% show significant misalignment.
- Every change—whether in tooling, software, or design—creates rework, delays, and added cost.
This shows the problem is less about technology and more about execution discipline.
The Supplier’s Burden
Suppliers, who form the backbone of the ecosystem, are facing the wrath of these shifts:
- 57% report constant rework, as resources keep getting pulled from one project to another.
- 76% experience longer lead times, delaying deliveries.
- 52% struggle with on-time commitments, affecting OEM confidence.
- 43% see cost overruns, burning budgets.
- 83% admit new tech projects get put on hold, stalling innovation.
In short, suppliers are firefighting instead of innovating.
The Wider Impact on Automakers
It’s not just the suppliers who suffer. Automakers, too, are facing knock-on effects:
- 33% struggle with product quality and reliability, even after launch.
- 20% report rising warranty costs due to unresolved issues.
- 58% say dealer and service readiness gets delayed, leading to poor customer experiences in the critical early months.
Many of these issues are only corrected after launch, which dents brand reputation and customer trust.
Why Are Late Changes Happening?
The study highlights three major reasons:
- Delayed inputs from manufacturing engineering (60%) – crucial feedback comes in too late.
- Supplier feedback delays (47%) – vendors often step in only after designs are nearly frozen.
- Unstable design freezes (13%) – constant tweaking pushes timelines further out.
These aren’t technological shortcomings—they’re management and execution lapses.
The Way Forward
Vector Consulting Group suggests a reset in how the industry approaches product development:
- Flow-based execution instead of rigid milestone tracking.
- Earlier supplier involvement at the concept stage, making them partners rather than afterthoughts.
- Work-in-progress limits to prevent overload.
- Structured triage of engineering changes, separating critical fixes from non-essential tweaks.
Adopting these practices could deliver tangible results:
- 20–30% fewer late engineering changes.
- 30–50% faster time-to-launch.
- 20–30% quicker supplier responses.
- Overall efficiency gains of 15–25%.
Conclusion
India’s auto industry stands at a crossroads. The ambition to launch advanced, world-class vehicles is undeniable, but the real challenge lies in execution. Late-stage design changes aren’t just derailing timelines—they’re straining suppliers, inflating costs, and slowing down innovation.
The good news? This isn’t a vision problem. It’s a discipline problem—and one that can be fixed. With early collaboration, smarter execution, and a stronger supplier partnership model, India has the chance to not just catch up, but lead on the global stage.