Vehicle launches across the Indian automobile industry are experiencing significant delays, with vehicle launches running an average of 9-15 months behind schedule, according to a white paper by Vector Consulting Group. More complex programmes face even longer delays of 18-24 months, despite substantial investments in digital engineering capabilities. The study reveals that 93 per cent of original equipment manufacturers (OEMs) have invested more than ₹50 crore in digital product development tools over the past five years, yet these investments have not translated into timely market launches. As per Vector Consulting Group, every major automaker has experienced launch delays despite the adoption of advanced digital tools and processes.
The research identifies that automotive development delays are created much earlier than they become visible to stakeholders. 34-47 per cent of total programme delay surfaces only after tooled-up and pilot builds begin, while most organisations focus on resolving issues during physical builds. 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 such issues. According to Vector Consulting Group's managing partner Ravindra Patki, the challenge is particularly acute among automotive startups due to resource mobilisation, technology delays and financial constraints. 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 research indicates that 40-60 per cent of build-stage issues could have been prevented through stronger validation and collaboration at the design stage. Despite OEMs introducing hard quality gates, 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. As per Vector Consulting Group, Indian OEMs have not under-invested in fixing delays; they have invested in the wrong place. The study argues that identifying and resolving issues digitally during the design stage, where fitment, manufacturability and serviceability problems can be identified and resolved in hours rather than months, represents the most effective approach to preventing delays. The white paper introduced the concept of 3D maturity and outlines five enablers to help automotive manufacturers bridge this gap.
The white paper titled 'The Race is Won in the Pit Stop: 3D Maturity and the Future of New Product Development in Auto OEMs' is based on a survey of 57 senior executives, including 41 OEM CXOs (chief experience officers) and 16 Tier-1 supplier leaders across the two-wheeler, passenger vehicle, commercial vehicle and EV segments. The research spans the two-wheeler, passenger vehicle, commercial vehicle and EV segments, providing comprehensive insights into the challenges facing the Indian automotive industry's new product development processes. First published on June 23, 2026, the study highlights that by the time problems surface on the shop floor, the opportunity to solve them quickly has already passed, making upstream digital resolution the critical lever for preventing delays. The research found that nearly four in ten programmes still reach launch with unresolved issues, emphasizing the need for upstream prevention strategies.
