5 reasons why the automotive sector cannot survive without ERP software?

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ERP software in the automotive sector increases efficiency, boosts profits, enhances inter-department communication, and most importantly, automates every process.

According to the Indian automobile industry report 2020, India displaced Germany to become the fourth-largest auto market in the world in 2019. Moreover, India is expected to replace Japan and become the third-largest auto-market by 2021. The report further says that domestic automobile production has increased by 2.36% between 2016-2020. Overall, the automobile sector is expanding rapidly and companies that are outperforming have one thing in common. All of them use Enterprise Resource Planning (ERP) software to manage their daily operations. 

This blog will focus on why ERP software has become the bread and butter of the automotive sector.

1. ERP software reduces costs.

There is no doubt that integrating ERP software with automotive manufacturing systems is an expensive task. But there are numerous advantages that ERP software brings to the company that offsets every cost component involved. Firstly, it integrates all the different software interfaces that the automobile company uses to manage various departments, including:

a. Finance & Accounting

b. Sales & Marketing

c. Supply Chain

d. Vendor relations

e. Customer relationship management (CRM)

ERP software combines all these components and displays them on a single-window allowing all stakeholders to gather information conveniently. 

Secondly, automobile companies need not waste their time and resources training their employees to work on multiple software systems. 

Also Read: Add-on modules in ERP software and their benefits

2. ERP software boosts interdepartmental collaboration.

Automobile companies, or any company for that matter, can succeed only when different departments work as a cohesive force. Unfortunately, data silos or information silos restrict the free flow of information between various departments. On the other hand, ERP software promotes interdepartmental collaboration by:

a. Providing all authorized stakeholders access to critical business details from a single window.

b. Boosting database security.

c. Enhancing interdepartmental collaboration.

d. Restricting the access of unauthorized personnel from accessing confidential data.  

3. ERP software provides comprehensive reports. 

Accessing comprehensive reports is essential as it eliminates human errors and keeps everyone on the same track. ERP software produces the following reports for the automobile sector:

a. Expense statements

b. Income reports

c. Inventory status updates

d. Key Performance Indicators (KPIs)

e. Financial compliance

While generating reports, ERP software considers two things: historical data and estimations of how the market will transform based on changing customer needs and fluctuating market trends.

4. ERP software enhances customer support.

The automobile sector requires an excellent customer support service system that helps customers navigate through all the stages of the buying journey:

a. Identifying various automobiles in the showroom.

b. Collecting valuable information about the identified automobiles.

c. Evaluating the best automobiles based on the collected information.

d. Making the final purchase.

e. Assisting customers by providing best-quality support services in the post-purchase phase.

Also Read: The top customer service trends of 2021

5. ERP software maximizes productivity.

Increasing productivity has become critical for all industries, including the automobile sector. By boosting productivity, automobile companies can:

a. Increase the number of vehicles they manufacture.

b. Reduce the cost per vehicle by using autonomous systems.

c. Enables real-time tracking of raw materials and finished products across the entire supply chain.

d. Monitors the shortage and surplus in the inventory and ensures that the right product is being delivered to the right person.

e. Checks the quality of the materials produced by disposing of products that don’t adhere to the set guidelines.


ERP software provides multiple advantages to automobile companies. They significantly increase efficiency, improve transparency, promote interdepartmental collaboration, and minimize unnecessary costs. If you are looking to invest in automobile ERP software, you have landed at the right place. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software for the automobile sector that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

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