Critical automotive component inventories that were previously maintained for 30-45 days are now being stocked for periods ranging from three to six months, as Indian carmakers move away from the industry's long-established "just-in-time" inventory model in favour of a more precautionary "just-in-case" strategy, according to multiple auto component suppliers.

The shift reflects a broader change in industry operations, with supply-chain disruptions increasingly being treated as an ongoing structural challenge rather than isolated events. "It is no longer possible to predict the next crisis," said Prasanth Doreswamy, President and CEO of AUMOVIO India.

Formerly known as Continental Automotive, the company supplies safety systems, electronics, and mobility solutions to automakers including Mahindra, Tata Motors, and Maruti Suzuki.

According to Doreswamy, customers are now demanding larger inventory reserves for critical components "because one disruption inevitably triggers many more".

A Pune-based supplier stated that automakers had requested the company to maintain additional inventory buffers. "It is mostly applicable to critical parts that contain imported content," he said.

Mahindra and Maruti Suzuki had not responded to emails seeking comment at the time of publication recently.

The convergence of multiple disruptions, including geopolitical tensions affecting key shipping routes, continuing semiconductor supply constraints linked to rising AI-related demand, and protectionist policies surrounding critical minerals, has compelled India's largest passenger vehicle manufacturers to revise their supply-chain strategies. The impact has also extended to smaller suppliers operating under financial constraints.

Executives stated during recent earnings calls that Mahindra & Mahindra has increased inventory buffers, diversified suppliers, and introduced real-time monitoring systems to identify potential disruptions. Maruti Suzuki has strengthened contingency planning with suppliers, while Hyundai Motor India is increasing localisation and value-engineering efforts. Tata Motors told a local daily that its supply-chain strategy focuses on localisation, supplier diversification, and maintaining "selective buffers" for critical components.

"Shortages of critical parts can lead to production outages, the costs of which would significantly outweigh the additional costs associated with maintaining inventory," said Ashim Sharma, Senior Partner at Nomura Research Institute. "A similar situation was observed with rare earth materials in different parts of the world, where stockpiles proved beneficial."

Industry executives stated that disruptions linked to rare earth restrictions, semiconductor shortages, and the West Asia crisis continue to create ripple effects across logistics, raw material supplies, and manufacturing operations.

In its response to media sources, Tata Motors stated that its supply-chain management strategy involves strengthening resilience through supplier diversification, localisation, and close collaboration across the value chain.