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      Client

      A leading automotive manufacturer in India

      Industry

      Automotive manufacturing

      Primary goal

      Reduce bill of material (BOM) costs across two vehicle platforms while maintaining performance and quality standards

      A leading automotive manufacturer sought to reduce product costs across its bus and multi-utility vehicle (MUV) platforms. The organisation wanted to identify sustainable cost reduction opportunities through detailed vehicle teardown studies, competitive benchmarking and value engineering while ensuring rigorous execution and implementation governance. 

      KPMG in India worked with the client to develop and implement a structured cost transformation programme spanning ideation, engineering assessment, testing and implementation.

      The opportunity

      The client was looking to optimise bill of material costs across two vehicle platforms and establish a structured mechanism for generating and implementing value engineering opportunities.

      Key challenges included: 
      • Identifying significant cost reduction opportunities across complex vehicle systems
      • Benchmarking vehicle components against competitor products to uncover optimisation opportunities
      • Balancing cost reduction objectives with engineering, quality and performance requirements
      • Coordinating implementation across multiple functions including R&D, procurement, production, testing and quality teams
      • Tracking hundreds of ideas from concept through implementation within programme timelines

      Our approach

      KPMG in India designed and executed a comprehensive teardown and value engineering programme supported by a dedicated PMO structure.

      A cross-functional team involving R&D, procurement, testing, production, process engineering, quality and sales functions was established to drive execution and governance throughout the 13-month transformation programme:

      Key capabilities:
      • Conducted detailed teardown analysis and competitor benchmarking across vehicle systems and components
      • Established baseline bill of material (BOM) costs and mapped existing cost-saving initiatives
      • Generated value analysis/value engineering (VA/VE) opportunities through systematic analysis of materials, designs, manufacturing processes and component specifications
      • Applied a structured six-stage process covering ideation, evaluation, syndication, design, testing and implementation
      • Performed cost-benefit analysis for individual opportunities prior to implementation
      • Established programme governance, dashboards and tracking mechanisms to monitor progress and benefits realisation

      The team explored multiple opportunity levers including teardown analysis, competitor benchmarking, yield improvement, alternate materials and value engineering-led design optimisation.

      The outcome

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      Generated more than 350 cost-saving ideas for each vehicle platform

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      Conducted over 100 ideation workshops to identify and refine opportunities

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      Identified approximately 8 per cent cost reduction potential for the bus platform

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      Identified approximately 10 per cent cost reduction potential for the MUV platform

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      Established a robust governance and PMO framework to track implementation and benefits realisation

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      Created repeatable methodologies and tools that could be leveraged for future vehicle programmes

      How we make the difference

      KPMG in India combines automotive sector expertise, engineering-led cost transformation capabilities and programme management discipline to help manufacturers optimise product costs at scale. By integrating teardown analysis, competitor benchmarking, value engineering and implementation governance, we help organisations unlock sustainable savings while maintaining product performance and quality.

      KPMG. Make the Difference.

      Key Contact

      Jeffry Jacob
      Jeffry Jacob

      Partner and National Sector Leader - Automotive, Industry Group Leader - Chemicals

      KPMG in India

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