Are Supply Chain Disruptions Threatening Eastern EV Boom?

Asian automotive manufacturers are experiencing rapid growth – largely as a result of the electric vehicle boom.

Clearly, having a reliable supply chain is paramount if these organisations and their strategic partners are to ship their goods and services around the world. 

However, according to a study from Vinturas, the Strait of Malacca emerged as the 2024 hotspot for industry supply chain delays, with 40% of automotive business leaders saying they experienced hold-ups in the region and a further third (33%) reported lost cargo. 

Issues were not isolated to the Intra-Asian waterway. A third (33%) of those surveyed reported delays traversing the Suez Canal (33%), followed by the Panama Canal (31%) and the Danish straits (27%).

Overall, more than one in seven (15%) experienced significant delays to shipments in 2024.

“As the automotive market continues to grow across Asia, it’s alarming to see so many in the industry reporting delays in critical shipping channels like the Strait of Malacca,” comments Ronald Kleijwegt, CEO at Vinturas.

“As well as delays, we’re also seeing shipments and finished vehicles go lost, which simply shouldn’t be happening in today’s world where technology has the power to ensure all the cogs in a supply chain are secure and streamlined.”

Shipment challenges

Vinturas’ research shows that automotive manufacturers were confronted with numerous challenges throughout 2024 when it comes to managing shipments in the supply chain. 

Thirty per cent say the biggest pain point was managing the stress of dealing with global shock events, followed by cross border regulatory and compliance issues (27%) and lost shipments (25%).

But not all issues in the automotive industry supply chain are regulatory or geopolitical. More than a third (36%) of automotive supply chain business leaders reveal that inefficient communication between supply chain partners has hindered business efficiency, followed by lack of visibility into supplier performance (35%).

In an age where technology can give businesses the edge, 34% are still being let down by “human error” in the supply chain causing mistakes and delays.

Ronald continues: “With so many vehicles and parts coming from Asia as a hotspot for manufacturing, the traditional model of siloed operations, where each partner operates independently, simply won’t work in the modern world – especially in the EV era. 

“There’s no denying that the automotive industry needs a complete overhaul, and it’s good to see smart manufacturers prioritising a rebuild of their tech infrastructure for 2025.”

Tech investments top of mind

There can be little surprise that, as leaders look to take action to resolve issues in 2025, a quarter say they are looking to invest in transportation management systems over the next year. 

Other areas earmarked for investment include sustainability and carbon footprint tracking tools (25%), interoperability solutions to improve collaboration between parties in the supply chain (23%) and broader supply chain analytics and reporting platforms (24%).

“For the EV supply chain to thrive, we must shift our perspective from fragmented communication and limited visibility to embracing a holistic ecosystem—one that seamlessly integrates global goods movement to support the completion and transportation of shipments and vehicles through a robust, interconnected supply chain. If we don’t do this in 2025, we will only see more delays and roadblocks in the automotive industry.”

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