Manufacturing outsourcing in the automotive industry in developed, developing, and transitional economies: A literature review with a focus on the Kyrgyz Republic

The relevance of this study of production outsourcing in the automotive industry is currently due to rapid changes in the global economy, the introduction of innovative technologies in automotive production, as well as the country’s need to attract foreign investment and create a competitive industrial base. The purpose of this study was to develop strategic recommendations to optimise manufacturing outsourcing in the automotive industry, with improved competitiveness and attract new investment in the industry. The methods employed include analytical method, classification method, functional method, statistical method, and synthesis method. The study highlighted the key aspects associated with the continuous growth of requirements in the automotive industry. Emphasis was placed on the importance of prompt response to customer needs, which requires continuous improvement of business processes and reorientation towards the final links in the production chain. The concept of using third-party services was highlighted in response to growing market demands, emphasising the need to compete on service quality and improve overall competitiveness. The analysis of the outsourcing services market in the automotive industry has revealed the main advantages and threats associated with this phenomenon and emphasised the need to introduce the concept of outsourcing in companies in this industry. Particular attention was paid to the reasons for the division of certain production processes in the automotive industry, and the strategies of companies in the automotive sector based on agile and lean production models were analysed and identified. All these aspects enable businesses to increase flexibility and competitiveness in response to the dynamic challenges of today’s automotive industry. The practical significance of this study is to provide concrete recommendations and strategic approaches for industrial enterprises in the automotive sector in Kyrgyzstan, which contributes to improving competitiveness, innovative development, and sustainable economic growth of the country.