Trends: Smart manufacturing

Insurance: Tyred or just tired?

Witnessing manufacturing modernisation since Maruti Udyog began producing cars in collaboration with Suzuki of Japan at Gurgaon in 1984, the Indian auto industry landscape has drastically changed. Opening up to automation with the installation of some of the best robots available at Kuka, ABB and others, the auto industry has left no stone unturned. Such has been the fervor that Tal, a Tata Motors company, launched a robot called Brabo in 2018 to make manufacturing processes involving the application of sealants, picking and placing of parts, welding and vision inspection reliable and easy to perform. Made with an eye on manufacturing process the world over, the Brabo was tested in over 50 work streams and has so far found use in sectors like lighting, aerospace, software, electronics, plastics, education and logistics sectors apart from the auto industry. Coming from an auto maker that installed 300 Kuka robots to automate the assembly of Sumo and Safari at its Pune plant in 2009, the Brabo has seen many rounds of development and application-preparedness since its launch.                

Smart manufacturing trend

Highlighting the smart manufacturing trend, the TAL Brabo robot with payloads of two and 10 kilos has also found favour with companies in Europe and other places. Highlighting the prowess of Artificial Intelligence (AI) and Internet of Things (IoT), the robot is an example of the fast-changing manufacturing canvas. Producing about 1,286 engines per day, the Igatpuri plant of Mahindra & Mahindra became India's first carbon-neutral manufacturing facility by adopting smart manufacturing practices under Industry 4.0 in 2019. It invested in energy efficient technologies among others. It invested in recycling of water and other waste. It invested in solar panels to power some of its processes in the plant. An industry source expressed that the rapidly changing business environment the world over is providing impetus to smart manufacturing. It is driving efficiency enhancements and collaborations, he added. Emphasising on efficiency enhancements and collaborative efforts as key smart manufacturing drivers, an industry expert stated that technologies like AI, Industrial Internet of Things (IIoT), automation, big data and 5G are the biggest triggers. They are touching every aspect of manufacturing, from sourcing of raw materials to final inspection, he quipped.  

 

Industry 4.0

As companies like Lincode (it has collaborated with Switzerland-based Global Automotive Alliance), specialising in AI-powered visual inspection with multiple patent-pending defect detection capabilities, find more and more takers in India, the smart manufacturing shift is continuing to take place despite disruptions. It has, in fact, gained speed in India with the race to successfully accomplish BS VI transition in the last few years. A source in the auto industry mentioned that BS VI transition led to manufacturers upping their global ambitions. Vinay Raghunath, Partner and Leader, Automotive Sector, EY India, averred in a report that automotive shop floors are evolving and adopting digital technologies. This, he added, is happening amid challenges like slowdown in demand, non-availability of labour, concerns on health and safety management on the shop floor. Witnessing disruptions relating to ROI among other factors, as Raghunath has informed, the Indian auto industry has been an early adopter of digital manufacturing techniques.  

Working to dial higher efficiency, expertise and superior productivity, the Indian auto industry has been overhauling existing assembly lines, erecting new ones and extensively re-evaluating its manufacturing processes and practices in view of smart manufacturing, especially from an automotive value chain point of view. Taking to Industry 4.0, it is leveraging AI and IoT-based manufacturing technologies to automate further – to engage in machine-to-machine communication (M2M) such that there is self-monitoring as well as self-diagnosing. Taking to Industry 4.0 to tackle unanticipated disruptions like the Covid-19 pandemic, which has put well-oiled supply chains and production lines to the test and made it painfully clear that they in their current form are not as agile or resilient as expected, the auto industry is shifting to smart manufacturing in a big way. It is exploring and experimenting; it is finding new ways. It is doing so as it absorbs a significant change in technologies and products like electrification and EVs.

 

Operator 4.0 and hyper-intelligence

Investing heavily in data analytics infrastructure and capabilities, the auto industry is leveraging opportunities to digitally transform itself. It is defining the boundaries of physics for data-driven model. It is focusing on digital skills development. It is supporting the rise of Operator 4.0. Taking to collaborative robots that coexist with humans in a workplace, it is transforming its ways of manufacturing significantly. Drawing attention to the semi-conductor shortage and how the auto industry was affected despite using only 10 percent of the production, Vipin Sondhi, Managing Director, Ashok Leyland, explained that the rapidly changing consumer psyche is dictating a move to a completely different technological aspect. Emphasising on material technology, he said smart manufacturing is about digitising and achieving cost competitiveness. It was some two to three years ago that the Chennai-based CV maker began implementing smart manufacturing technologies to mitigate challenges. It took to modernising and digitising existing workplaces to address quality issues that are difficult for human beings to detect and acquire made-to-order or mass customisation capabilities. It took to equipping itself with an ability to expand and contract in tandem with the market conditions even as it took to modularisation of product lines.  

Automating its cab panel pressing plant at Hosur in 2019, which increased the output by up to 66 percent, Ashok Leyland has been one of the many automotive OEMs globally that are investing in hyper-intelligent automation. A confluence of AI and Robotic Process Automation (RPA), hyper-intelligent automation is redefining not just Industry 4.0 but also Operator 4.0. It is facing challenges like the high initial acquisition cost in terms of tools, but that isn’t worrying players involved like Tata Consultancy Services, Wipro, Mitsubishi Electric Corporation, Catalytic Inc and Infosys Limited among others. Estimated to grow at a CAGR of 18.9 percent as manufacturers strive to reduce energy consumption, up quality and reliability, and control costs through predictability and data-driven unique insights, hyper-intelligent automation is turning out to be yet another finer aspect of smart manufacturing. It is proving to be a big enabler for automating repetitive tasks – to enhance efficiencies, to take to cloud computing to ensure significantly more flexibility and to achieve scalability and the ability to collaborate and reduce costs.

Increasing visibility, predictability and enhancing control on operations and inventory, hyper-intelligent automation is aiding effective decision-making. Supported by development of new technologies such as 5G, which according to a domain expert, promises the need for speed and flexibility along with the capability to eliminate network instability or downtime, hyper-intelligent automation is helping automotive suppliers like Rane Madras Limited to make efficiency, reliability and cost control gains. In 2018, the company adopted automated solutions of Mistubishi Electric Corporation for its new plant in Gujarat. It led to a significant decrease in energy consumption. Aiding smart manufacturing, technologies like hyper-intelligent automation and 5G are helping the auto industry to achieve resilience and immunity against future uncertainties. They are helping to integrate Information Technology (IT) systems used for data-centric computing with Operational Technology (OT) systems – for data readiness and cyber security, and for the development of digital talent. Technologies like hyper-intelligent automation and 5G are helping to develop cross-functional profiles like engineering-manufacturing, manufacturing-maintenance and safety-security.

                                  

Tackling disruptions and smart working environment

Looking at productivity gains, emerging competition and risk aversity in the globalised world as per the EY report, the auto industry is taking to smart manufacturing to achieve significant technology transformations like electromobility as well. Apart from the creation of a smart working environment, it is also looking at the use of new materials, new process guidelines and practices. With health also becoming a disruptive factor in recent times, the auto industry is looking at automation in processes like inbound logistics, production planning, sourcing, press shop, body shop, paint shop, quality control and outbound logistics through data visualisation. With sensors and analytics shaping up, the smart working environment in a factory is coming to include AI-based alerts and fully automated work floors. This is increasingly getting compounded by data collection, historical data and high-quality extensive data mining. Helping to guarantee ROI, smart manufacturing is helping to lower the ‘takt’ time. It is also ironically undermining the involvement of humans on the shop floor.   

Reducing the cost of computation, storage and connectivity, smart manufacturing is coming of age with plummeting prices of sensors, 3D printers and robots. Empowering cloud-based manufacturing techniques and a gradual increase in the understanding of emerging technologies, smart manufacturing is providing an advantage in terms of the ability to respond to market changes quickly. Taking to develop a new light-duty truck platform with export ambitions and flexibility in terms of left-hand drive and right-hand drive orientation, VE Commercial Vehicles Ltd took to automating its welding line with robots at its Pithampur plant. It also took to robotising its windshield pasting station among others. Experiencing quality, consistency, efficiency and cost gains, the CV maker is also known to have reduced the takt time and energy consumption. As global ambitions and modularity strike in view of the ability to explore new export markets with a cost competitive BS VI product, the auto industry in India is using embedded sensors, RFID and GPS etc. for smart tracking. It is using smart manufacturing technologies to monitor parameters like temperature, pressure, vibration, machine rpm and flow rate.

 

 

Smart flexibility

As part of a shift to smart manufacturing, automakers and suppliers are resorting to flexible manufacturing and AR-based solutions to upskill. They are, in view of the technologies like connected vehicles and EVs, stressing on re-aligning their traditional manufacturing setups with that of the future. Emphasising on quality, resource optimisation, streamlining of business processes and adoption of new emerging technologies, they are closely evaluating the advantages of solutions like digital twins and rapid prototyping using additive manufacturing offer. With ROI on their mind, they are embracing smart manufacturing to move up the value chain.

 

Trucks - Delhi

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a landmark two-year scheme designed to curb air pollution and accelerate the transition to cleaner transit across the Delhi–National Capital Region (NCR).

Funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA), the program will be jointly executed by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG). The initiative will operate in direct collaboration with the participating governments of Delhi, Haryana, Rajasthan and Uttar Pradesh.

The scheme features a total financial outlay of INR 95.85 billion, which includes an INR 50.41 billion capital commitment from the Central Government and an estimated INR 16.01 billion allocated via tax concessions from the participating states.

The program targets the replacement of heavy commercial vehicles currently complying with BS-IV or earlier emission standards with newer BS-VI (or stricter) compliance models and electric vehicles (EVs). According to data cited from an August 2018 source apportionment study by the Automotive Research Association of India (ARAI) and The Energy and Resources Institute (TERI):

  • Sector Emissions: The transport sector drives 14 percent of PM2.5, 40 percent of Carbon Monoxide (CO), and 63 percent of Nitrogen Oxide (NOx) emissions in Delhi-NCR.
  • High-Impact Fleet: Within this sector, trucks and buses account for 36 percent of total PM2.5 emissions while making up just 3 percent of the active vehicle fleet.
  • Technology Gap: A single Pre-BS heavy-duty vehicle emits as much particulate matter as 14 BS-VI vehicles, while an older BS-IV truck emits 2.7 times more than its BS-VI counterpart.

The fleet modernisation drive is expected to benefit approximately 207,000 vehicle owners across the NCR, encompassing 191,000 trucks and 16,329 buses. Government-owned fleets are explicitly excluded from the scheme.

The operational guidelines differ by vehicle generation and state jurisdictions:

  • BS-III or Older Vehicles: Owners must format and scrap old assets at a Registered Vehicle Scrapping Facility (RVSF).
  • BS-IV Vehicles: May either be scrapped or sold outside the NCR boundary into non-NCAP (National Clean Air Programme) cities and towns.
  • Replacement Registration: New replacement vehicles must be registered inside the NCR.
  • Delhi-Specific Mandates: Within the National Capital Territory of Delhi, all Light Goods Vehicles (LGVs) purchased under this framework must be purely electric, while new buses are restricted to either BS-VI CNG or electric drivetrains.

To offset transition costs for operators, the program bundles financial support from the central government, state bodies, and original equipment manufacturers (OEMs):

Stakeholder

Offered Incentives & Subsidies

Central Government

5 percent interest subvention on commercial vehicle loans for 5-years. Monthly fuel vouchers worth up to INR 4,800 (determined by vehicle category). Lump-sum subsidies for EV adoption or Certificate of Deposit trading.

State Governments

Complete waiver of vehicle registration fees. Up to 100 percent motor vehicle tax concessions for new vehicles and 50 percent for used vehicles for 10-years. Full waiver of outstanding or pending liabilities on the retiring old vehicles.

Auto OEMs

8 percent flat discount on ex-showroom vehicle pricing.

The rollout will operate entirely via an integrated digital portal designed to handle real-time eligibility screening, automated processing for interest subventions, monthly credit distribution for fuel vouchers, and structural tracking of net pollution reduction metrics. While the enrollment window spans two years, the central government's financial benefits will remain active for 5 years from a vehicle's individual registration date to provide sustained operational relief.

Administrative monitoring will be directed by a high-level Empowered Committee chaired by the Cabinet Secretary. The body will include the CEO of NITI Aayog, Secretaries from MoHUA, MoRTH, MoPNG, and the Department of Financial Services (DFS), alongside the Chief Secretaries of the participating NCR states, with the Member Secretary of the NCRPB serving as the member convenor. Local execution and district-level compliance will be managed by respective District Magistrates and District Collectors.

Shailesh Chandra, President, SIAM, said, “This is a positive step towards accelerating the adoption of cleaner vehicles in Delhi NCR. A combination of 5 percent interest subvention by the Centre, road tax concessions by States, monthly fuel vouchers of up to INR 4,800 by OMCs, and discounts by OEMs allows participation from all stakeholders to provide an opportunity to owners of old Commercial Vehicles to leverage the programme, thereby contributing to reducing pollution load in NCR.”

Girish Wagh, MD & CEO, Tata Motors, said, “The approval of this scheme is a positive step towards accelerating fleet modernisation and cleaner mobility in the Delhi-NCR region. Aligned with our commitment to make cargo and passenger transportation greener and more efficient, we are well positioned to support this transition through our expansive portfolio of BS-VI and zero-emission commercial vehicles, and our nationwide network of Re.Wi.Re registered vehicle scrapping facilities. We look forward to studying the finer details of the notification to further align our efforts towards building a more sustainable and modern commercial vehicle ecosystem.”

B. Srinivas, MD & CEO, VECV, said, “We applaud the Government for approving the vehicle replacement scheme for Delhi-NCR. This is a significant step towards accelerating fleet modernisation while addressing one of the region’s most pressing environmental challenges. As India progresses towards its Net Zero 2070 ambitions, such initiatives demonstrate how policy, industry and technology can come together to drive sustainable mobility. At VECV we believe this will not only support cleaner transportation in Delhi-NCR but also serve as a model for fleet renewal and modernisation across the country during its Amrit Kaal. We are committed to supporting our customers through this transition with a wide range of Eicher and Volvo trucks and buses offering fuel options covering electrics, CNG, LNG and clean BSVI diesel.”

Silvio Napoli Assumes Role As CEO Of Lucid Following Leadership Transition

Silvio Napoli - Lucid

American automotive and technology company Lucid Group has announced that Silvio Napoli has officially assumed the role of Chief Executive Officer (CEO), effective immediately. The appointment completes a scheduled leadership transition that was initially announced on April 14.

He succeeds Marc Winterhoff, who has completed his tenure as Interim CEO and returned to his previous position as Chief Operating Officer (COO), reporting directly to Napoli.

Napoli joins the software-defined vehicle and technology manufacturer following a career in global industrial management. He most recently served as the Chairman and Chief Executive Officer of the Schindler Group, where his responsibilities covered large-scale international operations, financial management and corporate technology strategies.

According to management, Napoli's immediate operational roadmap for Lucid will prioritise several structural developments, including streamlining internal processes and organisational structures to improve execution while deepening overall customer engagement. He will also be responsible for driving cost competitiveness across the vehicle manufacturing pipelines and instituting stricter accountability metrics across operational teams.

The transition comes as Lucid looks to stabilise its long-term market position and scale its technical product offerings.

Turqi Alnowaiser, Chairman of the Lucid Board of Directors, said, "On behalf of the Board, we are pleased to have Silvio as CEO at this important stage for Lucid. The Board remains fully committed and focused to Lucid's long-term future, and we have strong confidence in Silvio's leadership."

Silvio Napoli, added, "After spending time with our teams and gaining deeper firsthand experience with our products and technology, I'm increasingly confident in our ability to deliver consistent execution and long-term value. Our focus will be on strengthening customer engagement, operating with consistency and accountability, achieving cost competitiveness and streamlining our organization and processes to fully leverage the strength of our team."

African EV Platform Spiro Raises $215 Million, Pune Tech Center To Drive Continental Scale

Spiro

African electric mobility and battery-swapping platform Spiro has secured a USD 215 million investment round to accelerate the deployment of its clean energy infrastructure across Africa.

The equity round was backed by global institutional investors, including Impact Fund Denmark and Equitane, alongside continued support from long-standing partners such as FEDA.

The pan-African expansion will be anchored by technological innovation, research and development and artificial intelligence-driven energy analytics out of Spiro’s Global Technology and Engineering Center located in Pune, India.

Founded by Indian entrepreneur Gagan Gupta under the Equitane Group, Spiro has transitioned past its proof-of-concept phase to become the largest electric mobility player in Africa. The company's operational infrastructure across the continent includes over 100,000 active electric motorcycles and a network of 2,500 automated battery-swapping stations.

The operations span seven fast-growing urban markets, including Kenya, Rwanda, Uganda, Togo, Benin, Nigeria and Cameroon. It has established a dedicated manufacturing and assembly plants located in Kenya, Rwanda and Uganda, complemented by a battery recycling facility in Nigeria.

The Pune-based innovation hub houses more than 150 engineers and manages over 30 proprietary patents. Technical developments focus on IoT-enabled, solar-powered swap stations and secondary-life battery applications for stationary renewable energy storage.

The new capital will be deployed to expand this battery-swapping network, strengthen local industrial manufacturing footprints, and support entry into additional high-growth African markets, such as the Democratic Republic of the Congo (DRC) and Ethiopia.

The company claims operating a Spiro electric vehicle reduces daily mobility expenses by up to 40 percent, translating to savings of up to USD 2 per day compared to internal combustion engine motorcycles.

A third-party verified lifecycle assessment in Kenya indicated that Spiro's electric bikes deliver a 72 percent reduction in climate impact compared to fossil-fuel alternatives, avoiding roughly 19 tonnes of CO2 emissions over a single vehicle's lifespan. The study also registered an 80 percent reduction in ozone depletion potential and a 20% reduction in particulate matter emissions, mitigating public health risks in rapidly expanding urban centres.

Gagan Gupta, Founder of Spiro and Chairman of Equitane, said, “This past year marked a defining strategic milestone for Spiro. Across seven active markets, our deployment of 100,000 electric vehicles and 2,500 smart-swap stations has turned sustainable mobility into an affordable, everyday reality. Spiro has become a major driver of local industrialization, value creation and manufacturing across African markets with 6,000 sustainable direct and indirect jobs. Supported by our global pool of investors, we are entering our next growth chapter to deliver clean, cost-effective energy and transport alternatives to millions of riders across the continent”.

Lars Bo Bertram, CEO, Impact Fund Denmark, added, “We are investing in Spiro and bringing Danish pension capital into one of Africa’s most promising growth markets because we see potential for significant commercial growth in Spiro and electric mobility across Africa, as well as measurable climate impact. That is exactly the type of investment we want to make”.

Amit Arora Joins VinFast India As Director O2O Sales

Amit Arora - VinFast India

VinFast India, one of the youngest electric vehicle manufacturers in the country and part of the Vietnamese conglomerate VinFast Group, has appointed Amit Arora as its new Director – O2O (online-to-offline) Sales.

In his new role, he will be responsible for building VinFast India’s retail presence, focussing on converting digital leads into actual sales.

Arora has more than two decades of experience in the automotive industry across marketing and sales functions. Till recently, he was the Head of Marketing for V-Green, part of VinFast Group, focusing on building the company’s brand presence, customer acquisition and support business growth in the EV charging ecosystem.

He also oversaw brand positioning, campaigns, partnerships and demand generation across segments.

Prior to that Arora, spent close to 11-years at Maruti Suzuki India as Senior Manager for International Markets, focussing on the Latin America and Oceania region. He also spent around 6 years of his career at Hyundai Motor India and rose to the ranks of Head of Sales Marketing Strategy.

Arora is a Commerce Graduate from Shaheed Bhagat Singh College and also holds a Postgraduate Degree in International Business from Birla Institute of Management Technology (BIMTECH).