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.

Comments (0)

ADD COMMENT

Link Copied!

Tier 1 supplier Uno Minda has announced an expansion into the passenger vehicle seating systems segment with a new greenfield facility in Maharashtra.

The company’s board has approved the construction of a manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra, with an investment of INR 3.2 billion with operations scheduled to begin by Q4 FY2028.

The project will be managed by Uno Minda Tachi-S Seating, a joint venture between Uno Minda and TACHI-S Company of Japan. The joint venture, which began in September 2022 with the production of seat recliners, has now secured an order from an original equipment manufacturer (OEM) for seating systems.

Ravi Mehra, Managing Director, Uno Minda, said, "This is one of the most exciting chapters in Uno Minda's growth story. Entering the complete 4W Passenger Vehicle Seating Systems segment isn't just a product expansion — it's a strategic leap that substantially increases our per-vehicle value potential and deepens our footprint in a segment that is central to the premium vehicle experience. This greenfield facility reflects our unwavering commitment to advanced domestic manufacturing and delivering the kind of high-performance seating comfort that India's rapidly evolving automotive market demands.”

Comments (0)

ADD COMMENT

Link Copied!

Autoliv and Great Wall Motor (GWM) have signed a Global Strategic Cooperation Framework Agreement to expand their long-term partnership. The agreement follows a collaboration established in 2023 and aims to support GWM’s international expansion.

Under the framework, the companies will cooperate in areas including global business growth, supply chain management, localised operations and the development of safety systems. The partnership is intended to align innovation and product strategies.

Mikael Bratt, CEO, Autoliv, said, "Today's agreement marks an important step in our continued collaboration with Great Wall Motor. By combining GWM's international growth ambitions with Autoliv's global capabilities in automotive safety, we are strengthening the foundation for an even more integrated and resilient partnership."

Jack Wei, Chairman, Great Wall Motors, said, "Safety is the bottom line of the automotive industry. The partnership between Great Wall Motors and Autoliv began with a shared vision and a steadfast commitment to the mission of safety. Now we are strengthening our collaboration and will jointly build the industrial cornerstone of automotive safety and deliver safer Great Wall vehicles to users around the world."

Comments (0)

ADD COMMENT

Link Copied!

The Automotive Component Manufacturers Association of India (ACMA) has released its performance review for FY2025–26, which saw the industry record a turnover of USD 85.9 billion (INR 7,600 billion), representing a growth of 12.7% compared to the previous year. Over the past five years, the sector has grown at a CAGR of 17 percent.

The industry body stated that supplies to OEMs rose by 16.3 percent to INR 6,628 billion, while the aftermarket segment grew by 9 percent to INR 1,084 billion. Exports increased by 5 percent to USD 24 billion, with Europe remaining the primary market. Imports grew by 13 percent to USD 25.4 billion, largely due to demand for technology products and components from China, Japan and Germany. Supplies for electric vehicles accounted for 4.6 percent of domestic OEM supplies, excluding lithium-ion batteries.

Vinnie Mehta, Director General, ACMA, said, “FY26 reaffirmed the strength and resilience of India’s auto component industry. Robust domestic demand, continued investments in capacity and technology, and the confidence of global customers enabled the industry to deliver another year of healthy growth despite a challenging international environment. As global supply chains continue to diversify, India is steadily strengthening its position as a trusted manufacturing and sourcing partner for the global automotive industry. While imports of advanced technology products and specialised components increased during the year, they also underline the next opportunity before us - to deepen localisation, accelerate technology development and move further up the value chain. The industry’s long-term competitiveness will increasingly be defined by innovation, quality, sustainability and supply-chain resilience.”

Vikrampati Singhania, President, ACMA, added: “The medium- to long-term outlook for the Indian auto component industry remains positive. Growing domestic demand, infrastructure-led economic growth, expanding manufacturing investments, deeper global integration through Free Trade Agreements and increasing global sourcing from India are creating significant opportunities for the sector. At the same time, geopolitical developments, supply-chain disruptions, the availability of critical minerals such as rare earth magnets, logistics costs and raw material volatility will require continued strategic focus. The industry remains committed to investing in advanced manufacturing, localisation, digitalisation and sustainable mobility solutions to enhance India’s global competitiveness.”

Comments (0)

ADD COMMENT

Link Copied!

Automotive retail sales in India touched a new record for the month of June with a total of 2,557,234 units sold, up 21.83 percent YoY, as against 2,098,996 units sold for the same period last year.

As per the latest data shared by the Federation of Automobile Dealers Associations (FADA), the apex body representing automotive dealers in India, the record performance was witnessed across vehicle categories – two-wheelers, three-wheelers, passenger vehicles and commercial vehicles.

For June 2026, two-wheeler sales came at 1.82 million units, up 21.22 percent YoY, three-wheelers at 120,889 units, up 16.2 percent YoY, passenger vehicle at 410,853 units, up 26.6 percent YoY, tractors at 100,818 units, up 25.31 percent YoY and commercial vehicle at 90,972 units, up 16.8 percent YoY.

On the other hand, the construction equipment segment saw a decline of 40.94 percent YoY to 5,244 units, albeit a high base.

C S Vigneshwar, President, FADA, said, “Tractors recorded their second-best June ever. That such records have come in a seasonally transitional month underscores the structural depth of the India Growth Story and the widening aspirations of Bharat.”

He further stated that when it came to two-wheeler sales, saw a marginal MoM sequential decline due to rural demand dip on the back of late onset and uneven progress of south-west monsoon. This led to many customers opting for a ‘wait-and-watch mode’ for their purchase decisions. But on the flip side, dealers witnessed a strong demand for entry-level two-wheelers, improved supply from automakers and a decisive shift in demand for electric vehicle offerings.

“Two-wheeler electric vehicle share crossed double digits for the first time at 10.60 percent against 7.34 percent a year ago,” stated Vigneshwar.

Similarly, passenger vehicle retail sales also clocked their best performance for June, with both rural (+35.09 percent YoY) and urban markets (+24.67 percent YoY) witnessing strong demand. Share of alternative energy vehicles (CNG, hybrid and electric) crossed 40 percent share for the first time at 40.35 percent (CNG 24.33 percent, hybrid 8.27 percent and EV 7.75 percent).

“On the channel side, PV inventory increased by 1 day over May-end to 32–34 days, moving further from FADA’s recommended 21-day benchmark. We once again urge PV OEMs to calibrate dispatches to retail through the monsoon-soft July window so that dealer capital is not locked in aged stock,” said the executive.

Going forward, FADA has maintained a constructive outlook with all eyes on the onset of monsoon making up its deficit with kharif sowing gathering pace and supplies staying normalised following the West Asia ceasefire and easing crude prices.

Vigneshwar said, “For the two-wheeler segment, improving rural cashflows once rainfall catches up and the accelerating shift towards EV and fuel-efficient models should provide support, though deficient-rainfall pockets and the July OEM price hikes may keep some buyers in wait-and-watch mode. Passenger Vehicles enter the month with healthy booking pipelines, particularly in EVs and CNG, and fresh launches, while Commercial Vehicles should stay steady on freight and infrastructure-linked activity. The trajectory of the monsoon remains the single most important variable for rural demand, alongside price-hike absorption and financing turnaround times. Overall, the outlook for July’26 appears Cautiously Optimistic – with monsoon catch-up and rural cashflows the key swing factors ahead of the festive season.”

For Q2 FY2026, FADA expects continued sales momentum through the festive season. But dealers have identified a monsoon shortfall / El Niño could impact rural demand as the single biggest risk, followed by further price hikes affecting affordability and inventory pile-up pressure.

FADA expects that easing geopolitical and fuel-price uncertainty and broad policy continuity will provide a supportive runway into the festive quarter, with the monsoon the key monitorable for Bharat.

Comments (0)

ADD COMMENT

Link Copied!