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.

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Larsen & Toubro (L&T) has signed a Memorandum of Understanding with TuTr Hyperloop, an IIT Madras-incubated deep-tech startup, to develop and deploy next-generation mobility infrastructure in India.

The agreement creates a framework for L&T and TuTr Hyperloop to collaborate on Linear Induction Motor-based propulsion systems, vacuum tube structures, pressure management systems, civil engineering works, electrical infrastructure, signalling and telecommunications integration.

Project-specific agreements will follow to define execution terms across freight logistics, port connectivity and industrial transit applications. The technical roadmap aims to progress from linear induction systems toward magnetic levitation and vacuum-based transportation networks.

The partnership combines L&T's engineering, procurement and construction capabilities with TuTr Hyperloop's electromagnetic propulsion research to assess commercial viability, conduct technical feasibility studies and engage prospective customers for hyperloop transit projects in India.

S V Desai, Whole-Time Director and Senior Executive VP of Infrastructure, L&T, said, "Hyperloop represents an exciting frontier in next-generation mobility, with the potential to redefine the movement of people and goods. Its innovative propulsion technology and low-friction environment enable faster transit, improved logistics efficiency, reduced energy consumption and lower emissions. Translating such technological innovation into practical deployment requires robust engineering, scalable infrastructure and close collaboration across the ecosystem. Our partnership with TuTr Hyperloop is a step in that direction."

Prof. Satya Chakravarthy, Professor, IIT Madras, said, "The transition of advanced mobility technologies from research and development to real-world deployment requires strong collaboration between academia, technology developers and industry. This partnership between TuTr Hyperloop and L&T brings together complementary strengths that can help address the engineering and infrastructure challenges involved in scaling next-generation transportation systems. It is an encouraging step towards translating indigenous innovation into practical, deployable solutions for India."

Dr Aravind S Bharadwaj, Co-Founder and CEO, TuTr Hyperloop, said, "At TuTr Hyperloop, our focus is on developing indigenous mobility technologies that can address real-world transportation and logistics challenges. Our collaboration with L&T brings together our capabilities in electromagnetic propulsion, advanced mobility systems and technology development with L&T’s extensive engineering and infrastructure execution expertise. Together, we aim to work on commercialisation these technologies."

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Coatings manufacturer Axalta Coating Systems has introduced Redefined, a ruby-red finish, as its 2027 Global Automotive Colour of the Year during the Automechanika exhibition in Frankfurt.

The finish incorporates pigment and effect technology designed to create depth and light reflection across vehicle body panels. Redefined marks an evolution of the red hue introduced with Radiant Red, Axalta's initial Colour of the Year selection 13 years ago. The development reflects market research into consumer preferences for vehicle personalisation and colour depth across global automotive markets.

Axalta's colour formulation teams utilise market trends and coating science to develop manufacturable formulations for global original equipment manufacturers and refinish networks. The 2027 selection is structured for application across multiple vehicle segments and production lines.

Matthew Boland, Vice-President of Global Refinish Technology, Axalta, said, "Redefined represents where we see automotive colour going, expressive and individual, but still refined and timeless. The deepness of the ruby tone combined with its luminosity and depth creates a colour that comes alive with the vehicle. It's a great example of how we can take a familiar colour and use the art and science of coatings to give it an entirely new perspective."

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South Korean automotive major Hyundai Motor Group has announced a USD 15.5 billion investment plan for India from 2026 through 2032. The strategy was outlined during a meeting between Indian Prime Minister Narendra Modi and Hyundai Motor Group Executive Chair Euisun Chung at the Prime Minister’s Office in New Delhi.

To execute the 7-year plan, Hyundai Motor Group will establish a dedicated investment entity in India to manage capital allocation across manufacturing expansion, research and development, supply chain localisation and mobility services.

The investment includes an allocation of approximately USD 700 million to expand the Group's Indian R&D centre and build a vehicle testing track facility. Manufacturing expansion will focus on scaling production capacity across Hyundai Motor India and Kia India to support domestic sales and export operations.

At present, the Group maintains an annual production capacity exceeding 1.4 million vehicles in India across Hyundai facilities in Chennai (824,000 units) and Pune (170,000 units), alongside Kia India's Anantapur plant (431,000 units).

The investment strategy also targets local component sourcing, electric vehicle charging infrastructure, specialised vehicle financing, end-of-life vehicle recycling and startup investments across India's automotive sector.

"India remains one of Hyundai Motor Group’s most important and strategic markets globally. The past 30 years have been defined by our commitment to India. This investment reaffirms our commitment to India for the next 30 years and beyond. Through this investment, we will create more employment opportunities and work together with our partners and stakeholders to support India’s continued industrial development," said Chung.

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Electric bus operator GreenCell Mobility, a portfolio company of Eversource Capital, has secured an equity investment of INR 3.3 billion from Impact Fund Denmark. The capital will support the deployment of approximately 4,500 electric buses, bringing GreenCell's total fleet to over 5,000 e-buses across 105 cities in India.

The funding supports GreenCell Mobility's expanding order book across intra-city municipal transport and intercity routes. The platform operates as an original equipment manufacturer-agnostic operator, managing bus procurement, depot charging infrastructure and fleet maintenance contracts under public-private partnerships and private operations.

The investment joins existing institutional backers of GreenCell, including the International Finance Corporation, British International Investment and Tata Capital, as the company expands its operational footprint across urban transport corridors in India.

Dhanpal Jhaveri, CEO, Eversource Capital, said, "Electric public mobility is moving from an emerging opportunity to an investable infrastructure asset class in India. GreenCell was created with that conviction – to build the operating capabilities and institutional scale needed to build an enduring business. The equity investment from IFD demonstrates the depth of long-term institutional capital now backing GreenCell Mobility. The next phase is about putting that capital to work with discipline – expanding the business, deepening its capabilities and creating long-term value as India transitions to electric mobility."

Devndra Chawla, MD and CEO, GreenCell Mobility, said, "We welcome IFD as a shareholder and value the continued confidence of Eversource, IFC, BII and Tata Capital as we take GreenCell forward. We have established a strong presence across both intra-city and intercity transportation, with the operating experience to manage increasingly large and complex deployment. Our focus is on executing our order book with rigour, strengthening service delivery and ensuring that the organisation keeps pace with the size and complexity of our operations. This equity investment gives us greater headroom to accelerate our plans while maintaining the standards of reliability, efficiency and customer experience that are fundamental to our business."

Lars Bo Bertram, CEO of Impact Fund Denmark, said, "India is a central market for Impact Fund Denmark. GreenCell is a strong investment opportunity in a rapidly growing market, while also addressing one of India’s major challenges air pollution. Scaling electric transportation can contribute to cleaner cities and accelerate India’s green transition."

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