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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Officials from the National Highways Authority of India (NHAI) and Vertis Infrastructure Trust have introduced Truck Mounted Attenuators (TMAs) to improve safety in highway work zones. The technology is designed to protect road workers and motorists in high-speed traffic environments.

Work zones currently represent high-risk areas on the Indian road network due to vehicle speeds and limited protective buffering. TMAs serve as a standard safety solution in the US and Europe and are now being scaled across Indian national highway projects.

A truck-mounted attenuator is an impact-absorbing crash cushion fitted to the rear of service vehicles. Its primary functions include:

• Energy Absorption: In a rear-end collision, the unit absorbs the kinetic energy of the impacting vehicle.
• Controlled Deceleration: The system brings the vehicle to a halt in a manner that reduces the risk of fatal injuries to occupants and workers.
• Track Record: Since initial testing on Indian roads in 2021, the technology has been credited with saving more than 100 lives.

The current rollout consists of 20 TMAs. Eight units were inaugurated during the launch event, which included a live demonstration and technical walkthrough. The remaining 12 units are scheduled for delivery within the next ten days.

Ankit Yadav, NHAI, said, “NHAI aims to move towards zero-fatality corridors across national highways. The adoption of technologies such as Truck Mounted Attenuators plays a critical role in improving work-zone safety and reducing avoidable loss of life.”

Dr. Zafar Khan, Joint Chief Executive Officer, Vertis Infrastructure Trust, said, “Our effort has always been to bring practical, globally proven safety solutions to Indian roads. Reaching the TMA stage is about protecting people working in some of the most vulnerable conditions on highways.”

The initiative forms part of a broader strategy to integrate safety technology into India's infrastructure growth, prioritising the reduction of accidents in active construction and maintenance zones.

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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has completed its first Design Challenge, a competition involving more than 400 students from 70 design institutes. Participants were tasked with designing a compact car, focusing on mobility solutions for the Indian market.

Teams from the MIT Institute of Design (Pune), the Association of Designers of India at VIT (Vellore) and the Strate School of Design (Bengaluru) secured the top three positions. The winning teams received cash prizes and six-month internships with the Maruti Suzuki design department.

The competition consisted of four evaluation rounds. The initiative is intended to provide students with exposure to the automotive industry and professional design environments.

The top 3 teams were awarded internships to work alongside company designers on future models. The next 7 teams received gift vouchers and potential internship opportunities pending further assessment. The challenge included students from both Indian and global design institutions.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “India is a land of immense talent and innovation, with creativity thriving across every field. At Maruti Suzuki, we were already engaging with young start-ups to find mobility solutions. With the Maruti Suzuki Design Challenge, we expanded our open innovation efforts to provide a suitable platform to young designers where they gain real-world industry experience in automobile design. As design plays a pivotal role in shaping customers’ decision-making, it is vital to engage with young minds who bring fresh perspectives and challenge conventional thinking. The Maruti Suzuki Design Challenge reflects our commitment to cultivate automotive design talent and co-create future-ready mobility solutions with young India.”

The project forms part of the company's ‘open innovation’ strategy, seeking to integrate external perspectives into its vehicle development process.

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Bengaluru-based electric vehicle maker Ola Electric has received a sanction order from the Ministry of Heavy Industries for incentives totalling INR 3.66 billion. The payment is granted under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for FY2024-25.

The incentive relates to the Determined Sales Value for the period and will be disbursed through IFCI, the financial institution appointed by the government for the scheme.

The PLI-Auto Scheme is an initiative by the Government of India designed to increase domestic manufacturing and the adoption of advanced automotive technologies. Ola Electric’s eligibility for the claim is based on its vertical integration and localisation of electric vehicle (EV) components.

“The sanction of INR 3.66 billion under the PLI-Auto Scheme is a strong endorsement of Ola Electric’s manufacturing capabilities and our commitment to building world-class EV technology in India. This incentive recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain. We remain committed to supporting the Government of India’s vision of making India a global hub for advanced automotive manufacturing and clean mobility,” said the company in a statement.

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UK-based energy major bp has reached an agreement to sell its 65 percent shareholding in Castrol to investment firm Stonepeak at an enterprise value of USD 10.1 billion. The deal follows a strategic review of the lubricants business and is expected to result in net proceeds for bp of approximately USD 6 billion.

The transaction includes USD 0.8 billion as a pre-payment of future dividend income on bp’s retained 35 percent stake. The valuation represents an enterprise value to EBITDA ratio of approximately 8.6x. Following the sale, a new joint venture will be formed with Stonepeak holding the majority interest and bp retaining 35 percent.

The sale is a component of bp's USD 20 billion divestment programme. To date, the company has announced or completed divestments totalling USD 11 billion.

Proceeds from the Castrol transaction will be used to reduce bp’s net debt, which stood at USD 26.1 billion at the end of the third quarter of 2025. The company aims to reach a net debt target of USD 14–18 billion by the end of 2027. bp has a two-year lock-up period on its remaining 35 percent stake, after which it has the option to sell.

Carol Howle, interim CEO, bp, said, “Today’s announcement is a very good outcome for all stakeholders. We concluded a thorough strategic review of Castrol, that generated extensive interest and resulted in the sale of a majority interest to Stonepeak. The transaction allows us to realise value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum. And with this, we have now completed or announced over half of our targeted USD 20bn divestment programme, with proceeds to significantly strengthen bp’s balance sheet. The sale marks an important milestone in the ongoing delivery of our reset strategy. We are reducing complexity, focusing the downstream on our leading integrated businesses, and accelerating delivery of our plan. And we are doing so with increasing intensity – with a continued focus on growing cash flow and returns and delivering value for our shareholders.”

Anthony Borreca, Senior Managing Director, Stonepeak, said, “Lubricants are a mission-critical product, which are essential to the safe and efficient functioning of virtually every vehicle, machine, and industrial process in the world. Castrol’s 126-year heritage has created a leading market position, an iconic brand, and a portfolio of differentiated products that deliver meaningful value to its customers. We are excited to work alongside Castrol’s talented employees, coupled with bp’s continued guidance as a minority interest holder, as we support the business’s continued growth.”

The transaction is expected to complete by the end of 2026, subject to regulatory approvals. bp stated that the move allows the company to simplify its portfolio and focus its downstream operations on integrated businesses.

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