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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Indian vehicle retail sales reached a record 2,536,920 units in September 2026, marking a 31.82 percent YoY increase and a 4.69 percent sequential rise over August shows data released by the Federation of Automobile Dealers Associations (FADA).

Interestingly, in H1 (April–September) of FY2027, auto retail reached 15,512,319 units, a rise of 20.77 percent YoY.

In September 2026, growth was recorded across all major segments compared to the previous year. Two-wheeler sales rose 33.08 percent to 1,790,188 units, surpassing the pre-pandemic peak recorded in 2018 by 15.3 percent.

Passenger vehicle registrations increased 32.10 percent to 427,213 units and commercial vehicle registrations grew 37.62 percent to 103,557 units, crossing the 100,000 mark in September for the first time.

Three-wheeler sales climbed 22.25 percent to 132,570 units, with electric models accounting for 64.90 percent of the total.

Wheeled construction equipment sales increased 38 percent to 6,486 units. Tractor sales grew 13.75 percent YoY to 76,906 units, though registrations fell 12.58 percent compared to August due to a delayed festive calendar and uneven rainfall.

Total electric vehicle sales across all categories reached a monthly figure of approximately 334,000 units, bringing electric vehicle market penetration to roughly 13 percent.

In the two-wheeler space, electric vehicles accounted for 11.58 percent of new vehicle sales. In the passenger vehicle segment, petrol vehicles held a 41.27 percent market share, while alternative fuel vehicles accounted for 41 percent. The alternative fuel share comprised compressed natural gas at 23.11 percent, hybrid powertrains at 9.44 percent and electric vehicles at 8.45 percent.

Passenger vehicle dealer stock levels rose to between 43 and 45 days of sales, exceeding FADA’s recommended benchmark of 21 days.

C S Vigneshwar, President, FADA, said, “September’26 was the best-ever September in Indian auto retail, with the industry registering 25,36,920 units, up 31.82 percent YoY and 4.69 percent MoM. I would, however, urge that this headline be read with discipline: the 31.82 percent is the most base-distorted print of the year – a mirror of last September, when buyers deferred purchases in the week before GST 2.0 took effect on 22 September 2025. The cleaner signals are three. It was the best-ever September across five of our six categories and, with it, the best-ever first half of any financial year at 1,55,12,319 units (+20.77 percent); retail rose 4.69 percent over August and even setting the distorted September aside, FY’27’s first five months grew about 17 percent, which is the truer underlying run-rate.”

Going forward, survey results from FADA indicate that 75.57 percent of automobile dealers expect sales growth in October, up from 67.09 percent in August. For the October–December quarter, 78.28 percent of dealers anticipate growth and 49.5 percent have revised their sales forecasts upward for the full financial year following the first-half results.

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French automotive major Renault Group has announced the appointment of Carine Damois as Chief Financial Officer, effective 14 November 2026. She will report to Francois Provost and join the Group's Leadership Team.

She comes with over 20 years of experience in corporate finance, financial governance and digital transformation within international organisations. Her background includes oversight across management control, treasury, risk management, tax, strategic planning, consolidation and sustainable finance.

Since 2021, she has served as Deputy Chief Financial Officer of Michelin, managing finance functions across more than 100 countries. Her prior career includes senior leadership roles across manufacturing, logistics, energy, and operations within Michelin and the AREVA Group. She is a graduate of ESSEC Business School.

The appointment comes as Renault Group continues the implementation of its futuREady strategic plan, aimed at maintaining financial performance and operational agility.

François Provost said: "I am delighted to welcome Carine Damois to Renault Group. Her recognised financial expertise, strong industrial background and international perspective make her the ideal leader for our Finance function. As we continue to execute our strategy and aim to maintain a high level of financial performance, I am confident that Carine will play a decisive role in achieving our ambitions. I would also like to extend my sincere thanks to Duncan for his commitment and contribution to the Group's development over nearly three decades."

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Switch Mobility, the electric bus and light commercial vehicle brand of the Hinduja Group, has signed a Memorandum of Understanding with Adhiyamaan College of Engineering to establish a Skill Development Centre for Electric Vehicle Technology in Hosur, Tamil Nadu.

The facility will function as a dedicated training site to upskill students and industry personnel in electric commercial vehicle technology. The curriculum will focus on practical applications, including battery technology, power electronics, charging infrastructure, real-world vehicle systems and electric mobility operations.

The initiative marks the establishment of a specialised electric vehicle skilling hub in the Hosur industrial belt, aiming to supply trained technical workforce to the region's expanding commercial electric vehicle manufacturing sector.

R G Venkataraman, Chief Commercial Officer, Switch Mobility, said, "As part of the MoU, Switch Mobility will extend its technical expertise and support towards this initiative. This program will entail practical industrial exposure, learning and skill development."

Radhakrishnan, Principal of Adhiyamaan College of Engineering, said, "We are proud to be associated with an industry leader like Switch Mobility. We believe that this collaboration will provide our students with valuable hands-on exposure to EV technologies and strengthen the industry–academia partnership in the field of electric mobility. With this Centre, our vision is to offer a practical learning environment to enhance their employability and prepare them to meet the evolving demands of the electric mobility industry."

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Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers in the country, has announced five of its employees were awarded the Medallion for Excellence at the 48th WorldSkills Competition 2026, held in Shanghai, China, from 22 to 27 September 2026.

Competing across three skill categories – mechatronics, additive manufacturing and robot systems integration – the company's employees secured five of the total 20 Medallions for Excellence won by the Indian contingent.

The WorldSkills Competition featured over 1,400 participants from 68 countries competing across 64 technical trade categories. The Medallion for Excellence is awarded to competitors who meet international standards by achieving performance benchmark scores below the gold, silver and bronze medal positions.

In the Mechatronics category, Deepu Mudigerepalya Srinivasa and Jayanth Kariyappa received the recognition. Pavan Bhadravati Suresha was awarded in Additive Manufacturing, while Abhishek Somanna Shignalli and Vinay Muttayya Hiremath received medallions in Robot Systems Integration. Additionally, TKM employees Tejas B.S. and Praveen Yankappa Hunakunti represented India in the Auto Body Repair and Welding categories respectively.

G Shankara, Chief Strategy Officer, Toyota Kirloskar Motor, said, "The achievements of our employees at the WorldSkills Competition 2026 exemplify the spirit of excellence, innovation and continuous learning. Five of our employees winning Medallions for Excellence in 3 categories on a global stage is a proud moment for Toyota Kirloskar Motor and for the nation. Their success reinforces our commitment to nurturing world-class talent and supporting India's journey towards becoming the global skill capital. We hope their journey inspires the next generation of young professionals to pursue excellence in technical and vocational careers."

Toyota Kirloskar Motor conducts technical training through the Toyota Technical Training Institute (TTTI), established in 2007 to provide a three-year residential programme for students from rural Karnataka. The automaker has trained over 140,000 individuals through vocational initiatives, including partnerships with over 120 Industrial Training Institutes (ITIs), 30 Government Tool Room & Training Centres (GTTCs), the Toyota Technical Education Program and Toyota Kaushalya.

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