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.

 

Shenu Agarwal

The Executive Committee of the Society of Indian Automobile Manufacturers (SIAM) has elected Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, as its President for the 2026–27 term.

The election took place during the organisation's Executive Committee meeting in New Delhi.

Agarwal, who previously served as Vice-President of the SIAM, succeeds Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors Passenger Vehicles.

The Executive Committee also elected K N Radhakrishnan, Director and Chief Executive Officer of TVS Motor Company, as Vice-President for the 2026–27 term. Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India, was elected as Treasurer.

FADA Announces 2026 Dealer Satisfaction Study Results At Auto Retail Conclave

FADA Announces 2026 Dealer Satisfaction Study Results At Auto Retail Conclave

Federation of Automobile Dealers Associations (FADA), the apex national body for automobile retail in India, has unveiled the findings of its sixth annual Dealer Satisfaction Study (DSS) 2026. The results were announced during a prestigious awards ceremony at the 8th Auto Retail Conclave on 1 September. This comprehensive industry barometer is conducted in collaboration with PremonAsia, a Singapore-based consumer-insight and advisory firm.

The 2026 study broadened its analytical framework to include the Tractor and Wheeled Construction Equipment sectors for the first time. The Tractor segment recorded a satisfaction index of 784, while the 4-Wheeler Luxury category posted an index of 758. JSW MG Motor maintained its dominant position in the 4-Wheeler Mass Market with an industry-leading score of 865 points. Royal Enfield retained its top ranking in the Two-Wheeler category with 878 index points, closely pursued by Hero MotoCorp.

The Commercial Vehicle segment witnessed a shift in leadership, with Tata Motors CV ascending to the top spot with 800 points, narrowly edging out Ashok Leyland. In the Pure Electric category, Ather Energy and VinFast Auto emerged as frontrunners in the 2-Wheeler and 4-Wheeler sub-segments, respectively. BMW in the 4-Wheeler Luxury segment and Mahindra's Swaraj Division in tractors secured pole positions in their respective categories.

The aggregate Industry Average Dealer Satisfaction score rose by 29 points to 810. The Two-Wheeler segment improved by 35 points to 827, while the 4-Wheeler Mass segment saw a 39-point increase to 810. Toyota Kirloskar Motor and Kia Motors recorded the most notable gains among 4W Mass OEMs, while VECV-Eicher demonstrated strong improvement in the CV space.

Product attributes continue to garner the highest scores, reflecting robust dealer confidence in reliability and refresh cycles. After-Sales service holds the highest importance in dealers' minds, and together with Sales & Order Planning and Business Viability & Policy, these account for nearly 68 percent of dealer priorities. Business Viability & Policy remains the lowest-scoring factor, with dealers highlighting challenges such as unsold inventory buyback policies, training cost-sharing and margins on vehicles and spare parts.

Two-Wheeler dealers appreciate product reliability but voice concerns over inventory write-offs and cost-sharing. In the 4-Wheeler Mass segment, operational pressures like stock carrying costs and network expansion policies are paramount. Commercial Vehicle dealers are focused on service economics including labour rates and warranty reimbursement, while Tractor dealers seek improvements in trial-vehicle support and warranty policies.

Profitability and margins are the most frequently cited requests for improvement, followed by concerns regarding the EV transition and OEM relationships. Dealers are increasingly calling for fairer agreement principles, greater predictability in network policies and more robust support systems to navigate the evolving automotive landscape.

FADA President Sai Giridhar said, “The DSS 2026 continues to provide an important reflection of the evolving Dealer–OEM relationship. This year’s record participation reinforces the confidence of dealers in using this platform to voice their expectations and concerns. While product quality, reliability and range continue to be strong areas, the findings clearly underline the need for greater focus on dealer viability, including sustainable margins, inventory and buyback policies, training cost-sharing and greater clarity in OEM policies. Dealers are also seeking more structured involvement in decision-making and regular engagement with OEMs at national, regional and zonal levels. As the automotive retail business evolves, particularly with the transition towards new technologies, strengthening dealer economics and ensuring a fair, collaborative and sustainable OEM–dealer relationship will be critical for the industry’s long-term growth.”

PremonAsia Director and COO Rahul Sharma said, “The Overall Dealer Satisfaction Index has moved up 29 points over 2025. Changing importance of factors influencing dealer satisfaction displays the dynamic nature of Industry. While Product remains the strongest pillar, After-Sales, Sales & Order Planning and Business Viability & Policy together account for nearly two thirds of dealer mind space. The 2026 DSS study is not just about ‘who ranks where’; it is a clear mandate to build a more viable, fair and future-ready dealer ecosystem. The Voice of Dealer reinforces the quantitative findings – profitability, inventory, dealer rights and future readiness are now central to the OEM-dealer partnership.”

IDFC FIRST Bank Launches Accelerator Programme With BITS Pilani For Climate And Health Startups

IDFC FIRST Bank Launches Accelerator Programme With BITS Pilani For Climate And Health Startups

IDFC FIRST Bank has launched an accelerator programme in collaboration with the Pilani Innovation & Entrepreneurship Development Society (PIEDS) at BITS Pilani. This initiative operates under the IGNITE startup incubation programme, which is managed by the bank’s CSR division, FIRST IMPACT. The partnership is designed to foster enterprises that address critical health and environmental challenges.

The programme will provide catalytic grants, incubation, acceleration, mentorship and ecosystem connections to nurture purpose-driven ventures. It aims to strengthen business and investment readiness while promoting sustainable, high-impact solutions. Eight startups from across India have been selected to participate, focusing on climate technology, carbon reduction and removal, AI and machine learning-based healthcare diagnostics, medical devices and assistive technologies.

These selected startups will receive mentorship, business guidance, access to industry experts and investors and performance-linked grants of up to INR 2,500,000 each. The initiative seeks to scale innovative solutions for carbon sustainability and healthcare accessibility. It is also expected to contribute to employment generation and broader sustainable development goals within the country.

Saptarshi Bapari, Head, Investor Relations and ESG, said, “India is witnessing a remarkable wave of entrepreneurship, with innovators building solutions that are shaping a more sustainable, inclusive and resilient future. What many early-stage startups need is the right support at the right time to turn promising ideas into scalable solutions that can create meaningful impact. Through the IGNITE Social Incubation Program, we are supporting startups working in healthcare and climate sustainability, two areas that are critical to the well-being of our communities and the future of our planet. Our partnership with BITS Pilani combines funding, mentorship and access to a strong innovation ecosystem, helping entrepreneurs accelerate their growth and bring their ideas to life. We hope this initiative empowers founders to scale their solutions, reach more people and create lasting positive impact at scale.”

Prof V Ramgopal Rao, Vice-Chancellor, BITS Pilani, said, “BITS Pilani has spent five decades building an entrepreneurial ecosystem, with impact across all sectors and geographies. We are excited to launch IGNITE to deliver measured community impact across Health and Climate – partnering with IDFC FIRST Bank allows us to apply that discipline to two sectors where India's need is most urgent.”

Sai Giridhar Appointed As FADA’s 38th President 

The Federation of Automobile Dealers Associations (FADA), the apex national body of automobile retail in India, has announced the appointment of Sai Giridhar as its President. He is the 38th President of the organisation and will be in chair for FY2026-27 and FY2027-28. The decision was made at the 323rd Governing Council Meeting, held immediately pst the 62nd Annual General Meeting.

The Managing Director of Saisha Motors Pvt Ltd, Jaipur, Giridhar has been in the auto business for over 30 years. He operates Skoda, Volvo Cars, JSW MG and MG Select dealerships and started his journey in 1995 with a Daewoo dealership in Jaipur. He has served for long as the Secretary of the Authorised Motor Association of Rajasthan for the past 10 years and has been associated with FADA for more than 10 years, holding posts of State Chairperson of Rajasthan for four years before getting inducted in central leadership team.

Besides Giridhar, the FADA Governing Council also elevated Amar Jatin Sheth, Managing Director, Shaman Group as the Vice President. Pradeep Agarwal, Managing Parter, JMG Group, has taken over as the secretary. Bharat Kumar Chordia, Managing Director, Khivraj Motors, has taken over as the treasurer for FY2026-27 and FY2027-28.