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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Caterham has expanded its official UK retailer network by appointing Yorkshire-based Caterham Turn 7. The father-and-son team of Jim and Callum McDougall founded the business, which has built a strong reputation within the Caterham community as an independent pre-owned specialist and service centre. The Seven runs deep in the McDougall family, with Jim having helped establish the concept behind the Caterham Academy and Callum having worked as a Sales Executive for Caterham at the original Town End showroom.

Beyond its established pre-owned operation, the North Yorkshire facility will now offer the complete Seven range, along with official parts, workshop servicing and aftersales support. This appointment strengthens Caterham's presence in the region and formalises a longstanding relationship with a business already deeply embedded in the brand's culture.

Christian Gorton, Global Head of Sales at Caterham Cars, said, “We are thrilled to welcome Caterham Turn 7 to our official UK retailer network. Callum, Jim, Carl and the team are already integral, highly respected members of the Caterham community, having built a brilliant reputation as an independent specialist in Yorkshire. Their lifelong passion for the Seven, motorsport ties and technical knowledge make this appointment a natural evolution. Expanding our official footprint in the North East ensures our growing community of drivers will receive exceptional service and support.”

Callum McDougall, Director of Turn 7, said, “It is great to be back working with Caterham again after nearly 13 years of being an independent specialist. Our team and our facility have been growing steadily over the last five years along with our fantastic community of Seven owners. Becoming the official sales and service centre for the area will give us the ability to provide even better services to our customers, with more products and backing by Caterham themselves. I've watched Caterham change a lot over the 16 years I have been in the industry, and I am really pleased to say that it looks like they are in a really good place right now, with some exciting new products on the horizon. We are all very excited to be joining the official retailer network and helping to drive, maintain and support the future of the Seven and its owners.”

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A recent study by Intangles, a global AI-powered prescriptive analytics firm focused on commercial fleets and mobility analytics, examined school bus safety across India and found that one in five of the vehicles analysed had recorded at least one over-speeding incident. The research covered 598 school buses in 61 cities over a six-month period during 2026, forming part of the company’s Interesting Angles Episode 2 report titled Beyond the Rulebook. More than 75,000 flagged driving events were assessed across four behaviours: over-speeding, hard braking, harsh acceleration and coasting.

Regional contrasts proved striking. In Delhi, four out of five buses analysed logged over-speeding incidents, compared with the national ratio of one in five. Maharashtra also raised concerns, with harsh acceleration events occurring at six times the national average. The report further identified 116 buses that triggered over-speeding alerts every two to three days, averaging roughly 79 kmph during those instances, well above prescribed limits. Such findings underscore the value of continuous driving behaviour monitoring alongside mandatory speed governors and standard GPS tracking.

Hard braking proved the most common flagged behaviour, representing 81.5 percent of all safety events. Each bus averaged 126 flagged events over six months, including about 103 hard braking incidents, or nearly one every two school days. The study described a ‘Bell Effect’, where hard braking rose sharply between 7 AM and 8 AM across regions, coinciding with the morning commute. While no direct cause was established, the pattern suggests operational pressures such as congestion, tight schedules and the race to reach school on time may contribute.

Comparisons between school and city buses revealed sharp differences. Harsh acceleration stood at 4.6 percent versus 1.8 percent, hard braking at 81.5 percent versus 38.9 percent and coasting at 2.9 percent versus 0.4 percent, amounting to fourfold, threefold and ninefold gaps, respectively. In Maharashtra, harsh acceleration made up 30 percent of flagged events against a 5 percent national average, while Pune recorded 42 percent compared with Mumbai’s 15 percent, indicating that congestion alone may not explain aggressive acceleration.

The findings arrive as school transportation safety rules evolve. Maharashtra’s July 2026 regulations introduce seat belts, CCTV, live video access, GPS tracking, panic buttons, digital attendance and state monitoring integration. Nationally, Advanced Driver Assistance Systems are being phased into new buses and trucks between 2026 and 2028. Yet with older vehicles still operating, the study stresses strengthening safety practices within existing fleets.

Intangles maintains that driving behaviour monitoring, real-world trip data, cameras and structured driver coaching can help schools and operators spot unsafe patterns and take corrective action. Integrating these tools with existing requirements may improve accountability and visibility in daily school transportation. The analysis used proprietary algorithms to assess event frequency, timing and geography, and its findings reflect observed behaviour within the study sample.

Anup Patil, CEO, Intangles, said, "School bus safety is often measured by whether a vehicle meets prescribed regulations, from speed governors and GPS tracking to onboard safety equipment. But compliance does not necessarily tell us how safely a child is being driven. Our analysis found recurring instances of speeding and hard braking across school buses, with some of these behaviours occurring repeatedly during routine journeys. What is equally important is understanding the conditions in which these incidents occur.”

Vikram Melapudi, Chief AI Scientist, Intangles, said, “Schools and safety officers need greater visibility into real world driving behaviour so they can identify recurring risks, address unsafe practices and strengthen driver accountability. The focus must shift from simply checking whether a bus is compliant to continuously assessing how safely it is being operated."

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European automotive group Stellantis has announced an investment of approximately INR 40 billion (EUR 400 million) to scale its Indian operations under its FaSTLAne 2030 strategy. The commitment brings the manufacturer's cumulative capital deployment in India to INR 150 billion by 2030.

The roadmap outlines 12 vehicle introductions over the next three years across its Jeep and Citroen brands, comprising 7 new models and 5 major product upgrades. The releases will span the B, C and D SUV segments, alongside a multi-purpose vehicle, an A-segment car and a pickup truck.

The initial product under the expanded plan is scheduled for commercial launch in Q2 of 2027. Powertrain options will include internal combustion engines, hybrid, plug-in hybrid and battery-electric platforms, supported by a target local component sourcing level of 90 percent across its manufacturing plants in Ranjangaon, Thiruvallur and Hosur.

Tianshu Xin, COO, Stellantis Asia-Pacific Region, said, "India has a dual role for Stellantis: it is an important market that we intend to grow in, and an increasingly significant capability base for the region and the wider Group. India is a long-term commitment for us, not just a volume chase. Under FaSTLAne 2030, our region-led model gives the India team greater ownership of decisions, and the roadmap we are announcing today reflects our long-term conviction in this market. A stronger product cadence, a multi-energy technology approach and India’s capabilities across manufacturing, engineering, software and sourcing give us the foundation to build a larger and more competitive business here through 2030."

Shailesh Hazela, CEO & MD, Stellantis India, said, "Our commitment to India will be measured by what we put on the road. Having built a strong foundation over the years, our focus now shifts to scaling the business. Twelve launches across Jeep and Citroën over the next three years will significantly broaden our market participation and give Indian customers more choice across segments and powertrains, supported by deeper localisation and a stronger sales and service network. With fresh investment of approximately ₹5,000 crore, we are building greater scale, relevance and competitiveness in this market, while strengthening India’s role in Stellantis’ global operations."

The investment phase expands on the INR 110 billion previously deployed by Stellantis in India for manufacturing facilities, software development centres in Bengaluru, ICT hubs in Hyderabad and regional component export channels.

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The Society of Indian Automobile Manufacturers, the apex body representing automakers across segments in the country, has released the wholesales data for Q2 FY2027, which saw record performance across passenger vehicles, commercial vehicles, three-wheelers and two-wheelers.

In Q2 FY2027, the passenger vehicle segment domestic sales reached 1.36 million units, up 30.7 percent YoY. Sports Utility Vehicles (SUVs) accounted for 68 percent of total passenger vehicle sales, recording a growth of 34.2 percent, while passenger car sales increased by 24.9 percent. Passenger vehicle exports declined by 5.2 percent to 229,087 units, impacted by logistics constraints in West Asia and higher baseline comparison figures.

The two-wheeler segment posted domestic sales of 6.43 million units, registering a growth of 15.2 percent YoY. Scooter sales increased by 27.7 percent, while motorcycle sales rose by 7.4 percent. Two-wheeler exports reached a record Q2 total of 1.65 million units, marking an increase of 27.7 percent over the same period last year.

In the three-wheeler category, domestic sales grew by 23.6 percent to 285,342 units, driven by demand for cargo configurations and electric L5 vehicles. Three-wheeler exports reached a record Q2 total of 161,060 units, representing a 30.4 percent increase. The commercial vehicle segment recorded domestic sales of 309,063 units, marking a growth of 28.7 percent, while commercial vehicle exports rose by 72.5 percent to exceed 41,416 units, supported by infrastructure spending and fleet replacement demand.

Shenu Agarwal, President, SIAM, said, "The Indian automotive industry delivered a strong performance in the first half of FY2026-27, following a robust second quarter and a strong September 2026. This stellar performance across all segments of the automobile industry has been supported by improved affordability following GST 2.0, resilient rural and urban demand, healthy freight movement, infrastructure-led economic activity, and a gradual replacement cycle across vehicle segments. The electric vehicle ecosystem also continues to mature with multiple offerings, improving charging infrastructure and supportive policy measures. At the same time, alternative fuel technologies are witnessing increasing acceptance and are expected to play an important role in India's sustainable mobility transition. Industry looks forward to the festive season for the continued momentum while remaining cautiously optimistic due to prevailing geo-economic uncertainties. Continued investments in infrastructure, sustained economic growth, and rising adoption of cleaner and more efficient mobility solutions are expected to support industry growth through the second half of 2026-27."

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