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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Bengaluru-based electric two-wheeler manufacturer Simple Energy has closed a INR 17.5 billion (approximately USD 180 million) equity-based Series C funding round led by the Dr. Arokiaswamy Velumani Family Office, alongside Simple Energy Founder and CEO Suhas Rajkumar, Co-founder and CFO Ankit Gupta, Bengaluru-based investor Amit Mishra, and the Haran Family Office.

The transaction is said to represent the company's largest fundraising to date and the third-largest round recorded in India's electric two-wheeler sector.

The transaction brings total capital raised by the company to over INR 25.30 billion, following a INR 2.5 billion round of mixed debt and equity completed in June 2026. The new funds will be allocated toward constructing a new manufacturing facility, increasing production output, expanding retail and service networks, making workforce additions and funding research and development for future product iterations.

Suhas Rajkumar, Founder and CEO, Simple Energy, said, "This is a defining moment for Simple Energy. Over the past few years, we have built our core technology, products, manufacturing capabilities, and retail network in-house. This round gives us the capital to scale that foundation. Our priorities are a new manufacturing facility, higher production, an expanded distribution and service network, and the next generation of products. The continued support of our early investors reinforces our progress as we work to make Simple Energy one of India’s leading full-stack electric two-wheeler companies."

Dr A. Velumani, Creator - Thyrocare, AVMLabs & AVMSmiles, said, "I have been with Simple Energy since the early days, and I now repent I didn’t know it earlier. Growth of 4x in a year says both the company and industry are growing rapidly. SEPL owns end-to-end technology for chassis, battery, motor, and software. That is very rare in the Indian EV vertical. The next phase will focus on scaling in manufacturing, marketing, and retail networks. With tailwinds of global challenges in fossil energy, Simple is well positioned to be in the top 3 players of the EV2W vertical in India in just 3 years."

At present, Simple Energy operates a manufacturing capacity of 10,000 units per month and maintains a retail network of over 80 outlets across more than 60 cities, including Bengaluru, Delhi, Patna, Hyderabad and Chennai. Its product portfolio includes the Simple One, Simple Wave and Simple Ultra models, which target performance and family scooter market segments.

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The Indian government has published updated fuel economy rules for passenger cars, establishing higher efficiency targets that vehicle manufacturers must meet from 1st April 2027 to 31st March 2032.

The regulations for the Corporate Average Fuel Economy (CAFE) Phase III will require automakers to reduce overall fleet fuel consumption by 16.7 percent over five years. It will apply to all new passenger vehicles manufactured in or imported into India.

The framework mandates a reduction in overall fleet fuel consumption, lowering the target from 3.996 litres per 100 kilometres in 2027–28 to 3.3273 litres per 100 kilometres by 2031–32, representing a 16.7 percent efficiency improvement over five years. The reference vehicle weight under the calculation matrix has been adjusted from 1,082 kg to 1,229 kg to reflect changes in fleet composition.

The average baseline target will decrease step-by-step from 3.99 litres per 100 kilometres in FY 2027–28 down to 3.32 litres per 100 kilometres by FY 2031–32. The calculation formula has also been adjusted to account for heavier average vehicle weights across modern product lines.

To give manufacturers flexibility in meeting these targets, the policy provides incentives for adopting cleaner vehicle technologies and alternative fuels.  

• Alternative Fuel Discounts: Vehicles running on ethanol blends, flex-fuel, compressed natural gas (CNG), or compressed bio-gas (CBG) receive emissions discounts when calculating company averages.
• Energy-Saving Tech Credits: Manufacturers can claim official efficiency credits for installing 12 approved energy-saving features, including automatic start-stop systems, tyre pressure monitors, advanced heat-reflecting glass, LED exterior lighting, high-efficiency air conditioning and solar-reflective paint.
• Super Credits for Electrified Cars: Fully electric vehicles, plug-in hybrids, strong hybrids and flex-fuel hybrids receive extra weighting in fleet calculations to encourage higher production of low-emission models.

Compliance will be tracked across two multi-year testing blocks. Companies that exceed their efficiency targets will earn carbon credits, which they can carry forward, trade with other carmakers, or sell.

Manufacturers that fall short can buy credits from better-performing competitors or purchase them directly from the government’s Bureau of Energy Efficiency (BEE) during a yearly trading window.

At present, exemption will be given to low-volume car manufacturers producing fewer than 1,000 units annually from these specific target requirements.

Shenu Agarwal, President, Society of Indian Automobile Manufacturers (SIAM), “Automobile industry appreciates and welcomes the release of CAFÉ III Notification for Passenger Vehicles by Government of India from 1st April 2027 onwards. CAFÉ III regulation lays down a structured roadmap with aggressive annual targets for next 5-years for the Auto industry along with a market-based compliance mechanism. This will not only ensure reduction of overall fuel consumption from new Passenger Vehicle fleet but also provide an opportunity to the industry to work on various technology pathways providing multiple choices to the consumers. The CAFÉ III regulation framework provides clear predictability which will enable the Auto industry to plan investments and accelerate innovation, thereby, playing an important role in the country’s journey towards Viksit Bharat in 2047. We are thankful to Government of India for detailed and transparent consultative approach in framing this critical and forward-looking regulation after undertaking an objective and balanced assessment of various clean technology options.”

Dr. Velusamy R, President, Automotive Business, Mahindra & Mahindra, “We welcome the Government’s notification of the new CAFE-III norms. Following extensive dialogue between the Government and industry, the framework strikes a pragmatic balance between what is necessary for the environment and what is achievable for the industry, while strengthening India’s energy security. The targets are appropriately ambitious and provide a clear trajectory through 2031-32. We also welcome the inclusion of a compliance block, technology credits, cleaner-fuel benefits and super credits for EVs and other advanced technologies. At Mahindra, we are confident in our ability to meet these norms, backed by our sustained investments in technology, electrification and cleaner mobility. This is a pragmatic, forward-looking framework and a double win for the environment and India’s energy security. We thank the Government for its constructive and consultative approach.”

Rajat Mahajan, Partner and Auto Sector Leader, Deloitte India, “The CAFE 3 norms prioritize the role of transportation in tacking air pollution, and give the industry a clear direction for the next five years. The targets get tighter every year, more so for the heavy vehicles under the final draft version, but manufacturers can reap benefits by transitioning to electric, hybrid, alternative-fuel and fuel-saving technologies. Adhering the norms will require careful product planning and substantial investment in new age technologies. These norms are going to accelerate India’s NEV transition. OEMs who may not be able to switch their larger portfolio fast enough, may end up trading credits within the 2 compliance blocks to avoid penalties.”

Vikram Gulati, Country Head & Executive VP, Toyota Kirloskar Motor, "We congratulate the Government of India for bringing out a progressive and forward-looking CAFE 3 regulation that reflects the nation's aspiration to advance sustainable mobility. The CAFE 3 regulation takes due cognisance of the importance of various clean technologies using an objective and science-based assessment methodology to arrive at a regulation that is best suited for our national interests.  Therefore, aligning to a multi-pathway approach, battery electric vehicles (BEVs), Range Extenders (REEV), Plug-in Hybrid Vehicles (PHEVs), Strong Hybrid Electric Vehicles (SHEVs) and Flex Fuel Vehicles (FFVs), including Flex Fuel Strong Hybrid Vehicles (FFV-SHEV) have all been fairly recognised. This will enable the country to rapidly reduce its dependence on imported fossil fuels by leveraging the benefits of high levels of energy efficiency provided by Hybrid vehicles and substituting fossil fuels with electricity using BEVs/PHEVs/REEVs as well as with indigenous and green biofuels like ethanol, that also provide higher income opportunities to our farmers, by using FFV & FFV-SHEV. We would also like to thank the Government for following a deep & transparent consultation process with all stakeholders in formulating this regulation that allowed all points of view to be objectively evaluated and incorporated in the final regulation. This regulation is a big step forward and will play an important role in India’s march towards realising its goal of energy independence by 2047 as well as carbon net-neutral by 2070.”

Shailesh Chandra, MD & CEO, Tata Motors Passenger Vehicles, “The CAFE III framework is an important step in advancing India’s journey towards cleaner and more sustainable mobility. We welcome the Government’s consultative approach in developing a framework that combines ambitious fuel efficiency targets with market-based compliance mechanisms. Importantly, the continued recognition of zero-emission technologies reinforces the critical role of electrification in achieving India’s long-term decarbonisation objectives. The clarity and predictability provided by the framework will enable the industry to plan investments, accelerate innovation and offer customers an increasingly compelling range of cleaner mobility solutions. At Tata Motors, we remain committed to leading this transition through sustained investments in electric mobility and other technologies that can meaningfully reduce emissions.”

Tarun Garg, MD & CEO, Hyundai Motor India, “The final notification of CAFE-III norms is a positive step by the Government towards advancing sustainable mobility in India and presents a clear long-term roadmap for the auto industry. Hyundai Motor India Limited (HMIL) remains committed to complying with all applicable regulatory norms and meeting current and future CAFE requirements. The norms provide a clear and predictable regulatory roadmap through a 3+2 year compliance block structure, enabling manufacturers to undertake long-term product and technology planning with greater certainty. The framework adopts a technology-neutral approach recognizing multiple pathways to improve fleet efficiency including electrification, alternative fuels and advanced fuel-saving technologies. The provisions for credit trading, pooling and flexible compliance mechanisms offer manufacturers greater flexibility while promoting innovation, investment and competitiveness in India's transition towards sustainable mobility. HMIL has already committed to a green portfolio share of 50 percent plus over the next 4 to 5 years comprising of cleaner technologies like EVs, Hybrids, CNGs etc.”

Ranjan Nayak, CEO, JSW Motors, “The much-awaited Corporate Average Fuel Efficiency (CAFÉ) norms introduce a progressive and forward-looking framework that recognises India’s mobility transition towards greener and cleaner technologies, something required to reduce the dependence on imported fossil fuels that place a significant burden on the country’s foreign exchange resources. The CAFÉ 3 norms, which have been notified by the government, recognise that the road to electrification will be a multi-powertrain journey, with batteries acting as the bedrock of this green transition. The government’s decision to support a range of clean and increasingly efficient technologies - including battery electric vehicles (BEVs), range-extended electric vehicles (REEVs) and plug-in hybrid electric vehicles (PHEVs) - will help accelerate fuel efficiency, drive technology adoption and increasingly de-carbonise passenger vehicles in the country. JSW Motors particularly welcomes the higher volume derogation factor of 3.0 for BEVs and REEVs, followed by 2.5 for PHEVs/eligible strong hybrids. This appropriately recognises the greater contribution of battery-led technologies while allowing other electrified powertrains to play a role in the transition. Equally encouraging is the provision for pooling and trading of compliance credits. Creating a mechanism through which manufacturers can exchange credits provides flexibility in meeting the CAFE targets, while creating an economic incentive for companies that invest in cleaner and more efficient green technologies.

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British construction equipment manufacturer JCB has announced capital investments across its manufacturing footprint and a leadership transition following the establishment of a land speed record using its hydrogen combustion technology.

George Bamford will become Joint Chairman alongside his father, Lord Bamford, marking the first leadership change at the top of the company in over 50 years.

The company reported its financial results for 2025, with sales turnover reaching GBP 5.7 billion (USD 7.62 billion), compared to GBP 5.8 billion (USD 7.67 billion) in 2024. Profit before tax stood at GBP 642 million (USD 858 million), down from GBP 687.3 million (USD 900 million) the previous year, while total machine sales reached 113,498 units against 119,848 units in 2024. The business maintains zero net borrowings.

Furthermore, JCB has announced a capital expenditure of GBP 100 million (USD 133 million) to modernise its headquarters in Rocester, Staffordshire, including a GBP 60 million (USD 80 million) automated powder paint plant and shop floor upgrades.

In North America, JCB will open a one-million-square-foot manufacturing plant in San Antonio, Texas, next month, which will produce Loadall telescopic handlers and access equipment while adding 1,500 jobs over five years.

In technology development, JCB is producing hydrogen combustion engines following a GBP 100 million (USD 133 million) research program. The technology was demonstrated at the Bonneville Salt Flats in Utah, where the JCB Hydromax vehicle, powered by two Derbyshire-manufactured hydrogen engines and driven by Wing Commander Andy Green, achieved a speed of 406.320 mph (653.909 kmph).

Lord Bamford, Chairman of JCB, said, “Last year JCB celebrated its 80th birthday and, as we look ahead, we are investing heavily in the future of the business – from the transformation of our Staffordshire headquarters and pioneering hydrogen technology, to our new factory in Texas. As part of that next chapter, I’m delighted that my son George will become Joint Chairman of JCB. We have never been a company that stands still, and these investments will ensure JCB is well placed to seize the opportunities ahead.”

George Bamford, Joint Chairman of JCB, said, "From the day my grandfather founded JCB in 1945, innovation and investment in Great Britain has been at the heart of everything we do. JCB Hydromax showed the world what British engineering can achieve. That same spirit is in every machine we build. While JCB has expanded globally over the years, our home has always been here, and the record investment we are making in our facilities and in new products is good news for Britain and good news for JCB."

Graeme Macdonald, CEO, JCB, said, “While 2025 was a more challenging year with mixed market conditions around the world, JCB delivered a robust performance overall. Machine sales were down by around 5 percent, but turnover remained broadly stable due to a more favourable market and product mix. Despite nil market growth in North America and a 12 percent market contraction in India – both important markets for JCB – we increased our global market share during 2025, which is an encouraging result. The overall outlook for 2026 is for moderate growth, despite ongoing geopolitical uncertainty, and with new capacity coming on stream in Texas and Staffordshire we are well placed to take advantage of it."

The company also expanded its educational intake, receiving 708 applications for 314 places at the JCB Academy for the September intake, while adding 116 apprentices and graduates to its workforce from over 6,300 applicants.

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Trev Mobility, an electric mobility platform, has appointed Ayush Agrawal as Co-Founder and Chief Operating Officer. He joins the company from Shoffr, where he served as Chief Operating Officer, and will manage operations and market expansion alongside Founder and Chief Executive Officer Naveen Gupta.

The appointment coincides with Trev's expansion from city transit into long-haul and intercity electric vehicle operations across new regional markets. From an initial fleet of two electric vehicles, Trev now operates over 100 electric vehicles, having completed 60,000 rides and entered Jaipur as its first market outside Delhi-NCR.

In his new role, Agrawal will oversee fleet deployment, vehicle utilisation, chauffeur operations, regional management teams and service delivery systems.

Naveen Gupta said, “India’s EV ecosystem is moving into a phase where the conversation has to go beyond putting more electric vehicles on the road. The next opportunity is to build operating models that can make EVs work reliably across different use cases, including long-haul and intercity mobility. Ayush brings valuable experience from building and operating a chauffeur-driven fleet business, along with a strong understanding of fleet economics, utilisation and on-ground operations. That experience will be important as we build Trev’s next phase. Together, we want to create an operating model that can demonstrate how EV mobility can scale reliably across cities and longer-distance journeys, while maintaining the level of service and customer experience that Trev is built around.”

Trev provides airport transfers, city transit, chauffeur rentals, corporate travel, and outstation mobility using an all-electric fleet. The company is developing standard operating processes covering vehicle uptime, charging schedules, route planning, chauffeur management, and service consistency across intercity corridors.

Ayush Agrawal said, “Having worked on the fleet operations side of chauffeur-driven mobility, I have seen how much the success of an EV fleet depends on what happens beyond the vehicle itself. Utilisation, charging, chauffeur deployment, route planning and service consistency all become critical as the distance and complexity of journeys increase. Trev has an opportunity to build this operating model with EVs at the centre, particularly across long-haul and intercity travel, and I am excited to work with Naveen and the team on building that at scale.”

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