The Automotive Component Manufacturers Association of India (ACMA) and Boston Consulting Group (BCG) have released a joint study titled ‘Bolts, Bytes and Bots: Reimagining Next-Gen Auto Component Manufacturing in India’. The report examines the impact of digitalisation, automation and analytics on the sector.

The Indian auto component industry grew at a CAGR of 14 percent between FY2020 and FY2025, reaching a value of USD 80 billion. During this period, exports increased 1.5 times to approximately USD 23 billion. The sector is now targeting USD 100 billion in exports by FY2030.

The study indicates that over two-thirds of surveyed companies are in the pilot, scale-up, or fully integrated stages of implementing smart factory initiatives. Nearly 60 percent of these firms report benefits in productivity, quality, asset utilisation and issue resolution.

1. Shift from basic connectivity to advanced analytics and AI-based maintenance.
2. Use of digital twins and automated systems to manage volume and complexity.
3. Focus on operations and quality as primary areas for digital intervention.
4. Move towards interconnected digital stacks rather than isolated solutions.

Digital readiness is becoming a requirement for global OEM sourcing. International partners increasingly expect high standards in traceability, audit readiness and quality control. The report finds that companies with scaled deployments are twice as likely to experience a significant business impact compared to those in the pilot phase.

Vikrampati Singhania, President, ACMA, said, “The findings clearly indicate that Smart Factory initiatives are moving from experimentation to execution across the sector. The next phase must focus on scaling these efforts across plants and the supplier ecosystem. This will require shared platforms, deeper partnerships and coordinated ecosystem development, where industry bodies like ACMA can play a catalytic role.”

Vinnie Mehta, Director General, ACMA, added, “What stands out is the structural shift in how digitalisation is being viewed no longer as a discretionary investment, but as a long-term lever for competitiveness. As the industry balances export growth, coexistence of multiple-powertrains and workforce challenges, smart manufacturing offers a practical pathway to improve reliability, productivity and quality using existing assets.”

Vikram Janakiraman, Managing Director and Senior Partner, BCG, noted, “India’s auto component sector has led the charge on localisation and import substitution over many years, building deep manufacturing capability and scale. Today, as growth accelerates across domestic and export markets, the challenge is managing both volume and complexity. It is promising to see that the sector has made a start by adopting Smart Factory initiatives, with Indian companies already realising significant OEE improvements, quality gains, and better throughput from existing assets.”

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It was in February 2024, Vietnam-based VinFast announced its plans to build an integrated electric vehicle manufacturing facility in Tamil Nadu, India. The facility spread across 400 acres would see an initial investment of USD 500 million over five years with a projected capacity to manufacture 150,000 vehicles annually. 

In August 2025, the company officially inaugurated its facility, which made the Tamil Nadu plant its third operational plant and the fifth project in its global manufacturing network.

And now in a matter of 10-months, the Vietnamese automaker has rolled out its 10,000^th made-in-India vehicle from its Tamil Nadu facility. The milestone was reached less than one year following the official inauguration of the manufacturing facility.

At present, the automaker has introduced three models for the Indian market – VF 6, VF 7 and VF MPV 7. It is also looking to introduce electric scooters and electric buses in India this year.

According to the company, the achievement highlights its team's capability and its ongoing commitment to developing sustainable mobility infrastructure within the Indian automotive market.

VinFast states that with the Tamil Nadu plant on stream, it is now moving closer to its sales target of 200,000 vehicles and its long-term production goal of 1 million vehicles per year by 2030.

Also read: Pham Nhat Quan Anh Succeeds Le Thi Thu Thuy As Chairman Of VinFast Auto

Amit Arora Joins VinFast India As Director O2O Sales

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JSW MG Motor India has started production of the MG Majestor, its D+ segment sport utility vehicle (SUV), at its manufacturing facility in Halol, Gujarat.

The SUV features a four-wheel-drive (4WD) system and triple differential locks to manage traction and control across terrain conditions. It is powered by a 2.0-litre twin-turbo diesel engine paired with an electronic drivetrain and includes advanced driver assistance systems (ADAS) for vehicle safety and control.

Pre-reservations for the vehicle have opened at a price of INR 41,000 on the company's website, with early customers receiving priority delivery timelines and vehicle previews.

The Halol assembly plant utilises automated manufacturing processes and quality control systems to handle the assembly of the vehicle's chassis, body panel alignment and mechanical components.

To support the vehicle rollout, the carmaker is introducing its ownership programme, which includes a 5-year unlimited-kilometre warranty package, 5-year roadside assistance service contract and 5 labour-free scheduled maintenance services.

Biju Balendran, Deputy MD, JSW MG Motor India, said, “The commencement of production of the MG Majestor marks a significant step for us as we move closer to introducing a new benchmark in the premium SUV space. With the Majestor, we are bringing together strong engineering, advanced capability and a commanding presence, aligned to the evolving expectations of customers. Built at our Halol facility with advanced processes and stringent quality systems, the Majestor is engineered to deliver high standards of durability, performance and reliability. We are confident it will resonate strongly with customers looking for both capability and refinement in their next SUV.”

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Yamaha Motor Co, has established the Robotics Business Support Division as a dedicated sales and service facility for its robotics operations in Gurugram, Haryana.

The facility operates within Yamaha Motor India Sales (YMIS), the entity responsible for the company's motorcycle and automotive product sales in the country.

The division was created to reinforce sales and service operations for Yamaha-branded robot products, streamline internal business processes and support further investment. The facility will initially focus on surface mount technology (SMT) assembly systems and industrial robots. Over the longer term, the company plans to build the necessary technical structures to handle semiconductor back-end processing equipment.

The Gurugram facility features a dedicated showroom designed to display Yamaha Motor’s robotics technologies. This space allows clients to view products and technical solutions firsthand, helping them assess application methods for their respective production sites. Through this initiative, the company aims to increase its brand recognition and capture a larger share of the expanding Indian manufacturing and robotics automation markets.

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German automation and technology company Durr has launched Qflex, a system designed to decouple automotive drying ovens from specific heat sources. This development allows manufacturers to change energy sources, such as natural gas, electricity, or hydrogen, without requiring structural modifications to oven systems.

Durr plans to equip its oven range with centralised heating technology, focusing on two systems: EcoInCure and EcoSmartCure. The variable heating circuit enables operators to switch energy sources based on availability or cost.

The system uses a heating module that supplies heat to zones through a circuit. Operators can modify the heating module to change energy sources or integrate high-temperature storage units.

Dr. Heiko Dieter, Product Manager at Durr, said, “It is impossible for anyone to predict today what source of energy will be available in plentiful supply and at a reasonable cost tomorrow. If, for example, the gas supply is interrupted at short notice, there is a risk of costs increasing and even production being interrupted. Energy-flexible ovens guarantee an alternative supply in this case. If a source of energy is no longer economical, operators can switch to another source with minimal effort – without having to interfere with the oven’s structural fabric. Choosing a hybrid system also makes it possible to automatically switch to the cheapest energy source depending on the time of day.”

The EcoInCure oven uses a transverse design. The EcoSmartCure uses a longitudinal mode of operation with a stop-and-go principle. This allows for temperature control by heating bodies in phases, which reduces thermal stress on parts. Both systems are single-level designs intended for integration into new builds or existing plants.

The EcoSmartCure is undergoing tests for industrial use.

“The strong customer interest and two projects already underway confirm to us that we have hit the mark with this new development. Energy flexibility is no longer a distant vision. The Qflex technology in our ovens now offers a solution for responding flexibly to volatile energy markets and changing conditions in automotive production,” concluded Dr. Dieter.

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