Currently, India’s foundry market for automotive components is small (only 10 percent of total foundry market — 10 million of cast iron + aluminium) in comparison to USA’s foundry market, which is at 14 million tonnes per annum, of which 3.3 million is aluminium (24 percent). With an increasing focus on higher performance with better safety and lower emission, this gap is going to shrink in the coming years, anticipates Ajay Kapur, CEO – Aluminium & Power Business, Vedanta Aluminium.

“There is immense scope for Indian aluminium producers to tap into the emerging market in the automotive sector,” said Kapur. Vedanta Aluminium was the first in India to supply PFA (primary foundry alloy) to the domestic auto sector. Before, the launch of PFA by the company, India’s entire PFA demand was being met through imports, even though the country has the world’s second-largest aluminium production capacity. Looking at the potential of the auto market and its import dependency, the company decided to tap into the opportunity and develop indigenous capabilities at its state-of-the-art facilities in Jharsuguda and BALCO to meet that demand. Currently, the company has a PFA casting capacity of 240KT spread across its plants in Odisha and Chhattisgarh.

“Primary aluminium producers develop PFAs which are customised to suit the exact needs of automakers in terms of performance, strength, durability, etc. Significant R&D and technical expertise go into developing PFAs, resulting in excellent metal quality and outstanding castability, which makes these alloys the preferred choice for the automotive industry,” explained Kapur. PFAs are ideal for aluminium alloy wheels, cylinder heads and brakes. The company also anticipates that with an increased focus on reduction of vehicle weight with higher safety performance, automotive parts critical to safety will be made from PFA instead of cast iron to offer higher strength and nearly double absorption of crash energy. “Besides, aluminium PFAs will always have the added advantage of cost-saving on fuel and maintenance,” added Kapur.

Vedanta Aluminium has started steadily supplying PFAs to OEMs and ancillaries in wheel manufacturing in India. “Our proactive move to expand business on this front helped us on-board some of the most reputed equipment manufacturers and auto ancillaries as our clients, and we have received a very positive response from them. Encouraged by that, we will soon look to expand our alloy portfolio for supporting manufacturing of cylinder heads, ABS brakes and certain key applications where traditional materials can easily get substituted with aluminium alloy. We are also exploring prospects of long-term investments by auto ancillaries near our aluminium smelters so that they may leverage cost savings in terms of freight, re-melting and electricity,” said Kapur.

The company, according to him, is well-positioned to cater to the current and emerging needs of the Indian auto sector, offering a broad range of products that find usage across the automotive value chain – from casting to extrusion. “When choosing suppliers for alloys, automotive players should look for companies having high-quality casting facilities, sophisticated R&D facilities and technological prowess for developing customised high-performance alloys for their specific needs, and finally, having robust after-sales technical support; USPs that have earned us the trust of our clients,” he added.

Aluminium is the second most used metal in the world after steel, today, and, according to Kapur, it has the potential to become the most important commercial metal in the future. “Most developed countries have already designated aluminium as a core industry. Aluminium holds strategic importance for the economy as the metal of choice for all kinds of transportation, power, aerospace, defence, building and construction needs. So, given the role it plays in supporting the core sectors meet the Government’s ‘Make in India’ initiative, we expect its application to only expand with time,” said Kapur.

The metal’s usage in the transportation sector has been rapidly increasing as it offers an environment-friendly and cost-effective way to increase performance, boost fuel economy and reduce emissions while maintaining or improving safety and durability. Aluminium is substantially lighter than its counterparts, offering a significant reduction in weight, which has a direct impact on fuel consumption and carbon emissions.

The metal also has a higher strength-to-weight ratio compared to traditional materials that enable it to absorb twice the crash energy of mild steel, ensuring that vehicular performance enhancements do not come at the cost of safety. “Further, nearly 90 percent of all the aluminium used in a vehicle is recycled at the end of its lifecycle. The energy required to recycle aluminium is only five percent of the energy required to produce the metal. With all these advantages, aluminium can play a pivotal role in the changing face of the automotive sector,” said Kapur.

Aluminium alloys are used by the Indian auto industry majorly as alloy wheels. Around 95 percent of two-wheelers include aluminium, averaging at 7kg per bike, taking total consumption of aluminium alloy in this segment to 115KTPA (kilo tons per annum). Whereas, only 20 percent of four-wheelers use aluminium, majorly in high-end models, which max out at 40kg per car. “The crux of the matter is, in India, we are yet to explore more applications of aluminium in the automotive industry akin to our global peers. For example, in developed countries, around 21 PFAs are used in the automotive segment to achieve light-weighting in the form of various auto parts and components. In India, we majorly use PFAs only for manufacturing alloy wheels and to some extent, for cylinder heads. So, there is immense potential for usage of aluminium in other auto parts like engine, suspension, front end carrier, instrument panel support, rear frame, chassis and many more,” said Kapur.

Shortly, the company expands its alloy portfolio for supporting manufacturing of cylinder heads, ABS brakes and certain other applications where currently steel or iron is being used but can be substituted by suitable aluminium alloys to provide additional benefits. As the market for aluminium alloys in automotive segment expands with inclusion of newer applications, Vedanta Aluminium will look for opportunities to leverage its technological expertise and R&D capabilities to develop products customised to the needs of the market. Vedanta Aluminium is also open to collaborating with the downstream industry, to unlock the entire potential of aluminium used in the auto sector and cater to the rapidly evolving aluminium requirements of the Indian automotive industry.

In the Indian automotive market, one of the biggest challenges faced today is the increasing imports of auto components from China and other countries. The size of the auto components imports was USD 17.6 billion in FY19. Asia, the largest source of imports for Indian auto-components, had a share of 61 percent followed by Europe at 29 percent; North America at eight percent; Latin America and Africa at one percent each in FY19. China, with 27 percent, enjoyed the status of the largest exporter in the Indian automotive market.

“The potential of the aluminium industry should be acknowledged and recognised as a core sector with a National Aluminium Policy that will encourage, protect and boost the domestic aluminium industry. The domestic capability needs to be harnessed for critical sectors of national importance like defence, aerospace, aviation, transportation, infrastructure, electrification, housing, etc. We must make the vision of ‘Make in India’ a ground reality in these sectors, leveraging the potential of the entire aluminium value chain, from mining to end usage. Besides enhancing domestic capacity and reducing import dependency and subsequently trade deficit, it will also generate huge employment opportunities in our country which has a deep talent pool that needs to be capitalised for the realisation of our vision of a USD5 trillion economy. We are on the right path, but there is still a long way to go,” said Kapur.

The global economy is swiftly moving towards a cleaner, greener and more sustainable lifestyle. For more than a decade now, concerns about fuel efficiency have encouraged OEMs to replace steel with aluminium in vehicle bodies, doors, trunks, hoods, bumpers, crash boxes, brakes and wheels. With the advent of electric vehicles (EV), OEMs worldwide are focusing on exploring and applying new uses of aluminium. The need for lightweight battery casings and heat exchangers in electric vehicles, combined with autonomous vehicles’ demands for high visibility and structural integrity, is expected to exponentially increase the use of aluminium in cars, trucks and buses from now on. “Using aluminium in EVs has several advantages, foremost amongst which is the distance travelled per charge. Lighter the vehicle, the longer its range. Coming to better battery life, thanks to the metal’s thermal and anticorrosion properties, aluminium is ideal for battery frames. Demand for aluminium will also rise on account of infrastructure for serving EVs since the metal is commonly used as a housing material for EVs charging stations as well. While India is waking up to this future of automobiles, partnerships between different automotive industry bodies/institutions and auto companies for sharing knowledge and expertise will help fast-track development of electric vehicles in the country,” said Kapur. MT

Japanese auto major Honda Motor Co, has partnered the United Nations Road Safety Fund (UNRSF) to contribute to global initiatives to reduce fatalities from traffic collisions, including a previously announced commitment of USD 3 million over 5 years. The partnership will see Honda combine its know-how and knowledge to promote safe driving/riding practices with the UNRSF. They will support traffic collision analysis and the road safety policies of various countries.

The ultimate goal is to achieve a collision-free society for all road users. Honda stated that it has been pursuing safety initiatives from both hardware and software perspective under its ‘Safety for Everyone’. It aims to achieve zero traffic collision fatalities involving Honda motorcycles and automobiles worldwide by 2050, with a milestone to reduce fatalities by 50 percent by 2030.

Under the new partnership, Honda and UNRSF will focus on two key areas – traffic collision analysis and support for road safety policies. A key focus would be to reduce road fatalities involving two-wheelers especially in emerging countries, which account for a significant portion of worldwide traffic collision fatalities, Honda and UNRSF have made emerging nations, particularly in Asia, as a focus area.

Hideaki Takaishi, General Manager of Safety Planning Division, Corporate Planning Unit, Honda Motor Co, said, “Honda has set a clear safety goal to strive for zero traffic collision fatalities involving Honda motorcycles and automobiles worldwide by 2050. Toward this goal, Honda is continuing its initiatives to enhance safety and reduce traffic collision fatalities worldwide. For many years, Honda has been committed to safety initiatives not only from the hardware perspective such as the development of safety technologies, but also from software perspectives including the promotion of traffic safety awareness among everyone sharing the road. Through our partnership with the UNRSF, we will integrate the knowledge, know-how and network of both parties and strengthen outreach and engagement with various countries with an aim to achieve the milestone of halving worldwide traffic collision fatalities by 2030.”

Nneka Henry, Head of the UN Road Safety Fund, added, “We welcome Honda as the first vehicle manufacturer to join the UNRSF and its governing body. Their contribution through sharing the knowledge and know-how of a mobility company is one of the largest we have received and will help us direct vital resources to high-impact projects that save lives in developing countries. Honda’s leadership sets an important example for the private sector’s role in tackling the global road safety crisis.”

The automotive industry which employs over 19 million people in India and contributes 7.1 percent to the country’s Gross Domestic Product (GDP) can further improve productivity through new-age technologies.

As per the latest EY India report titled ‘How much productivity can Generative AI (GenAI) unlock in India? The AIdea of India: 2025,’ the Indian automotive sector see its productivity improve between 30 percent to 32 percent by 2030 through GenAI.

The report highlights that the automotive sector can leverage GenAI's potential right from product development, customer engagement, autonomous driving and also sustainability initiatives.

The industry is already leveraging advanced technologies such as autonomous driving, real-time analytics and AI-driven optimisation. Furthermore, the integration of GenAI will provide additional fillip towards innovation and efficiency across the entire value chain.

The significant gains through GenAI will be in areas such as product development, process optimisation and customer engagement.

The EY India report stated that 33 percent of respondents shared that their organisations are actively investing in GenAI, with budgets either allocated or in the process of being invested. Additionally, 57 percent of respondents have initiated Proof of Concept (POC) initiatives, with 14 percent already moving these POCs into production. Furthermore, AI is showing a substantial impact on customer satisfaction, with its ability to revolutionise customer engagement through personalised and real-time interactions.       

Vinay Raghunath, Partner and Automotive Sector Leader at EY-Parthenon, said, “GenAI offers a tremendous opportunity for innovation across the entire automotive value chain and can help unlock new potential across manufacturing processes, customer interactions and aspects related to vehicle autonomy, safety and personalisation. Integrating real-time data processing with autonomous features can reshape personal and public transportation systems. Incorporating GenAI capabilities can help streamline production processes, leading to increased efficiency, reduced waste, and improved product quality. Predictive models can help enhance vehicle reliability and lower repair frequency and associated costs. The industry can leverage GenAI to reshape the future of mobility but will also need to address challenges related to investment, data security concerns, regulatory compliance and workforce training”

The report estimates that GenAI can help improve productivity between 37 percent to 39 percent with AI-powered solutions set to revolutionise customer interactions, improving customer satisfaction and engagement.

For production and assembly, the improvement can be between 35 percent to 37 percent, while automation and predictive maintenance will see improvement between 34 percent to 36 percent.

While there is a tremendous opportunity to gain through the adoption of GenAI, the challenges include investment expenses, data security concerns, regulatory compliance and workforce training.

Representational Image Courtesy: Cottonbro studio/Pexels

Japanese auto major Honda claims it has become the first company in the automotive industry to receive the highest ranking of ‘3 stars’, as part of the FIA Road Safety Index. The index was introduced by the FIA to enable businesses and organisations to measure their road safety footprint.

The Fédération Internationale de l'Automobile (FIA) is an international organisation focussing on road safety & traffic circulation and its sports division is the governing body for international motorsport championships and disciplines, including Formula One.  

The 3-star recognition was announced on 17 February at the ‘Challenge 2030: Achieving the Global Road Safety Goals’, a concurrent event of the 4th Global Ministerial Conference on Road Safety which was held in Marrakech, Morocco, held from 18 February to 20 February 2025, local time.

The FIA Road Safety (RS) Index tool allows companies to visualise and measure the impact of their operations on road safety and achieve more sustainable road traffic. It enables comprehensive assessment and evaluation of the safety footprint of each organisation based on various factors such as their road safety goals, commitment and the number of road traffic fatalities and injuries across their entire value chain.

The index system contains two ratings: 1. the ‘supply chain rating’ covering a broad range of corporate activities from procuring raw materials, to development and production of products and customer delivery of the products. 2.  the ‘product/service rating,’ which evaluates the safety aspects of products/services.

Honda is said to become the first company in the automotive industry to undergo audits for both ratings and received the highest 3 stars ratings in both.

Willem Groenewald, FIA Secretary General for Automobile Mobility, said, “Safety is at the heart of our mission in both motorsport and for the daily road user. Through the FIA Road Safety Index, we help companies measure and improve their impact on road safety. We are pleased to announce that Honda is the first car and motorcycle manufacturer to achieve the Index's highest rating of 3 stars both for its supply chain and safety-related products and services. Honda has demonstrated a strong commitment to fostering a culture of continuous improvement in road safety.”

Hideaki Takaishi, General Manager of Safety Planning Division, Corporate Planning Unit, Honda Motor Co, added, “Honda is honored to have our long-standing safety initiatives recognised through successful completion of the FIA Road Safety Index. For over 50 years, we have focused not only on developing safe motorcycle and automobile products but also on spreading knowledge of safe driving and riding practices among our customers through our awareness-building activities. The FIA Road Safety Index has proven to be a promising tool to objectively evaluate the sincere safety initiatives of Honda. We are expecting that widespread commitment to safety initiatives among more companies and organisations will lead to reduction of traffic collisions around the world.”

Cars24, one of India’s leading automotive platform, has expanded its financial arm – Cars24 Financial Services – with the launch of Loans24, a digital-first, hassle-free credit platform designed for car buyers and owners among others.

Being a digital-first platform will enable Loans24 customers to get instant approvals, provide upto 100 percent on-road price for purchases or 200 percent top-ups with upto 6 years loan and an affordable loan starting at 10.99 percent interest.

Ruchit Agarwal, Co-Founder & CFO, Cars24, said, "Getting a car should feel exciting, not exhausting. But for too long, car loans have felt like a necessarily difficult process-slow, complicated, and designed to test patience. If personal loans can be instant, why should car loans still feel like a maze of paperwork and waiting? That’s what we’re fixing with Loans24. No hoops to jump through, no hidden surprises, just a loan that works for you, not against you. Because whether you already own a car or dream of one, access to credit should never be the thing that holds you back." 

Since 2019, Cars24 Financial Services has enabled over INR 40 billion in car loans through Cars24. It has also provided around INR 150 billion in working capital loans to dealers.