With the liquidity position of the auto components industry comfortable across Tier 1 suppliers particularly, the auto components industry in India is set to witness a revenue growth of five to seven percent in FY2024-25 as compared to the high of 14 percent in FY2023-24.  

The stable cashflows and earnings supporting the comfortable liquidity position of Tier 1 suppliers in particular, the auto components industry in the country, according a ICRA Limited’s report will experience an improvement in operating margins – on a year-on-year basis – of roughly 50 bps in FY2024-25. This would be supported by better operating leverage, higher content per vehicle and value additions. 

The exposure to any sharp volatility in commodity prices and foreign exchange rates a continuing factor, the ICRA report projects that the industry will incur an expenditure of INR 200-250 billion in FY2024-25 towards capacity expansion and technological developments. Capex is anticipated to hover around eight to 10 percent of the operating income over the medium term. Contribution is also expected from the PLI scheme, which has been designed to exert a localisation push for electric vehicle components and technology. 

Providing an over view of ICRA’s take on the performance of the Indian auto industry, Vinutaa S, Vice President and Sector Head – Corporate Ratings, ICRA Limited, mentioned, "Demand from domestic original equipment manufacturers (OEM) constitutes over 50 percent of sales for the Indian auto component industry and the pace of growth in the segment is expected to moderate in FY2025. Growth in replacement demand is pegged at five to seven percent, after two to three years of healthy growth, following a relatively weak Q1 in the current fiscal. Exports, which account for close to 30 percent of the industry’s revenues, are likely to be impacted by subdued growth in end-user markets. Nevertheless, ancillaries will benefit from supplies to new platforms as the global OEMs diversify their vendor base and increase outsourcing.”

The moderation in revenue growth in FY2024-25 expected to stem from a moderation in the growth pace of domestic OEMs, the Indian auto components industry is poised to face the consequences of new vehicle registrations in Europe and the US on the exports front. The markets for vehicles over there are expected to remain tepid over the next few quarters, impacted by the weak global macroeconomic environment and geopolitical tensions. 

The rising supplies to new platforms because of vendor diversification initiatives by global OEMs/Tier-I players and higher value addition are expected to drive growth and stability in the auto components industry. 

An increase in outsourcing should augur well for the Indian auto component exporters and those suppliers that are into metal casting and forgings will experience better traction as plants in European Union wind up on the back of viability challenges. 

The aging of vehicles and rising sales of used vehicles in various markets of the world is expected to ensure good demand for suppliers that are into the aftermarket and export of components for the replacement segment. 

Over the medium-to-long term, the ICRA report mentions that stable growth in the auto components space will be fueled by electric vehicle (EV) linked opportunities, premiumisation of vehicles, focus on localisation and changes in regulatory norms. 

The disruption along the Red Sea resulting in a surge in container rates by two to three times in the year-to-date 2024 calendar year, the auto components industry will need to proactively track and tread caution from a supply chain point of view the sudden increase in shipping time by about two weeks. About two third of the exports from India are the US and Europe.

“ICRA’s interaction with large auto component suppliers indicates that the industry has incurred a capex of over Rs 20,000 crore (INR 200 billion) in FY2023-24 and is estimated to spend another Rs20,000-25,000 crore (INR 20-25 billion) in FY2024-25. The incremental investments would be made towards new products, product development for committed platforms, and development of advanced technology and EV components, apart from capex for capacity enhancements and upcoming regulatory changes. R&D, though, is still at an average of one to three percent of operating income, significantly lower than the global counterparts. ICRA expects auto ancillaries’ capex to hover around eight to 10 percent of operating income over the medium term, with the PLI scheme also contributing to accelerating capex towards advanced technology and EV components,” explained Vinutaa.

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Chinese-owned Swedish automotive major Volvo Cars has unveiled a new multi-adaptive safety belt, which it claims is a world-first technology aimed to further enhance safety for everyone in real-world traffic situations. The multi-adaptive safety belt is set to debut in Volvo EX60 in 2026, the company’s fully electric offering. It uses real-time data from the cars advanced sensors to adapt to traffic variations and the user wearing the seatbelt.

Based on the data input from interior and exterior sensors the seatbelt provides customised protection, adapting the setting based on the situation and individual’s profiles, such as their height, weight, body shape and seating position. For example, a larger occupant in a serious crash will receive a higher belt load setting to help reduce the risk of head injury. While a smaller occupant in a milder crash will receive a lower belt load setting to reduce the risk of rib fractures. Using over-the-air software updates, it gets better over time.

Asa Haglund, Head of Volvo Cars Safety Centre, said, “The world's first multi-adaptive safety belt is another milestone for automotive safety and a great example of how we leverage real-time data with the ambition to help save millions of more lives. This marks a major upgrade to the modern three-point safety belt, a Volvo invention introduced in 1959, estimated to have saved over a million lives.”

The Swedish carmaker stated that modern safety belts use load limiters to control how much force the safety belt applies on the human body during a crash. This new safety belt expands the load-limiting profiles from three to 11 and increases the possible number of settings, enabling it to optimise performance for each situation and individual. Unlike traditional systems, the new multi-adaptive safety belt can utilise data from different sensors, including exterior, interior and crash sensors. In less than a blink of an eye, the car’s system analyses the unique characteristics of a crash – such as direction, speed and passenger posture – and shares that information with the safety belt. Based on this data, the system selects the most appropriate setting.

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Carraro Group’s leadership – including Ettore Francesco Sequi, Chairman of Carraro India, and Tomaso Carraro, Vice Chairman of Carraro Group and Carraro India – had a meeting with Union Minister Piyush Goyal and Indian Ambassador to Italy Vani Sarraju Rao in Milan, Italy, underscoring the deepening industrial collaboration between Italy and India, particularly in the off-highway, agriculture and construction equipment sectors.

The discussions reaffirmed Carraro Group’s long-standing commitment to India, which began in 1997. Under the motto ‘Think & Make in India’, the company has focused on developing localised solutions for the Indian market, including advanced 4WD drivetrain systems that enhance agricultural productivity and farm mechanisation. These technologies play a crucial role in supporting food security by improving efficiency for farmers, enabling higher yields and addressing global demand for sustainable food production.

Carraro India has set an ambitious growth target, aiming to increase its turnover from the current EUR 200 million to EUR 350 million by the fiscal year 2028-29. To achieve this, the company plans to expand its manufacturing facility in Pune, reinforcing its production capabilities and strengthening its supply chain within India. This expansion aligns with India’s ‘Make in India’ initiative, promoting local manufacturing and job creation while catering to both domestic and international markets.

The engagement highlights India’s growing appeal as a manufacturing and investment destination for European companies, particularly in the agricultural and construction machinery sectors. It also reflects the broader economic and technological partnership between India and Italy, fostering innovation, skill development and industrial growth.

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German automotive technology giant Continental has developed a new sensor technology that is said to significantly enhance the efficiency and sustainability of electric vehicle (EV) motors.

For the first time, their new e-Motor Rotor Temperature Sensor (eRTS) directly measures the temperature inside permanently excited synchronous motors on the rotor itself.

This innovative approach delivers substantially more precise measurement results than current software-based temperature simulations, drastically reducing the tolerance range from 15deg Celsius to a mere 3deg Celsius. The enhanced accuracy offers a dual benefit for vehicle manufacturers: it enables them to reduce the reliance on costly rare earth elements used to boost magnet heat resistance and simultaneously improve potential motor performance. This, in turn, paves the way for greater sustainability in EV production.

The eRTS is a key development from Continental's E-Mobility Sensors (EMS) product centre, which is dedicated to creating advanced sensor technologies for electric vehicles.

Bin Huo, Head of Passive Safety and Sensorics (PSS) segment, Continental, said, "With less resource consumption and lower costs, eRTS sensor technology is advantageous over current solutions. This innovation shows that investing resources and focusing expertise in our product centre was absolutely the right decision. We will continue to successively expand our EV sensor portfolio."

Higher Measuring Accuracy

The eRTS system comprises two distinct components: a wireless mote temperature sensor unit positioned close to the magnet within the EV motor and a wired transducer element situated outside the motor, connected to the inverter control.

Rotors operate under extreme conditions, with temperatures potentially reaching up to 150deg Celsius. Consequently, precise monitoring and control of heat development in EV motors are paramount. Presently, heat development is not measured directly but is instead calculated based on data from the stator temperature sensor, phase current measurements and environmental variables. This indirect method results in a tolerance range of up to 15deg Celsius. To safeguard magnets from demagnetisation due to excessive heat, expensive rare earth elements are typically used to cover this entire tolerance range and ensure sufficient heat resistance.

The significantly greater measuring accuracy of the eRTS, which reduces the tolerance range to just 3deg Celsius, presents car manufacturers with new design possibilities and freedom in permanent magnet synchronous EV motors.

A considerable proportion of costly rare earth materials, which would otherwise be required to account for the wider tolerance range for safety reasons, can now be saved. Furthermore, the improved accuracy offers the intriguing prospect of enhancing motor performance by pushing the operational limits closer to the actual temperature threshold.

Christoph Busch, Lead – Product Centre, Continental, said, "Our E-Mobility Sensors product centre aims to increase efficiency and sustainability in electric vehicles. The eRTS technology is a prime example of this: reducing the use of rare earths contributes to a more sustainable supply chain, especially given that the number of EVs is expected to greatly increase in the coming years and decades. In combination with other sensor technologies, such as the e-Motor Rotor Position Sensor, it can even act as a system solution to create synergies that can save car manufacturers money and effort."

Ultrasound Technology

The eRTS's two components, the mote element and the transducer element, work in tandem. The mote temperature sensor unit measures the temperature directly at the target area, as close as possible to the magnet. Crucially, the wireless mote draws its energy solely from the wired transducer, which is connected to the Electronic Control Unit (ECU) and simultaneously provides the transducer with its measuring data. The transducer is located outside the EV motor on the chassis and transmits temperature information to the inverter control via a communication interface. Both the mote and transducer communicate using Piezo ultrasound, which also facilitates the energy supply to the mote.

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In a landmark development for artificial intelligence and global technological partnerships, G42, OpenAI, Oracle, NVIDIA, SoftBank Group and Cisco have joined forces to launch Stargate UAE, a next-generation AI infrastructure cluster set to operate in Abu Dhabi.

The announcement, made in the presence of President Sheikh Mohamed bin Zayed Al Nahyan, highlighted UAE’s commitment to driving cutting-edge innovation on the world stage.

The launch event witnessed the attendance of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Deputy Prime Minister & Minister of Defence and Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and Chairman of the Artificial Intelligence Council, alongside prominent dignitaries and senior officials.

Stargate UAE, a 1-gigawatt compute cluster, will be constructed by G42 and operated by OpenAI and Oracle. NVIDIA will provide its cutting-edge Grace Blackwell GB300 systems, while Cisco contributes AI-ready connectivity and zero-trust security frameworks. SoftBank Group will also play a crucial role in the initiative. Once operational, Stargate UAE will deliver exceptional AI infrastructure, scalable compute resources, and ultra-low latency for inferencing, enabling powerful AI applications across industries. The first 200-megawatt cluster is slated to go live in 2026.

Designed to fuel scientific discovery, industry innovation and economic growth, Stargate UAE will support sectors including healthcare, energy, finance and transportation. It forms the cornerstone of the newly announced UAE–US AI Campus, a 5-gigawatt AI hub spanning 10 square miles in Abu Dhabi – the largest deployment of its kind outside the United States. Powered by a combination of nuclear, solar and natural gas sources, the facility will prioritise sustainability and low-carbon operations. It will also feature a science park to nurture talent, advance research, and promote sustainable computing solutions.

The UAE–US AI Campus builds upon the ‘US-UAE AI Acceleration Partnership’, a framework unveiled last week by the U.S. and UAE governments to foster safe, secure and responsible AI technologies. As part of this initiative, UAE entities will expand their digital infrastructure investments in the U.S., including projects like Stargate U.S., aligned with the ‘America First Investment Policy.’

Peng Xiao, Group CEO, G42, said, “The launch of Stargate UAE is a significant step in the UAE–US AI partnership. As a founding partner, we’re proud to work alongside institutions that share our belief in responsible innovation and meaningful global progress. This initiative is about building a bridge – rooted in trust and ambition – that helps bring the benefits of AI to economies, societies, and people around the world.”

Sam Altman, Co-founder and CEO, OpenAI, said, “By establishing the world’s first Stargate outside of the US in the UAE, we’re transforming a bold vision into reality. This is the first major milestone in our OpenAI for Countries initiative – our effort to work with allies and partners to build AI infrastructure around the world. It’s a step toward ensuring some of this era’s most important breakthroughs – safer medicines, personalised learning, and modernised energy – can emerge from more places and benefit the world.”

Larry Ellison, CTO and Chairman, Oracle, said, “Stargate pairs Oracle’s AI-optimised cloud with nation-scale sovereign infrastructure. This first-in-the-world platform will enable every UAE government agency and commercial institution to connect their data to the world’s most advanced AI models. This landmark deployment sets a new standard for digital sovereignty and demonstrates how nation states can harness the power of the most important technology in the history of humankind.”

Jensen Huang, Founder and CEO, NVIDIA, said, “AI is the most transformative force of our time. With Stargate UAE, we are building the AI infrastructure to power the country’s bold vision – to empower its people, grow its economy, and shape its future.”

Masayoshi Son, Chairman and CEO, SoftBank Group, said, “When we unveiled Stargate in the US with OpenAI and Oracle, we set out to build an engine for the next information revolution. Now, the UAE becomes the first nation beyond America to embrace this sovereign AI platform, proving the global nature of this vision. SoftBank is proud to support the UAE’s leap forward. Bold investments, trusted partnerships, and national ambition can create a more connected, more joyful and more empowered world.”

Chuck Robbins, Chair and CEO, Cisco, said, “Cisco is proud to join Stargate UAE to advance groundbreaking AI innovation in the UAE and around the world. By embedding our secure AI-optimised networking fabric for this international deployment, we're building smart, secure and energy-efficient networks that will turn intelligence into impact at global scale.”

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