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.

Image for representation purpose only.

Innovation and sustainability in design took centerstage at the 19th Styling & Design Conclave 2025 organised by the Society of Indian Automobile Manufacturers (SIAM). The event saw participation from designers and professionals from organisation such as Hero MotoCorp, Maruti Suzuki India, Honda Motorcycle & Scooter India, Stratasys and Autodesk among others.

G Sathiyaseelan, Chairman, SIAM Styling and Design Group and Vice-President, Ashok Leyland, shared his views on empathetic, inspirational and innovative approach towards technology and design,

Anuj Prasad, CEO and Founder, Desmania, expressed confidence in the bright future for automotive designers.

The event saw speakers acknowledging that automotive styling has become an old word, while design and sustainability are the modern buzzwords that indicate the direction in which the automotive sector must head.

“The level of design happening in India holds tremendous potential. We are at the threshold of a new era in design and innovation. Today, international organisations are looking to India for designs that cater to both local and global markets. Automotive design will help build the nation in a responsible manner,” said Prasad.

Prashant Banerjee, Executive Director, SIAM stated that “Indian automotive designs today are as good as Italian designs.”

Samarth Gupta, Senior Technical Specialist & Mobility Lead APAC, Autodesk, said, “Everyone wants to own a vehicle because it is an expression of independence. The urban population landscape is changing due to climate change. New developments in geopolitics and the evolution of consumers’ trends and preferences are impacting the mobility landscape. We will need to evolve our auto design thinking amidst disruptions.”

Teofilo Plaza Garcia, Industrial Studio Head, Hero MotoCorp, said “Motorsports-based designs can be used for road-based vehicles, as indicated through Hero XPulse 210. These vehicles will no longer be as expensive as before.”

Rahul Pandita, Regional Head, Stratasys, stated that 3D block printing is a useful technique that has helped companies like McLaren bring racing designs to life quickly. “As design processes such as 3D block printing decrease the time taken, companies can quickly decipher whether a design is feasible or not,” said Pandita.

Dinesh Raman, Director, Transportation Design, KISKA Shanghai, opined that “As the years go by, greater use of AI will be made for design, thereby freeing up time for creative pursuits by automotive designers.”

VS Deka, Group Manager, Royal Enfield, said, “AI innovation is coming into our lives and we need to adopt the evolving technology. AI can be customised through training and then be scaled up as per requirements.”

Ferdinand Klauser, Global Partner & MD, Asia, KISKA Shanghai said, “India has a lot of potential in bringing about the transformation in mobility designing landscape.”

He also mentioned that though the future is unpredictable, it is possible to plan for it by understanding that consumer needs are transforming faster than the market.

Professor Kaustuv Sengupta of NIFT Chennai, stated, “Colour represents around 20 percent of the design language. Every 300 miles in our country, you see a new colour context. Human beings see a small spectrum of colours. Colours affect us psychologically. We see what we want to see.”

Rajesh Gogu, Vice-President (Design), Maruti Suzuki India, revealed that the company decided to create a completely new design for the fourth generation of the Dzire. The design became a success despite a 55 percent market share for SUVs.

“The trends on the road are changing, as demand for sedans have reduced while that of SUVs have grown. Designing can reinvent declining segments or products to make them popular again. Innovation is not just about technology, it is also about shape, form, aerodynamics, performance and more. We can design our vehicles that can reduce the carbon footprint offering better fuel efficiency and value to customers,” averred Gogu.

While describing the role of AI in automotive designing, Harikrishnan AK, Delivery Manager, TCS Design, said, “AI image generators can be used for inspiration, exploration and for happy accidents but there are challenges of confidentiality and originality. We need to harness the full potential of AI by customisation and fine-tuning.”

Speaking about designing in the commercial vehicle segment, Pravin Gaikwad, Head of CV Design, Tata Motors, said, “We have adopted multi-powertrain strategy. It is possible for the form to get you the trust of the customer. Form is actually helping us to define many ideas. We are leveraging tech intelligence like telematics to design something very unique.”

He shared an insight on how Tata Motors was using space intelligence as a new design direction for making Tata Prima trucks and a new space-saving concept called Tata YU.

The SIAM Styling and Design Conclave also presented automotive design students of MIT (Maharashtra Institute of Technology), ADYPU (Ajeenkya DY Patil University) and NID (National Institute of Design) an opportunity to present their design prototypes. Vedant Barve, a student at MIT, won the first prize for an electric cruiser scooter concept.

“When we began, India had only two design schools. Today, there are over 1,500 design schools producing a strong talent pool for automotive design. We need to be transformative and move toward defining automotive design that is human-centric and sustainable,” added Prasad of Desmania.

“To make India into a global design hub, change that helps India use aspects of its culture while competing at a global level is needed in the academic curriculum,” concluded Sumer Singh, Associate Professor, IIT Delhi.

German tier 1 supplier Continental has announced its latest solution for the automotive industry, the Ac2ated Sound display, a first-of-its-kind in the industry that uses a display surface to bring high-quality audio output.

The technology will not only enable space saving but also could enable significant weight reduction and allow for more innovative solutions to be integrated.

The Ac2ated system uses actuators installed behind the display surface and induce audible vibrations in the glass. The company stated that humans have an intuitive ability to identify the origin of a detected sound in a three-dimensional space, which is referred to ‘sound localisation’. In simple terms, humans, when hearing any sound, have a natural tendency to try and identify the source of the sound. In the automotive industry, the Ac2ated Sound display can create a more immersive experience as the display itself could be used like a sound box.

Given the smaller footprint of the actuators, the solution can be implemented in various flat components of the vehicle interiors.

Continental claims that Ac2ated Sound system requires up to 90 percent less space and can offer up to 40 kilograms of weight saving compared to conventional speaker systems.

Pavel Prouza, Head of User Experience (UX) Business Area, Continental, said, “By integrating actuators into the display, we have succeeded in using the entire display surface as a sound chamber to resonate sound within the vehicle – all in exceptional quality. Not only does this save valuable space in the vehicle interior, but it also reduces weight compared with traditional speakers. The system leverages our full expertise as a system integrator for the benefit of our customers – combining visual and audio output in a single package without compromising on quality.”

TVS Supply Chain Solutions, a global supply chain solutions provider, has announced changes to its leadership structure with the appointment of R Vaidhyanathan as its new Global Chief Financial Officer (CFO) effective 1 April 2025. He succeeds Raviprakash Bhagavathula, who will transition to the new role of Head of Strategic Initiatives and move to Singapore.

At present, Vaidhyanathan serves as Deputy Global CFO and has held various positions in Finance within the organisation. He had joined the company in January 2019 and has worked across various leadership financial roles the position, and is credited to play a key role in significant enhancements to the productivity of the finance function.

Ravi Viswanathan, Managing Director, TVS Supply Chain Solutions, said, “We are delighted to appoint R Vaidhyanathan as our new Global CFO. His strong track record in driving financial performance, optimising cash flow, and fostering a culture of operational excellence has been instrumental in our growth journey. I am confident that his deep understanding of our business and his strategic vision will help us continue to innovate and scale as we move into the next phase of growth journey. We also express our sincere gratitude to Raviprakash Bhagavathula for his invaluable contributions since 2018 as CFO, especially for leading TVS SCS to a successful public listing. We look forward to his leadership in driving our strategic initiatives.”

Both Vaidhyanathan and Bhagavathula will report to Ravi Viswanathan, MD, TVS Supply Chain Solutions.  

British premium luxury car brand Aston Martin has joined hands with Curv Racing Simulators to introduce limited edition AMR-CO1-R simulator with prices starting GBP 58,750 (INR 5.98 million) plus tax. The deliveries are set to begin in April 2025.

Limited to just 50 units, the AMR-CO1-R builds up on the AMR-CO1 and now features precision ergonomics, cutting-edge hardware and even more immersive racing experience.

The partnership sees Aston Martin join forces with three-time Le Mans winner and simulator specialist Darren Turner, who currently leads Curv Racing Simulators. The AMR-C01-R continues to use the all-carbon fibre monocoque and signature Aston Martin Racing grille. The seating position has been revised and inspired by Aston Martin Valkyrie. The new model can now be further adjusted for more comfort and accessibility, especially for taller drivers.

The simulator uses a 49-inch G95C monitor with a 1000R curvature with 240Hz refresh rate (previously 120Hz) and 1ms response time (previously 4ms), which delivers seamless and razor-sharp visuals. Furthermore, the addition of HDR10+ Gaming brings to life more vivid colours and deeper contrast. Thanks to the Nvidia GeForce RTX 5090 graphics card, Intel 14th-generation processor, 32GB DDR5 memory (up from 16GB), and 2TB M.2 SSD storage enable real-immersive gaming performance and ample space for an extensive racing library.

Marek Reichman, Chief Creative Officer, Aston Martin, said, “Curv’s latest simulator is an exciting continuation of the AMR-C01, which was launched in 2020. With improved performance, and a seating position inspired by Valkyrie, this is as close to driving an Aston Martin on-track that a racer will experience. The design itself, like any Aston Martin, will fit into a residence as a sculptural work of art, not just a traditional racing simulator.”

Darren Turner, Founder, Curv Racing Simulators, added, “The AMR-C01 was a game-changer when it launched in 2020, and the AMR-C01-R takes it to the next level. We’ve refined the ergonomics and performance, to make it even more immersive, intuitive, and future-proof. For those who demand the very best, this is the ultimate racing simulator."