Q: What, according to you, are the skill gaps persist in the automotive industry still and how is ASDC addressing this?

Sanghi: Automotive manufacturers are currently facing several challenges. With increased pressure to meet customer demand for more personalised designs, they are tasked with creating a more flexible production environment, reducing engineering time and costs, and accelerating the market to remain competitive.

With massive technological transformations taking place across the sector, companies need to keep pace with the ever-evolving landscape to meet the ever-evolving demands of modern-day work.

Acquiring new skills is the key to sustain in this dynamic landscape. It is a continuous effort of both the institute and the corporation to fill the skill gap. Although there are programmes, they are not reflecting the change at the same pace as the change seen by the industry.

Companies today need people who can adapt and develop themselves to the changing technology. Whether automotive or otherwise manufacturers have recognised the importance of creating a workforce of intelligent problem solvers. In addition to these, more manufacturers are now focusing on hiring and training talents that can sustain advances in technology and drive investment. We at ASDC are doing a lot of training activities along with our teams of various zones, including holding webinars and launching various courses.

We are also continually training our team members and associates and dealers to do more reviews on the digital platforms or dealers to focus on digital retail; they were not getting used to it.

They preferred to be physically present, talking face to face, but now this lockdown has left no other option but to adopt the digital route.

Q: Customers are well informed now, and they finalise the model and variant even before reaching the showroom. In this scenario, what kind of skills needed for dealerships?

Sanghi: With ever-increasing ways to capture your customers’ attention across multiple channels, a partner specialising in the customer journey can be an invaluable asset to your business.

Considering the experience from the consumer’s perspective allows the dealer to compete with other, less traditional models.

Social distancing will bring dynamic change to the dealership business. No longer will customers feel comfortable walking into showrooms. Now, the reverse will happen, and OEMs and dealers will have to reach out to customers even more. And going digital will help them do just that.

Sales channels, dealers and OEMs per se will have to increase the transparency level dramatically. That’s because customers will now prefer to engage with them virtually, which in turn means there has to be digital.

Various experiences, like test drives of new cars, which has been a very popular method of selling a passenger vehicle, will be a much-less-used tool for sales. Likewise, a physical inspection of vehicles undergoing maintenance will take a backseat, and the OEM/dealer will have to convey images to customers about the work being done, either in real-time or in some other manner.

Q: Would the new trend catalyse unemployment further?

Sanghi: The pandemic has brought forth the concept of work from home to enable social distancing, which earlier would never have been thought to be possible for a vast majority of the jobs. You will need to train them (workforce) on how to use digital tools, and train the entire ecosystem to monitor the efficiency.

The need for top-notch cybersecurity is vital; one has to be absolutely sure that the data is secured and not misused. Data integrity needs to be 100 percent. Organisations will need to upskill existing staff to be digital and tech-savvy. All the while, the focus has to be on the data which is supposed to be the oil of the economy that is secured and owned by the owner, and not someone else.

Q: How do you match the curriculum with the ever-evolving customer needs and changing regulatory environment?

Sanghi: While the automotive industry may be facing some challenges, digital manufacturing and technological progress are enabling automotive engineers to deliver products to market faster than ever before.

This is easing the competitive pressure on car manufacturers, and going some way to fill the void left by the shortage of skilled engineers.

COVID-19 has introduced digitalisation as the key to the future. For organisations and the country, this means a huge opportunity to upskill and reskill our workforce using digital tools. This will not only help the country stabilise manufacturing activities, but will also help to improve the standard of living, that well allows for economic growth.

Q: What are the challenges you face with emerging technology trends like electrified, automated, shared technology as each of these elements needs specialised training supported by adequate infrastructure?

Sanghi: A big change happening because of digitalisation and COVID-19 has just helped increase the focus. The current lockdown has brought the focus on skilling and digitalisation into sharp focus. Smart industrialisation is here to say; one can look at their people’s daily lives, particularly in urban and some parts of rural India, to experience that they are now more reliant on digital tools than they were in pre-COVID-19 days.

While skills shortage is an issue far wider than the automotive industry, reasons can be identified why this sector has a lack of skilled workers. For the manufacturing sector, it means moving from labour-intensive methodologies to automation. COVID has accelerated the growth of the cyber-physical world. India should marry men with the machine to enhance productivity. Highly skewed income distribution and a lack of respect for labour remain a big concern. Lack of respect leads to lower productivity and efficiency, which serve to robs India of a competitive edge.

Q: The technological changes that are coming off late are mostly the result of either legislation or regulation. In this scenario, how do you see ASDC transform in the future?

Sanghi: Demand-driven skilling has been the focus of every industry. At ASDC, we’ve conceptualised the digital platform in such a way that it provides all the information together, at one place. For example, the availability of jobs in a sub-sector, what is the prediction for upcoming job roles and what are the skills in demand. It will provide links to all our partners wherein they can share their projections and find the right candidates.

There have been many modifications to the apprenticeship programmes, and these are rightly intended in making it inclusive. We are happy with the Government making these phenomenal improvements, and we hope the industry members engage more apprentices. For the automotive sector, ASDC is the delivery partner for apprenticeships. We also see a lot of enthusiasm from component manufacturers and dealers to explore apprenticeship as an option to get a skilled workforce.

Q: Today, almost all vehicles, including trucks, are connected in one way or the other. What are the new challenges that emerge out of these connected vehicles? What is the solution from ASDC?

Sanghi: The automotive industry is converging with the information and communication technology (ICT) industry at a rapidly increasing rate. Technology is reshaping the global automotive sector. In the future, cars will become computers on wheels as tech players’ move into the automotive sector to leverage their existing capabilities.

When we are talking about the challenges, it can be the difference in lifecycles in the automotive and the mobile industry is a serious challenge for the future of connected cars. New features, such as operating system upgrades and new applications, are provided almost constantly for the smartphone, whereas car manufacturers work on five-year cycles. The advent of connected cars will dramatically change the dealership model as a whole. Salespeople must plan to spend an hour or more teaching customers how to use their car’s advanced technology.

Also, issues such as privacy, security, the cost of deploying a system, data ownership, driver distraction, and equity must be taken into consideration in the technology of connected vehicles/cars.

Q: How is ASDC preparing itself to support the maintenance and repair of electric vehicles?

Sanghi: Complex maintenance is one of the most common concerns that affect electric vehicle (EV) adoption. In reality, however, the intervals between each service in an EV are almost the same as for regular vehicles, and those services are usually less complicated. Traditional vehicles have hundreds of mechanical and moving parts, whereas an EV contains far fewer. Parts of an EV are generally easy to replace and don’t wear out as quickly.

The only major “potential” expense in EV maintenance is replacing the battery. As the vehicle reaches 100,000 miles, it may have lost up to 20% of its range.

Some batteries are designed to replace modules in contrast to the whole battery, but it depends on the way the car is made. Although it may take significantly less time to perform a service on an EV, there are other differences in the service process that can affect an OEM’s aftersales business.

We at ASDC have upgraded our training systems to look after the present modes of maintenance.

The way forward is our entire training programme is under review by industry partners. We have expert groups in R&D, manufacturing; they are in the process of reviewing all our occupational standards and upgrading them, not only for the present but also for the future.

Q: What is your view on data storing wirelessly that may affect multi-brand third-party service centres; how do you see ASDC playing a role in this?

Sanghi: Wireless connectivity for the vehicle may pose serious cybersecurity threats to a moving vehicle.

However, the issue of multi-brand third-party service centres, including service aggregator platforms, are here to stay.

ASDC in partnership with some of the industry partners is keen on providing Recognition of Prior Learning (RPL) for existing manpower as well as upskilling training of existing workers through blended digital learning modules for new technologies linked to new norms like BS-VI standards of emission, etc.

Q: What is ASDC’s work on conserving resources like use of remanufactured parts?

Sanghi: All stakeholders, including the current Government, have felt the need for a well-balanced vehicle scrappage policy; we expect to see its roll-out soon. This can boost a lot in refurbished and remanufactured parts. It opens a new sub-domain, generating employment and entrepreneurship opportunities. Once the policy contours are known, the training qualifications and standards will be worked upon by ASDC.

Q: What are the new courses ASDC is planning to conduct in the near future?

Sanghi: ASDC has started work on new job roles in the areas of Industry 4.0 for manufacturing and maintenance areas and the entire domain of electric vehicles. We are modifying some of the existing job roles to update the new technological changes and disruptions that have taken place in this industry. (MT)

The Sri Lanka Automotive Component Manufacturers’ Association (SLACMA) has appointed its latest Executive Committee, bringing together industry representatives from across the country’s component manufacturing sector.

The new leadership team takes office as Sri Lanka seeks to expand local vehicle assembly, increase domestic value addition and integrate local suppliers into regional and international supply chains.

The association represents manufacturers producing rubber products, electrical components, springs, seating systems, metal parts, trailers and other vehicle assemblies.

A core focus for the organisation is expanding industrial links with India to leverage its automotive manufacturing ecosystem and supplier network.

At present, SLACMA maintains a formal partnership with the Automotive Component Manufacturers Association of India (ACMA) via a Memorandum of Understanding, an initiative commemorated during Automechanika New Delhi 2026 to mark 10-years of institutional cooperation.

The implementation of Sri Lanka’s vehicle assembly Standard Operating Procedure (SOP) has created frameworks for local component integration. Local suppliers currently manufacture parts for vehicle assembly programs involving international and Indian brands, including Tata Motors, TVS Motor Co, Bajaj Auto, Mahindra & Mahindra, Ashok Leyland, Hyundai Motor India, BAIC, DFSK, JAC Motors, Proton, Wuling, JMC and Chery.

In global markets, Sri Lankan manufacturers supply components to international original equipment manufacturers. Lanka Harness Company produces safety components, including airbag sensor switches, seatbelt sensor switches and sun visor harnesses for brands such as Toyota Motor Corporation, Aston Martin and BMW. Electronics manufacturing services provider Variosystems manufactures electronic assemblies for international clients, including Bombardier.

The newly appointed Executive Committee is led by President Dimantha Jayawardena, Vice-President Athula Haputantri, Secretary Thisal Jayathilaka, Treasurer Dr Shriyantha Cooray and Deputy Secretary Vidurshan Gopalakrishnan.

The committee members represent brands such as Shamini Rubber Industries, Modicon Group, Bopitiya Auto Springs, Dyno Innovations, OREL Group, M.V. Electronic, Accolade Ventures Group and LPG Rubber Industries.

Dimantha Jayawardena, President, SLACMA, said, “As an Association, our priority will be to work collectively with our members, policymakers and industry stakeholders to address the challenges facing the sector while creating opportunities for greater local value addition, technological advancement and international competitiveness. I am confident that, with the experience and commitment of the new Committee, SLACMA can continue to build a stronger platform for collaboration and contribute meaningfully towards the long-term development of Sri Lanka’s automotive manufacturing industry.”

Indian automotive retail sales reached nearly 2.5 million units in August 2026, marking its best-ever performance for the month. A total of 2.42 million units were sold last month, which translates to a 17.51 percent YoY growth as per the latest data released by the Federation of Automobile Dealers Associations (FADA).

In terms of segment-wise sales, two-wheelers at 1.71 million units, passenger vehicles at 402,398 units, construction equipment at 5,166 units and commercial vehicles at 90,769 units, clocked strong double-digit YoY growth.

Interestingly, the penetration of alternative energy (CNG, hybrid and electric) in the passenger vehicle segment at 41.95 percent, surpassed petrol vehicle demand at 40.85 percent for the first time in the country.

The industry body attributed the shift to running-cost economics and continuing consumer hesitation around the E20 transition, which pushed petrol buyers towards CNG, hybrids and EVs.

Sai Giridhar, President, FADA, said, “Even as retails eased 6.48 percent over a record July on the seasonal monsoon lull and a festival calendar that shifted Ganesh Chaturthi and the spillover of Onam-led buying into September. Two-wheelers, passenger vehicles, commercial vehicles, tractors and three-wheelers each set fresh August records, and overall registrations were the highest ever for the month.”

“The defining development of the month, however, was a structural one: for the first time in India’s history, alternative fuels – CNG, hybrid and electric combined – overtook petrol in the passenger vehicle market, at 41.95 percent against petrol’s 40.85 percent. A little over a year ago petrol led this contest by nearly 11 percentage points; that lead has now been erased. We would, however, read the headline with discipline: much of the YoY strength rests on a soft August 2025 base, when buyers had deferred purchases awaiting the GST 2.0 rate cut, and dealers report that the festive curtain-raiser came in below their own expectations – the true test of the season lies in showroom conversion through September to November, not in year-on-year optics,” he said.

On the other hand, tractor sales at 87,977 units, witnessed flat growth, due to the widening monsoon deficit of about 13 percent across 14 states.

But rural passenger vehicles at 24.9 percent YoY, as against 10.9 percent YoY growth in the urban segment, pointing to a stronger base demand decoupled from the monsoon.

“Rural demand, in other words, has begun to decouple from the monsoon — the farm-income-linked segment softened, yet the non-farm rural economy of livelihood mobility, goods movement and construction kept accelerating. For an industry long accustomed to reading rural India through the rainfall map, that is the quiet structural marker of FY27, and a measure of how broad-based Bharat’s consumption has become,” pointed out Giridhar.

The two-wheeler segment at 1.71 million units recorded its peak for August since 2018, despite a 5.7 percent decline over July 2026.

FADA attributed sustained GST 2.0 affordability and steady rural demand to the performance. Interestingly, electrification in the segment crossed the 10 percent mark at 10.68 percent, as against 7.6 percent a year ago.

Similarly, electrification in the commercial vehicle segment too reached its highest-ever at 5.18 percent from a 2.06 percent penetration last year.

FADA expressed caution on the passenger vehicle inventory rose to 38-40 days, an additional 5 days over July 2026, as against the recommended 21-day benchmark. “With festive stocking now underway, we urge PV OEMs to bill strictly to retail so that dealer capital is not locked in ageing inventory,” said Giridhar.

Going forward, the industry body expects a positive growth story with the festive season leading to increased demand. But widening monsoon deficit and price hikes by OEMs could affect demand.

Furthermore, FADA has shared its outlook for the three-month period (September to November), which incorporates major festivals including Ganesh Chaturthi, Navratri, Dhanteras, and Diwali (November).

Dealers identified festive demand failing to meet expectations as the primary operational risk, cited by 29.06 percent of respondents. Additional risks include the impact of below-normal rainfall on rural demand, noted by 17.52 percent of dealers, and price increases affecting consumer affordability, identified by 11.11 percent.

FADA stated that retail sales figures for October and November will be compared against the previous year's high base, which was influenced by GST rate adjustments, alongside the calendar shift of Diwali into November. Total retail sales for the 2027 financial year have risen 18.47 percent over the initial five-month period. FADA noted that price increases driven by input costs have reduced the consumer affordability cushion provided by tax revisions across entry-level passenger vehicles, commuter two-wheelers, and commercial vehicles.

The industry body highlighted supporting structural factors, including a stable central bank repo rate, electric vehicle promotion policies and rural economic growth. Non-fossil fuel powertrains have passed petrol options in passenger vehicle retail volumes. Water reservoir levels supporting the upcoming Rabi crop cycle and non-agricultural rural activity were cited as additional factors supporting demand across rural regions.

“Two-wheelers should draw support from festive demand and the alternative-fuel shift, though rural cashflows remain hostage to late-season rainfall; Passenger vehicles enter September with fresh launches and healthy pipelines but must convert them against elevated inventory and a demanding base; and Commercial Vehicles should firm up as post-monsoon freight, infrastructure and harvest movement resume. Overall, the outlook for September’26 appears Cautiously Optimistic – with festive conversion and the monsoon’s closing behaviour the key swing factors,” concluded Giridhar.

The Executive Committee of the Society of Indian Automobile Manufacturers (SIAM) has elected Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, as its President for the 2026–27 term.

The election took place during the organisation's Executive Committee meeting in New Delhi.

Agarwal, who previously served as Vice-President of the SIAM, succeeds Shailesh Chandra, Managing Director and Chief Executive Officer of Tata Motors Passenger Vehicles.

The Executive Committee also elected K N Radhakrishnan, Director and Chief Executive Officer of TVS Motor Company, as Vice-President for the 2026–27 term. Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India, was elected as Treasurer.

Federation of Automobile Dealers Associations (FADA), the apex national body for automobile retail in India, has unveiled the findings of its sixth annual Dealer Satisfaction Study (DSS) 2026. The results were announced during a prestigious awards ceremony at the 8th Auto Retail Conclave on 1 September. This comprehensive industry barometer is conducted in collaboration with PremonAsia, a Singapore-based consumer-insight and advisory firm.

The 2026 study broadened its analytical framework to include the Tractor and Wheeled Construction Equipment sectors for the first time. The Tractor segment recorded a satisfaction index of 784, while the 4-Wheeler Luxury category posted an index of 758. JSW MG Motor maintained its dominant position in the 4-Wheeler Mass Market with an industry-leading score of 865 points. Royal Enfield retained its top ranking in the Two-Wheeler category with 878 index points, closely pursued by Hero MotoCorp.

The Commercial Vehicle segment witnessed a shift in leadership, with Tata Motors CV ascending to the top spot with 800 points, narrowly edging out Ashok Leyland. In the Pure Electric category, Ather Energy and VinFast Auto emerged as frontrunners in the 2-Wheeler and 4-Wheeler sub-segments, respectively. BMW in the 4-Wheeler Luxury segment and Mahindra's Swaraj Division in tractors secured pole positions in their respective categories.

The aggregate Industry Average Dealer Satisfaction score rose by 29 points to 810. The Two-Wheeler segment improved by 35 points to 827, while the 4-Wheeler Mass segment saw a 39-point increase to 810. Toyota Kirloskar Motor and Kia Motors recorded the most notable gains among 4W Mass OEMs, while VECV-Eicher demonstrated strong improvement in the CV space.

Product attributes continue to garner the highest scores, reflecting robust dealer confidence in reliability and refresh cycles. After-Sales service holds the highest importance in dealers' minds, and together with Sales & Order Planning and Business Viability & Policy, these account for nearly 68 percent of dealer priorities. Business Viability & Policy remains the lowest-scoring factor, with dealers highlighting challenges such as unsold inventory buyback policies, training cost-sharing and margins on vehicles and spare parts.

Two-Wheeler dealers appreciate product reliability but voice concerns over inventory write-offs and cost-sharing. In the 4-Wheeler Mass segment, operational pressures like stock carrying costs and network expansion policies are paramount. Commercial Vehicle dealers are focused on service economics including labour rates and warranty reimbursement, while Tractor dealers seek improvements in trial-vehicle support and warranty policies.

Profitability and margins are the most frequently cited requests for improvement, followed by concerns regarding the EV transition and OEM relationships. Dealers are increasingly calling for fairer agreement principles, greater predictability in network policies and more robust support systems to navigate the evolving automotive landscape.

FADA President Sai Giridhar said, “The DSS 2026 continues to provide an important reflection of the evolving Dealer–OEM relationship. This year’s record participation reinforces the confidence of dealers in using this platform to voice their expectations and concerns. While product quality, reliability and range continue to be strong areas, the findings clearly underline the need for greater focus on dealer viability, including sustainable margins, inventory and buyback policies, training cost-sharing and greater clarity in OEM policies. Dealers are also seeking more structured involvement in decision-making and regular engagement with OEMs at national, regional and zonal levels. As the automotive retail business evolves, particularly with the transition towards new technologies, strengthening dealer economics and ensuring a fair, collaborative and sustainable OEM–dealer relationship will be critical for the industry’s long-term growth.”

PremonAsia Director and COO Rahul Sharma said, “The Overall Dealer Satisfaction Index has moved up 29 points over 2025. Changing importance of factors influencing dealer satisfaction displays the dynamic nature of Industry. While Product remains the strongest pillar, After-Sales, Sales & Order Planning and Business Viability & Policy together account for nearly two thirds of dealer mind space. The 2026 DSS study is not just about ‘who ranks where’; it is a clear mandate to build a more viable, fair and future-ready dealer ecosystem. The Voice of Dealer reinforces the quantitative findings – profitability, inventory, dealer rights and future readiness are now central to the OEM-dealer partnership.”