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)

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Reporting a revenue of over INR 500 billion for the first time, up 12 percent year-on-year, on the basis of automobiles are spares in FY25, Bajaj Auto Ltd has revealed that volumes rose seven percent YoY during the respective period with a strong performance in the first half and a relatively soft performance in the second half.

Observing a solid rebound (double digit volume and revenue growth) in exports, the Pune-based company earned an all-time high EBITDA of INR 101 billion, up 14 percent YoY. PAT also hit a new record at over INR 80 billion. With a revenue of around INR 55 billion from electric vehicles (20 percent of its domestic), the company, with a full PLI certified portfolio, underlined its organisation agility and adaptability with significantly improved unit economics in a journey spanning over the last three years.

With the refreshed Duke 200/250 and the new Adventure 390, the KTM portfolio of Bajaj Auto experienced strong momentum in FY25. Also the Triumph motorcycle portfolio with sales up 60 percent YoY. The KTM and Triumph motorcycles sold one lakh units domestically

The commercial vehicles portfolio of the company comprising mainly of three-wheelers saw a revenue increase of over INR 100 billion. It combined the tradition ICE vehicle business and the newly developed electric vehicle business. The launch of GoGo electric three-wheeler and a wide network of over 850 dealerships helped to increase the momentum.

Image for representative purpose only. 

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Disruptive events such as the Red Sea crisis and the Russia-Ukraine war have caused a need to have a closer look at the role of Chief Financial Officers (CFOs). A renewed approach demands that CFOs act as a change catalyst within the automotive supply chain to tackle future hurdles. To ensure stability in the Indian automotive industry filled with technological advancements, especially in alternative energy vehicles, CFOs are acting as co-pilots of transformation in the Indian automotive supply chain, opined Former Additional Secretary of the Department of Commerce, Government of India, Anand Swarup, during the ACMA CFO and Supply Chain Conference on 28 May 2025, in New Delhi.

The event brought to the forefront discussions on how the role of CFO’s has been changing over the year and saw participation from speakers from different organisations, including Maruti Suzuki India CFO Arnab Roy, among others. 

The speakers highlighted the evolution of customer demands, market dynamics and innovation due to the volatile business environment. Speaking at the event, Partner and National Auto Tax Leader at EY India, Saurabh Agarwal, said, “The CFO no longer works as an accountant, but dons multiple hats such as a risk manager and a strategic partner for resilience.”

“The leader must focus on execution and being agile in a dynamic environment to build strong relationships with other departments and ensure faster time to market. Staying agile will help an OEM to better handle changing customer demands and be able to introduce new features and variants faster,” he added.

Enumerating how flexibility helps the CFO devise strategies for optimising auto production, managing risks and adapting to supply chain disruptions, Roy said, “Real-time decisions must be made in today’s volatile world. As a result, the CFO’s role is now expanding to cover a gamut of subjects such as sustainability, location strategy and choice of appliances. Since we are within a multi-dimensional environment at present, the CFO’s role is moving from a cost controller to a continuity architect.”

Further describing the changing role of a CFO in a volatile uncertain complex and ambiguous world, it was discussed that CFOs must act as change catalyst in the automotive supply chain. While enumerating the above, Anant Swarup said, “The CFOs are not naysayers and their image of being cost-cutting agents is gradually changing. They are supply chain whisperers and co-pilots of transformation. Data-driven risk modelling helps them make accurate future decisions and turns them into participative entities.”

The current world scenario mandates a CFO’s financial expertise to assess vendor performance, identify cost-saving opportunities and process improvements, analyse costs and mitigate supply chain risks. Alluding to the same, Roy explained, “The CFO can build a resilient supply chain through cash visibility and crisis foresight. Relocation with risk-adjusted precision is necessary as it helps prepare risk-adjusted return-on-investments models for various situations. The CFO must also build redundancies and incorporate inventory industrial planning into the company’s business plan. As the world de-globalises due to geo-political scenarios, auto manufacturers are being forced to reassess their supply chains.”    

“Seventy-five percent of automotive revenue is attributable to raw materials. Supply chain management provides a competitive edge. Yet another role for the CFO would be to optimise capital for crisis situations that may include geopolitical shifts,” Roy added.  Speaker Sunil Bohra, CFO, Uno Minda Group, while describing how CFO’s act as change catalyst in automotive supply chain, said, “Every automotive plant in India produces roughly 14,000 parts.” He explained that supply chain management must account for cost control and operational efficiency, leading to effective allocation of resources, high profitability and less waste. It is the supply chain-CFO partnership that decides the future of automotive companies and manufacturers.

Though geo-political scenarios are predominantly uncertain, CFO’s have the arsenal to make calculated decisions for mitigating risks. EY India Partner, Tax, Pankaj Jain, explained, “When changes happen at the geo-political level, we must take some calls. For example, one such concept could be focusing on developing tier II and tier III vendors in India.”

The speakers also discussed on how discipline and immense hard work during the entire shift has helped China reach where it is in the auto manufacturing sector. Highlighting the Indian scenario vis-a-vis China, President- Finance and Strategy at Minda Corporation, Ajay Agrawal, said, “India must stop trying to beat China in the manufacturing industry right now since we have only been in the supply chain business for 2-3 years. The best way forward is for us to partner with China.”  

A smart supply chain-CFO partnership is possible through digitalisation. The CFO's role today has undergone a paradigm shift, making him a partner of strategic convergence across the supply chain, finance and digitalisation as the partnership is no longer just an operational topic.

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Gurgaon-headquartered BMW India Financial Services, the subsidiary of the BMW Group, which focusses on retail finance, commercial finance and insurance solutions, has appointed Andreas Modlmayer as the new Managing Director and Chief Executive Officer.

He succeeds Jaejoon Lee, who successfully led the company as a leading end-to-end automotive financial solution for the BMW brand in the country.

Modlmayer has been associated with the BMW Group since 2000 and was the CEO of BMW Austria Bank in Greece. He has extensive leadership experience for BMW Group Financial Services and has worked across geographies such as New Zealand, China and Hong Kong. He started his career with BMW Bank Munich in Sales and Marketing function.

Lisa Ng, Regional Chief Executive Officer of BMW Group Financial Services for Asia Pacific, said, “Andreas Modlmayer brings with him valuable expertise and leadership acumen, with successful development of BMW Financial Services in diverse markets for over two decades. India is an important market for us, and we are confident that he will further add to the company’s growth as he takes charge of BMW India Financial Services.”

“We thank Jaejoon Lee for his immense contribution to BMW India Financial Services in the recent years. He successfully steered the company with new initiatives in product offerings and customer centricity and strengthened the foundation for future growth. We wish him all the best as he returns to BMW Korea once again,” added Ng.

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Two-wheeler and commercial vehicles major Eicher Motors has reported its record financial results for FY2025.

For the quarter ending 31 March 2025, Eicher Motors reported its highest-ever quarterly revenue from operations at INR 52.41 billion, marking a 23.1 percent increase over the same period last year. Quarterly EBITDA rose 11.4 percent to INR 12.58 billion, while net profit surged 27.3 percent to INR 13.62 billion.

Royal Enfield registered its highest-ever quarterly sales during Q4, with 280,801 motorcycles sold, up 23.2 percent YoY.

For fiscal 2025, Eicher Motors reported revenue of INR 188 billion, a 14.1 percent increase over FY2024, EBITDA rose 8.9 percent to INR 47.12 billion, while PAT stood at INR 47.34 billion, up 18.3 percent YoY.

The company also reported that Royal Enfield crossed the 1 million mark in annual sales for the first time in its history, clocking 1,002,893 units, up 10 percent YoY. Domestic sales grew 8.1 percent to 902,757 units, while exports surged 29.7 percent to 100,136 units.

The iconic brand launched six new motorcycles during the year, including the Guerrilla 450, Bear 650, Classic 650, Goan Classic 350, the 2024 Classic 350 (featuring a Factory Custom Programme) and the Scram 440.

Royal Enfield also made its debut in electric mobility with Flying Flea, a city+ EV brand inspired by the 1940s model of the same name. The new EV line-up is set to launch its first product by 2026, blending classic aesthetics with cutting-edge technology.

To strengthen its international footprint, Royal Enfield inaugurated its first fully owned CKD (completely knocked down) assembly plant in Thailand and announced a second CKD unit in Brazil aimed at serving the LATAM region. It also expanded operations in Bangladesh with a new manufacturing facility and flagship showroom.

Eicher Motors’ commercial vehicle arm, VECV, also posted a strong performance in a flat market. It reported annual revenue of INR 235.48 billion, up 7.7 percent from the previous year. PAT rose 57 percent to INR 12.86 billion, while EBITDA stood at INR 20.23 billion. The company sold 90,000 vehicles in FY2025, a 5.4 percent YoY growth.

VECV introduced the Eicher Pro X range – electric small commercial trucks assembled on an all-woman assembly line – as part of its push for sustainability and inclusivity. Volvo Trucks, part of the joint venture, launched India’s first FM Road Train for efficient long-haul logistics and also began deliveries of LNG-powered trucks.

Siddhartha Lal, Chairman, Eicher Motors, said, “We have had a remarkable year at EML and have reported exceptional performance across both Royal Enfield and VE Commercial Vehicles. In the motorcycle business, the middleweight segment saw a lot of action from our peers. Remaining unfazed and maintaining focus on our strategic goals and community, Royal Enfield stood head and shoulders above everyone else to sell one million motorcycles annually, for the first time in its history. With several global award winning and category defining motorcycles now sitting within the Royal Enfield portfolio, we are super excited and confident about the possibilities that lie ahead of us. At VECV also we saw record-breaking volumes and a strong performance despite the prevailing challenging market conditions. What excites me the most is that we have done it all quietly, consistently and with a sense of purpose. We balanced creativity with rigour, legacy and progress in a way that’s unique to our company and I genuinely believe we are just getting started.”

B Govindarajan, MD, Eicher Motors and CEO, Royal Enfield, said, “FY25 was an incredible year for Eicher Motors and Royal Enfield. We delivered our best-ever financial performance and despite a slow start to the year, we built strong momentum in the second half, launching six new motorcycles, achieving a record festive season and seeing healthy demand across all our products. We also strengthened our international footprint, with consolidated exports surging 29.7 percent to 100,136 units and opened new CKD operations. We also marked our entry into electric mobility with Flying Flea, our city+ EV brand that brings together timeless design and modern tech. It’s been a year of growth, resilience and execution and we are excited for what lies ahead.”

Vinod Aggarwal, MD & CEO, VE Commercial Vehicles, said, “VECV continued to outperform a nearly flat industry in FY2025, with vehicle sales growing 6 percent to 90,161 units. Our company closed the year as a market leader in the Indian 5-18.5T Light and Medium Duty truck segment and recorded its highest ever deliveries across key business verticals.”

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