OEMs are facing new challenges to improve the existing technologies and develop next-generation ones for the new mobility in shorter times. Reducing market responding time along with new complexities are paving the way for virtual simulation, which displaces physical tests and prototypes by virtually replicating product development, testing and manufacturing with simulations. Emmanuel Leroy, Executive Vice-President Industry Solutions at ESI Group, explains, “We enable our customers to drastically reduce every additional physical prototype by using our solutions. In the end, only one physical prototype is required to validate the whole concept. We envision that one day we may be able to virtually certify a product from end to end.” Excerpts:

Q) How did the Covid impact the software and services businesses of ESI Group?

The Covid pandemic has accelerated the need for more digitalisation within the industrial market. It has also somehow accelerated the readiness level of our customers and made solutions such as virtual prototyping even more relevant. Indeed, we enabled the continuity of our clients’ business. The use of virtual prototyping allowed them to continue designing, testing and prototyping their products. Our human-centric approach – one of ESI Group’s four outcome solutions – was particularly used by our customers to ensure the continuity of their businesses: using virtual reality to experience the product from home.

During pandemic times, we also provided our CFD (computational fluid dynamic) solutions to help investigating different scenarios to demonstrate the effect of occupant proximity, ventilation systems and contamination avoidance unique to each office and plant environment. ESI Group developed different virtual scenario, based on its facilities in India, to optimise the return to offices and on plant – especially on a car assembly line.

How the growing complexity of part process is influencing the virtual testing?

We notice that the automotive industry is facing more and more draconian regulations, disruptive technologies, intensifying competitions and shortening response time. Coupled with these, customers are getting more demanding on quality, reliability, safety and production deadlines in the business. Indeed, end users are no longer looking for products but for results (flight hours instead of engines, number of possible kilometres instead of electric car, etc.) and they seek for committed and responsible automakers to motivate their buys. At ESI Group, we have understood these preoccupations and we have defined four primary solutions answering our customers’ expectations.

The first one is the Pre-certification and Validation, enabling gains in performance and productivity. The purpose is double: meeting certification and validation requirements like crash, safety and fatigue issues in the first attempt and then increasing productivity with predictive models and process automation.

The second outcome is Smart Manufacturing, which enables to establish the right manufacturing processes to meet the performance indicators for industrial products and processes.

The Human-Centric Product and Process Validation, our third outcome, focuses on humans by implementing an operator-centric approach to ensure the efficiency of assembly, maintenance operation and the safety of human interactions.

The last one, Pre-experience, is the most advanced solution of ESI Group. Here, our customers and the operators do not look at the product itself, but virtually experience a product, component, subsystem or system under numerous conditions and environments.

Using these approaches, we identify industry challenges from the customer’s perspective and support them in achieving their results.

Finally, as products are getting more complex, one of our strengths is our end-to-end multi-material assembly solution with modelling of different materials (steel, aluminum, composite) and manufacturing processes, covering all the product development cycle.

What will be the growth drivers for the internal combustion engine-driven vehicles business?

Safety is essential and will remain a key driver in the future. Today, the active safety is gaining traction owing to the regulations and overall trends. There is an increasing demand for smart integrated safety, which caters to both active and passive what?

Alongside there are regulations on Co2. In Europe, the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) Norm is challenging and will eventually be implemented in other countries. Regarding Co2 reduction, we focus part of our research and innovation around engine efficiency, aerodynamics and light-weighting, as we did with Bentley for instance.

OEMs are also looking to reduce the manufacturing cost and development time which are leading demand for virtual prototyping, digital twin and shifting OEMs’ investment from hardware to software. The end-to-end value and the digital continuity from the early design to the production is essential to achieve these goals.

OEMs are exploring possibilities to manufacture ICE vehicles and EVs on the same line. Being a solution provider for the smart manufacturing process, how do you see this as a challenge?

Some OEMs assemble EV and ICE vehicles on the same line and look for flexibility, while others use completely dissociated platforms. We, consequently, must find the right strategy regarding their requirements. The new upcoming challenges in CASE mobility manufacturing will bring even more complexities from components to manufacturing. We have to consider the complexity to train the operators: our virtual reality solutions are key here. We help our customers by providing training, on both ICE vehicles and EVs manufacturing processes to their team, even from different place around the world, gathered on the same interface. This solution gathers all stakeholders (from operators to QHSE officers and plant managers) around the same product. This immersive tool helps getting complementary feedbacks early on in the process.

Where do you find more competencies or comfortability — in the complete vehicle design or component design?

Clearly, we are positioning ourselves on the whole vehicle design as it gives the most significant benefit for the OEM and other customers. We are talking about an end-to-end value that we can demonstrate on full scale CAE demonstrators. When it comes to a standalone component, the complex interactions between components and environment are not well taken into account and can lead to reduced predictiveness. In this case, we come up with a holistic view of the problem itself. It is how we defined the four outcome solutions introduced earlier.

Do you think that virtual prototypes will, at a 100 percent, completely replace physical ones ?

Virtual prototypes are step by step replacing physical prototypes. Nevertheless, I think physical prototypes remain today essential to certify the product at the very end of the development phase. To give an example, in 2019 Renault succeeded a 5-star rating of its Clio 5 on the Euro NCAP safety certification test with a single physical prototype, the one needed for the consumer test. Virtual certification is a topic discussed within the automotive ecosystem, allowing to solely relying on the simulation from end to end. But we are not at that point right now.

Which is your largest market for automotive business?

The automotive industry is the most significant contributor to our total revenues. Today, Japan is the largest market for our automotive business. However, India has been an important market for ESI, and it has been growing quite well over the years.

Most of our engineering developments teams, for both our software and our platforms, are based in India.

What are the challenges in the business?

The increasing complexity I mentioned before is definitely a challenge, but it also brings opportunities to us. Our end-to-end multi-material, multiprocess solutions and chaining capabilities are key to overcome the challenges of the automobile market. Due to the ever growing content of electronics, system simulations and systems of systems techniques are improving as well. Our focus is to strengthen our collaboration with partners in the ecosystem to support the customers in solving their complex problems. (MT)

Comments (0)

ADD COMMENT

Link Copied!

In what comes as good news for the Indian automotive industry, competitors trained by the Automotive Skills Development Council (ASDC) secured five Medals for Excellence at the 48th WorldSkills Competition held in Shanghai, China, from 22 to 27 September 2026.

The event featured more than 1,400 participants from 70 countries, with India fielding a contingent of 70 competitors across 63 skill categories. Team India recorded a Top 10 global finish with six Silver Medals and 20 Medals for Excellence overall. The ASDC prepared candidates through training programmes, hands-on practice, exposure visits and competitions organised in collaboration with industry and academic partners.

The ASDC-supported participants awarded Medals for Excellence were Pavan Bhadravati Suresha in Additive Manufacturing, Kaif Khan in Car Painting, Md Seraj in Automobile Technology, Mallinath and Suhan Mascarenhas in Industry 4.0 and Abhishek Somanna Shignalli alongside Vinay Muttayya Hiremath in Robot Systems Integration.

Vinkesh Gulati, Chairperson, ASDC, said, "This stellar performance at WorldSkills Shanghai 2026 is a proud moment for ASDC and a testament to the immense talent of India’s youth. Winning Medals for Excellence across advanced automotive domains reflects our relentless commitment to aligning skill training with global standards. Our young champions have proved that Indian automotive talent is second to none."

Prasanna Pahade, CEO, ASDC, said, "Securing five Medallions across critical futuristic skills like Industry 4.0, Robotics, and Additive Manufacturing reaffirms the impact of ASDC's industry-aligned curriculum and intensive mentorship. The benchmark perfection demanded at WorldSkills validates our mission to build a future-ready workforce for the global mobility sector."

Training support for the participants was provided by industry organisations and institutes including Maruti Suzuki India, Toyota Kirloskar Motor, Mahindra & Mahindra, FANUC India, Axalta Coating Systems India, Festo India, SHINING 3D, Autodesk, NAMTECH, International Automobile Centre of Excellence, NTTF and Synoptic Skills Studio.

Comments (0)

ADD COMMENT

Link Copied!

Bengaluru-based electric two-wheeler manufacturer Simple Energy has closed a INR 17.5 billion (approximately USD 180 million) equity-based Series C funding round led by the Dr. Arokiaswamy Velumani Family Office, alongside Simple Energy Founder and CEO Suhas Rajkumar, Co-founder and CFO Ankit Gupta, Bengaluru-based investor Amit Mishra, and the Haran Family Office.

The transaction is said to represent the company's largest fundraising to date and the third-largest round recorded in India's electric two-wheeler sector.

The transaction brings total capital raised by the company to over INR 25.30 billion, following a INR 2.5 billion round of mixed debt and equity completed in June 2026. The new funds will be allocated toward constructing a new manufacturing facility, increasing production output, expanding retail and service networks, making workforce additions and funding research and development for future product iterations.

Suhas Rajkumar, Founder and CEO, Simple Energy, said, "This is a defining moment for Simple Energy. Over the past few years, we have built our core technology, products, manufacturing capabilities, and retail network in-house. This round gives us the capital to scale that foundation. Our priorities are a new manufacturing facility, higher production, an expanded distribution and service network, and the next generation of products. The continued support of our early investors reinforces our progress as we work to make Simple Energy one of India’s leading full-stack electric two-wheeler companies."

Dr A. Velumani, Creator - Thyrocare, AVMLabs & AVMSmiles, said, "I have been with Simple Energy since the early days, and I now repent I didn’t know it earlier. Growth of 4x in a year says both the company and industry are growing rapidly. SEPL owns end-to-end technology for chassis, battery, motor, and software. That is very rare in the Indian EV vertical. The next phase will focus on scaling in manufacturing, marketing, and retail networks. With tailwinds of global challenges in fossil energy, Simple is well positioned to be in the top 3 players of the EV2W vertical in India in just 3 years."

At present, Simple Energy operates a manufacturing capacity of 10,000 units per month and maintains a retail network of over 80 outlets across more than 60 cities, including Bengaluru, Delhi, Patna, Hyderabad and Chennai. Its product portfolio includes the Simple One, Simple Wave and Simple Ultra models, which target performance and family scooter market segments.

Comments (0)

ADD COMMENT

Link Copied!

The Indian government has published updated fuel economy rules for passenger cars, establishing higher efficiency targets that vehicle manufacturers must meet from 1st April 2027 to 31st March 2032.

The regulations for the Corporate Average Fuel Economy (CAFE) Phase III will require automakers to reduce overall fleet fuel consumption by 16.7 percent over five years. It will apply to all new passenger vehicles manufactured in or imported into India.

The framework mandates a reduction in overall fleet fuel consumption, lowering the target from 3.996 litres per 100 kilometres in 2027–28 to 3.3273 litres per 100 kilometres by 2031–32, representing a 16.7 percent efficiency improvement over five years. The reference vehicle weight under the calculation matrix has been adjusted from 1,082 kg to 1,229 kg to reflect changes in fleet composition.

The average baseline target will decrease step-by-step from 3.99 litres per 100 kilometres in FY 2027–28 down to 3.32 litres per 100 kilometres by FY 2031–32. The calculation formula has also been adjusted to account for heavier average vehicle weights across modern product lines.

To give manufacturers flexibility in meeting these targets, the policy provides incentives for adopting cleaner vehicle technologies and alternative fuels.  

• Alternative Fuel Discounts: Vehicles running on ethanol blends, flex-fuel, compressed natural gas (CNG), or compressed bio-gas (CBG) receive emissions discounts when calculating company averages.
• Energy-Saving Tech Credits: Manufacturers can claim official efficiency credits for installing 12 approved energy-saving features, including automatic start-stop systems, tyre pressure monitors, advanced heat-reflecting glass, LED exterior lighting, high-efficiency air conditioning and solar-reflective paint.
• Super Credits for Electrified Cars: Fully electric vehicles, plug-in hybrids, strong hybrids and flex-fuel hybrids receive extra weighting in fleet calculations to encourage higher production of low-emission models.

Compliance will be tracked across two multi-year testing blocks. Companies that exceed their efficiency targets will earn carbon credits, which they can carry forward, trade with other carmakers, or sell.

Manufacturers that fall short can buy credits from better-performing competitors or purchase them directly from the government’s Bureau of Energy Efficiency (BEE) during a yearly trading window.

At present, exemption will be given to low-volume car manufacturers producing fewer than 1,000 units annually from these specific target requirements.

Shenu Agarwal, President, Society of Indian Automobile Manufacturers (SIAM), “Automobile industry appreciates and welcomes the release of CAFÉ III Notification for Passenger Vehicles by Government of India from 1st April 2027 onwards. CAFÉ III regulation lays down a structured roadmap with aggressive annual targets for next 5-years for the Auto industry along with a market-based compliance mechanism. This will not only ensure reduction of overall fuel consumption from new Passenger Vehicle fleet but also provide an opportunity to the industry to work on various technology pathways providing multiple choices to the consumers. The CAFÉ III regulation framework provides clear predictability which will enable the Auto industry to plan investments and accelerate innovation, thereby, playing an important role in the country’s journey towards Viksit Bharat in 2047. We are thankful to Government of India for detailed and transparent consultative approach in framing this critical and forward-looking regulation after undertaking an objective and balanced assessment of various clean technology options.”

Dr. Velusamy R, President, Automotive Business, Mahindra & Mahindra, “We welcome the Government’s notification of the new CAFE-III norms. Following extensive dialogue between the Government and industry, the framework strikes a pragmatic balance between what is necessary for the environment and what is achievable for the industry, while strengthening India’s energy security. The targets are appropriately ambitious and provide a clear trajectory through 2031-32. We also welcome the inclusion of a compliance block, technology credits, cleaner-fuel benefits and super credits for EVs and other advanced technologies. At Mahindra, we are confident in our ability to meet these norms, backed by our sustained investments in technology, electrification and cleaner mobility. This is a pragmatic, forward-looking framework and a double win for the environment and India’s energy security. We thank the Government for its constructive and consultative approach.”

Rajat Mahajan, Partner and Auto Sector Leader, Deloitte India, “The CAFE 3 norms prioritize the role of transportation in tacking air pollution, and give the industry a clear direction for the next five years. The targets get tighter every year, more so for the heavy vehicles under the final draft version, but manufacturers can reap benefits by transitioning to electric, hybrid, alternative-fuel and fuel-saving technologies. Adhering the norms will require careful product planning and substantial investment in new age technologies. These norms are going to accelerate India’s NEV transition. OEMs who may not be able to switch their larger portfolio fast enough, may end up trading credits within the 2 compliance blocks to avoid penalties.”

Vikram Gulati, Country Head & Executive VP, Toyota Kirloskar Motor, "We congratulate the Government of India for bringing out a progressive and forward-looking CAFE 3 regulation that reflects the nation's aspiration to advance sustainable mobility. The CAFE 3 regulation takes due cognisance of the importance of various clean technologies using an objective and science-based assessment methodology to arrive at a regulation that is best suited for our national interests.  Therefore, aligning to a multi-pathway approach, battery electric vehicles (BEVs), Range Extenders (REEV), Plug-in Hybrid Vehicles (PHEVs), Strong Hybrid Electric Vehicles (SHEVs) and Flex Fuel Vehicles (FFVs), including Flex Fuel Strong Hybrid Vehicles (FFV-SHEV) have all been fairly recognised. This will enable the country to rapidly reduce its dependence on imported fossil fuels by leveraging the benefits of high levels of energy efficiency provided by Hybrid vehicles and substituting fossil fuels with electricity using BEVs/PHEVs/REEVs as well as with indigenous and green biofuels like ethanol, that also provide higher income opportunities to our farmers, by using FFV & FFV-SHEV. We would also like to thank the Government for following a deep & transparent consultation process with all stakeholders in formulating this regulation that allowed all points of view to be objectively evaluated and incorporated in the final regulation. This regulation is a big step forward and will play an important role in India’s march towards realising its goal of energy independence by 2047 as well as carbon net-neutral by 2070.”

Shailesh Chandra, MD & CEO, Tata Motors Passenger Vehicles, “The CAFE III framework is an important step in advancing India’s journey towards cleaner and more sustainable mobility. We welcome the Government’s consultative approach in developing a framework that combines ambitious fuel efficiency targets with market-based compliance mechanisms. Importantly, the continued recognition of zero-emission technologies reinforces the critical role of electrification in achieving India’s long-term decarbonisation objectives. The clarity and predictability provided by the framework will enable the industry to plan investments, accelerate innovation and offer customers an increasingly compelling range of cleaner mobility solutions. At Tata Motors, we remain committed to leading this transition through sustained investments in electric mobility and other technologies that can meaningfully reduce emissions.”

Tarun Garg, MD & CEO, Hyundai Motor India, “The final notification of CAFE-III norms is a positive step by the Government towards advancing sustainable mobility in India and presents a clear long-term roadmap for the auto industry. Hyundai Motor India Limited (HMIL) remains committed to complying with all applicable regulatory norms and meeting current and future CAFE requirements. The norms provide a clear and predictable regulatory roadmap through a 3+2 year compliance block structure, enabling manufacturers to undertake long-term product and technology planning with greater certainty. The framework adopts a technology-neutral approach recognizing multiple pathways to improve fleet efficiency including electrification, alternative fuels and advanced fuel-saving technologies. The provisions for credit trading, pooling and flexible compliance mechanisms offer manufacturers greater flexibility while promoting innovation, investment and competitiveness in India's transition towards sustainable mobility. HMIL has already committed to a green portfolio share of 50 percent plus over the next 4 to 5 years comprising of cleaner technologies like EVs, Hybrids, CNGs etc.”

Ranjan Nayak, CEO, JSW Motors, “The much-awaited Corporate Average Fuel Efficiency (CAFÉ) norms introduce a progressive and forward-looking framework that recognises India’s mobility transition towards greener and cleaner technologies, something required to reduce the dependence on imported fossil fuels that place a significant burden on the country’s foreign exchange resources. The CAFÉ 3 norms, which have been notified by the government, recognise that the road to electrification will be a multi-powertrain journey, with batteries acting as the bedrock of this green transition. The government’s decision to support a range of clean and increasingly efficient technologies - including battery electric vehicles (BEVs), range-extended electric vehicles (REEVs) and plug-in hybrid electric vehicles (PHEVs) - will help accelerate fuel efficiency, drive technology adoption and increasingly de-carbonise passenger vehicles in the country. JSW Motors particularly welcomes the higher volume derogation factor of 3.0 for BEVs and REEVs, followed by 2.5 for PHEVs/eligible strong hybrids. This appropriately recognises the greater contribution of battery-led technologies while allowing other electrified powertrains to play a role in the transition. Equally encouraging is the provision for pooling and trading of compliance credits. Creating a mechanism through which manufacturers can exchange credits provides flexibility in meeting the CAFE targets, while creating an economic incentive for companies that invest in cleaner and more efficient green technologies.

Comments (0)

ADD COMMENT

Link Copied!

British construction equipment manufacturer JCB has announced capital investments across its manufacturing footprint and a leadership transition following the establishment of a land speed record using its hydrogen combustion technology.

George Bamford will become Joint Chairman alongside his father, Lord Bamford, marking the first leadership change at the top of the company in over 50 years.

The company reported its financial results for 2025, with sales turnover reaching GBP 5.7 billion (USD 7.62 billion), compared to GBP 5.8 billion (USD 7.67 billion) in 2024. Profit before tax stood at GBP 642 million (USD 858 million), down from GBP 687.3 million (USD 900 million) the previous year, while total machine sales reached 113,498 units against 119,848 units in 2024. The business maintains zero net borrowings.

Furthermore, JCB has announced a capital expenditure of GBP 100 million (USD 133 million) to modernise its headquarters in Rocester, Staffordshire, including a GBP 60 million (USD 80 million) automated powder paint plant and shop floor upgrades.

In North America, JCB will open a one-million-square-foot manufacturing plant in San Antonio, Texas, next month, which will produce Loadall telescopic handlers and access equipment while adding 1,500 jobs over five years.

In technology development, JCB is producing hydrogen combustion engines following a GBP 100 million (USD 133 million) research program. The technology was demonstrated at the Bonneville Salt Flats in Utah, where the JCB Hydromax vehicle, powered by two Derbyshire-manufactured hydrogen engines and driven by Wing Commander Andy Green, achieved a speed of 406.320 mph (653.909 kmph).

Lord Bamford, Chairman of JCB, said, “Last year JCB celebrated its 80th birthday and, as we look ahead, we are investing heavily in the future of the business – from the transformation of our Staffordshire headquarters and pioneering hydrogen technology, to our new factory in Texas. As part of that next chapter, I’m delighted that my son George will become Joint Chairman of JCB. We have never been a company that stands still, and these investments will ensure JCB is well placed to seize the opportunities ahead.”

George Bamford, Joint Chairman of JCB, said, "From the day my grandfather founded JCB in 1945, innovation and investment in Great Britain has been at the heart of everything we do. JCB Hydromax showed the world what British engineering can achieve. That same spirit is in every machine we build. While JCB has expanded globally over the years, our home has always been here, and the record investment we are making in our facilities and in new products is good news for Britain and good news for JCB."

Graeme Macdonald, CEO, JCB, said, “While 2025 was a more challenging year with mixed market conditions around the world, JCB delivered a robust performance overall. Machine sales were down by around 5 percent, but turnover remained broadly stable due to a more favourable market and product mix. Despite nil market growth in North America and a 12 percent market contraction in India – both important markets for JCB – we increased our global market share during 2025, which is an encouraging result. The overall outlook for 2026 is for moderate growth, despite ongoing geopolitical uncertainty, and with new capacity coming on stream in Texas and Staffordshire we are well placed to take advantage of it."

The company also expanded its educational intake, receiving 708 applications for 314 places at the JCB Academy for the September intake, while adding 116 apprentices and graduates to its workforce from over 6,300 applicants.

Comments (0)

ADD COMMENT

Link Copied!