Witnessing manufacturing modernisation since Maruti Udyog began producing cars in collaboration with Suzuki of Japan at Gurgaon in 1984, the Indian auto industry landscape has drastically changed. Opening up to automation with the installation of some of the best robots available at Kuka, ABB and others, the auto industry has left no stone unturned. Such has been the fervor that Tal, a Tata Motors company, launched a robot called Brabo in 2018 to make manufacturing processes involving the application of sealants, picking and placing of parts, welding and vision inspection reliable and easy to perform. Made with an eye on manufacturing process the world over, the Brabo was tested in over 50 work streams and has so far found use in sectors like lighting, aerospace, software, electronics, plastics, education and logistics sectors apart from the auto industry. Coming from an auto maker that installed 300 Kuka robots to automate the assembly of Sumo and Safari at its Pune plant in 2009, the Brabo has seen many rounds of development and application-preparedness since its launch.                

Smart manufacturing trend

Highlighting the smart manufacturing trend, the TAL Brabo robot with payloads of two and 10 kilos has also found favour with companies in Europe and other places. Highlighting the prowess of Artificial Intelligence (AI) and Internet of Things (IoT), the robot is an example of the fast-changing manufacturing canvas. Producing about 1,286 engines per day, the Igatpuri plant of Mahindra & Mahindra became India's first carbon-neutral manufacturing facility by adopting smart manufacturing practices under Industry 4.0 in 2019. It invested in energy efficient technologies among others. It invested in recycling of water and other waste. It invested in solar panels to power some of its processes in the plant. An industry source expressed that the rapidly changing business environment the world over is providing impetus to smart manufacturing. It is driving efficiency enhancements and collaborations, he added. Emphasising on efficiency enhancements and collaborative efforts as key smart manufacturing drivers, an industry expert stated that technologies like AI, Industrial Internet of Things (IIoT), automation, big data and 5G are the biggest triggers. They are touching every aspect of manufacturing, from sourcing of raw materials to final inspection, he quipped.  

Industry 4.0

As companies like Lincode (it has collaborated with Switzerland-based Global Automotive Alliance), specialising in AI-powered visual inspection with multiple patent-pending defect detection capabilities, find more and more takers in India, the smart manufacturing shift is continuing to take place despite disruptions. It has, in fact, gained speed in India with the race to successfully accomplish BS VI transition in the last few years. A source in the auto industry mentioned that BS VI transition led to manufacturers upping their global ambitions. Vinay Raghunath, Partner and Leader, Automotive Sector, EY India, averred in a report that automotive shop floors are evolving and adopting digital technologies. This, he added, is happening amid challenges like slowdown in demand, non-availability of labour, concerns on health and safety management on the shop floor. Witnessing disruptions relating to ROI among other factors, as Raghunath has informed, the Indian auto industry has been an early adopter of digital manufacturing techniques.  

Working to dial higher efficiency, expertise and superior productivity, the Indian auto industry has been overhauling existing assembly lines, erecting new ones and extensively re-evaluating its manufacturing processes and practices in view of smart manufacturing, especially from an automotive value chain point of view. Taking to Industry 4.0, it is leveraging AI and IoT-based manufacturing technologies to automate further – to engage in machine-to-machine communication (M2M) such that there is self-monitoring as well as self-diagnosing. Taking to Industry 4.0 to tackle unanticipated disruptions like the Covid-19 pandemic, which has put well-oiled supply chains and production lines to the test and made it painfully clear that they in their current form are not as agile or resilient as expected, the auto industry is shifting to smart manufacturing in a big way. It is exploring and experimenting; it is finding new ways. It is doing so as it absorbs a significant change in technologies and products like electrification and EVs.

Operator 4.0 and hyper-intelligence

Investing heavily in data analytics infrastructure and capabilities, the auto industry is leveraging opportunities to digitally transform itself. It is defining the boundaries of physics for data-driven model. It is focusing on digital skills development. It is supporting the rise of Operator 4.0. Taking to collaborative robots that coexist with humans in a workplace, it is transforming its ways of manufacturing significantly. Drawing attention to the semi-conductor shortage and how the auto industry was affected despite using only 10 percent of the production, Vipin Sondhi, Managing Director, Ashok Leyland, explained that the rapidly changing consumer psyche is dictating a move to a completely different technological aspect. Emphasising on material technology, he said smart manufacturing is about digitising and achieving cost competitiveness. It was some two to three years ago that the Chennai-based CV maker began implementing smart manufacturing technologies to mitigate challenges. It took to modernising and digitising existing workplaces to address quality issues that are difficult for human beings to detect and acquire made-to-order or mass customisation capabilities. It took to equipping itself with an ability to expand and contract in tandem with the market conditions even as it took to modularisation of product lines.  

Automating its cab panel pressing plant at Hosur in 2019, which increased the output by up to 66 percent, Ashok Leyland has been one of the many automotive OEMs globally that are investing in hyper-intelligent automation. A confluence of AI and Robotic Process Automation (RPA), hyper-intelligent automation is redefining not just Industry 4.0 but also Operator 4.0. It is facing challenges like the high initial acquisition cost in terms of tools, but that isn’t worrying players involved like Tata Consultancy Services, Wipro, Mitsubishi Electric Corporation, Catalytic Inc and Infosys Limited among others. Estimated to grow at a CAGR of 18.9 percent as manufacturers strive to reduce energy consumption, up quality and reliability, and control costs through predictability and data-driven unique insights, hyper-intelligent automation is turning out to be yet another finer aspect of smart manufacturing. It is proving to be a big enabler for automating repetitive tasks – to enhance efficiencies, to take to cloud computing to ensure significantly more flexibility and to achieve scalability and the ability to collaborate and reduce costs.

Increasing visibility, predictability and enhancing control on operations and inventory, hyper-intelligent automation is aiding effective decision-making. Supported by development of new technologies such as 5G, which according to a domain expert, promises the need for speed and flexibility along with the capability to eliminate network instability or downtime, hyper-intelligent automation is helping automotive suppliers like Rane Madras Limited to make efficiency, reliability and cost control gains. In 2018, the company adopted automated solutions of Mistubishi Electric Corporation for its new plant in Gujarat. It led to a significant decrease in energy consumption. Aiding smart manufacturing, technologies like hyper-intelligent automation and 5G are helping the auto industry to achieve resilience and immunity against future uncertainties. They are helping to integrate Information Technology (IT) systems used for data-centric computing with Operational Technology (OT) systems – for data readiness and cyber security, and for the development of digital talent. Technologies like hyper-intelligent automation and 5G are helping to develop cross-functional profiles like engineering-manufacturing, manufacturing-maintenance and safety-security.

Tackling disruptions and smart working environment

Looking at productivity gains, emerging competition and risk aversity in the globalised world as per the EY report, the auto industry is taking to smart manufacturing to achieve significant technology transformations like electromobility as well. Apart from the creation of a smart working environment, it is also looking at the use of new materials, new process guidelines and practices. With health also becoming a disruptive factor in recent times, the auto industry is looking at automation in processes like inbound logistics, production planning, sourcing, press shop, body shop, paint shop, quality control and outbound logistics through data visualisation. With sensors and analytics shaping up, the smart working environment in a factory is coming to include AI-based alerts and fully automated work floors. This is increasingly getting compounded by data collection, historical data and high-quality extensive data mining. Helping to guarantee ROI, smart manufacturing is helping to lower the ‘takt’ time. It is also ironically undermining the involvement of humans on the shop floor.   

Reducing the cost of computation, storage and connectivity, smart manufacturing is coming of age with plummeting prices of sensors, 3D printers and robots. Empowering cloud-based manufacturing techniques and a gradual increase in the understanding of emerging technologies, smart manufacturing is providing an advantage in terms of the ability to respond to market changes quickly. Taking to develop a new light-duty truck platform with export ambitions and flexibility in terms of left-hand drive and right-hand drive orientation, VE Commercial Vehicles Ltd took to automating its welding line with robots at its Pithampur plant. It also took to robotising its windshield pasting station among others. Experiencing quality, consistency, efficiency and cost gains, the CV maker is also known to have reduced the takt time and energy consumption. As global ambitions and modularity strike in view of the ability to explore new export markets with a cost competitive BS VI product, the auto industry in India is using embedded sensors, RFID and GPS etc. for smart tracking. It is using smart manufacturing technologies to monitor parameters like temperature, pressure, vibration, machine rpm and flow rate.

Smart flexibility

As part of a shift to smart manufacturing, automakers and suppliers are resorting to flexible manufacturing and AR-based solutions to upskill. They are, in view of the technologies like connected vehicles and EVs, stressing on re-aligning their traditional manufacturing setups with that of the future. Emphasising on quality, resource optimisation, streamlining of business processes and adoption of new emerging technologies, they are closely evaluating the advantages of solutions like digital twins and rapid prototyping using additive manufacturing offer. With ROI on their mind, they are embracing smart manufacturing to move up the value chain.

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The German Association of Suppliers (ArGeZ), an interest group representing approximately 9,000 suppliers and supported by several industry associations, has reported that the domestic automotive supplier industry remains trapped in a deep structural crisis with no economic recovery in sight. Weak order intake, rising operational costs and mounting international competitive pressure continue to threaten industrial resilience and value chain stability.

This prolonged crisis extended into 2025, marked by a 1.1 percent drop in revenue and a 1.0 percent fall in production, the fourth consecutive annual decline. Excluding a temporary recovery in 2021, the sector has faced a structural downturn since 2019. Employment fell by 3.4 percent year-on-year in 2025, with growing job cuts underscoring the weakening state of German suppliers.

The first two months of 2026 offered no turnaround. Employment kept falling by another 3.4 percent, and production decreased by 0.4 percent. The ifo Business Climate Index for German suppliers plunged from -14.4 points in February to -24.1 points in March 2026, ending any hesitant stabilisation. ArGeZ spokesperson Christian Vietmeyer noted that only about one in ten suppliers rates their current situation as good, while just 16 percent expect improvement in the next six months.

Weak demand from key customer sectors remains the principal cause, with order intake too volatile for sustainable stabilisation. Geopolitical tensions, trade policy uncertainties and rising energy prices are compounding difficulties. International competitive pressure is increasing, as imports of iron and steel products rose about 10 percent in 2025, with even stronger growth for numerous automotive parts.

The German government is still expected to deliver bold economic transformation. High labour costs are forcing suppliers out of business and driving production shifts abroad. ArGeZ calls for longer working hours, curbing sick-leave absenteeism by abolishing phone-based sick notes and reducing non-wage labour costs to a maximum of 40 percent. Dr Martin Theuringer, Managing Director of the German Foundry Industry Association, stated that supplier management repeatedly invests in foreign plants instead of German locations, leading to a slow bleeding out of the industry.

Promised energy price reductions have not materialised. Many suppliers are excluded from electricity tax cuts. For small and medium-sized enterprises, gas prices are burdened by a national CO₂ price higher than the EU Emissions Trading System price. ArGeZ demands suspending the national CO₂ price until the European small-installation price (ETS 2) is introduced. The EU’s proposed ‘Made in Europe’ label is a step forward but must avoid bureaucracy, and technological openness beyond 2035 remains essential.

Regarding the expected introduction of the EU End-of-Life Vehicles Directive (ELVR) this summer, Michael Weigelt has demanded that the competitiveness of secondary materials be guaranteed. He called for streamlined, low-bureaucracy processes and energy cost relief for recycling companies, because only economically viable recyclates will enable international competitiveness.

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TIP Group has signed a new agreement with Verdis to supply modern, environmentally efficient waste-collection vehicles for the company’s expanding operations in Malmö. The deal includes 16 garbage trucks, featuring 12 NTM Quatro four‑compartment bodies and four NTM KG‑HL single‑compartment bodies, all mounted on Scania CNG L340 6x2 chassis.

The collaboration provides Verdis with a future‑ready fleet without major upfront investment, ensuring predictable costs and financial flexibility. TIP will deliver full‑service fleet support, managing all maintenance and lifecycle performance to guarantee strong uptime and efficient operations. This marks the beginning of a reliable partnership for waste management solutions across Sweden.

By combining modern equipment with comprehensive lifecycle care, TIP reinforces its growing role as a trusted partner in the Nordic waste management sector. The agreement allows Verdis to focus entirely on delivering high‑quality collection services while scaling capacity as operational needs change.

Christian Petersen, VP & Managing Director, Nordic at TIP Group, said, “We are proud to support Verdis with a future-proof, environmentally conscious fleet solution. This agreement highlights our capability within waste management equipment and reflects TIP’s broader role as a strong partner for heavy transport equipment across many sectors.”

Per-Eric Bjurenborg, VD from Verdis, said, “For us, the partnership with TIP Group brings real stability and efficiency to our daily operations. Their comprehensive support package reduces administrative complexity and gives us peace of mind in a sector where reliability is critical. This allows us to stay focused on providing the best possible service to the municipalities we serve.”

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Orion S.A. is preparing to demonstrate the role of its speciality carbon blacks in advancing sustainability, high-jet performance and electrical conductivity within coatings systems. The global speciality chemicals company will make these presentations at the 2026 American Coatings Show + Conference, scheduled for 5–7 May in Indianapolis.

Visitors to Orion’s Booth 1466 will be directed to three key product lines. The first is ECOLAR 50 POWDER, a bio-circular feedstock-based carbon black that has previously won industry awards. The company is also featuring COLOUR BLACK FW 310 and COLOUR BLACK FW 255, two grades recognised for their exceptional jetness in both waterborne and solvent-borne formulations. Beyond product displays, Orion will offer technical guidance on achieving effective dispersion of speciality carbon blacks in electrically conductive coating systems.

ECOLAR 50 POWDER functions as a low to medium furnace black, delivering medium jetness in mass tone applications alongside reliable tinting strength. Meanwhile, the FW 310 and FW 255 grades rank among the deepest black pigments available for automotive coatings, producing a clean and elegant finish. FW 310 achieves Orion’s highest jetness levels with a deep blue undertone, making it suitable for automotive OEM basecoats, refinish coatings and premium industrial uses. FW 255 is engineered for automotive OEM and refinish systems, providing very high jetness and a similar blue undertone in both solvent-borne and waterborne environments. An additional after-treatment step enhances its wetting and dispersion properties.

A technical presentation by Orion’s Jaelene Matos, North American Technical Marketing Manager for Coatings Systems, is scheduled for 9 a.m. on 6 May. Her talk will examine how the dispersion process influences the final conductive properties of new specialty conductive carbon blacks in waterborne and solvent-borne coating systems. The discussion will cover the fundamental role of carbon black in conductive coatings, as well as the effects of dispersion method, processing time and dosage on conductive performance. Matos will also compare the conductive behaviour of medium and high conductive carbon black grades across different coating system types.

Zack Hays, Marketing Manager for Coatings and Printing Systems in North America, Orion, said, “The colouristic properties of ECOLAR 50 POWDER compare favourably with traditional specialty carbon blacks across a broad range of coatings systems and applications, with the added benefit that it contains 100 percent biogenic raw material per 14C analysis. Since we officially launched ECOLAR 50 POWDER last year, industry response has been overwhelmingly positive. We’re very proud of introducing an industry-leading?  100 percent bio-based carbon black, and we look forward to helping our customers produce truly sustainable products, contribute to a healthier planet and promote a more circular economy.”

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Kia India has introduced Digital Passport, a new customer-centric feature aimed at improving vehicle ownership transparency. Available through the Kia Connect app under the ‘New Services’ tab, the digital tool provides a secure, data-driven vehicle health report that covers a vehicle’s complete lifecycle. Priced at INR 399 plus applicable taxes, the service is offered as a three-month subscription.

As customers increasingly seek transparency and trust in vehicle management, the automaker designed Digital Passport to solve the problem of fragmented vehicle data spread across multiple platforms. The feature consolidates essential information into a single, verified report that includes a clear health summary and an easy-to-understand vehicle health score, offering a reliable view of the vehicle’s overall condition. Key data points covered are service history, accident and repair records, driving insights and warranty status.

By bringing all essential vehicle information onto one platform, Digital Passport provides a verified, data-backed picture of a vehicle’s true state, enhancing confidence in its value. The feature strengthens engagement with the Kia Connect ecosystem while delivering convenience and peace of mind throughout the ownership journey.

Atul Sood, Senior – Vice President Marketing & Sales, Kia India, said, "At Kia India, we continuously strive to enhance the ownership experience through meaningful digital innovations. Digital Passport brings greater transparency and reliability to vehicle information, reinforcing customer confidence and trust. This initiative reflects our commitment to delivering technology-led solutions that simplify ownership and strengthen long-term relationships with our customers."

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