The Automotive Component Manufacturers Association of India (ACMA) and Boston Consulting Group (BCG) have released a joint study titled ‘Bolts, Bytes and Bots: Reimagining Next-Gen Auto Component Manufacturing in India’. The report examines the impact of digitalisation, automation and analytics on the sector.

The Indian auto component industry grew at a CAGR of 14 percent between FY2020 and FY2025, reaching a value of USD 80 billion. During this period, exports increased 1.5 times to approximately USD 23 billion. The sector is now targeting USD 100 billion in exports by FY2030.

The study indicates that over two-thirds of surveyed companies are in the pilot, scale-up, or fully integrated stages of implementing smart factory initiatives. Nearly 60 percent of these firms report benefits in productivity, quality, asset utilisation and issue resolution.

1. Shift from basic connectivity to advanced analytics and AI-based maintenance.
2. Use of digital twins and automated systems to manage volume and complexity.
3. Focus on operations and quality as primary areas for digital intervention.
4. Move towards interconnected digital stacks rather than isolated solutions.

Digital readiness is becoming a requirement for global OEM sourcing. International partners increasingly expect high standards in traceability, audit readiness and quality control. The report finds that companies with scaled deployments are twice as likely to experience a significant business impact compared to those in the pilot phase.

Vikrampati Singhania, President, ACMA, said, “The findings clearly indicate that Smart Factory initiatives are moving from experimentation to execution across the sector. The next phase must focus on scaling these efforts across plants and the supplier ecosystem. This will require shared platforms, deeper partnerships and coordinated ecosystem development, where industry bodies like ACMA can play a catalytic role.”

Vinnie Mehta, Director General, ACMA, added, “What stands out is the structural shift in how digitalisation is being viewed no longer as a discretionary investment, but as a long-term lever for competitiveness. As the industry balances export growth, coexistence of multiple-powertrains and workforce challenges, smart manufacturing offers a practical pathway to improve reliability, productivity and quality using existing assets.”

Vikram Janakiraman, Managing Director and Senior Partner, BCG, noted, “India’s auto component sector has led the charge on localisation and import substitution over many years, building deep manufacturing capability and scale. Today, as growth accelerates across domestic and export markets, the challenge is managing both volume and complexity. It is promising to see that the sector has made a start by adopting Smart Factory initiatives, with Indian companies already realising significant OEE improvements, quality gains, and better throughput from existing assets.”

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German chemical major Henkel has introduced a new portfolio of anti-fingerprint (AF) coatings, comprising Loctite AF 8810 and Loctite AF 8812, developed without the use of per- and polyfluoroalkyl substances (PFAS) or fluorine ingredients.

The launch addresses tightening global regulations in Europe, the US and Asia regarding PFAS, providing manufacturers with surface coating alternatives that do not rely on these substances.

The products utilise silicone-based, low-surface-energy technology to ensure performance across different materials. Loctite AF 8810 is intended for plastic display cover lenses, while Loctite AF 8812 is designed for glass surfaces, meeting a 9H hardness standard. These coatings are engineered for automotive touchscreens, where screen durability and optical clarity are essential for user interaction.

Technical specifications indicate that the coatings provide a low coefficient of friction for touch interactions and maintain hydrophobicity after prolonged UV exposure. During testing, Loctite AF 8812 demonstrated durability by maintaining consistent water contact angles after 5,000 abrasion cycles. The range supports mass-production application methods such as spray and physical vapour deposition (PVD), with thermal curing times starting at 30 minutes.

Deckard Sorensen, Vice-President of Optical & Conformal Coatings at Henkel, said, “The transition away from PFAS is accelerating globally, and our customers need high‑performance alternatives that meet demanding specifications without adding process complexity. With Loctite AF 8810 and AF 8812, we deliver excellent durability, optical performance, and user comfort formulated without PFAS ingredients – enabling automotive customers to meet the evolving needs of the market and the regulatory landscape at the same time."

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Tier 1 automotive supplier AUMOVIO India has announced that it has surpassed a new production milestone of manufacturing 10 million Airbag Control Units (ACUs) at its Bengaluru plant.

The facility, which commenced ACU production in 2016, supplies automotive manufacturers in India and exports to markets including Japan and Korea. The achievement was marked alongside the inauguration of a new Tire Pressure Monitoring System (TPMS) production line and the introduction of the Integrated Safety Control Module (ISCM).

The Bengaluru site has transitioned from manual assembly to an automated manufacturing environment to increase throughput and consistency. This evolution is paired with a localisation strategy where a majority of ACU components are now sourced from within India. These developments are intended to establish the facility as a central hub for safety systems within the Asia-Pacific region, supporting the requirements of global automotive original equipment manufacturers (OEMs).

AUMOVIO became an independent entity in September 2025 following a spin-off from Continental’s automotive group. The company reported sales of EUR 18.5 billion in FY2025 and maintains a global workforce of 82,000 across more than 80 locations. Its portfolio includes sensor solutions, brake systems, and software architectures for autonomous and connected mobility.

Prashanth Doreswamy, President & CEO, AUMOVIO India, said, “This milestone reflects the steady scale-up of our manufacturing operations over the past decade. Our transition towards increased automation, along with a strong focus on localisation, has enabled us to improve efficiency and build a more resilient supply ecosystem, while continuing to deliver high-quality, safety-critical systems to our customers.”

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Skoda Auto Volkswagen India (SAVWIPL), one of the leading passenger vehicle manufacturers, has announced the start of production for the new Volkswagen Taigun from its Pune facility. The model is part of the group's strategy to manufacture vehicles in India for both domestic and international markets.

The Taigun is produced with high levels of localisation at the Chakan facility. Since its introduction in 2021, the company has manufactured over 143,000 units of the model in India. Approximately 30 percent of this total production has been exported to global markets.

The vehicle is engineered to meet European driving dynamics and maintains a 5-star safety rating. The updated iteration includes design changes and features intended to improve convenience based on consumer feedback.

Piyush Arora, Managing Director & CEO, Skoda Auto Volkswagen India, said, “The start of production of the new Volkswagen Taigun underscores the maturity of our world-class manufacturing ecosystem in India. Our Indian manufacturing facilities are geared to deliver global-quality vehicles with high levels of localisation, enabling us to respond quickly to what customers demand in India and in export markets. The Taigun stands as a perfect example of this approach, engineered in line with Volkswagen’s global benchmarks and produced in India with a sharp focus on efficiency, quality, and safety. As we roll out the new Taigun, we are further solidifying India’s position as a strategic production and export base for the Group.”

Nitin Kohli, Brand Director, Volkswagen India, added, “Since its launch, the Taigun has been instrumental in strengthening the brand’s SUV strategy. It has played a pivotal role in bolstering our product portfolio for discerning Indian buyers and their aspirations. The new Taigun is central to our strategic plan for the model line-up that will drive meaningful growth. The start of production for the new Taigun at our Chakan facility is a moment of great pride for us. It continues to signify our commitment to the Indian consumers who choose to own premium German-engineered products. We are certain the new Taigun will build on the success of its predecessor and elevate customer experience.”

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Chinese automotive major Changan Automobile and CAOA have inaugurated an automated production line in Anapolis, Brazil, marking the start of local assembly for the Changan UNI-T SUV.

The ceremony was attended by President Luiz Inacio Lula da Silva and Vice-President Geraldo Alckmin, signaling a phase of industrialisation and mobility investment in Brazil.

The inauguration initiates a USD 950 million investment cycle for 2026-2028, which adds to the earlier USD 570 million invested since 2023. Total investment in the Anapolis facility reaches USD 1.52 billion with the plant now equipped to have an annual production capacity of 90,000 units.

The UNI-T was developed over three years by a team of 200 Chinese and Brazilian engineers. Key technical features include:

• Powertrain: A 1.5 Turbo GDi BlueCore Flex engine, calibrated by CAOA to operate on any ethanol-petrol blend.
• Testing: The vehicle underwent 200,000 km of durability testing across various Brazilian climates.
• Digital Features: A localised Portuguese voice control system and connected cockpit tailored for the domestic market.
• Future Roadmap: Changan plans to introduce hybrid and electrified variants, supported by the federal government's MOVER programme.

The company expects to open over 60 dealerships across Brazil during 2026 to support its expanded sales footprint.

Zhu Huarong, Chairman, China Changan Automobile Group, said, "For Changan, Brazil is not only a place to invest, but a land where we committed to building a long-term future."

Carlos Alberto de Oliveira Andrade Filho, Co-President, CAOA, added, "The UNI-T represents far more than a new model. It demonstrates that Brazil can establish itself as a global hub for high-technology automotive engineering and production."

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