As per a recent post on X (earlier Twitter) by China’s official newspaper Global Times where it shared a list of world’s top 10 nations in terms of their manufacturing output, India ranked among the top five with a manufacturing value add of USD 456 billion. 

Not forgetting to underscore China as the world’s manufacturing powerhouse, the post is of importance because of the nation where it originates from. China is not only a neighbour of India, it is also the largest trading partner with USD 118.4 billion two-way commerce in FY2023-24, according to the economic think tank GTRI’s data.

China’s per capita GDP USD 12,174 in 2023 as compared to the per capita of India at USD 2,239 USD. Against this economic difference, it is interesting that China’s newspaper has in its post acknowledged India’s rising manufacturing prowess. 

This is certain to change the way India as well as its manufacturing sector is perceived. There are tailwinds and plenty of headwinds the Indian manufacturing sector continues to experience. Its performance is however a reflection of its abilities and grit. 

The manufacturing sector in India is emerging as an integral pillar of the country’s economic growth. The key industries that are contributing to its stellar performance are auto, chemicals, consumer durables and engineering. 

The manufacturing sector’s consistent performance as also indicated by the PMI figures. With government policies and changing world markets – not to exclude geopolitical and regulatory challenges for industries like auto in particular – an important factor is the rise of respective sector, there’s clearly more to be done. 

With that, it wouldn’t take long to move up the ladder. 

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Changan Automobile and CATL have unveiled the first mass-production passenger vehicle equipped with sodium-ion batteries. The vehicle, showcased at the 'Changan SDA Intelligence Milestone Release', is scheduled for market release by mid-2026. CATL, acting as the strategic partner for the project, will supply its Naxtra sodium-ion batteries across Changan’s brands, including Avatr, Deepal, Qiyuan and UNI. The partnership introduces a dual-chemistry approach to the market, utilising sodium-ion alongside lithium-ion technologies.

CATL's Naxtra battery reaches an energy density of 175 Wh/kg. Utilising a Cell-to-Pack system and a battery management system (BMS), the technology provides a range exceeding 400 km. Future iterations are projected to reach 500–600 km for battery electric vehicles (BEVs) and 300–400 km for hybrids.

The technology is designed for operation in cold climates. At –30deg Celsius, the battery delivers triple the discharge power of lithium iron phosphate (LFP) alternatives. It maintains 90 percent capacity retention at –40deg Celsius and continues to function at –50deg Celsius. Safety testing, including drilling and crushing, resulted in no smoke or fire.

The global sodium-ion battery market is forecast to grow from USD 1.39 billion in 2025 to USD 6.83 billion by 2034. To support adoption, CATL plans to establish over 3,000 Choco-Swap battery swap stations across 140 cities in China by the end of 2026, with a focus on northern regions.

The launch follows a decade of research. Since 2016, CATL has invested nearly 10 billion RMB (USD 1.45 billion) into sodium-ion technology, developing approximately 300,000 test cells. The project was supported by a dedicated team of 300 personnel to ensure scalability and performance.

Gao Huan, CTO of CATL's China E-car Business, said, "The arrival of sodium-ion technology marks the beginning of a dual-chemistry era. Changan's vision shows both its responsibility for energy security and its strategic foresight. Much as it embraced electric vehicles years ago, Changan is once again taking the lead with its sodium-ion roadmap. At CATL, we value the opportunity to work alongside such an industry leader and fully support its strategy, combining our expertise to bring safe, reliable and high-performance sodium-ion technology to market."

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Following its international unveiling at CES 2026, drivebuddyAI, a leading innovator in AI-powered Advanced Driver Assistance Systems (ADAS) and Driver Monitoring Systems (DMS), recently demonstrated its technology at the ARAI ADAS Test City. The company presented its range of vision-based Advanced Driver Assistance and Driver Monitoring Systems, focusing on their reliability in the varied and challenging conditions typical of Indian roads.

Live demonstrations were conducted using a heavy commercial vehicle to showcase the platform's versatility in meeting various compliance standards. A single, integrated hardware and software setup, utilising a fused network of cameras for 360-degree perception, executed multiple test scenarios simultaneously. These included a driver monitoring system that detects drowsiness, distraction and seatbelt usage in line with both Indian and European regulations. Further tests illustrated the vehicle's ability to warn of pedestrians moving into its path, identify potential collisions with cyclists in blind spots and issue forward collision warnings by combining radar and camera data.

Beyond merely fulfilling test requirements, the demonstrations highlighted practical applications that extend into everyday driving situations. This focus on real-world functionality is backed by extensive validation, with the company's systems having analysed nearly four billion kilometres of driving data. This has reportedly led to significant safety improvements, including a marked decrease in incidents caused by driver fatigue and a substantial reduction in overall fleet risks.

Currently validated for commercial vehicles against India's AIS-184 standard and Europe's stringent General Safety Regulation and Euro NCAP protocols for 2026, the technology is also adaptable for passenger cars. This scalability offers automotive manufacturers and their suppliers a pathway to not only meet but surpass upcoming global safety mandates. By refining its AI through extensive fleet operations over billions of kilometres before adapting it for original equipment manufacturer compliance, drivebuddyAI aims to deliver a mature, rigorously tested product that ensures an enhanced user experience.

Nisarg Pandya, CEO and Founder, drivebuddyAI, said, “ADAS Test City from ARAI is a great initiative, and we value participating in a format where we can showcase live demonstrations to a large audience together on the vehicle. This time, the turnout was significant and provided a strong opportunity to establish drivebuddyAI as one of the key players in the upcoming OEM compliance requirements. The engagement and response we received were phenomenal, reinforcing both the market need and the industry’s confidence in our solutions. The upcoming ADAS-compliant vehicles must have technology that works in Indian scenarios to achieve meaningful safety improvements and reduce fatalities.”

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Bharat Forge and VVDN Technologies have signed a Memorandum of Understanding (MoU) to explore collaboration across the automotive, defence and data centre sectors. The agreement establishes a framework for the joint development of products, including AI server platforms and autonomous systems.

The partnership combines VVDN’s capabilities in electronics design, software and system integration with Bharat Forge’s experience in manufacturing and precision engineering.

The companies intend to target opportunities in next-generation technologies. Key areas of focus under the MoU include development of systems for vehicle platforms, engineering solutions for defence applications and design & manufacturing of AI server platforms to support generative intelligence and sustainable computing.

The collaboration is designed to create a framework for knowledge exchange and operational efficiency, allowing both entities to address the requirements of the global AI ecosystem.

Amit Kalyani, Vice-Chairman & Joint MD of Bharat Forge, said, “This partnership enables us to leverage advanced technologies, accelerate innovation, and enhance the quality of solutions we deliver to our clients and stakeholders. By aligning with partners who share our vision for excellence, we create a robust ecosystem that fosters knowledge exchange, operational efficiency, and long-term value creation. Such alliances are integral to our strategy, ensuring that we remain competitive, future-ready, and capable of addressing the evolving needs of the markets we serve.”

Puneet Agarwal, CEO, VVDN, said, “This partnership with Bharat Forge aligns with our vision of driving innovation through advanced engineering and digital technologies. By combining our product engineering and manufacturing strengths with Bharat Forges domain leadership, we aim to accelerate the development of next-generation solutions across automotive, defence and data centre ecosystems, amongst other next-gen technologies.”

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Catena-X Automotive Network, a non-commercial organisation, has identified three shifts in data exchange that are expected to define the global automotive industry in 2026. The association reports that data collaboration is becoming a board-level priority and a prerequisite for trade as eight of the world’s top ten suppliers join the ecosystem.

The association brings together a coalition of OEMs, suppliers, technology providers, and industry bodies, including ADAC, AIAG, BMW, Mercedes-Benz, Porsche, Renault, Volkswagen Group companies, Volvo, VDA, TÜV SÜD, Fraunhofer, Amazon Web Services, Huawei, Microsoft and Magna, among others.

Catena-X suggests that data fragmentation is becoming a trade barrier. Regulations such as the Carbon Border Adjustment Mechanism (CBAM) and the EU Digital Battery Passport increase the requirement for product-level evidence. Failure to produce consistent data can result in market exclusion or increased costs.

The association provides standards designed to make documentation reusable across partners. This approach aims to prevent the need for bespoke integrations for every customer, particularly for Tier 2 and Tier 3 suppliers where data readiness varies.

Data management is increasingly competing with R&D and intellectual property for budget allocation. Catena-X warns that compliance costs can rise from 0.05 percent to 2 percent of revenue if reporting remains manual and duplicated.

To address this, the network utilises toolkits such as the Product Carbon Footprint (PCF) framework. Standardised inputs allow sustainability data to be shared across companies, which the association claims is up to five times more efficient than legacy reporting methods.

Software Traceability and Cybersecurity

In 2026, software risks are expected to become a primary trigger for vehicle recalls. As vehicles become software-defined, the ability to trace code lineage and component provenance is necessary for risk management.

Catena-X highlights the Software Bill of Materials (SBOM) as a tool for triage during cyber incidents. Making software versions and dependencies visible across tiers allows for faster responses to security vulnerabilities.

Hanno Focken, Managing Director, Catena-X, said, “We are seeing a major shift in what the industry is being asked to prove. Data is becoming a condition of trade and a real cost-to-serve. At the same time, cyber incidents are increasingly becoming a product recall risk. Work that used to sit in the background is now affecting market access and margins. Catena-X exists to make trusted interoperable exchange practical across every tier of the supply chain, while protecting data sovereignty.”

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