New Delhi: The two apex bodies of Indian automotive industry, Automotive Component Manufacturers Association (ACMA) and Society of Indian Automobile Manufacturers (SIAM) recently released joint report that identified 11 technologies, relevant to the automotive industry, that will speed up the adoption of digitaization.
As per the study ‘Digital Transformation Roadmap for India’s Automotive Industry’, published by AT Kearney, the application of these identified digital technologies can be accessed across the value chain, products and the industry ecosystem.
“We evaluated several technologies and selected 11 for our study with about 60- 70 per cent of them already being mainstream,” the report said.
The study also assessed the current status of digital maturity within the industry and underlined that digital is slowly picking up momentum across the industry. “Driven by OEM requirements, component manufacturers are catching up on digitization trend,” the report added.
On the occasion of the release of report, Rajan Wadhera, President, SIAM and President – Automotive Sector, Mahindra & Mahindra Limited said, “To continue our effort towards global prominence, SIAM and ACMA partnered with A.T. Kearney to launch “first of its kind” industry level Digital Transformation Roadmap. This is the first step towards a globally competitive industry.”
Additionally, the report also underlined that the industry bodies ACMA and SIAM will need to drive standardization, initiate industry wide blockchain network, launch pilots in collaborations with other industries as well as create a digital knowledge management platform and a center of excellence to conduct digital benchmarking and share best practices among the industry.
Commenting on the findings of the study, Ram Venkataramani, President, ACMA said, “The disruptive changes facing the automotive sector, accompanied by, shorter product life-cycles and rise of electric content, are forcing the auto components industry to become agile and digitize. The study recommendations will help the sector stay relevant to our customer and maintain our competitiveness.”
To make the digital transformation successful, the report also recommended the organizations to develop technology expertise, deployment internal capabilities as well as update its business processes to align with new technologies.
Also, the industry will also seek government’s support in skill development through upgradation and adoption of relevant skill development institutes, setting up digital infrastructure, ensuring connectivity and data sharing as well as regulating the finance and insurance industry.
Beyond this, the study also highlighted global best practices and relevant case studies to help develop a combined roadmap that charts out clear action items for individual companies, industry bodies, associated industries and government bodies.