Digitization Creating Waves in Automotive Industry
The car factory of tomorrow is going to be digital. Digitization is playing an important role in automotive manufacturing. Gone are the days of yore when cars were considered to be simply a product for the end-users.
Today, cars are a platform to build a new technology. Digitization is changing business models. Customers now need connected technology in their cars. The increased preference for value-added vehicles is putting pressure on automotive suppliers to cope with the demands and simultaneously keep their entities operational and profitable.
Why digitization is the buzzword
This digital revolution is not all about the consumers alone. It is about the productivity and it is also about the annual savings which could be realized through indigenous production. Technologies such as 3D printing can increase production efficiencies. Digitization hauls up internal processes, augments efficiency and improves the overall profitability of the industry. Manufacturing industry, albeit slow in adapting to digital technologies early on, has now picked up steam with its realization of the impact that digitization will have on the value chain. Indian companies are now readily investing in these technologies to avoid huge capital investments tomorrow.
The adoption of digitization in the manufacturing process enables the industry to quickly exchange data, store large chunks of data locally, enrich processes with digital expert knowledge, generate valuable insights from big data and facilitate communications. Manufacturing can also become more autonomous. The net result is that companies are investing in sensors, connectivity devices, software and applications such as manufacturing excellence systems.
Now is the apt time for digital factory investments due to these prominent reasons:
Technology : India is home to some of the biggest information technology (IT) companies and an established technology hub in Bangalore.
Infrastructure : A close physical proximity is required which is guaranteed in automotive hubs such as:
- Chakan in Pune which houses well-known auto companies such as Volkswagen, Daimler, Mahindra & Mahindra, Bajaj Auto, to name a few;
- Chennai in Tamil Nadu which has plants of automobile giants such as Ford Motors, BMW, Royal Enfield, Renault, Hyundai, Mitsubishi, etc.;
- NCR, Delhi which houses Maruti Suzuki, one of the oldest passenger car makers in India and which also houses the production facilities for companies such as Honda, Hero Moto Corp, Yamaha, etc.;
- Sanand in Gujarat where Tata Motors has set up its plant and where renowned automobile majors such as AMW Motors, Maruti Suzuki, Ford, Honda and Hero Motocorp also have shops;
- Pithampur in Madhya Pradesh which houses auto giants such as Larsen & Toubro, Eicher, Volvo, Mahindra and Hindustan Motors.
Workforce : India is a country known for producing cost-effective labor with diverse skillsets. The country also has a pool of English speaking technocrats, researchers and engineers as well.
Government support : India is an attractive place to invest in digital factories due to the amount of incentives and the ease of doing business ensured by the governments at the center and the various states.
How automotive industry will help grow machine tool industry
Automotive industry and machine tool industry enjoy a symbiotic relationship. The growth of automotive sector will drive the demand for machine tools. Over 50 percent of the machine tool industry’s production is supplied to automotive industry. The steady growth in sales of commercial vehicles and passenger vehicles will bring sizeable business to machine tool industry and the industry can expect sizeable increase in orders and volumes of sales. Machine tool industry now needs to focus on technologies for producing modern machines such as precision grinding machines, multi-function and multi-axes machines, etc. to tap opportunities in the global auto market.
Machine tool industry now needs to produce machines that can understand technological language and integrate the technologies required in line with automotive industry which could enhance the technical capabilities to manufacture products for meeting today’s customers’ aspirations. The advent of technologies such as Internet of Things, Automation, Artificial Intelligence etc. would play a major role in enhancing productivity and quality and machine tool industry needs to quickly adopt these as part of their products to offer to the automotive industry.
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