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Automotive’s Digital Inflection Point

Automotive’s Digital Inflection Point

January 20, 2026 9 min read Consumer Discretionary
Automotive’s Digital Inflection Point

Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?


For 27 years, I have been a core part of the Tata legacy, evolving from a specialist in Chassis Design and Vehicle Dynamics & vehicle integration. Leading to the position of a Chief Engineer & handling various domestic & international car programs. This journey allowed me to work across every business vertical, using design as a backbone for innovation. Added an academic edge in Business Strategy Management from IIM Calcutta, which changed the thought process.
My foundational expertise spans diesel engine research, manufacturing, and the early development of CAD-CAM-CAE systems. Today, I integrate nearly three decades of industry knowledge with cutting-edge AI-driven solutions, including Design Automation and Digital Twins, to drive organizational transformation in the era of "Modern Bharat."

 


Q2. What market or regulatory shift is most accelerating digitalisation in automotive today—and why is its impact stronger now than two years ago?


The Indian automotive industry contributes around 7.1% to the national GDP and approximately 49% to the manufacturing GDP. This market, driven by global competition and rapid technological advancement, aims to reach $1 Trillion in business over the next 10 years.
As a critical growth engine for the nation, the sector demands significant upgrades to both physical and digital infrastructure to ensure rapid growth with enhanced safety. This integral process necessitates stringent CMVR regulations covering both road safety and cybersecurity.
The major technological shift from Internal Combustion Engines (ICE) to Electric Drives—alongside the growing demand for autonomous vehicles—requires seamless integration of advanced electronic features such as ADAS (Advanced Driver-Assistance Systems) and the Internet of Things (IoT). This phase is aptly described as 'software on wheels' by Mr. N. Chandrasekaran, Chairman of Tata Sons. Conventional design methods can no longer manage this accelerating growth; it must be driven by the seamless integration of features within the vehicle and the supporting infrastructure.
High-level instrumentation and advanced on-board features necessitate a robust digital environment to maintain the required development speed. It is now mandatory for every business process to adopt this digital-first approach, ensuring that suppliers, testing agencies, and manufacturing units operate with synchronized high-bandwidth capabilities. This shift is reflected in "Manufacturing 4.0," which demands that all stakeholders unite on a single digital platform to thrive. By integrating these functions, organizations can transcend traditional boundaries and rise together in this new industrial era.

 

 

Q3. Where have AI, digital twins, or advanced analytics delivered measurable operational or cost advantages, and where has adoption failed to generate ROI?


The world has the challenges posed by 
•    Complexity of designs & technologies.
•    Speed of innovation & development.
•    Competition & Quality requirements
Organisations address these issues either strategically or tactually to remain in the market. Applications that address basic issues are likely to address ROI issues. Broadly, the applications that successfully address ROI issues fall under a few categories, such as:
•    REMOTE OPERATION: Aviation, Fleet management, Space programs, Autonomous applications
•    NEW DEVELOPMENT: ADAS features in automotives or other electronic applications
•    PROGNOSTIC: Predictive Maintenance - Services, Medical support systems
•    MANUFACTURING: Quality control - BIW press shops & welding, Logistics of Production line, sustainability, product validation, productivity  
In general, production volume drives the scale of the economy. However, space programs or strategic applications don't compromise the results at any cost. 

 


Q4. What early digital signals now indicate supply-chain stress before it impacts production or delivery timelines?


Outsourcing is an important business tool. Many aggregates, systems, or engineering tasks are outsourced. The competent suppliers are available online & the physical distance hardly matters. At the same time, to make the system work, the hardware & software have to work together & then have to integrate with other systems being developed by suppliers at different locations. Each one of them may have different development timelines and require an online connection centrally controlled by the Project Manager or the Chief Engineer. Data exchange formats, their versions, and compatibility with each other may be a challenge for live data exchange. Of course, government rules & regulations, as & when applicable for such activity, will have to be followed.    
Operational issues like the project head has a challenge to synchronise the development of each system with the timeline of the project and other systems. Further, he has to work on System integration to deliver the end product ( e.g., car). Any deviation in specifications or test results of any system has a cross-functional impact & the administrative challenges are tougher.
As the end product reaches final validation or the launch phase, even minor issues impact everything in between.

 


Q5. Which digital capability is emerging as a real competitive moat for automotive players—and which is becoming table stakes?


Before this AI milestone, there were several attempts to provide software utilities and apps; however, customers either found them too complex to use on board or eventually forgot about them.
'AI' based applications have born the capability of upgrading itself like machine/self learning. It has the potential to create a personalized experience with customers as a good friend. The lively relationship can grow in many dimensions, knowing his driving pattern, maintenance, likes of music, food, and so on. Also, time-to-time upgrades to onboard Apps keep him delighted & in step with market changes. Organisations may also use it for extended business connections.  

 


Q6. Where does dealer or customer-facing digitalisation materially improve conversion and service outcomes, and where does it add complexity without value?


Service dealerships can use digitalisation through virtual showrooms & digital presentations, Predictive maintenance, helping individuals maintain personalised service schedules, or using AI to understand customer needs and value features from their point of view, etc. 
However, bombarding customers with too many Apps is likely to disturb them. Predictive maintenance is an excellent feature, but it makes organisations responsible for raising reliable & validated service alarms. Customers do expect personal touchpoints or a welcome coffee sometimes, and the same can't be replaced by digital feedback. Owning a vehicle has emotional value in Indian minds, & no software can replace it. 
Gen-Zee is born with advanced gadgets, but other generations require proper mentoring or training; otherwise, even the best system may flop. 

 


Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

 

As of now, software industries & engineering businesses are exploring these new avenues. Both of them have already mastered their own field. Over the years, almost every corporation has invested in automation and processes & developed skills around them. The AI or Digital twin revolution has posed a challenging situation for corporates, requiring them to choose the right applications & find the exact partner who understands both sides & bridge the gap. 
The developing agency who understands: - 
•    The exact needs of an engineering organisation, their strengths & weaknesses, existing software & hardware platforms 
•    Their existing processes & skill sets, issues
•    The right combination of AI and data analytics software, along with demonstrated working systems, will be critical during selection.
Young entrepreneurs leveraging startup models are delivering innovative solutions with agility that incumbents often lack. Free from legacy baggage, these "lightweight" organizations build value through either bespoke software solutions or cutting-edge engineering applications.
Initial applications serve as foundational platforms for future growth, significantly reducing subsequent development cycles. The core requirement for these teams is a clear vision of future potential, underpinned by extensive domain knowledge. Ultimately, success hinges on the agency's ability to foresee industry shifts and proactively "build the roads" for future innovation.
 

 

 


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