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

Certainly. I have over three decades of experience in the automotive and manufacturing industry, with a strong focus on operations, business transformation, and turnaround management. I’ve held senior leadership roles where I was responsible for scaling operations, driving process excellence, strengthening supply chains, and leading business turnarounds in challenging environments.

Over the years, I’ve worked with both global and Indian organizations, which has given me a deep understanding of both domestic and international market dynamics. My expertise lies in turnaround strategies and execution, building high-performing teams, improving execution capabilities, and creating sustainable growth models.

Most recently, I’ve been involved in guiding businesses through transformation—balancing operational discipline with innovation—while also mentoring leaders to take on larger responsibilities. This mix of strategic and operational exposure has helped me deliver results and create long-term impact across diverse business contexts.

 

Q2. What global market trends—such as supply chain diversification, nearshoring, or regional trade dynamics—are having the biggest impact on operations in India?

First, let’s understand that India is transforming from a low-cost manufacturing alternative into a strategic and diversified manufacturing hub. This shift is being driven by 

1. China+1 strategy execution by companies.
2. Geopolitical developments are influencing strategies around nearshoring and friendshoring decisions.
3. The government’s ‘Self-Reliant India’ and ‘Make in India’ initiatives aim to position the country among the world’s top economies by introducing supportive incentive programs (such as PLI, tax benefits, and policy simplification).

In summary, these are the levers that India’s manufacturing base is leveraging, and they are creating a significant impact on overall operations in the country. As a result, investments in electronics, auto and auto-components, semiconductors, pharmaceuticals, and select capital goods are accelerating.

However, execution remains a challenge and risk due to the following factors:

1. Infrastructure and utilities: Inconsistent power supply, port congestion, and connectivity issues.
2. Policy implementation: While schemes are well-intentioned, delays caused by procedural complexities and late incentive payouts can derail the entire process.
3. Supplier depth and risk: For precision components and high-volume products, there is a significant scarcity of reliable suppliers. This leads to higher lead times and costs, or the need to rely on imports. The risk is further compounded when there is dependence on a single supplier.
4. Skill shortages: There is a gap in the availability of trained and skilled manpower for precision manufacturing and automation.

 

Q3. How are sustainability and green manufacturing requirements influencing operational choices in the industry?

Sustainability and green manufacturing have moved from being compliance checkboxes to becoming the very epicentre of operational and strategic decision-making in the industry. Today, business decisions regarding plant locations, raw material sourcing, types of raw materials, and process design are increasingly being evaluated through the lens of sustainability and green manufacturing.

1. ESG and Reporting Mandates : OEMs and global procurement teams are mandating suppliers to comply with Scope 1, 2, and 3 emission reporting. At the same time, Environmental, Social, and Governance (ESG) disclosures are becoming mandatory, making them central to supplier qualification and business continuity.
2. Green Manufacturing Practices: Green manufacturing drives the shift towards the 3Rs — reduce, reuse, recycle — and this has transformed operations: 
   1. Renewable energy transition: Many plants are shifting to alternative power sources such as solar and wind. In one of my previous units, nearly 90% of the energy was generated from solar and wind, substantially lowering emissions.
   2. Water management: Concepts like Zero Liquid Discharge (ZLD) and water-surplus systems not only fulfill regulatory requirements but also reduce liabilities and recurring costs.
   3. Scrap recycling: Casting and forging suppliers are increasingly adopting scrap metal recycling and reuse, with similar practices spreading into other segments.
   4. EV Battery Circularity: In electric vehicles, second-life applications for energy storage are emerging as innovative recycling concepts that extend material value chains. 
3. Technology and Process Upgrades: Operational upgrades are now designed with green manufacturing principles at their core. For instance, Industry 4.0 tools are being leveraged for scrap reduction, yield improvement, energy optimisation, and tool-life extension — delivering both environmental and cost benefits.
4. Evolving Business Perspective: Earlier, such initiatives were viewed as jargon, imposed by customers and requiring heavy capital expenditures. Over time, with better understanding, companies have realised the trade-off between upfront investments and long-term ROI. OEMs are also supporting suppliers through cost-sharing arrangements and long-term contracts, making sustainability a viable and strategic choice.

In summary, sustainability is no longer about corporate social responsibility or compliance. It has become the core of competitiveness and resilience in the industry. Green manufacturing defines the way forward, ensuring not just regulatory compliance but also cost efficiency, customer trust, and long-term business value.

 

Q4. How is AI changing decision-making in areas like capacity planning, logistics optimization, and supplier management?

AI has steadily seeped into the core of operations and manufacturing. Traditionally, manufacturing decision-making has been reactive; however, with the advent of AI, it is becoming proactive and predictive. This shift explains why management is now more open to adopting and investing in AI solutions. Beyond product development, customer support, and after-sales service, three operational areas stand out where AI is driving significant change: capacity planning, logistics optimization, and supplier management.

Capacity Planning

1. The key challenge for planners is to ensure resources are utilized optimally, avoiding both overloading and idling. Over-capacity results in wasted investments, while under-capacity risks lost sales and customer dissatisfaction.
2. AI enables organizations to build models using real-time data combined with historical trends and future demand signals, allowing accurate forecasts of resource requirements and production timelines. Scenario building and simulation further empower managers to test multiple options before committing, resulting in smarter and more resilient capacity decisions.

Logistics Optimization

Once parts are ready for dispatch, the challenge lies in delivering them to customers quickly, reliably, and cost-effectively—without causing stress from stock-outs or delays. AI addresses this through three levers:

• Dynamic route optimization that adapts to traffic, fuel costs, and delivery priorities.
• Smart warehouse management to ensure the right stock levels and location-based allocations.
• Fleet planning and predictive maintenance to minimize breakdowns and maximize utilization.

Many organizations are already at advanced stages of deploying AI in logistics, and the impact is visible directly in reduced costs, improved service reliability, and healthier profit and loss (P&L) performance.

Supplier Management

1. As manufacturing footprints decentralize and move closer to customer bases, supplier networks have also expanded and become more complex. This creates challenges in monitoring delivery performance, quality, ESG compliance, geopolitical risks, and regulatory obligations.
2. AI plays a crucial role in this process by providing end-to-end visibility into the supplier ecosystem, enabling proactive risk management, compliance monitoring, and more strategic supplier selection. This ensures not only continuity of supply but also alignment with long-term sustainability and governance goals.

In summary, AI is transforming decision-making in operations by replacing reactive guesswork with predictive intelligence. From planning plant capacity to delivering parts efficiently and managing global supplier bases, AI has become a central tool in driving efficiency, resilience, and competitiveness across the industry.

 

Q5. How do you see the size of the Indian auto components industry evolving over the next few years, especially with the push toward EVs and stricter emission norms?

The Indian auto components industry is on a strong growth trajectory. Valued at around US$75 billion in FY24, it has been expanding at a double-digit CAGR of ~14%, driven by robust domestic demand and rising exports. The sector benefits from India’s balanced economic model—large internal consumption coupled with export opportunities—which reduces overall risk for manufacturers.

The EV transition is creating new demand for advanced, localized components, including battery packs, motors, power electronics, and control units. While EV adoption is expected to accelerate, the internal combustion engine (ICE) powertrain will continue to coexist, increasingly in hybrid and dual-fuel formats. This ensures that demand for engine and transmission parts does not vanish but gradually evolves.

On the global stage, India is emerging alongside China as a key export hub. Many multinational OEMs and Tier-1 suppliers are shifting production from the US and Europe to Asia, with India benefiting from its scale, cost competitiveness, and engineering talent.

In parallel, stricter emission and fuel-efficiency norms are compelling OEMs to demand lighter, more precise, and higher-quality components. This pushes the industry to upgrade across the “4Ms” (Man, Machine, Material, Method) with digitalisation, automation, and advanced manufacturing technologies. Companies such as Bharat Forge, Motherson, Bosch, and Tata Autocomp are already investing heavily in these capabilities.

Finally, policy measures such as the national vehicle scrappage policy and the Production Linked Incentive (PLI) scheme are expected to further stimulate demand. Together, these factors position the Indian auto components industry to potentially cross US$100–120 billion by 2030, with EV and emission-related components forming an increasing share of the value mix.

 

Q6. How is the rise of EV and hybrid vehicles reshaping the competitive equation among traditional component makers and newer entrants?

The rise of EVs and hybrids is fundamentally reshaping and realigning the competitive landscape of the Indian auto components industry. The biggest disruption is in the powertrain, transmissions, and exhaust system legacy manufacturers, which are being challenged.

The overall Value chain accounts for approximately 35% of the vehicle component value, which comes from powertrain, transmission, and exhaust systems. While in EV, 45% of a vehicle's component value is taken up by battery packs, e-motors, and power electronics systems.

It is clear that legacy companies are under cost pressure and face the challenge of losing value, while on the other side, new entrants in EV see a very steep growth opportunity.

Therefore, legacy manufacturers have begun diversifying into the EV segment. The drive is through several strategies :

• Leveraging the JV partners and global leaders on EV technology leaders
• Leveraging long-standing customer relationships 
• Leveraging on suppliers as partners for faster turnaround and lower cost
• Investments in technology and precision manufacturing to ensure that these are relevant to ICE , Hybrid, and EV component manufacturing 

For new entrants, EV components offer a lower entry barrier compared to ICE systems, as deep expertise in engines and transmissions is less critical. Startups such as Ola Electric, Ather Energy, and Log9 Materials are scaling rapidly in areas like battery packs, charging infrastructure, and software-driven systems.

For the new entrants, the EV component base is an opportunity as it offers a lower entry barrier than legacy components, as deep knowledge of powertrain , engine, and transmission is less critical. This is the reason you see Ola, Ather, etc. in this space.

I believe in Hybrid as it creates a Dual demand Environment and gives space to both legacy and new entrants simultaneously. This is exactly the reason you see legacy component manufacturers in the space of hybrid, but you see majorly new entrants in the pure space of EV – Battery powerpack, charging mechanism, software, and charging stations. 

So, I don’t see this as an outright disruption, but rather as a redistribution and a lot of mutual space sharing and collaboration. I don’t see any single company covering the complete value chain of ICE, Hybrid or EV. Time to grow together with collaboration, partnering, and being new-age technology innovators  

 

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

I would look at the following aspects:

1. Does the company have a clear understanding of the ICE Vs Hybrid Vs EV and how it is going to reposition itself in the next 10 years or on a long-term perspective
2. Is the company recognizing what is coming in the future and proactively preparing for technological and regulatory shifts, or is it still relying on and believing in legacy models? 
3. What is the strategy if the company wants to continue in the ICE space, and what is the rationale, and how sustainable is it in line with global trends  
4. What percentage of current revenue is linked to ICE components, and what specific steps (new business, investment, R&D, JV) are being taken with a defined timeline to mitigate the risk? 
5. How is the company leveraging/capitalizing on their existing market position and also with their customer base on the 80:20 principle with respect to competitors, and how are they securing their long-term goals based on future-ready technologies