In a conversation with Anuj Sinha, C V Raman, Member Executive Committee, Maruti Suzuki India Limited shared insights on four decades of transformative trends, future innovations, and challenges shaping India’s automotive landscape.
Having embarked on your automotive career in 1982, what are the major milestones and industry shifts you’ve experienced along the way? Could you share some highlights of your journey?
It is said ‘Change is the only Constant’. Over the past four decades, revolutionary changes can be seen in technology, business processes, infrastructure and regulations with consequent growth in customer aspirations. Two-wheelers and four-wheelers in the 70’s & 80’s had long waiting periods & limited models to choose from. Today there is huge competition & the customer has a wide range of choices which are freely available.
Technology has moved from carburetted powertrains to fuel injection powertrains and now to Hybrid & EV technology. I have seen the change and growth of manufacturing operations from 30 vehicles/shift to 3000 vehicles/shift -an exponential growth in operations. In the early 80s, the import content was very high. The supplier base was at a very nascent stage in terms of quality & productivity. Today the supplier base has developed and localisation levels are very high. The regulatory environment has become very stringent & customer aspirations have grown. Until early 2000 a car was a status symbol. Today it is not very uncommon for families to own multiple cars. Customisation & many niche segments have evolved and cars are an extension of our homes & connected on the go.
To sum up, in the last 40 years, the Indian Auto Industry has risen from nowhere to the top five Auto manufacturing as well as auto markets in the world. And not only that, but we are today one the leading nations in the Auto R&D domain also.
All this effort has led to Automotive contribution today in the nation’s growth.
- 7.1% Share in India’s GDP
- 37 Mn Employment generated.
- 40% Share in global R&D
- 4.7% Share in India’s exports
What do you believe will be the key trends and innovations that will significantly impact and disrupt the automotive industry in the coming years?
Digitalisation, Connectivity, Infrastructure, Urbanisation and Sustainability are the megatrends that will fuel economic growth and rising aspirations. This will drive Technology Development and search for innovative solutions. The customer wants seamless connectivity & service on demand. New business models have already mushroomed & many more are on the way. Software and internet connectivity is going to increase in cars. Car is expected to be Computer on Wheels. With this image, cybersecurity becomes one of the key domains that need to be looked at. Mechanical/Electrical architecture has given way to Mechatronics & a big shift towards higher electronic & software elements is already happening. ‘Pay by Use’ & ‘Service on Demand’ will further evolve. Personalisation is another thing which is expected to increase. This will result in the use of new materials, new processes, OTAs etc. Climate Change and Carbon Neutrality is another trend going on globally. ESG & the reduction of GHG will become the prime focus for business growth.
How is the industry addressing the skill gap to ensure that the workforce is prepared for the technological advancements in the automotive sector?
Every year thousands of fresh engineers graduate & join the workforce. Companies have to spend considerable time & resources for skilling them and making them industry-ready. Experiential & ‘On the Job’ (OJT) training is the key. The needs of industry are rapidly changing & academic institutions are grappling to keep pace with the changing needs of industry. Today with support from the industry, many institutes have established Innovation Labs & Centres of Excellence for skill development. These platforms besides providing business opportunities also help solve real-world problems with creative and innovative solutions. Of course, there is a need to rapidly scale up this activity in a big way. Curriculum changes in academic institutions with more focus on experiential learning will be necessary to keep pace with rapid changes in technologies.
What are your views on the Indian government’s recent initiatives for road safety, EVs, and sustainable mobility?
India has the 3rd highest number of road accidents and has among the highest number of fatalities. On average, every day 400 people die in road accidents. India has set an ambitious target of becoming the 3rd largest economy in the near future with manufacturing and the service sector driving this growth. The Automobile Industry contributes almost 50 per cent to the manufacturing sector’s GDP. Motorisation will further increase & mobility will also evolve to meet the rising aspirations of the customer. The energy demand will increase multi-fold to meet the growth targets. Despite the high growth targets, India has set a vision to achieve ‘Net Zero’ by 2070, ie: only 20 years more than the target for the developed world. This is essential to ensure that industrialisation & economic growth are achieved Sustainably.
The government and industry are working together to meet the needs of sustainable & safe mobility. The key to success lies in adopting an innovative multi-prong technology approach which will meet the unique needs of the Indian customer. With this in mind, the regulatory framework to meet the above objectives is also being discussed and debated.
To incentivise OEMS & technology suppliers to ‘Make in India’, the GOI has launched PLI schemes for advanced automobile technologies, semiconductors & advanced chemistry batteries.
Can you discuss the impact of global supply chain disruptions on the automotive industry and how companies are adapting to these challenges?
Indian OEMs and OESs are strongly emphasising local manufacturing & lately also focussing on developing local design & development capabilities. However, in the area of semiconductors & advanced electronics, our dependence on imports continues to be high. COVID exposed the inherent supply chain risks due to our over-dependence on imports, especially for semiconductors. As we move towards electrified powertrains, larger display units, infotainment & other such new technologies, the local ecosystem will have to keep pace. The PLI schemes of the government will support localisation in these areas, yet for sustainable growth, there is a need to further scale this up.
With the rise of connected and autonomous vehicles, what do you see as the key regulatory, infrastructural, and cybersecurity challenges that need to be addressed in India?
India has one of the highest numbers of mobile phone users. The adoption rates for the Internet are at an all-time high. IoT both in manufacturing & at homes is growing fast. The digitalisation especially of the banking sector, cashless transactions & OTT has spread widely across India.
Telematics & Connected Infotainment Systems is also seeing a rapid rate of adoption. The customer wants to be always connected and move seamlessly from home to office and everything in between. Latency challenges exist in some parts of India, but infrastructure is growing and upgradation to 4G/5G is an ongoing process. The price to pay for this rapid growth is the always-dangling sword of cybersecurity. Robust cybersecurity measures are required to prevent unauthorized access, data breaches, and system manipulation vis-à-vis offering OTA updates to vehicles.
Privacy is another key area that requires attention. Striking a balance between data utilization and user privacy is essential. Cybersecurity regulations & compliance methodologies are being discussed for connected vehicles. The IoT infra-development for V2X is under evaluation and discussions are at a very nascent stage. This will be one of the key focus areas for the next 5-7 years.
Concerning road infrastructure, well-maintained roads with clear markings, signage, and standardized lane management are a must. Major upheaval in the existing infrastructure is required, especially city infrastructure.
For regulatory requirements, standards need to be established across the mobility ecosystem. Defining testing guidelines will be the first step in this regard followed by certification and deployment guidelines. Testing in itself will require specialized infrastructure, such as smart roads, charging stations, and communication networks which needs to be worked out to make way.
In summary, India must prioritize robust cybersecurity, enact clear regulations, and invest in infrastructure for the successful development and deployment of connected and autonomous vehicles with weightage to local conditions and the environment.
By addressing these challenges, India can reap the benefits of safer, more efficient mobility.
In the evolving automotive tech space, how important are partnerships and collaborations for the industry’s growth?
The Automobile industry traditionally has collaborated with its long-established suppliers for technology development. However, in the recent past, a lot of this technological development is happening in the start-up ecosystem. The industry is increasingly partnering and collaborating with the start-ups for joint development of new technologies. We can also see some R&D projects being done with academic institutes. There is plenty of co-creation happening and this will only increase in future.
How do you envision the future of urban mobility with the advent of emerging automotive technologies such as IoT, AI, and ML?
I often quote a study done by TERI some years back called “How India Moves”. Only 15 per cent of India moves in private vehicles (4W-3 per cent, 2W-12 per cent), 18 per cent by public transport & 13 per cent by bicycle. The rest of India either walks or doesn’t travel at all. I therefore believe that mobility will certainly drive economic growth. We see a growth in shared & on-demand mobility. I believe that for sustainable mobility with rapid urbanisation & digitalisation, new forms of mobility & Multi-Modal transport solutions will evolve.
Future Of Mobility across the world is defined by the acronym “ACES”. ACES for the world is Autonomous, Connected, Electric and Shared. But for India it is Aspirational yet Affordable, Connected & Shared, Eco-friendly And Safe Mobility.
What advice would you give to young engineers and professionals aspiring to make a mark in the automotive industry?
Be it Automotive, Aerospace or Railways, there is rapid growth happening in all areas & it is a great time to be part of the mobility industry. New technology developments requiring new skill sets are constantly evolving. Many disruptions & new business models are emerging with consequent opportunities for new initiatives and entrepreneurship. Great time to be part of the Mobility Ecosystem!
Request all Young Engineers & Professionals to apply academic learning to products. To enable them more efficient and focused manner, I will share a 5S mantra with them:
- Skill Up: Unlearn & Learn Skills as per the work requirement.
- Scale Up: Convert ideas into reality.
- Speed up: Make Agile the way of working.
- Synergy: Align self with organization’s goal for better delivery of result
- Sustainable: Re-engineer the existing process to meet the new demands