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Automation in Components: Promise vs Payoff

Automation in Components: Promise vs Payoff

Electrification and connected vehicles are reshaping auto components, driving localization and sustainability pressures. While automation boosts productivity, ROI varies. Supply chain disruptions, margin trade-offs, and export complexities challenge scalable, profitable growth.

April 30, 2026 4 min read Consumer Discretionary
#Automation, Components, Smart Manufacturing
Automation in Components: Promise vs Payoff

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


Helping businesses deliver Strategy / Change / Execution / Results / CEO / Business Leader / Automotive Expertise / Driving Growth / Leadership / EBITDA Margins.
Expertise in Strategy formulation & execution, Transformation, Business Development, Projects, Strategic sourcing, multi-geography plants management, and turnaround specialist.


Q2. What structural changes are you observing in the automotive components ecosystem as OEMs accelerate their shift toward electrification and connected vehicles?


Commonization of platforms, i.e., using common Body structures and Chassis to reduce the development costs as well as timelines to go to market- For Example: TATA Motors - ALL ICE PV is also available in EV version.
For connected vehicles, similar components are being used.


Q3. Where are automation, smart manufacturing, or digital tools genuinely improving productivity for component manufacturers, and where have they struggled to deliver meaningful ROI?


Digital automation; Due to high initial costs and low labor costs, the ROI is delayed: also, the market volatility is a cause of concern: New Age vehicles OEM production volumes Plan Vs Actuals are very different: Digitalization is improving quality -Less Human errors:…

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