COVID-19 to bring in higher automation & digitalisation in Indian automotive sector: ETAuto Roundtable – ETAuto.com

In a situation like coronavirus crisis, automation and robotics could reduce dependence on human labour and increase productivity, preventing the chances of future plant shutdowns.New Delhi: The coronavirus pandemic may drive enhancement of automation, digitalisation and artificial intelligence(AI) in the automobile sector in post COVID era in order to improve resilience to future pandemics, industry experts said at ETAuto Roundtable on 'COVID-19 Lockdown: 5 Essential Aspects for the Auto Industry'.

The coronavirus can be a wake-up call for supply chain managers and manufacturing companies as plant operation remain suspended amidst 21 days lockdown with an air of uncertainty if it will be lifted post that. The resumption of work may also face difficulties keeping in mind the health of employees and availability of workforce in the massive automobile factories.

In a situation like this automation and robotics could reduce dependence on human labour and increase productivity, preventing the chances of future plant shutdowns.

Vinod Aggarwal, MD and CEO, VE Commercial Vehicles said, "All these concepts like IoT, AI and digitalisation will become extremely relevant going forward and are going to define the new way of working. This lockdown provides us an opportunity to adopt these new trends, especially digitalisation.

Taking a leaf out of China's automotive industry where 90 percent OEMs have resumed production after the lockdown was lifted and more than 80 percent recovered capacity production, Vinay Raghunath Partner and Leader, Automotive Sector, EY India said, "Going digital and technology will have a significant role to play in the supply chain, manufacturing and procurement side not just in the shop floor.

As per Raghunath, many Tier-1 players might adopt technologies around industry 4.0 to leverage IoT capabilities and building efficiency and visibility via digitalisation. Assets that are repetitive can be managed in a seamless manner using robotics and automation solutions.

However, the financial position of the companies remains central to this shift in business model of the automotive industry, asserted David Sanders, Global Advanced Manufacturing & Mobility Leader, EY.

Sanders said, "It depends on how the financial position but I am going to say that there will be a lot of changes happening on the supply chain side with a focus on localised assembly operations because disruptions are going to sustain."

COVID-19 pushed Chinese companies to deploy robots and automation technology as the coronavirus engulfed the nation. During the early stage of the outbreak, some semiconductor and flat panel factories in Wuhan, the epicenter of the epidemic, were able to maintain relatively normal production due to high levels of automation. Other countries might be following the suit upon production resumption.

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COVID-19 to bring in higher automation & digitalisation in Indian automotive sector: ETAuto Roundtable - ETAuto.com