The study also notes that companies adopting digital and automation solutions are already seeing tangible improvements in operational visibility, quality outcomes, asset utilisation and responsiveness to customer requirements.
Sharing perspective on what this shift means for competitiveness, Vikram Janakiraman, Managing Director and Senior Partner, BCG, noted that “India’s auto component sector has led the charge on localization and import substitution over many years, building deep manufacturing capability and scale. Today, as growth accelerates across domestic and export markets, the challenge is managing both volume and complexity. It is promising to see that the sector has made a start by adopting Smart Factory initiatives, with Indian companies already realizing significant OEE improvements, quality gains, and better throughput from existing assets. Reimagining operations and supply chains, and building factories of the future, will be critical to unlocking the next wave of productivity and competitiveness for the sector.”
The ACMA–BCG joint study clearly underscores that Smart Factory adoption is fast becoming a core capability for Indian auto component manufacturers as they integrate deeper into global value chains and prepare for the next phase of growth.
Reflecting on what it takes to make this transition work in the Indian context, Saurabh Chhajer, Managing Director and Partner, BCG, said, “For auto component manufacturers in India, Smart Factory success depends on getting three things right together. First, blending proven global technologies with India’s strength in frugal, shop floor-led innovation. Second, sustained senior leadership sponsorship to push beyond pilots and address change resistance. Third, a sharp focus on fundamentals: how companies think about data, how they build digital skills, and how they manage change in shop floor ways of working during deployment. These choices will ultimately determine whether digital initiatives create lasting value or remain fragmented interventions.”