Since the first car took to the road in the early 20th century, automobiles have revolutionized human life. More than a century later, we are looking at another shake-up where new climate change legislation and the urgent need to reduce dependence on fossil fuels are driving the accelerated adoption of electric vehicles (EVs). The Global EV Outlook 2022, published by the International Energy Agency (IEA), reveals that over 10 million electric cars were sold globally in 2022 comprising 14% of all new cars. Bloomberg estimates that by 2040, 54% of new vehicle sales will be electric.
According to an industry estimate, 100% of passenger vehicles in India are likely to become electric by the end of this decade. The International Energy Agency (IEA) notes the government’s supply-side incentive program – the production linked incentive (PLI) scheme with around USD 2 billion in subsidy – purchase incentives under FAME II, tax benefits and India’s ‘Go Electric’ campaign have ramped up EV and component manufacturing in India.
Along with such enabling measures, the Automotive Mission Plan (AMP) 2016–26 envisions the EV industry to contribute over 12% of the nation’s GDP and constitute 40% of the manufacturing sector by 2026. Meeting the demand will necessitate manufacturers to incorporate the latest technologies to scale up production. The silver lining is that there is almost unanimous agreement on the role of technology (read: smart manufacturing) to seize the opportunity.
The winds of change sweeping the automobile industry are compounded by an increasingly competitive and uncertain global economy that is forcing manufacturers to implement intelligent, agile, and cost-effective production processes to improve efficiency and throughput. Auto manufacturers have been plagued by volatile prices of bulk metals such as steel, aluminum, and copper because of geopolitical tensions and resultant supply chain disruptions. For the EV manufacturers, shortage of microchips also has added to their woes. According to Rockwell Automation’s State of Smart Manufacturing 2023 Report, nearly half of auto manufacturing leaders consider balancing growth and quality as their number one internal obstacle today. The external challenge of finding and retaining skilled manpower is also proving to be a major hurdle.
This shift is nothing short of a transformation, and smart manufacturing – defined as the use of emerging, advanced technologies to increase the efficiency of traditional manufacturing processes – offers solutions by promoting self-reliance as well as reducing operational costs and exposure to some of the risks. McKinsey endorses that smart project management can accelerate time to market by 10% to 40%. Globally, 64% of businesses are using software to automate processes, 54% of leaders are increasing automation to address labour shortages, and 31% of automotive manufacturers either plan to or have already invested in AI and machine learning technologies.
Leapfrogging with Smart EV production
Smart manufacturing is driven by the rise of connected factories through advanced data and analytics, automation such as robotics, and increased human-machine interaction.
Here’s how it is reframing the automotive value chain:
Modernizing production: Deploying the right technology improves speed and reliability of the vehicles produced. By moving vehicle bodies and batteries with cutting-edge technologies such as servo motors and drives, and independent cart technology, manufacturers can incorporate features such as control motion with frictionless propulsion, longer machine lifespan, better system flexibility and overall performance.
Making better, faster business decisions: Speed is key, both on the plant floor and in the boardroom. Scalable analytics that bring machine learning, edge-to-enterprise analytics, and industrial internet of things (IIoT) to industrial operations can help merge speed with precision. Augmented reality-based machine diagnostics and work instructions can reduce downtime and help improve workforce productivity, efficiency, and safety, and enhance customer satisfaction.
Ensuring optimal production and efficiency: Smart automation helps improve the quality and overall equipment effectiveness (OEE) in EV manufacturing factories. Transformational processes such as manufacturing execution systems (MES) provide a host of services such as document control, asset utilization, product tracking & genealogy, quality and maintenance management, and finite scheduling that optimize production and help units achieve efficiency at less cost and less risk.
Reaching markets quicker: Features like digital twins can optimize machine designs or test production changes before they are implemented, improving the overall quality of the output. Sharing data real time across processes, facilities and suppliers fosters operational intelligence, leading to better productivity, and enhanced cybersecurity and risk management.
Breaking barriers to getting smart
It would be prudent to mention that industry still maintains some inhibitions to adopting smart manufacturing, primarily due to cultural resistance to change in organizations, including opposition by employees to new technologies that make deployment a challenge. Besides, many organizations lack skilled manpower to manage the implementation of smart manufacturing processes. Cybersecurity and data privacy issues for third-party providers are another concern. More importantly, leaders who lack the perspective to identify a clear business case to implement smart manufacturing as the need of the hour end up lagging behind.
The world is gradually transitioning towards sustainable energy, and adopting electric vehicles will be a crucial step towards this goal. The EV landscape is rapidly churning out innovations, and demand is at an all-time high. To meet these shifting market demands, electric car producers must adapt their business practices and technological infrastructure.
The benefits of implementing automation and digital transformation practices go beyond reducing operational costs, helping to achieve faster-optimized production schedules with less risk. Whether an established auto manufacturer or a startup, a connected factory approach will provide the necessary agility and responsiveness for India to remain in the fast lane and meet its 2030 EV targets.
(Disclaimer: Dilip Sawhney is the Managing Director of Rockwell Automation India. Views are personal)
