Companies that develop resilient and agile supply ecosystems will be better equipped to navigate an increasingly complex global environment.
“When we speak about the future of the automotive industry, the conversation almost always begins with electric vehicles. That is understandable, given the pace of change we are witnessing. Yet, the more profound shift lies in the way the industry is rethinking supply chains,” said Mr. Harish Lakshman, Chairman, Rane Group.
Global supply networks became leaner, inventories became smaller and sourcing became increasingly concentrated – delivering significant gains; However, recent geopolitical developments, trade realignments and disruptions in the availability of critical materials have exposed its limitations. Diversified sourcing, regional manufacturing, and localisation are no longer optional — they are essential to withstand uncertainty. For India, this shift presents a real opportunity, as global manufacturers increasingly look to the country as a reliable manufacturing and engineering hub.
“We have the advantage of a large domestic market, an established industrial ecosystem and a growing talent pool. To fully realise this opportunity, however, we must continue to improve infrastructure, enhance ease of doing business, invest in advanced manufacturing and strengthen our technical capabilities,” he said.
Technology will continue to reshape the industry till the end of this decade, but I do not expect the future to be defined by a single propulsion technology. India’s mobility requirements are too diverse for a one-size-fits-all solution. Electric mobility will undoubtedly expand, particularly in urban applications, but internal combustion engines, hybrids, CNG and other alternative fuels will continue to play an important role across different segments. The industry’s challenge is not to predict one winner, but to remain flexible enough to serve evolving customer needs across multiple technologies.
Key Shift
Another important shift is the increasing integration of mechanical engineering with electronics, software and intelligent systems. The traditional strengths of precision manufacturing and product quality will remain fundamental, but they must now be complemented by stronger engineering capabilities, digital technologies and innovation. Success will increasingly depend on bringing these capabilities together rather than viewing them independently.
“As we look ahead, I believe the companies that create lasting value will be those that balance innovation with execution. New technologies will continue to emerge, but long-term success will still depend on disciplined investment in people, engineering capabilities, customer relationships and operational excellence. Those fundamentals have never changed,” he outlined.
“The last few years have demonstrated that supply chains, once optimised primarily for efficiency, must now be designed for resilience.”