Digital Shielding: A Strategic Imperative for the Indian Automotive Industry

The Indian automotive industry, a cornerstone of the country’s manufacturing sector, is navigating a complex transformation fueled by rapid digitalization, stringent regulatory requirements and the evolving demands of a global supply chain. Contributing significantly to India’s GDP, the industry is poised to grow even further.

As the world embraces digital-first supply chains and stringent environmental norms, Indian automotive players must prioritize digital shielding – a holistic approach to ensure regulatory compliance, supply chain resilience and sustainability – if they are to maintain competitiveness on the global stage.

Digitalization: Key to Competing in the New Automotive Era

Digital transformation is no longer optional; it’s fundamental. The Indian government’s PLI scheme for the automotive and auto component sector push for smart mobility and electric vehicles (EVs) drive the need for technology-driven efficiency.

Cloud platforms and AI-driven analytics are embedding Indian manufacturers to manage large volumes of operational and supply chain data in real-time, ensuring traceability and compliance. For instance, real-time tracking of automotive components through AI helps companies meet norms under India’s evolving Bharat Stage VI emission standards and ensure smoother operations amid unpredictable disruptions.

Platforms like Infor CloudSuite or local ERP solutions are allowing suppliers and OEMs in India to integrate processes, streamline compliance, and maintain full visibility from production to delivery.

Smart logistics: The Backbone of Operational Efficiency

India’s logistics infrastructure is evolving, with major investments under government initiatives taking center stage. However, the automotive sector, where a single car can have thousands of components, grapples with inventory management and timely deliveries, especially across urban and rural borders.

AI-driven logistics systems are increasingly being used to address operational gaps. Predictive models enable companies to forecast demand more accurately, optimize warehouse management, and improve the efficiency of parts delivery. As adoption grows across functions such as traffic analysis, logistics planning, and cost management, the automotive sector stands to benefit significantly from these advancements.

Regulatory compliance: Staying Ahead of the Curve

To compete globally, it is essential to comply with international standards such as IATF 16949. Non-compliance not only implies economic sanctions, but also loss of reputation and markets. With passenger vehicle exports from India rising, meeting international quality and safety benchmarks has become more crucial than ever.

As a result, many companies are integrating solutions that offer tools for advanced quality planning (APQP) and parts approval (PPAP), aligned with international standards. Digital serial or lot-level tracking enables faster recalls and reinforces customer trust in a market that increasingly prioritizes safety and transparency.

Adaptability and sustainability: Catalysts for Long-Term Growth

As India positions itself as a global automotive hub through initiatives like Make in India and FAME India for EV adoption, adaptability to policy shifts and disruptions is crucial. Whether it’s recalibrating supply chains due to geopolitical tensions or responding to sudden policy changes, cloud-enabled systems offer real-time responsiveness.

In this landscape, embracing digital shielding through AI, cloud platforms, and smart supply chains is no longer optional – it’s essential for long-term resilience and relevance.

Terry Smagh is a Senior Vice President & General Manager - Asia Pacific Japan at  Infor. Views expressed are the author's personal.