SIAM (Society of Indian Automobile Manufacturers) Report

Highlights

Automotive organizations’ ability to put in place and implement effective global and local strategies to manage risks and build their capability to drive their strategies will be of paramount importance. Impact of megatrends on organizations and the workplace Usage of Information Technology and integration of technological research on manufacturing products and processes is not a new phenomenon in the automotive industry. As per the Automotive Mission Plan 2016-26, the Indian automotive industry is poised to become one of the largest job-creating engines in the country, with the creation of approximately 65 million jobs in the next decade. Going forward, automotive organizations will need to successfully manage the following seven key shifts to thrive in the new world order in the automotive industry. Building the organization and workplace of the future The Indian automotive industry comprises a divergent set of players from OEMs to tier ‘n’ suppliers, with each playing a critical role in the value chain.

In order to drive ‘organizational agility’, automotive organizations will have to focus on two key aspects required to drive the kind of structural agility automotive organizations will need. Appointing custodians to ‘build and manage the organization of future’: Automotive companies will need to take that informed leap of faith and acknowledge how disruptive forces are going to impact their business. Automotive organizations will need to think more widely about sources of talent, and not only explore new sectors and geographies but also invest in their current employees and encourage them to do new things. Skills of the future in the automotive industry The automotive sector has been a major employer in India for decades.

“Robots have enabled almost 70 to 100 per cent automation in weld shops, press shops, cast shops and paint shops and are further penetrating into assembly operations to enable a higher degree of automation and lower costs for the manufacturer.” – HR leader at a Korean automotive company. When we spoke to the business leaders of various automotive companies – OEMs as well as Tier 1 and 2 suppliers – we heard some interesting views on skills that will assume significance in the future. Understanding how AI works and its application in the automotive context will become critical for employees across organizations and deep skills will be required in R&D, production, supply chains and services.

A paradigm shift needs to be made by automotive organizations to view these as an investment for the future. Borrowing ‘domain experts’ to incubate new skills: The automotive industry will also need to look at innovative approaches to borrowing talent from other industries and geographies on an urgent basis to create a blueprint for organizations of the future as well as incubate new skills that can then be expanded across a larger workforce segment. Our study identified nine leadership capabilities which will help leaders navigate through India’s world of work in 2030. When we spoke to the business and HR leaders of various automotive organizations, they acknowledged that all the nine capabilities will be critical for the future success of the industry.

Leaders will have to put ‘organization first’ and that’s where an institutional building mindset will be important. A leader will have to lead from the front, and inspiring trust and rallying people towards a common purpose will be the differentiating factor.” – Promoter of an automotive component manufacturer 11 16 PwC. Reimagining leadership: Steering India’s workforce in 2030. In times in which everything will be changing at a rapid pace, communicating the common purpose and keeping an organization true to its goal will be imperative for it to steer clear of issues in which automotive companies may get embroiled. Automotive organizations will need to partner with the government, industry bodies and academia to challenge paradigms and drive agendas that reshape thinking and action to be taken. The success of automotive organizations will depend not on the quantum of resources they can expend to accurately define the future, but on how well they can prepare themselves to address challenges that are still unknown. SIAM works closely with the Government and with international bodies like International Organization of Motor Vehicle Manufacturers, International Motorcycle Manufacturers Association and coordinate with other counterpart international associations like, German Association of the Automotive Industry, Japan Automobile Manufacturers Association, etc.

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