India\u2019s automotive industry is at an interesting point as of today.<\/p>\n\n\n\n
The country is already the world\u2019s third-largest automotive market<\/strong>, and its auto-component industry has grown into one of India\u2019s strongest manufacturing success stories. But the next phase of growth will be very different from the last.<\/p>\n\n\n\n The latest BCG\u2013ACMA report, \u201cBeyond Resilience: Built to Endure. Designed to Win,\u201d<\/strong> makes this clear. India\u2019s auto-component industry is targeting approximately $200 billion in turnover by FY30<\/strong>, compared with around $86 billion today. At the same time, exports have grown to approximately $24 billion<\/strong>, while localisation has crossed 70% of industry requirements.<\/p>\n\n\n\n For companies involved in electronics manufacturing, PCBA and EMS, however, one finding stands out above the rest:<\/p>\n\n\n\n The automobile is becoming an electronics platform.<\/strong><\/p>\n<\/blockquote>\n\n\n\n And this could represent one of the largest opportunities for Indian electronics manufacturers over the next decade.<\/p>\n\n\n\n For decades, India’s automotive component industry was dominated by mechanical components\u2014engines, transmissions, castings, forgings, suspension systems, braking components and other traditional parts.<\/p>\n\n\n\n That is changing rapidly.<\/p>\n\n\n\n The BCG\u2013ACMA report identifies rising electronics content, electrification, increasing safety requirements and premiumisation<\/strong> among the structural trends reshaping the industry.<\/p>\n\n\n\n The numbers around electronics are particularly significant.<\/p>\n\n\n\n Globally, electronics represented approximately 30\u201335% of a car’s cost in 2020<\/strong>. By 2030, this is expected to approach 50\u201355%<\/strong>.<\/p>\n\n\n\n Yet India’s electrical and electronics component supply currently represents only around 12%<\/strong> of the total component supply base.<\/p>\n\n\n\n This gap represents a tremendous localisation opportunity.<\/p>\n\n\n\n The question is therefore not whether automotive electronics will grow.<\/p>\n\n\n\n It will.<\/strong><\/p>\n\n\n\n The more important question is:<\/p>\n\n\n\n How much of that value will Indian manufacturers capture?<\/strong><\/p>\n\n\n\n Consider what is increasingly present in a modern vehicle:<\/p>\n\n\n\n Even conventional ICE vehicles are becoming increasingly electronic.<\/p>\n\n\n\n At the same time, EVs introduce entirely new electronic and electrical architectures around batteries, motors, charging, power conversion and thermal management.<\/p>\n\n\n\n The BCG\u2013ACMA report notes that EV registrations across vehicle categories increased from approximately 0.14 million in FY21 to around 2.5 million in FY26<\/strong>. It also highlights the new component pools being created around batteries, e-motors, power electronics and thermal management.<\/p>\n\n\n\n This is not simply an EV transition.<\/p>\n\n\n\n It is an electronics transition<\/strong>.<\/p>\n\n\n\n India has already demonstrated that localisation can work.<\/p>\n\n\n\n The report highlights how domestic manufacturing capacity and government policies have helped reduce dependence on imported components. It also points to the India Semiconductor Mission, the Rare-earth Permanent Magnet Scheme and other initiatives aimed at developing domestic capabilities.<\/p>\n\n\n\n But localisation of automotive electronics requires more than manufacturing semiconductors.<\/p>\n\n\n\n There is a much broader value chain:<\/p>\n\n\n\n Semiconductor \u2192 PCB \u2192 PCBA \u2192 Programming \u2192 Testing \u2192 Calibration \u2192 Box Build \u2192 Module \u2192 Vehicle<\/strong><\/p>\n\n\n\n A large part of this value chain is highly relevant to the Indian EMS industry.<\/p>\n\n\n\n This is where I believe the opportunity becomes particularly interesting.<\/p>\n\n\n\n India already has a significant electronics manufacturing ecosystem.<\/p>\n\n\n\n The next step is to move beyond generic PCBA manufacturing and build automotive-grade electronics manufacturing capability<\/strong>.<\/p>\n\n\n\n A company that can manufacture an automotive PCB reliably is valuable.<\/p>\n\n\n\n A company that can:<\/p>\n\n\n\n Design for Manufacturing \u2192 Assemble \u2192 Inspect \u2192 Program \u2192 Test \u2192 Calibrate \u2192 Trace \u2192 Integrate \u2192 Validate<\/strong><\/p>\n\n\n\n is considerably more valuable.<\/p>\n\n\n\n This is the direction Indian EMS companies should be considering.<\/p>\n\n\n\n BMS is one of the most obvious opportunities.<\/p>\n\n\n\n A BMS combines:<\/p>\n\n\n\n For an EMS company, this creates opportunities beyond SMT.<\/p>\n\n\n\n The real value lies in PCBA + programming + functional testing + traceability + module integration<\/strong>.<\/p>\n\n\n\n The number of electronic control units in vehicles continues to increase.<\/p>\n\n\n\n Body controllers, motor controllers, powertrain controllers, gateway modules and other ECUs require highly controlled manufacturing processes.<\/p>\n\n\n\n This creates a natural opportunity for Indian EMS companies that can provide:<\/p>\n\n\n\n Connected vehicles require increasingly sophisticated electronics.<\/p>\n\n\n\n Telematics units combine electronics, communication technologies, software and vehicle interfaces.<\/p>\n\n\n\n For EMS companies, this means the manufacturing process needs to extend beyond PCB assembly into programming, RF-related testing, functional validation and software traceability<\/strong>.<\/p>\n\n\n\n Sensors are another rapidly expanding opportunity.<\/p>\n\n\n\n As vehicles become safer and more autonomous, the number and sophistication of sensors increase.<\/p>\n\n\n\n This creates opportunities around:<\/p>\n\n\n\n The manufacturing barrier is higher than conventional PCBA\u2014and that is precisely what makes these opportunities attractive.<\/p>\n\n\n\n The opportunity is enormous.<\/p>\n\n\n\n It is also significantly more demanding.<\/p>\n\n\n\n A conventional EMS operation cannot simply decide tomorrow that it wants to become an automotive supplier.<\/p>\n\n\n\n Automotive customers expect a fundamentally different manufacturing system.<\/p>\n\n\n\n The requirements extend across:<\/p>\n\n\n\n Quality \u2192 Traceability \u2192 Process Control \u2192 Testing \u2192 Reliability \u2192 Change Management \u2192 Supplier Management \u2192 Documentation<\/strong><\/p>\n\n\n\n The BCG\u2013ACMA report makes a similar point at the industry level: the next phase of growth will require stronger testing and tooling capabilities, better design and engineering, greater R&D capability, skilled manpower and increased technology adoption.<\/p>\n\n\n\n This is where I believe MES and digital manufacturing<\/strong> will become increasingly important.<\/p>\n\n\n\n Imagine an automotive PCBA where you can trace:<\/p>\n\n\n\n That is not simply manufacturing data.<\/p>\n\n\n\n That is product genealogy.<\/strong><\/p>\n\n\n\n And when manufacturing electronics for automotive applications, genealogy becomes a critical part of the product itself.<\/p>\n\n\n\n The BCG\u2013ACMA report also highlights digital and technology adoption as an important part of building resilience and competitiveness.<\/p>\n\n\n\n For Indian EMS companies, therefore, MES should not be viewed merely as an ERP extension or production reporting system.<\/strong><\/p>\n\n\n\n It should become the backbone of manufacturing traceability and quality.<\/p>\n\n\n\n One of the biggest changes I expect in Indian EMS is the increasing importance of testing.<\/p>\n\n\n\n Historically, many PCBA businesses have competed primarily on:<\/p>\n\n\n\n SMT capacity + placement accuracy + conversion cost.<\/strong><\/p>\n\n\n\n That will not be enough for automotive electronics.<\/p>\n\n\n\n The competitive equation will increasingly become:<\/p>\n\n\n\n PCBA + Test + Traceability + Engineering + Reliability<\/strong><\/p>\n\n\n\n Functional testing, programming, calibration and end-of-line testing can become significant barriers to entry.<\/p>\n\n\n\n This also creates an interesting business opportunity for Indian EMS companies.<\/p>\n\n\n\n Instead of selling a customer:<\/p>\n\n\n\n \u201c\u20b9X per PCB assembled\u201d<\/p>\n<\/blockquote>\n\n\n\n the conversation can become:<\/p>\n\n\n\n \u201cWe manufacture, program, test, validate and deliver your complete electronic module.\u201d<\/p>\n<\/blockquote>\n\n\n\n That is a fundamentally different business model.<\/p>\n\n\n\n This transition is perhaps the most important strategic opportunity.<\/p>\n\n\n\n There is a huge difference between:<\/p>\n\n\n\n \u201cWe manufacture your PCB.\u201d<\/strong><\/p>\n\n\n\n and<\/p>\n\n\n\n \u201cWe are your manufacturing partner for this electronic module.\u201d<\/strong><\/p>\n\n\n\n The second model creates opportunities for the EMS company to participate in:<\/p>\n\n\n\n Over time, the EMS company can move even further upstream into co-development.<\/p>\n\n\n\n This is exactly the type of capability that can help India move from a cost-based manufacturing destination to a technology-enabled manufacturing hub<\/strong>.<\/p>\n\n\n\n There is another reason to be optimistic.<\/p>\n\n\n\n India is unusual in having a large domestic automotive market while simultaneously developing a strong export-oriented manufacturing ecosystem.<\/p>\n\n\n\n The BCG\u2013ACMA report estimates that India’s domestic vehicle sales increased from around 20 million in FY16 to approximately 28 million in FY26<\/strong>. The auto-component industry has grown to around $86 billion<\/strong>, while the industry is targeting approximately $200 billion by FY30<\/strong>.<\/p>\n\n\n\n This gives Indian suppliers something extremely valuable:<\/p>\n\n\n\n A large domestic market to build capability before scaling globally.<\/strong><\/p>\n\n\n\n A company can develop a technology and manufacturing process for an Indian customer and subsequently use that capability to serve international programmes.<\/p>\n\n\n\n That is a powerful advantage.<\/p>\n\n\n\n Machines can be purchased.<\/p>\n\n\n\n Buildings can be constructed.<\/p>\n\n\n\n MES systems can be implemented.<\/p>\n\n\n\n But automotive electronics requires people who understand the entire manufacturing system.<\/p>\n\n\n\n The industry needs engineers and technicians who understand:<\/p>\n\n\n\n The BCG\u2013ACMA study highlights manpower and skilling as major ecosystem challenges. Three out of four companies surveyed were looking for support around skilling, training and manpower.<\/p>\n\n\n\n For smaller and mid-sized companies, this may become one of the biggest constraints to growth.<\/p>\n\n\n\n I would suggest five priorities.<\/p>\n\n\n\n Don’t try to manufacture everything.<\/p>\n\n\n\n Identify two or three segments where India has strong growth potential:<\/p>\n\n\n\n BMS | ECUs | Telematics | Sensors | Power Electronics | ADAS | Instrument Clusters<\/strong><\/p>\n\n\n\n Build deep capability around them.<\/p>\n\n\n\n IATF 16949 is important, but certification itself should not be the objective.<\/p>\n\n\n\n The objective should be building a manufacturing system based on:<\/p>\n\n\n\n Prevention rather than detection.<\/strong><\/p>\n\n\n\n APQP, PPAP, FMEA, SPC, MSA, control plans and disciplined engineering change management need to become part of daily operations.<\/p>\n\n\n\n Don’t wait for customers to tell you how to test.<\/p>\n\n\n\n Build internal competence in:<\/p>\n\n\n\n Programming \u2192 ICT\/Flying Probe \u2192 Functional Test \u2192 Calibration \u2192 EOL Test<\/strong><\/p>\n\n\n\n Test engineering can become one of the strongest differentiators for an EMS company.<\/p>\n\n\n\n Every automotive electronic module should ideally have a digital history.<\/p>\n\n\n\n The objective should be:<\/p>\n\n\n\n \u201cOne serial number \u2192 complete manufacturing genealogy.\u201d<\/strong><\/p>\n\n\n\n The long-term opportunity is not just PCBA.<\/p>\n\n\n\n It is:<\/p>\n\n\n\n PCBA \u2192 Tested PCBA \u2192 Box Build \u2192 Tested Module \u2192 Complete Manufacturing Solution<\/strong><\/p>\n\n\n\n This is where the EMS company starts capturing a larger share of the value chain.<\/p>\n\n\n\n The BCG\u2013ACMA report describes an Indian automotive industry that has already demonstrated resilience.<\/p>\n\n\n\n The next challenge is different.<\/p>\n\n\n\n India needs to move from resilience to competitive capability<\/strong>.<\/p>\n\n\n\n The report points toward four broad priorities for the ecosystem:<\/p>\n\n\n\n For electronics manufacturers, these priorities are highly relevant.<\/p>\n\n\n\n The opportunity is not simply that India will manufacture more cars.<\/p>\n\n\n\n It is that every vehicle manufactured in India is likely to contain significantly more electronics\u2014and Indian companies have an opportunity to manufacture those electronics here.<\/strong><\/p>\n\n\n\n The automotive industry could become one of the biggest growth engines for India’s electronics manufacturing sector over the next decade.<\/p>\n\n\n\n But the winners will not necessarily be the companies with the largest SMT capacity.<\/p>\n\n\n\n They will be the companies that can combine:<\/p>\n\n\n\n Manufacturing + Engineering + Testing + Traceability + Quality + Supply Chain + Technology<\/strong><\/p>\n\n\n\n The opportunity is therefore much bigger than building another SMT line.<\/p>\n\n\n\n It is about building an automotive electronics manufacturing ecosystem<\/strong>.<\/p>\n\n\n\n India has the market.<\/p>\n\n\n\n India has the manufacturing base.<\/p>\n\n\n\n India is building the semiconductor ecosystem.<\/p>\n\n\n\n India has a rapidly growing EV and automotive sector.<\/p>\n\n\n\n And the global automotive supply chain is looking for competitive, resilient and increasingly localised manufacturing bases.<\/p>\n\n\n\n The question now is:<\/p>\n\n\n\n Are Indian EMS companies ready to move from being PCB assemblers to becoming strategic automotive electronics manufacturing partners?<\/strong><\/p>\n<\/blockquote>\n\n\n\n That transition could define the next decade of electronics manufacturing in India.<\/p>\n\n\n\n About the Author<\/strong><\/p>\n\n\n\n I work with electronics and EMS companies on manufacturing strategy, factory setup, operations improvement, supply-chain optimisation, NPI, PCBA manufacturing and digital manufacturing systems.<\/p>\n\n\n\n If you are evaluating an automotive electronics manufacturing facility, expanding your PCBA operation into automotive, or planning localisation of electronic modules in India<\/strong>, I would be happy to discuss the manufacturing and capability roadmap.<\/p>\n\n\n\n The future of automotive manufacturing is increasingly electronic. The opportunity for India is to ensure that the electronics are manufactured here.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" India\u2019s automotive industry is at an interesting point as of today. The country is already the world\u2019s third-largest automotive market, and its auto-component industry has grown into one of India\u2019s strongest manufacturing success stories. But the next phase of growth will be very different from the last. The latest BCG\u2013ACMA report, \u201cBeyond Resilience: Built to Endure. Designed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[81,75,73,87,80,77,79,74,78,76,83],"class_list":["post-1718","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-automotive-component-manufacturing","tag-automotive-electronics","tag-automotive-ems","tag-automotive-ems-in-india-pcba-manufacturing-for-automotive-ev-electronics-manufacturing-bms-manufacturing-in-india-automotive-localisation-in-india-electronics-manufacturing-in-india","tag-automotive-localisation","tag-bms-manufacturing","tag-ecu-manufacturing","tag-electronics-manufacturing-in-india","tag-ev-electronics","tag-pcba-manufacturing","tag-power-electronics"],"_links":{"self":[{"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/posts\/1718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/comments?post=1718"}],"version-history":[{"count":1,"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/posts\/1718\/revisions"}],"predecessor-version":[{"id":1719,"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/posts\/1718\/revisions\/1719"}],"wp:attachment":[{"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/media?parent=1718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/categories?post=1718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/singhamarpreet.com\/index.php\/wp-json\/wp\/v2\/tags?post=1718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
From Mechanical to Electronic<\/h2>\n\n\n\n
The Automobile Is Becoming a Network of Electronic Systems<\/h2>\n\n\n\n
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A Major Localisation Opportunity for India<\/h2>\n\n\n\n
The Opportunity for Indian EMS and PCBA Companies<\/h2>\n\n\n\n
1. Battery Management Systems<\/h3>\n\n\n\n
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2. Electronic Control Units<\/h3>\n\n\n\n
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3. Telematics and Connectivity<\/h3>\n\n\n\n
4. Sensors and ADAS Electronics<\/h3>\n\n\n\n
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But There Is a Catch<\/h2>\n\n\n\n
The Factory of the Future Will Be Data Driven<\/h2>\n\n\n\n
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Testing Will Become a Competitive Advantage<\/h2>\n\n\n\n
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From Contract Manufacturer to Manufacturing Partner<\/h2>\n\n\n\n
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India Has Another Advantage: Scale<\/h2>\n\n\n\n
The Biggest Challenge May Be Talent<\/h2>\n\n\n\n
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What Should Indian EMS Companies Do Now?<\/h2>\n\n\n\n
1. Choose the right technology segment<\/h3>\n\n\n\n
2. Build automotive quality capability<\/h3>\n\n\n\n
3. Invest in test engineering<\/h3>\n\n\n\n
4. Build complete traceability<\/h3>\n\n\n\n
5. Move towards box-build and module manufacturing<\/h3>\n\n\n\n
The Bigger Picture<\/h2>\n\n\n\n
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The Question Indian EMS Companies Should Be Asking<\/h2>\n\n\n\n
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