Festive Demand Could Drive Indian Auto Industry to Record Year
Hero MotoCorp's Vikram Kasbekar predicts a record year for India's auto industry as festive demand outpaces supply in ICE and EV segments.
The Indian automobile sector is standing on the brink of a historic milestone. Driven by a massive surge in festive season demand, the industry is poised for a record-breaking year, according to Vikram Kasbekar, Executive Director of Hero MotoCorp Ltd.
Speaking at the CII's 17th Visionary Leaders for Manufacturing (VLFM) conference in Mumbai, Kasbekar highlighted a significant shift in market dynamics. For the first time in a considerable period, the appetite for vehicles is actually outstripping the industry's ability to supply them.
Demand Outpacing Supply in ICE and EV Segments
The momentum is not limited to a single category. Kasbekar noted that both traditional petrol-powered Internal Combustion Engine (ICE) vehicles and the rapidly growing Electric Vehicle (EV) segment are seeing intense buyer interest. This imbalance has created a unique window of opportunity for manufacturers to ramp up production levels.
"This is an opportunity that has come after a long time, when the industry has not been able to supply enough to meet demand," Kasbekar stated. He expressed optimism that the industry is successfully gearing up to meet these market requirements, potentially leading to a landmark year for the entire sector.
Navigating Global Pressures and Commodity Costs
While the outlook is bright, the industry is not without its hurdles. Geopolitical tensions and the volatility of global commodity prices continue to loom over the manufacturing landscape. Kasbekar acknowledged that while price fluctuations remain a persistent concern, Hero MotoCorp is well-prepared to manage these pressures.
Regarding the supply chain, particularly the critical shortage of semiconductors and microcontrollers, Kasbekar explained that companies are adopting bespoke sourcing strategies. He noted that manufacturers are meticulously identifying the specific processors and controllers required for their unique vehicle architectures before finalizing their procurement routes.
He also pointed out that the global demand for semiconductor components is undergoing a shift, influenced heavily by the rapid rise of Artificial Intelligence (AI) technologies.
The Path to Self-Reliance and Innovation
To ensure long-term competitiveness and reduce the heavy reliance on imports, Kasbekar emphasized the need for a fundamental shift in how Indian manufacturers operate. He advocated for a stronger focus on:
- Research and Development (R&D): Investing heavily to stay ahead of the curve.
- Intellectual Property (IP): Developing in-house technological expertise rather than relying on external designs.
- Global Standards: Designing products that can compete on the world stage.
- Manufacturing Strength: Building robust domestic capabilities to insulate against global shocks.
As Hero MotoCorp continues to expand its electric footprint through its VIDA brand, the company remains focused on balancing this growth with technological independence.
Advice for the Next Generation of Manufacturers
Addressing the future workforce, Kasbekar offered a piece of wisdom to young professionals entering the manufacturing sector. He urged them to avoid complacency in an era of rapid technological evolution.
"Learning is a continuous process; it never ends. Keep upgrading your knowledge, evolving, and adapting, and continue exploring different opportunities. Do not get into your comfort zone," he advised.