India's Automotive Manufacturing to Embrace AI and Automation by 2026
India's automotive manufacturing is at a crucial juncture as electric vehicles gain prominence, with sales exceeding 1.5 million units in 2024-25. However, a gap exists between product innovation and production capability, emphasizing the need for enhanced automation. Policy measures aim to boost manufacturing competitiveness, particularly in adopting AI-driven robotics. As manufacturers seek higher quality and efficiency, the shift towards Industry 5.0 will be essential in developing intelligent, adaptive production systems. By 2026, India aims to integrate domestic automation and AI capabilities into its manufacturing strategy.
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India's automotive manufacturing is experiencing a significant transition as electric vehicle sales reached over 1.5 million units in 2024-25. Despite product innovation, manufacturing processes remain reliant on manual assembly, highlighting a gap in production capabilities.
Current policies are promoting competitiveness through increased automation and AI adoption. The International Federation of Robotics reports India has only 7 robots per 10,000 workers, compared to 450 in China.
Industry 5.0 initiatives are expected to lead to adaptive, intelligent factories, with AI robotics enhancing production efficiency. By 2026, the focus will be on scaling domestic automation and fostering human-AI collaboration to create resilient manufacturing ecosystems.
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