What to Expect from the Automotive Industry in India – Trends 2021

| January 8, 2019

updated on March 3, 2021 at 4:26 pm

Automotive erp software


Here comes 2021! Time flies by, no? I’m sure we all get this feeling and it doesn’t take long for things to change and materialize. This is true especially for the automotive industry in India, which is one of the biggest employers in the country. Multinational companies are standing firm in the India market along with domestic brands. Kia Motors and MG Motors are ready to make ceremonial entry into the domestic market.

Automotive industry trends image

Automobile sales in India overtook even the UK and France market with a growth of 8.8 percent. There is a massive surge in the sale of vehicles in India, especially in the premium segment with luxury cars becoming synonymous with an upgraded lifestyle.

Automotive Industry Trends in India 2021

  • Cloud Powered Automotive Industry
  • Connected Cars
  • Automotive AI
  • Migration to Bharat Stage (BS) VI
  • Manage R&D and Product Design
  • Optimization of Supply Chain
  • Streamline Production
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  • Cloud Powered Automotive Industry

There is a lot of buzz around the use of cloud technology in the automotive industry in India. From design and operation to servicing, cloud technology will be increasingly used at every stage to reduce costs and eliminate any scope for wastage. Industry 4.0 or the Fourth Industrial Revolution is bringing a significant transformation in automation technologies. With Internet of Things and Cognitive Computing, the automotive industry is taking more determined steps towards cloud-powered design and engineering activities.

  • Connected Cars

Smart driving is going to be another popular automotive trend in 2021, owing to the recent innovations in Vehicle-to-everything (V2X) technology. This technology is driven towards ensuring better connectivity between drivers, passengers and a car. Cars will be connected with smartphones to provide better access to drivers.

Further, Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) technologies will make it possible for a car to communicate with other vehicles on the road and with the infrastructure. Consequently, drivers can adjust their speed and distance in response to changing road conditions.

  • Automotive AI

Artificial Intelligence is already a buzzword in the automotive industry in India, and is going to transform its processes to a greater extent in 2021. Automobile engineers are working on the development of accurate voice-control systems. Further, several developments are happening in the field of shared vehicles, which can easily recognize the preferences of passengers and make their journey more comfortable.

Automotive companies are also working on enhancing capabilities for image recognition and processing. This will help in making journeys in self-driven cars more secure.

  • Migration to Bharat Stage (BS) VI

India is currently following BS IV emission norms to put a cap on the emission of hydrocarbon, nitrogen oxide and particulate matter from vehicles. However, with the increasing vehicle penetration across different cities, India is likely to adopt BS VI norms by April, 2020. Vehicle manufacturers in India have already started working on new emission guidelines, which include a mandatory OBD (on-board diagnostics) for every vehicle.

Automobile manufacturers will be ably supported by ERP software for automobiles that will help capture the imagination of the Indian consumers looking to purchase their cars or upgrade their current model. Some of the features of ERP software for automobiles are:

  • Manage R&D and Product Design

Most of the top-rated automobile software solutions offer computer-aided design (CAD) system integration to minimize rework. You can also collaborate with your OEMs via Internet, execute accurate product configuration and even automate Bill of Materials (BOM) and Engineering Change Control (ECC) to reduce human errors.

  • Optimization of Supply Chain

By using an Automobile ERP Software, you can augment forecast accuracy for just-in-time (JIT) manufacturing and also reduce wastage. You can automate your communication with different vendors and customers through Electronic Data Interchange (EDI). Furthermore, you can identify in real time which vendors are supplying materials as per your requirements vis-à-vis cost, time and quality.

  • Streamline Production

By making use of an automobile ERP solution you can lower the lead times to ensure faster delivery; simplify estimation, quoting and scheduling to maximize the capacity needs; and augment quality through robust lot traceability and integrated quality control.


These are just a few of the most interesting automotive industry trends of 2021. There are plenty of others, like the increase in sales of EVs (Electric Vehicles), and the launch of the world’s first 3D printed car which is likely to hit the Chinese roads in 2021.


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