Auto 4.0 needs people 4.0: ACMA President Shradha Suri Marwah

Time of India

17-07-2025

As India's auto component industry transitions into a new era of digitisation, automation, and sustainability, its most urgent challenge isn't just technological, it's human. And, reskilling is key to staying ahead in the innovation curve, according to Shardha Suri Marwah, President of the Automotive Component Manufacturers Association of India (ACMA), and MD of Subros.
'Our entire industry is going through a transformation. The way we did manufacturing in the past no longer exists,' says Shradha.
"Reskilling is not just important. It is central to how we move forward," she adds.
Marwah, who also chairs the board at Subros Ltd, emphasises that the sector's preparedness hinges on workforce evolution. 'Some jobs will get lost and new ones will get created. That's why reskilling is required. You reskill people and use them for something else. Human capital will continue to create the most of value,' she says.
The challenge is more acute for smaller firms. 'Tier 1s align quickly. But Tier 2s and Tier 3s need structured support. That's where ACMA comes in to help the industry rise together,' she explains.
ACMA's Annual Report 2023–24 shows how seriously the industry is taking this task. Over 2,400 man-days of skilling and upskilling workshops were conducted across clusters, focusing on lean manufacturing, digital quality systems, and emerging environmental norms.
AI, automation, and the human equation
Even as Indian suppliers automate and digitise, workforce anxiety remains real. 'AI is disruptive. It's coming in fast,' says Marwah. 'But that doesn't mean we're replacing people. It means we're changing the kind of work they do.'
She adds that traditional manufacturing is not disappearing. It's expanding. 'As scale increases, traditional production will still have a major role. Automation will work alongside, not instead of, human capital. The pie is growing.'
India's domestic vehicle production supports this view. As per ACMA's report, the country's vehicle production and aftermarket sales grew robustly in FY24, even amid external volatility. The auto component sector saw 9.6 per cent growth, reaching ₹5.6 lakh crore, despite softened exports and rare earth shortages.
Digitisation vs sustainability?
Shradha is clear that while automation may support sustainability, but it doesn't define it. 'You're just playing with words there,' she says. 'Sustainability is a much larger journey. It starts from how you design the product, what materials you use, and then how you manufacture it.'
For smaller players outside the direct supply chain grid, Marwah admits it's harder. 'When pipelines aren't clear and visibility is low, it's difficult to prioritise sustainability. But many RFQs now include sustainability clauses. So Tier 1s are having to handhold their Tier 2s. The entire value chain is aligning.'
The ACMA report highlights that ESG-readiness, compliance mapping, and traceability are now demanded not just by global OEMs but also by domestic partners aspiring for export-grade standards.
'Sustainability, green materials, clean processes, everything is changing. And the skills needed to work with these new materials are changing too,' she says.
'Investment will follow scale, not noise'
With the ongoing debate on EVs, hydrogen, ethanol and ICE, some suppliers remain uncertain where to place their bets. Marwah advises pragmatism.
'The PV market was about 4 million units. It's going to grow to 7 million. Out of that, EVs and alternate fuels will be around 1 million. That still means traditional platforms will grow from 4 to 6 million. So don't get confused. Investment decisions will follow scale, not buzz.'
This clarity, she believes, will help lower-tier suppliers make informed decisions. 'Don't chase headlines. Follow the data,' she urges.
The past year tested the sector's resilience, zero rare earth magnet imports since April, rerouted logistics that doubled lead times, and trade uncertainties. 'We usually don't pull the plug on investments unless there's a COVID-like disruption,' Marwah points out. 'The domestic industry is doubling. So, scale must happen. And the industry is investing in advance.'
Still, she stresses that uncertainty will remain a constant. 'There are FTAs on one hand and tariffs on the other. What's in our control? Our people, our plants, our processes. That's where transformation must begin.'
Rather than dictate direction, ACMA sees itself as an enabler. 'Every organisation must define its own roadmap. Our job is to provide the platform, for awareness, for training, for any skill required in this transition,' says Marwah.
'The opportunity is there. But we must keep pace. Reskill, digitise, go green, but do it together. That's how India's auto component industry will truly lead," she concludes.