“A strong partnership between Indian frugal engineering and Japanese precision R&D can drive practical and cost-effective innovations”, says Praveen V.A, Vice President of TOYOTETSU India Auto Parts Pvt Ltd in an interview with Neha Basudkar Ghate, speaking about India’s evolving automotive landscape, cross-cultural collaboration with Japan, and the road ahead for innovation, quality, and workforce development in a technology-driven, globally connected manufacturing environment
1- How do you view the current state of the automotive industry in India?
The automotive industry in India is going through a big shift. In FY25, production crossed 25 million units, including around 4 million passenger cars. There’s a strong push towards electric vehicles as well, supported by growing demand, rising exports, and government policies like the PLI scheme and FAME incentives.
At the same time, the industry does face some challenges. Things like keeping up with regulations, managing supply chain issues, and the need for more skilled workers are areas that still need attention.
2- How would you describe the strengths of the automotive industry in Japan?
Japan has been looked upon in the automotive world. What really sets them apart is their attention to detail, high quality standards, and smart manufacturing practices. Systems like Kaizen, Just in Time, and the Toyota Production System have inspired companies all over the world. Japanese car makers have also been ahead of the curve in hybrid and hydrogen technologies, thanks to their strong focus on research, innovation, and automation.
3- In your opinion, what are the best ways for India and Japan to work together in the automotive sector?
There’s a lot India and Japan can do together in this space. Setting up joint research and development centres for things like electric vehicles, software driven vehicles and lightweight materials can really help both sides.
Another area is supplier development. If Indian Tier 2 and Tier 3 vendors can align better with Japanese quality standards, that would boost the entire ecosystem.
We can also look at start-up exchange platforms where companies from both countries work together to build new mobility solutions. And finally, focusing more on localisation not just in manufacturing but in design as well vehicles can be created which truly fits local requirements.
4- What can Indian automotive companies learn from Japanese companies to improve quality and efficiency?
There’s a lot Indian companies can take away from how Japanese firms operate. First, it’s about building a culture of respect for people, for safety, for quality, and for time. Every task, big or small, should reflect that mindset.
Then there’s how Japanese companies understand their customers. They’re very clear about what the customer wants, when they want it, how much, and they deliver exactly that.
Another important point is attention to detail. Japanese firms plan thoroughly, making sure nothing is missed. Practices like Hoshin Kanri help in aligning everyone with the company’s goals, and shop floor tools like 5S and visual management keep things disciplined and efficient.
They also follow Kaizen, which is all about constant improvement. The focus is always on cutting waste, improving processes, and building quality right into the system.
Things like Genchi Genbutsu which means actually going to the place where the problem is and Gemba walks by leaders help create a sense of ownership and on-the-ground problem solving.
Lastly, systems like TPM and TQM, along with lean manufacturing and just in time principles, play a big role. Japanese companies also empower their teams to suggest changes or even stop the process if something seems off. That kind of trust and responsibility makes a big difference.
5- As the Indian automotive sector grows, what are the most effective approaches for up-skilling the workforce to meet the demands of increasingly automated and technology-driven manufacturing environments?
To keep up with all the changes in the industry, especially with more automation and new technologies coming in, we really need to focus on up-skilling our workforce.
One of the first steps is updating the curriculum in ITIs and engineering colleges. It should include topics like advanced tooling, electric vehicles, artificial intelligence, and Industry 4.0. These are the areas where the industry is headed, so the training needs to match that.
Public and private partnerships can also help a lot. OEMs and large Tier 1 companies can work with local institutes to set up skill centres, offer internships, apprenticeships, and run technical courses designed to meet real industry needs.
Another effective way is to promote modular digital learning, so that people can keep upgrading their skills while they work. And finally, apprenticeship programs should be aligned with what the industry actually needs, with guidance from bodies like ASDC and input from OEMs.
6- How can cross-cultural training and exchange programs between India and Japan help bridge gaps in manufacturing practices, management philosophies, and workplace culture?
Cross-cultural training and exchange programs between the two countries are already happening at both the industry and company level. These programs, where people and knowledge are shared across borders, really help in closing the gaps.
They play a big role in bringing in practices like better workplace discipline, being punctual, following processes properly, and making decisions through consensus. These are things that are deeply rooted in Japanese work culture and can really benefit Indian teams.
More importantly, these exchanges help build mutual respect and make it easier to work together, especially in joint ventures or collaborations. It’s all about learning from each other and creating a smoother, more effective way of working together.
7- India is rapidly emerging as a global hub for automotive and electronics manufacturing. What strategies should Indian auto parts manufacturers adopt to strengthen their position as reliable suppliers to international markets, especially as global demand shifts due to geopolitical and economic changes?
Indian auto parts manufacturers have a strong chance to grow globally as supply chains shift. To make the most of this, they should diversify export markets beyond traditional geographies, invest in R&D to create their own IP, and focus on cost-effective innovations. Securing global certifications like IATF and ISO will help meet international standards and build trust.
Improving digital supply chain visibility is also crucial in today’s connected world. Companies should make the most of free trade agreements with ASEAN, Japan, and the EU to reduce tariff barriers. Lastly, strong ESG practices are becoming essential to stay competitive in the global market.
8- How can Indian manufacturers leverage their cost advantages and scale to attract more Japanese and global OEMs looking for alternative sourcing destinations?
India’s cost advantage; skilled workforce, improving infrastructure, and strong government support make it a strong alternative for global OEMs looking beyond China. The growing focus on electric vehicles and policy incentives further strengthen India’s appeal.
To attract more Japanese and global OEMs, Tier 1 suppliers should co-locate with OEMs in industrial clusters, build scalable and flexible manufacturing setups, and stay agile in new product development. They also need to localise design and development to shorten lead times, and maintain high standards in quality and delivery, which are key to building long-term trust.
9- What role does local leadership play in fostering trust and accelerating collaboration between Japanese investors and Indian manufacturing teams, and how can this be further strengthened to unlock new growth opportunities?
Local leadership plays a very important role in bringing Japanese and Indian teams together. They act like cultural translators helping align the way Japanese teams think and plan with how things are actually done on the ground in India.
Trust is built when local leaders can bridge the gap between Japanese and Indian management, ensure clear and open communication, and show respect for Japanese work culture. Having stable leadership teams also adds to that trust.
To take this further, it helps to have structured cross-cultural on boarding for both sides and clear joint ownership of key goals. Local leaders also need to stay updated with market trends, so they can guide strategy in a way that fits the Indian environment. All of this helps create stronger partnerships and opens up more opportunities for growth.
10- With Japanese firms increasing their R&D investments in India, especially in areas like compact car development and composite technologies, how can Indian auto parts companies collaborate on joint R&D projects to drive innovation and meet future mobility needs?
There’s a great opportunity for Indian auto parts companies to work closely with Japanese firms on R&D. To begin with, Indian companies need to invest more in their own R&D and focus on developing technologies that suit India’s unique requirements.
Collaborating on high-strength and composite materials for light weighting is another strong area. These materials are a key to building the next generation of vehicles, especially electric and compact ones.
Indian companies can also bring in their strength in frugal and process engineering, while Japanese firms contribute with their precision R&D. That kind of partnership can lead to practical, cost-effective innovations.
Tying up with top academic institutions like IITs and IISc can also help speed up development. These collaborations bring fresh ideas and help both sides stay ahead in the game.
11- What are the main challenges and opportunities for Indian suppliers in participating in the development of next-generation vehicles, such as electric and autonomous cars, given the rapid pace of technological change?
Indian suppliers have a lot of potential when it comes to next-generation vehicles, but there are some real challenges too.
One big challenge is that India’s path forward is not just about electric vehicles, it should be a mix of internal combustion engines with multiple fuel types, hybrids, plug-in hybrids, battery electric vehicles, and even hydrogen fuel cell vehicles.
Another issue is that the vehicle architecture itself is still evolving. Companies are unsure about where exactly to put their resources, especially when those resources are limited.
In the short term, we also face gaps in key areas like battery and light weighting technologies. The availability of raw materials like critical minerals and high-strength steel is also a concern, along with capacity bottlenecks in motors and batteries.
On top of that, the rules and market expectations are changing fast, which makes planning even more difficult.
That said, the opportunities are just as big. India is already the third largest auto market, and with low vehicle ownership compared to the population, there’s a lot of room to grow. We also have a large pool of talented people who, with the right training, can really drive this shift.
Our cost-effective manufacturing base gives us a strong edge in exports. Plus, government support through schemes like FAME, battery swapping policies, and various incentive programs under PLI and ELI is helping move things forward.
The government is also making it easier to do business by improving roads, shipping, power, and cutting down on red tape. And as the economy grows, more people will be able to afford vehicles, which adds to the domestic demand. So, if suppliers can navigate the challenges, there’s a lot of opportunity ahead.
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