“India’s strength in software and digital innovation, combined with Japan’s leadership in automotive and electronics, creates a powerful synergy for driving the next wave of advancements in the automotive sector.”, says Thej Kumar, Vice President of Operations, Product Development, and Quality, Toyoda Gosei South India Private Limited in an interview conducted by Neha Basudkar Ghate. He shares his insights on the evolving dynamics of the Indian and Japanese automotive industries. He highlights the importance of cross-border collaboration, the influence of Japanese manufacturing philosophies on Indian suppliers, and the role of government and industry partnerships in driving innovation, quality, and sustainable growth.
1- How would you describe the current situation of the automotive industry in India?
As India advances towards becoming one of the world’s top three economies, the outlook for the automotive industry remains highly optimistic. The sector currently contributes over 7% to the country’s GDP and holds the position of the 4th largest automotive producer in India. Looking ahead, it is projected to grow at a CAGR of over 8% by 2030, reflecting strong momentum and future potential.
2- What stands out to you about the automotive industry in Japan?
The first word that comes to mind is quality. Japan’s automotive industry is globally renowned for producing high-quality vehicles, with Toyota leading the way. What truly set them apart are their simple and unique manufacturing practices especially, the Toyota Production System (TPS). Another key highlight is their strong emphasis on innovation, particularly in areas like hybrid technology, hydrogen-powered vehicles, and Electric Vehicles (EVs). Brands like Honda, Nissan, Suzuki, Mazda, Mitsubishi, and Isuzu have each carved out a unique space in the Japanese market, contributing to its global stature.
3- What do you think are the main benefits if Indian and Japanese automotive companies work together?
The benefits are clearly visible. A prime example is Maruti Suzuki (MSIL), which transformed the Indian car market in the 1980s. Today, we see the continued success of Toyota with its hybrid technologies. Collaborations like these have enabled Indian companies to leverage Japanese advancements in technology, significant improvements in quality management systems, and a strong focus on safety, benefiting not just OEMs but also Tier 1 and Tier 2 suppliers.
Another major advantage has been in skill development and human resource growth. Numerous training programs in Japan and with Japanese affiliate companies have been a game changer for Indian companies, enhancing productivity, improving quality output, and driving overall economic growth.
4- From your perspective, what are some practical ways India and Japan can support each other in the automotive sector?
For Indian industries, one of the biggest advantages of collaborating with Japanese companies is the opportunity to learn from their best practices and proven manufacturing concepts. This benefit has not only been realised by OEMs such as MSIL, TKM, and RNAIPL, but also by Tier-1 suppliers, who have seen significant improvements in their operations.
Regular benchmarking visits to Japanese companies and affiliate locations in countries like Thailand and Vietnam play a crucial role in enhancing skills and operational efficiency. Additionally, collaboration with Japanese organisations opens doors to government-sponsored training programs such as those offered by Association of Technical Cooperation Sponsorship (AOTS) and sustainable partnerships. These programs promote knowledge-based learning across all levels right from shop floor workers to corporate executives, contributing to long-term capability building and mutual growth.
5- What are the key challenges and opportunities you see for the Indian automotive supply chain as Japanese automakers continue to localise production and source more components from Indian suppliers?
The success of Japanese companies is rooted in strong fundamentals such as 5S (cleanliness), safety, and robust quality management systems at every level. While many Indian companies have started adopting these practices and seeing the benefits, a larger section of the industry still needs to embrace them to build globally competitive operations.
One of the key challenges lies in meeting the high-quality standards expected by Japanese automakers. Achieving this requires a systematic approach and, more importantly, a significant mindset shift within Indian industries. Although this presents a challenge, it is also a valuable opportunity, one that can help Indian suppliers excel, enhance their capabilities, and integrate more deeply into global supply chains.
6- With the growing focus on Electric Vehicles (EVs) and sustainable mobility, how do you see India and Japan collaborating to accelerate the adoption of EV technology and infrastructure in India?
India is rapidly emerging as one of the fastest-growing economies in the renewable energy space, which provides a strong foundation for the growth of its EV sector. This aligns well with Japan’s expertise and technological strength in renewable energy and electric mobility.
Several Japanese companies, such as Musashi Seimitsu and Terra Motors, have already invested in India, contributing to the development of the EV ecosystem. In addition, many OEMs are actively working on building electric vehicles tailored to the Indian market. Collaboration between the two nations in areas like EV technology, battery systems, and charging infrastructure can significantly accelerate the adoption of sustainable mobility solutions in India.
7- How can leaders from India and Japan work together to bridge cultural and operational differences, ensuring smoother collaborations and joint ventures in manufacturing and product development?
Leaders should set an example through their actions. Culture plays a pivotal role in driving transformation, and in a country like India with its diversity of traditions, languages, and practices, the challenges are even greater. Change takes time, and it requires every leader to be actively involved, setting an example through their actions and commitment to continuous improvement.
While there are many cultural similarities between India and Japan, understanding, appreciating, and effectively integrating them into business practices requires a collaborative approach. Embracing each other’s technological strengths and applying them in manufacturing and product development will be crucial. At the core of this effort lies human resource development wherein equipping people with the right mindset, skills, and cross-cultural sensitivity to ensure long-term success in joint ventures and partnerships.
8- Given the current market dynamics, including changing consumer preferences and regulatory shifts, how should automotive manufacturers in India adapt their product development strategies to stay competitive, and what lessons can be drawn from Japanese market experiences?
The Indian automotive market is dynamic and unique, with evolving customer preferences towards advanced technology, safety, and infotainment. SUVs and MUVs are now leading over small cars. Japan, with Toyota at the forefront, has been a global leader in hybrid technology and advanced safety systems. The partnership between Maruti Suzuki and Toyota showcases how collaborative strategies can succeed in the Indian market.
Indian manufacturers can learn from Japan’s strengths—embracing Lean manufacturing, waste elimination, strong supply chains, and sustainable practices—while focusing on quality and overall performance to stay competitive.
9 – How do you assess the impact of recent government-led initiatives, such as ‘Make in India’ and bilateral capacity development programs, on the growth and modernization of the Indian automotive manufacturing landscape?
Government initiatives like Make in India, along with PLI and FAME schemes, have significantly boosted India’s automotive manufacturing sector, turning the country into an export hub for markets including Africa, the Middle East, and Japan. The two-wheeler segment has expanded rapidly, with key players like Ola Electric, VinFast, Tata Motors, and JLR setting up facilities across India. Toyota’s new plant in Chhatrapati Sambhajinagar reflects continued domestic investment.
Advancements in IoT, AI, and design have driven the growth of R&D centres—Toyota’s facility in Bengaluru and Toyoda Gosei’s TGTCI in Gurugram being notable examples. Government projects like NATRiP and AMP have supported world-class vehicle testing and set a strategic roadmap for global competitiveness. These efforts have created over 1.5 million jobs and contributed more than 2.3% to India’s GDP.
10 – With the recent focus on cross-border innovation and startup collaboration between India and Japan, what opportunities do you see for automotive startups to drive technological advancements and address industry challenges?
India’s strength in software and digital innovation, combined with Japan’s leadership in automotive and electronics, creates a powerful synergy for driving the next wave of advancements in the automotive sector.
This has also prompted many multinational companies to establish facilities focused on electronics and semiconductor-based industries to meet the growing demands of the Indian market. Favorable industry policies, combined with Bengaluru’s position as the startup capital of India, have encouraged the growth of numerous research and development facilities, thereby creating significant job opportunities.
11- How significant is the role of government-to-government (G2G) and business-to-business (B2B) partnerships in building resilient supply chains and fostering innovation in the automotive and related sectors?
India and Japan share a strong and collaborative relationship across multiple dimensions. Government-to-government (G2G) partnerships have played a key role in shaping policies and agreements that promote mutual economic growth.
As a result, many Japanese organisations have established manufacturing, research, and logistics facilities in India. These B2B partnerships have driven innovation and technological advancement across the supply chain. Indian companies, in turn, have benefited by leveraging the business acumen and technological expertise of their Japanese joint venture partners or by becoming integral parts of their global supply networks. This synergy has not only strengthened supply chain resilience but also elevated the overall competitiveness of the Indian automotive and allied industries.
12- How have Japanese investments in local manufacturing and supplier development contributed to the skill enhancement and technological upgradation of the Indian automotive supply chain?
One of the greatest benefits Indian companies have obtained from Japanese companies has been skill development. Japan is renowned globally for its world-class manufacturing practices and disciplined work culture and this has inspired Indian industries to embrace the philosophy of ‘progress with people’.
Japanese organisations and joint ventures in India have established numerous training and skill development centres, often referred to as Dojo, which focus on hands-on learning and workforce development. This culture of continuous improvement has also spread to Indian companies, where managements now recognise the importance of people development at all levels.
Initiatives such as Quality Control Circles (QCC), Small Group Activities (SGA), Kaizen, Lean Manufacturing, and benchmarking visits have become integral to operations. Additionally, many companies regularly send Indian technocrats to Japanese facilities in Japan, Thailand, Vietnam, and Indonesia for on-site learning. These experiences have significantly contributed to both skill enhancement and the technological upgradation of the Indian automotive supply chain.
13- What steps should be taken to further strengthen local supplier networks in India to meet global quality and efficiency standards, drawing on Japanese approaches to supplier relationships?
For sustained growth, Indian organisations must commit to continuous improvement by focusing on core principles. A collaborative ‘sharing and learning’ approach, inspired by Japanese practices, can help both large companies and MSMEs grow together.
Larger organisations should work closely with MSMEs, treating them as supplier partners rather than just vendors. Handholding and knowledge sharing are key to driving operational excellence. Bodies like AOTS, QCFI, QCI, ACMA, and CII are already contributing significantly and will remain pivotal in enabling Indian suppliers to meet global standards.
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