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Covid-19 may force auto cos into more automation on shop-floor: EY report

There will be several changes to existing working norms and guidelines that organisations will need to abide by in order to ensure safety at the workplace, says the report

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Auto firms | Coronavirus | EY Report

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The report said automobile companies will now have to rebuild and reinvent a new ecosystem to accommodate the new normal

The Indian automotive sector will continue to face challenges related to non-availability of labour and concerns over health and safety management on the shop-floor following the pandemic, which may force firms to accelerate adoption of digital technologies in manufacturing, a report by consultancy firm EY said.

This health crisis will settle gradually and would leave a profound impact on people and the ways of working especially on the shop-floor. There will be several changes to existing working norms and guidelines that organisations will need to abide by in order to ensure safety at the workplace, said the report titled 'Now, next and beyond: Auto factory of the future', agency PTI reported.

Elaborating on how automotive shop-floors will evolve and adopt digital technologies post Covid-19, the report said automobile will now have to rebuild and reinvent a new ecosystem to accommodate the new normal that is likely to emerge.

"The auto sector will continue to face challenges related to non-availability of labor, concerns on health and safety management on the shop-floor. A digital shop-floor with specific interventions on planning and execution will become the new normal," it said.

The report further said, "Due to growing apprehensions during the lockdown, workmen are refraining from attending work. Some shop floors have been left deserted.

Further, due to large scale migration of labour across India, availability and redeployment of contract labour post lockdown is a major concern."

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As contract labour accounts for more than half of India's auto industry's workers, the lockdown could lead to several complexities around supply of contract labour, forcing to automate and thereby reducing the reliance on contract labour, it added.

Stating that the Covid-19 outbreak is having a profound impact on the automotive shop-floor, the report said,"This makes it important for the firms to expedite a well-planned journey to manage the crisis and build resilience for future uncertainties. Digital is emerging as a real option to enable manufacturing and supply chains attain strength and adapt to the new normal."

EY India Partner and Automotive Sector Leader Vinay Raghunath said, "In a post Covid-19 world, we do expect continued adherence to social distancing norms. Apart from demand-side variability, the auto sector will continue to face challenges related to non-availability of labor, concerns on health and safety management on the shop-floor."

He further said, "A digital shop-floor with specific interventions on planning and execution will become the new normal. Every player in the auto sector must invest ahead of the curve to achieve greater resilience and develop immunity against the future market uncertainties."

The said must adopt digital manufacturing technologies to uplift operational efficiencies in all aspects with the current constraints of manpower and resources in the automotive industry.

"Adopting these technologies, along with its modularity and infrastructural backbone in a gradual and phased manner has become imperative in preparation for the next 'Black Swan' event," it said.

First Published: Sun, May 10 2020. 11:22 IST
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