Pawan Goenka Of Mahindra & Mahindra Says Disruptive Innovation That Combines Frugal Engineering & IT Expertise Is A Must For Indian Automotive Players

Pawan Goenka, Executive Director of Mahindra & Mahindra, says disruptive innovation that combines frugal engineering and IT expertise is a must for Indian Automotive players.

Source: http://www.mahindra.com/business/automotive
Source: http://www.mahindra.com/business/automotive

Today, almost all major global OEMs have an India development centre with plans to increase sourcing and use India as its manufacturing base. With the government’s support, OEMs and suppliers have put in herculean efforts in shaping the industry’s achievements. There’s no surprise that India is ranked 10th in the auto segment of the Future Brand’s Country Brand Index (CBI) for 2014-15 – the only segment where India is featured among the Top 10 across industry sectors like FMCG, electronics, fashion and luxury.

Having said that, one still needs to wonder, ‘Have we established a rational and emotional value proposition of Brand India?’ It is still associated as an LCC (Low Cost Country) with lower level of manufacturing quality and has a long way to go to improve its aspiration quotient. Will a customer in the UK aspire to own a car because it is ‘Made in India’ or will he rather pay a premium for one designed and made in Germany?

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We do need to find the platform on which to build (automotive) Brand India. I believe we have two platforms to build on – frugal engineering and IT expertise. The latter has been an acknowledged strength of India for some time but more in terms of providing software expertise to the world and not in terms of building this expertise into our own (automotive) products. Can we take a pole position in this? In the last several years, frugal engineering is being recognised globally as a strength and not a way to cut corners. The world acknowledges that India invented it and frankly all others are now imitating it, thanks to the exposure they now have to Indian engineering ecosystem. Can we translate these two strengths into a brand image of India – not that of an LCC with low labour cost as the only advantage, but of a country that has the ability to design products differently and use its IT expertise to give customers a product that others cannot?

Brand building has an extremely long gestation period to reap any formidable result. In spite of challenges, the automotive industry has continuously steered the path of creating world-class products, building a manufacturing ecosystem and frugal innovation.

Read his entire column written for Autocar Professional here.

Author: Venkata Gandikota

Venkata has more than 13 years of technical engineering, research, ideation, strategy and business modeling experience. Based on his experience with the Indian market and realizing also the need for affordable & sustainable solutions for Finland and other European markets, he started The Nordic Frugal Innovation Society in late 2013 with 2 colleagues. By organizing ideation workshops and 2 major conferences involving Cities, Universities, and businesses he started to mainstream the concept in Finland and the Nordics. Gandikota has also written several articles focusing on frugal innovations in the Finnish media. He has also been helping Finnish businesses in India as CEO of Indianeer Consulting and gives guest lectures at JAMK University of Applied Sciences in Jyväskylä. He has a Bachelors in Chemical Engineering from India and a Masters in Environmental Engineering from USA.