The auto manufacturing industry, like most industries, is acutely aware that its operations impact the environment. And like most industries, the industry has taken steps to mitigate this impact by adopting sustainable practices. Its actions will considerably impact reducing emissions because the industry alone is responsible for producing 19% of the world’s greenhouse gases.
Manufacturing in a circular economy
In 2023 and beyond, auto manufacturers will become even more deeply integrated into a circular economy where very little waste is produced. Rethinking and reimagining design will be at the heart of building a robust circular economy. For instance, more automotive products will be designed from the outset with the understanding that, down the road, they will be disassembled and recycled. Also, auto manufacturers will use cutting-edge technologies like AI and machine learning to shift from linear manufacturing to a model in which products are – right from inception – built to last for an extended period.
Other design strategies, such as making designs modular so they can be refitted and reused will become more commonplace. Also, products will be designed to be easily repairable and will be far more durable as well.
Steps like using data to optimize processes and using resources more judiciously are already making automobile manufacturing more sustainable. Over the long term, more manufacturers joining the circular economy will drastically reduce waste and lower GHG emissions.
In such an economy, materials and products will be shared, leased, reused, repaired, refurbished, and recycled for as long as possible. As a result of the automotive manufacturing sector basing manufacturing on a circular approach, lifecycle carbon emissions per passenger will fall by 75% by 2030. The benefits of a circular approach to manufacturing will be pecuniary. Circularity will add an annual value of USD 624 billion to the Indian economy by 2050.
Transparent Supply chains and more
In 2023 and beyond, auto manufacturers’ supply chains will become more transparent. Transparency will arise because parts used by the industry need to be traceable back to their source. Such traceability will be pivotal to ensuring that value chains are sustainable.
To make this possible, there will be a greater cross-industry collaboration because suppliers from across industries are part of the automotive value chain. Advanced technology will be the linchpin of traceability and visibility across the supply chain.
Also, biodegradable components will proliferate, and more money than ever will pour into research and development directed toward creating more sustainable manufacturing processes.
Assembly lines will give way to modular production methods
The century-old assembly line, which allowed automobiles to be mass-produced, will give way to modular production.
Workers in modular production are more skilled than their assembly line counterparts as they must add more value to a product. In this production method, a small, highly skilled workforce will come to work on a car in stages. Hence, throughout the production process, the car will remain stationary. This results in significantly better utilization of space, resources, and manpower.
In line with their sustainability goals, more auto manufacturers will adopt modular production in at least some parts of the manufacturing process.
Urging Tier 1 suppliers to be environmentally friendly
Auto manufacturers will continue to urge their tier-1 suppliers to become more environmentally friendly. This will include asking suppliers to ship parts and components in returnable and reusable packaging. Consequently, less waste will be produced, energy consumption will drop, greenhouse gas emissions will fall, and suppliers’ carbon footprints will be lowered.
The road ahead
Over the coming year and throughout the coming decade, auto manufacturers will work with suppliers to create granular visibility throughout the supply chain. Such visibility will be integral to the success of a vast circular economy in which every component is traceable. Also, new, more efficient production modes will result in better space, materials, and energy utilisation. Simultaneously, auto manufacturers will continue to prod and urge suppliers to adopt measures that lead to greater sustainability. Such endeavours have led tier-1 suppliers to use innovative packaging that can be used multiple times, thereby significantly reducing waste.
Together, these measures will result in automotive manufacturers lowering their emissions and meeting sustainability targets. The partnerships forged today between all players in the automotive sector are laying the groundwork for this sustainable future.