Rockwell Automation has released its 10th annual “State of Smart Manufacturing Report: Automotive Edition,” highlighting a major shift in priorities among global automotive manufacturers.
According to the findings, change management (37%) has emerged as the top workforce concern, with companies struggling to ensure smooth adoption of new technologies and processes. Rising skilled labour costs (36%), employee retention (33%), and difficulty in hiring new talent (31%) are also weighing heavily on manufacturers. In contrast, cybersecurity concerns have eased, suggesting progress in digital defences across the sector.
Commenting on the India outlook, Dilip Sawhney, Managing Director, Rockwell Automation India, said, “The report underscores a critical shift underway in the automotive ecosystem—from automation as an enabler to digital transformation as a competitive imperative. Indian manufacturers are now investing more in AI, data, and workforce development to align with global expectations.”
The study reveals that despite workforce-related hurdles, technology investment remains robust. Over 62% of respondents cite long-term business impact as the key driver behind tech adoption, followed by capacity expansion (58%). AI continues to gain traction, with its perceived risk declining from 24% in 2023 to just 14% in 2025. Quality control, robotics, and process optimisation are emerging as priority use cases, while automotive companies are leading in planned investments for generative AI, RPA, and other digital tools.
Business transformation is largely being driven by goals such as improved quality, reduced costs, and better risk management—particularly in safety, cybersecurity, and compliance. The report also flags a broader skills shift as the industry looks to bridge a projected 7.9 million worker gap by 2030. Companies are increasingly seeking employees with AI experience and soft skills like adaptability, communication, and analytical thinking, alongside automation capabilities.
The Automotive Edition of the State of Smart Manufacturing Report is part of Rockwell’s global research initiative, conducted in partnership with Sapio Research. The full report is based on responses from over 1,500 manufacturing decision-makers worldwide and provides a detailed snapshot of a sector in digital transition.
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