The global automotive industry is on the verge of a big disruption.
India’s import dependence on batteries poses a challenge for adopting electric vehicles.
What is the status of global automotive industry?
Digitisation, increasing automation, and new and emerging technologies would revolutionise the way people move.
Urban passenger mobility has undergone significant changes over the past few decades due to rapid industrialisation and the boom of the IT sector.
Travel patterns have become increasingly complex and difficult to predict and manage.
These trends will shift markets and revenue pools, change mobility behaviour and build new avenues for competition and cooperation.
This has put increasing pressure on bigger cities and their transport and infrastructure.
What are the expected changes due to the disruptions?
With growing concerns towards sustainable development and mitigating climate change, there is a need to shift from the current unsustainable approach to a more sustainable effort.
This would bring a shift in consumer behaviour and their buying pattern, although it would be interesting to watch how this trend changes geographically and across continents.
Globally, revenue pools from conventional sources such as one-time vehicle sales and aftermarket sales could continue to grow at their current pace.
What are the concerns before India?
The Indian automotive industry has begun to feel the ripple effects of global disruption.
In India four technology-driven trends such as electrification, shared mobility, connectivity and autonomous driving are leading the automotive industry to this disruption.
The automotive market in India is going through a rapid metamorphosis, offering many choices to consumers beyond just internal combustion engine (petrol/diesel).
What measures needs to be considered in this regard?
Across the globe electrification of vehicles is seen as a sustainable solution to counter the growing levels of vehicle pollution in metros is of particular importance to India today.
By 2030, electrification could lead to electrified vehicles holding a substantial share (up to 50 per cent of new vehicle sales in a breakthrough scenario) of the global automobile sector.
If India sees a similar momentum, it will significantly impact manufacturers across the automotive value chain. .
India needs to address the challenges of increasing fuel import costs and pollution using hybrid vehicles.
India needs to invest in infrastrucres related to EV motors and battery, charging technology, power electronics and EV software for the successful implementation of E-mobility.
Thus concerted efforts by key stakeholders can help EVs and hybrids become a self-sustaining and profitable market in the near future.
