What is the issue?
- 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.
Source: Business Line
