For decades, the global automakers have been intensively battling the challenge of finding new and revolutionary alternatives to fossil fuels. The need to shift from fuels to some other environmentally friendly substitute is gaining prominence more than ever. The recent UN event called COP26 held in the United Kingdom from 31st Oct to 13th November brought the entire world together on the action plan to counter climate change, with a promise to create a carbon-neutral world with zero carbon emission. In this scenario, electric vehicle (EV) would be a key player and a catalyst to achieve that goal. 

The global EV market size is projected to develop from 4,093K units in 2021 to 34,756K units by 2030, at a CAGR of 26.8 percent.* India has already shown its keen concern to be a major part of this automotive archetype shift. The business leaders have acknowledged electric cars to be the impactful option. Other countries such as UK, France, Norway and Germany have even brought in regulations to ban the sales of non-EVs starting as early as 2025. This makes the EV sector one of the most appealing, valuable and compulsory areas of innovation today.

Other than the environmental benefits, electric vehicles have much more to offer. Autonomous driving opportunities, personalised bold support results and 5G embedded next-generation technologies are just a few to mention. At a primary level, electric cars offer a dramatically lesser operating cost as compared to traditional internal combustion engines. On an average, from a fuel and maintenance perspective, EVs are 75-80 percent cheaper than a fossil fuel-powered vehicle of comparable size, which basically translates to cheaper maintenance bills – therefore, becoming an important consideration for so many customers who have huge usage. 

Below are highlighted some of the advantages and challenges that can possibly contribute to EV becoming the game-changer in Indian context:
Advantages of electric vehicles 
Low cost of ownership 
Easy to maintain
State EV policies
Cleaner environment

Challenges

Range anxiety: It’s one of the most vital challenges in the development path for EV in India. The electric vehicle customers are often concerned about the vehicle’s potential to reach the destination before the battery runs out. This problem is nearly connected to hard-to-reach charging infrastructure in India. The EV charging infrastructure in India is too low as compared to the petrol pumps. Also, the available EV charging stations are concentrated in metropolitan areas mostly.

Customer perception: The customer opinion about EVs in India is still feeble as compared to ICE vehicles. The range concern, lack of charging infrastructure, a wide difference between EV and ICE vehicle prices, lack of convincement about satisfying resale value etc. play important role in building perception. Despite the fact that Indian customers are becoming more open about accepting e-mobility, strong and positive awareness about EV is still missing.

High price: There is no price parity between electric vehicles and ICE vehicles in India. EVs are way more expensive than their conventional fuel-powered counterparts. For example, the TATA Nexon price starts from INR 719,000, while the TATA Nexon EV price starts from INR 1,399,000. This high difference makes many interested electric vehicle buyers shy away from making the final call to buy an EV.

Most of the electric vehicles are not covered under FAME scheme: The Indian Government took an effort to promote e-mobility in India through incentives and discounts for electric vehicles. However, the T&C of the FAME (Faster Adoption and Manufacturing of Electric Vehicle) scheme doesn’t endorse most of the EVs. The low-pace electric two-wheelers and lead-acid battery-powered EVs are not covered under the umbrella of FAME. Also, high-speed electric vehicles, on the other hand, need registration charge and DL (driving license).

Lack of products: There are so many choices if one wants to buy a conventional fuel-powered car or two-wheeler. The case is completely different in electric vehicle segment. Only a few options are there, and the new design range introduction in the Indian market is slow. This drives the consumers away from buying electric vehicles.

It has been encouraging to see financial institutions and certain government bodies setting up funds to encourage e-mobility in India. For instance, the Union bank has cut EV loan rates to 6.95 percent for electric four-wheelers and two-wheelers. Axis Bank and PIDG guarantee arm have announced a programme size of USD 300 million towards accelerating e-mobility in India.

Basically, the outlook of India’s electric vehicle market growth rests on availability of capital for OEMs, battery manufacturers and charging point operators as well as improvements in EV infrastructure and diversified options for customers. Realising India’s electric vehicle ambition will also demand an estimated annual battery capacity of 158 GWh by financial year 2030, which provides huge investment opportunities for investors. Likewise, several Indian states have now passed EV policies intending to engage industry investments and make EV adoption more feasible proposition for the customer market.

India desires to reach its goal of 100 percent EVs by 2030. Therefore, there’s still a long way to go. The whole electric vehicle ecosystem in India seems to have gained strength and is now ready to be a remarkable contender in the global EV race. India’s growth in e-mobility has been creditable, but the transition will certainly take place at a slow and steady pace. India is racing at warp-speed to be the hub of battery manufacturing and an all-electric vehicle surrounding is definitely on course. (MT)

*As per MARKETSANDMARKETS

The European Union voted in favour of imposing extra tariffs on China-made EVs by up to 45 percent on 4 October 2024. Threatening a broader trade conflict with a country that has already vowed to protect its companies and is considered as the factory of the world, the move has been criticised by the auto industry and various EU member states.

With growing demand for EU and China resolving their differences through dialogue, the China Council for the Promotion of International Trade is known to express that it is opposed to be the move.

With the technical teams from China and the EU set to resume talks on 7 October 2024, the situation in EU as far as the auto OEMs like Volkswagen Group, Stellantis and BMW Group are concerned, there have been instances of profit warnings.  

Weak demand, rising costs, global competition, trade wars, geopolitical situations, subsidies and company-specific factors are among the reasons being underlined for the profit warnings by European automakers.

Receiving necessary support with 10 members backing the tariffs, 12 abstaining and five members – including Germany – voting against, the European Union, claim sources aware of the development, has been urged by the auto industry to negotiate with China for better terms and conditions rather than to reach the level were a trader war looks eminent.

Present in the China market for a decade or more, many European automakers seem to fear if the tariffs imposed on Chinese EVs will lead to negative consequences in that market for them.

Volkswagen is known to have said that the tariffs are ‘the wrong approach’. There is a need for the two sides to negotiate and find the middle way, mentioned an industry source in Germany in response to the tariffs by EU.

Image courtesy: EmDee (Wikipedia)

The Association of Indian Forging Industry (AIFI), the apex body representing the forging industry in the country has announced its new officer bearers for 2024-26. 

The committee has elected Yash Munot as the new President of AIFI, while S.  Ravishankar was elected as the Vice-President.

Munot, who succeeds Vikas Bajaj, had previously served as Vice-President of AIFI from 2020 to 2024, is now also the youngest to be appointed as the President in the organisation's history. 

He currently serves as the CEO at Varsha Forgings and the Managing Director at KCTR Varsha Automotive. Munot begun his journey in the forging industry in 2005 joining his family business - Varsha Forgings. He was also instrumental in organising major industry events like IFC 2011, Forgetech  India 2016, Asia Forge 2019 and ForgeTech India 2023. He has served as the Western Region Chairman from 2018 to 2020. 

“The forging sector in India is at a pivotal juncture, with tremendous opportunities for innovation and growth. Our focus will be on fostering collaboration within the industry, driving technological advancements and promoting sustainable practices. I am committed to working closely with all stakeholders to ensure that our industry not only thrives domestically but also strengthens and enhances its global footprint. Together, we will build on the strong foundation laid by my predecessors and strive for excellence in every aspect of our work," said Munot.

S Ravishankar added, “I will strive for advancing our industry’s progress and tackling the challenges presented by a rapidly changing global landscape. Our priorities will include boosting competitiveness, driving innovation and equipping our members for future opportunities. I look forward to embracing the exciting prospects ahead and contributing to AIFI’s continued success during this transformative era”

He (Ravishankar) currently serves as the MD at Super Auto Forge and has over 25 years of experience in the auto component manufacturing industry. He is a Manufacturing Engineer with Bachelors degree from Annamalai University and Masters degree from The Ohio State University.

It was in 1997, after working in Detroit for two years, Ravishankar returned to India and joined his family business at Super Auto Forge. He has been instrumental in developing the international business of SAF and led the initiative to establish marketing offices in Detroit in 2001, followed by Belgium in 2011. He has been the Chairman of Indo American Chamber of Commerce for the period 2008 – 2009 – Tamil Nadu Branch and currently serves on the Southern Regional Committee of ACMA since 2021.

Automechanika Frankfurt has cemented its position as the leading international trade fair for the automotive industry with the successful conclusion of Automechanika Frankfurt 2024. 

The slogan of this year’s Automechanika was ‘Driving Transformation’, with topics such as electrification, vehicle connectivity, driver assistance systems and digitalisation taking the centre stage. The fair was held from 10 to 14 September 2024 and saw 4,200 companies from 80 countries displaying their products and solutions for retail, workshops and industry. Spread over an area of 320,000 square metres and 26 hall levels, the event witnessed a total of 108,000 visitors from 172 countries.

Visitors had the chance to see cars with alternative drive systems up close, such as electric, hydrogen, and hybrid models, and even take a ride in the Future Mobility Park and the related expert forum Innovation4Mobility. For even more highlights, there were brand-new event types available, such as an exhilarating rally. Ninety-four percent of attendees, 70 percent of whom were foreign visitors, expressed satisfaction with the event, not just with the trade fair's offerings but also with their aims being met.

An emphasis on sustainable technologies, products and solutions was highlighted at Automechanika this year. Several talks on remanufacturing and circular economy tactics were held on the stage in the new Sustainability Court in Hall 5.0. This year also saw the opening of ‘Ambition’, a dedicated Gen Z section in Hall 3.1 with live acts, panel discussions and succinct, fascinating presentations to pique the interest of young people in the automotive professions. This action was taken as a result of the well-known lack of qualified workers in the automobile sector.

Detlef Braun, Member of the Executive Board of Messe Frankfurt, commented, “Even in the midst of the digital transformation, the industry once again demonstrated its wealth of innovation, providing countless highlights over the course of the five-day event. Together with our exhibitors, we were able to find the right players to present the most important topics – including alternative drive systems, sustainability and the use of AI and robotics in the automotive aftermarket – on the stages and in the exhibition halls. We are also delighted by growing demand from both German and international visitors.”

Michael Johannes, Vice President Mobility & Logistics, Messe Frankfurt, said “Never before has Automechanika in Frankfurt had a supporting programme and range of events like this. Our roster of presentations and practical workshops covered a wide range of topics, including bodywork and paintwork, electric vehicles, commercial vehicles, caravan repair, 3D printing, detailing and much else besides. These were very well received by the professionals, and students and pupils took advantage of the opportunities on offer to find out for themselves what some of the automotive trades and professions are like. One of this year’s new additions was a programme and area devoted especially to Generation Z. We wanted to draw their attention to the professional opportunities that are available in the fascinating world of the automotive industry – and we were very successful.”

Castrol India, a leading lubricant manufacturer, has announced that it has achieved a significant sustainability milestone by increasing recycled content in its high-density polyethylene (HDPE) plastic bottles to 50 percent. 

With this, the company aims to achieve 2,600 metric tonnes of annual recycled plastic usage in its packaging portfolio by 2024.

The step builds upon its previous actions to help make its packaging more sustainable, including the commercialisation of 100 percent recycled bottles for POWER1 range in 2022 and the incorporation of 30 percent recycled content across its entire bottle packaging in 2023.

This latest change aligns seamlessly with Castrol’s global PATH360 strategy, which aims to reduce its plastic footprint by half by 2030.

Sandeep Sangwan, MD, Castrol India said, “We are proud to announce this milestone in our journey towards more sustainable packaging. This achievement is a testament to the hard work and dedication of our team, who have overcome challenges to develop packaging solutions that meet our high standards for quality and aesthetics.”

In addition to packaging, Castrol India aims to have more sustainable manufacturing practices. The company’s production facilities utilise energy-efficient technologies and renewable energy sources to seek to reduce its operational greenhouse gas emissions.