“The Indian automotive industry must simultaneously move towards technologies which will be the growth drivers in the future.” He further added.
While many countries have set aggressive target to switch their new car sales to EV only as early as 2030, India is likely to see a major chunk of its passenger vehicle sales continue to be powered by internal combustion engines (petrol/diesel) in the coming future
- India to continue to see petrol, diesel vehicle sales for the next 20 years
- Many countries like UK could switch to EVs by 2035 (check)
- Some German brands like Audi to go all-EV by 2030
Speaking at the 62nd SIAM Annual Convention at New Delhi, Arun Goel, secretary of Ministry of Heavy Industries said, “ICE vehicles in India will co-exist with various electrified and greener fuel technologies powering cars at least for the next 20 years.”
However, Goel did mention that despite the expected long-term sustenance of conventionally-powered cars in the country, the industry must simultaneously move towards technologies which will be the growth drivers in the future. “We have to do continuous research, product development and attain large-scale manufacturing for emerging propulsion technologies,” he added.
While India would likely continue to have ICE and EV vehicles in its new car parc for another two decades, this may not be the case in many other countries. The COP26 event held last year in Glasgow, UK saw many countries pledging for sustainability and promising definitive actions to combat climate change. Nations like Iceland, Sweden, Denmark and Norway joined the declaration to work towards making new car sales in their respective markets to go emission-free by 2040, and no later than 2035 in leading markets. Furthermore, carmakers such as Audi AG too have outlined their global plans of going all-electric. The German luxury carmaker, for instance, is slated to only sell electric cars after 2030.
Shift to higher-value, higher-tech approach
Taking to advanced automotive technologies, including high-end sensors, digital cockpits and infotainment systems, Goel further said that such technologies today only comprise about 3 percent of the country’s total passenger vehicles on sale, whereas they average about 18 percent globally, and are slated to grow to 30 percent by 2030. “We have to shift to adopting a higher-value, higher-technology approach as well,” Goel remarked.
India needs more mobility solutions than cars
With its low car penetration levels of 30 cars per thousand people, India’s situation is quite unique on the global map wherein the country needs to offer affordable mobility solutions to its large population. Therefore, the transition to zero-emission vehicles could take longer than the West.
According to Shradha Suri Marwah, vice president, Automotive Component Manufacturers Association of India or ACMA, “The Indian passenger vehicle market is poised to double in size and grow to become a 7-million-unit market by 2030. So, there will still be a large chunk of our population that would continue to buy conventionally-powered vehicles, perhaps those running on CNG, flex-fuel or biofuels.”
“We should use this transition time to not just localise our products but our designing as well,” Marwah had remarked at SIAM’s counterpart body ACMA’s 62 Annual Convention held in New Delhi a day prior on September 14.