The global megatrends of connected, autonomous, shared and electrified have more or less defined and directed development in the automotive sector for some time now. In the Indian context though, apart from these key trends, affordability of products, road safety, environment and congestion are some very serious challenges.
The COVID-19 outbreak has somewhat put a spanner in the works of the industry, as far as these trends are concerned, particularly with regards to shared mobility. With consumers preferring to stay away from public transport options, including ride sharing means, shared mobility has taken a hit. How it emerges once the pandemic subsides is something the world is waiting to see.
Connected technologies have made good inroads in the Indian industry, and electrification too has had some sort of a head start in India. But should India follow global trends blindly or build its own solutions? Experts and industry captains for long have been advocating a technology agnostic approach for the country – one that helps the industry decide what is right to eventually meet the sustainable development goals.
In a recent chat with Mobility Outlook, Depeak Jain, President, Automotive Component Manufacturers Association and Chairman & Managing Director, Lumax Industries re-emphasised on India’s need to find its own solution.
In fact, the Indian industry has always found its own solutions. There are many other types of technologies available that probably would be India relevant, Jain argued.
Take the example of Automated Manual Transmissions (AMT), for instance. Or the success – although partially – of CNG as an alternate propulsion technology. The India industry has always come up with good measure of balance between the value perceived by the customer and the technology offered.
And this has always been a collaborative play between the OEMs and the component sector. “The component industry has been right there in delivering the kind of value system to meet our customer expectations. A lot of innovation also needs to be done to meet that,” Jain said.
ICE Credentials
While there is little doubt that the global trends will trigger down into India, the Indian industry must take pride in the value, technology, innovation and huge infrastructure it has built around internal combustion engines (ICE).
Jain has interesting take on this. “Usually as an entrepreneur, someone would invest if you’re getting a six to eight year return. And now if someone were to tell me that the natives, all ICE engines, will actually become obsolete, it’s not going to happen,” he argued.
Does India have an opportunity to become the global factory for components of ICE engine? With the mature world, and other developing markets, focussing on an electrified and hybrid future, further investments in ICE components seems unlikely. In fact, many countries have already announced their decision to withdraw fossil fuel-based products over the next 15-20 years.
Within ACMA, the stand has always been on a technology agnostic platform or technology agnostic roadmap. It is best to let the customer decide on what type of technology s/he wants to buy tomorrow, he said.
If electric vehicles come cheaper than ICE engine vehicles, with no range anxiety, why shouldn’t customers accept them? But certain other technologies could also be available. And that is the argument Jain offered, while highlighting India’s unique and a diverse market.
“India needs to find its own place. As a component industry, we are very clear on two things. We need to be very closely aligned with our customers’ needs and try and deliver to their expectations. And second, try and promote a technology-agnostic roadmap so that all people in the ecosystem can apply,” he concluded.
Note: Images featured in the story are representative in nature.