Disruptive tech, sustainability agenda driving India’s auto INC

The automotive and ancillary industries are anticipated to progress significantly, leveraging well-established manufacturing ecosystems, sustainable practices, dynamic supply chains, and a skilled talent pool. With the support of the public and private sectors, India is also positioned to emerge as the preferred global hub for automotive Original Equipment Manufacturers (OEMs).

Rise of clean mobility

Consumer awareness and conscious decision-making are driving demand for electric vehicles (EVs), prompting increased investments in sustainable and advanced production facilities from automakers. With a mature manufacturing ecosystem, India is poised to contribute to global sustainable mobility solutions, fostering both domestic and international growth in the auto industry.

The electrification of vehicles in India has gained remarkable momentum, surpassing one million EV sales in the first nine months of 2023. Global automakers, including VinFast Auto from Vietnam and Hyundai Motor Company, recognise India’s potential in the EV domain, leading to plans to set up assembly units and make significant investments in the country.

A focus on sustainability has brought green hydrogen as a source of clean fuel under the spotlight. The auto industry is making strides to replace the traditional sources of fuel with the carbon-free fuel. Green
hydrogen for mobility will be a gamechanger for India’s automobile space.

Last-mile mobility leads the way in electrification

Proof of this lies in the fact that the last-mile mobility segment-compromising two-wheelers (2W) and three-wheelers (3W)-is leading the transition towards electric mobility in India. According to the government’s Vahan portal, 5.81 lakh electric 3Ws were sold across the country in 2023. This is second to electric 2Ws, of which more than 8.5 lakh units were sold during the same period.

This is expected to gather momentum in a price-sensitive segment. Lower total cost of ownership (TCO) for EVs coupled with the rising prices of fossil fuels will act as catalysts for the said transition.