Automakers must gear up for electric mobility: Munjal

Growth of electric mobility will be disruptive for the automotive industry and companies will have to transform or perish, according to SK Munjal, Chairman of Hero Enterprises.

Munjal, who also heads the CII Task Force on Ease of Doing Business, told media persons here today that disruption was a new normal for India.

A number of countries have set deadlines to move to electric mobility, some by 2025, others by 2030 and 2040. This calls for preparedness

“We are going through a structural change and the automotive industry is transforming to meet the new challenges and norms,” he said.

“Just like in the past where we have witnessed disruptive developments, and industry had to quickly change and adjust, the automotive industry will have to brace up. Companies are aware of the unfolding situation and gearing up,” he said.

“I had the opportunity to witness the demo of Google's car. It is like a computer-packed one inside without a combustion engine. Any company that does not accept the changes and transforms will perish,” he said.

“The challenges that global warming and climate change pose are quite alarming. While we are still seeking to address concerns about air quality and pollution, there is also threat to another major resource, water. Which calls for a concerted effort,” he said.

In order to ensure the growth of electric mobility, the Government will have to provide subsidy and rebates to encourage the acceptance, he said.

Positive on economic growth Striking a positive note on economic growth, he said India is growing much faster than most economies in the world. However, this growth may not be adequate for its size and requirement.

Referring to the current slowdown and concern over the GST regime expressed by traders, he said, “We have just seen one quarter. A tax reform like this may take about three-four quarters to show its positive impact on the economy. I am certain the economy will pick up as the transition passes off.”

Striking a positive note, Munjal said, “India is a significant size economic player and has potential for a double-digit growth, once various elements of the reform process begin to impact. It takes few quarters and sometimes couple of years for major reform to show their impact.”

He also said job creation can happen with the emergence of new entrepreneurs in the services and other sectors.

The construction and infrastructure industry is the second largest job creator in the country which can accommodate semi-skilled and other workers. If this sector grows, it would play a much larger role in stimulating the economy, he said.

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