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A holistic, long-term auto industry road map based on conditions suitable for India will not only make the industry prepare well for future but also help attract investments for local development of technology in India to promote AatmaNirbharBharat mission, says a report of Nomura Research Institute Consulting and Solutions India.
The Indian auto industry became the fifth largest in 2019 with total automotive sales of 21.55 million units. The country has also established itself as a prominent auto exporter with substantial growth expectations from exports soon.
India, with very low levels of vehicle penetration, holds a vast potential for the future growth of the automobile industry. While Indian consumers are technology savvy and adopt new technologies faster, affordability is one key factor which cannot be forgotten. Similarly, employment generation by the industry (direct & indirect) and from the subsequent use of vehicles needs to be considered while formulating a future road map for shaping the automotive landscape in India. So, Indian economic, technological, social and environmental conditions are different from those of the developed regions.
“Therefore, the global megatrend of “CASE: Connected, Autonomous, Shared & Electric” mobility may need to be tweaked to “Connected, Affordable, Shared, Environment-friendly & Safe” mobility for India and decide the future road map accordingly to effectively serve the needs of the country, society and consumer,” pointed out the report.
Given the unique situation of India and our national ambitions, a long term visionary road map will provide clarity to all stakeholders to time their investments for the greater benefit of the environment and society.
For effective implementation of regulations, India would require a 360-degree approach with the necessary upgrade of the associated infrastructure and establishment of an allied ecosystem. For example, the shift towards cleaner alternative fuel vehicles calls for the requirement of adequate infrastructure in place.
The benefits sought from the regulatory developments are different for different stakeholders of the industry. From the country’s perspective, the regulations shall answer environment and energy concerns pushing the focus towards green and clean fuel technologies. From the society’s point of view, as a collective, safety of road users is the prime area of focus while at the individual level, it is about safety as well as comfort and convenience.
A nodal agency can be formed to ensure that the entire automobile ecosystem is aligned and a mutual agreement is achieved to make decisions on this regulatory roadmap. Also, the agency must ensure that supporting policies are in place in the form of a long term Policy Road map complementing the regulatory road map for its effective implementation.
This agency may include members from the government (various ministries and departments), test agencies (ARAI, ICAT, NATRIP etc.), associated agencies such as BIS, industry associations such as SIAM and ACMA, and research/ consulting organisations like IIT and TERI.