Electric battery manufacturing will shift the auto industry towards adopting new technologies and India can build the entire value chain in the coming days, Amitabh Kant, Sherpa G20 said here on Wednesday.
Speaking at the inaugural session of the 62nd Annual Session of the Automotive Component Manufacturers Association of India (ACMA), he said, "If India can build the entire value chain and produce batteries on its own, it will be a game changer for the country as EVs are driving the future of mobility."
"I am a believer that India’s electrification journey is to be about two and three-wheelers as they make up 80 per cent of the total sales of vehicles in India. We need to target 100 per cent electrification in the next four years," Kant added.
‘Ensuring a long-term sustainable growth’
Speaking at the session, Kenichi Ayukawa, President, Society of Indian Automobile Manufacturers (SIAM) said to ensure a long-term sustainable growth the auto industry should focus on increasing localisation, higher levels of quality, futuristic technology and investment in research and development (R&D).
“We have to go much deeper and find ways to localise the smallest of the components including raw material, wherever possible... Indian auto industry has gained a large scale, both in the domestic market and exports. At this big scale, quality holds a very high significance. Any small mistake can be harmful not only for the industry but for the brand ‘Make in India’,” said Ayukawa.
He said as the Prime Minister has committed to a target of net zero carbon emission by 2070 and a 45 per cent reduction by 2030, the industry should put effort and invest in all feasible futuristic technologies. On R&D, he said, "I would encourage significant investment in the area of research and development, contributing towards making India an R&D hub for the world."
Ayukawa, the Managing Director at Maruti Suzuki India said, “I always tell my supplier partners at Maruti Suzuki, that re-investing in the core business is very important. It not only strengthens your financials but also improves your ability to deal with challenges.”
He further said that SIAM and ACMA should collaborate and put significant efforts to bring back and sustain the growth of the industry. Aligned with the national objectives of oil import reduction and energy security, the industry is also working hard to develop multiple clean energy alternatives. These include ethanol, flex-fuel, CNG, bio-CNG, hybrid electric, battery electric and hydrogen, Ayukawa added.
"With electric mobility gaining traction, the government is also propagating several other technologies such as biofuels, CNG, hydrogen fuels... This adds a new dimension to the mobility space and presents a challenge with an opportunity," said Sunjay Kapur, President, ACMA.