India's EV Future At The Yellow Signal?

As India gears up for a green future, one of the legacy sectors that transformed the fastest is automotive but the journey of the future is punctuated with challenges. Industry captains discuss how new players change the game at the BW Auto World Trailblazers Summit 2022

- Utkarsh Agarwal

THE AUTOMOTIVE INDUSTRY is among the core sectors driving the Indian economy. As T per 2021 reports, the contribution of the automobile sector to the overall GDP of India stands at 7.1 percent and 49 percent of the manufacturing GDP, with an annual turnover of Rs 7.5 lakh crore and export of Rs 3.5 lakh crore. At present among the top five, the Indian automotive sector is expected to be the world's third-largest automotive market in terms of volume by 2026.

The sector has evolved significantly over the last four decades, especially in the past four to five years where it has witnessed a massive push for electric mobility. The government is aggressively promoting electric vehicle (EV) adoption, subsidies under the FAME-II scheme in India being some of the prominent ways of doing so. Simply put, the industry is transitioning for the better but not without the challenges.

Tech with a cause

We are living in one of the most disruptive and interesting times in the industry as the demand for mobility grows but paradoxically, this growth comes with challenges such as climate change, congested cities, and increasing safety concerns. We are in an era marked by a centurial shift due to growing sustainability issues and supported by emerging trends in electromobility, connectivity, digitisation, and automation, observed Kamal Bali, President and Managing Director, Volvo Group India.

While technology has disrupted every industry, in the case of the auto sector, the impact is directly on the future of a sustainable India.