Turning India into a green mobility hub

While almost all cars that fell into that category cost less than larger sedans or even mid-size SUVs, the underlying truism led to two realities

Through Budget 2023, the government has given a clear direction to a zero-carbon strategy for the economy. It has also been consistent in its push towards green mobility over the last few years. A significant change is already underway in the auto industry’s energy mix with environment-friendly fuels like CNG, ethanol, electric and hydrogen coming to the fore.

India is the world’s third-largest auto manufacturing hub after the US and China. It contributes significantly to India’s GDP, foreign exchange earnings and employment. With the PLI scheme for the auto industry focussed on green technology already rolled out, the stage is set for the industry to consolidate India’s position as a global green mobility hub.

The conventional auto industry, as we are well aware, is however currently being disrupted globally like never before, primarily by regulation, driven by climate change, and technology driven by IoT, software and infotainment. The technology disruption is being caused by companies that had until recently comparatively little to do with the conventional auto industry.

Disruptions, while causing chaos, can also bring immense opportunities. The recent auto and components show in Delhi gave many of us tremendous confidence that we are on the right track to take these opportunities. The government, by being proactive, has shown its deep commitment as policy maker, enabler and risk mitigator for the cause of the industry.

I recommend six steps for the consideration of all stakeholders — policy makers and regulators, OEMs, component manufacturers, technology companies including start-ups, and industry associations — to ensure that we consolidate this position.

First, an imperative for close and calibrated collaboration amongst all stakeholders: This is because change is taking place so rapidly; the environment has to be protected; the safety of consumers and pedestrians is paramount; and the transport systems of future cities need to be designed appropriately.

Second, the need to invest far more significantly in technology, innovation and research, especially by large companies: For this, large companies must bring together academia and start-ups, so that ideas do not fall off at the proverbial “technological valley of death”, but are carried through after due research to commercialisation.

Third, to build world-class products with a focus on elegant design: Made-in-India mobility systems, whose performance must be a given, must be aesthetically appealing. Emotions are not reasonable and often play a dominant role in the selection of brands. This will also help us build global brands from India, especially if we design for specific global markets.

Fourth, to enhance collaboration with entrepreneurs including handholding and re-skilling MSMEs for the new technology imperatives: This is necessary to build a deep, local, resilient, eco-friendly and world-class supply chain. Given the environment of geopolitical uncertainty, I do not think there is any other option.

Fifth, enable global suppliers to invest in India as a part of their global value chain: These act as a multiplier on many fronts, ultimately enhancing technological competitiveness. The timing is opportune with India providing an alternative investment destination to China and even Europe. The PLI scheme and the globally competitive tax rates for new manufacturing companies can be a great attraction.

Finally, and perhaps most importantly, the mobility industry will become a hi-tech industry and must aim to attract the best talent: Design, software, electronics, AR and VR, Industry 4.0 are all going to play a huge part in the success of the industry. There is so much for young people to contribute to, in developing the mobility ecosystem over the next few decades. Disruption will be continual and so will the adrenalin rush. The company that is able to synthesise often unconnected technologies into a useful whole most imaginatively will win!

To conclude, the government has articulated its encouragement for India to transition to a green economy. Through policy, it has indicated its support. The auto industry has delivered in the past by becoming globally competitive. It is now readying itself for a green future. It has to importantly sell the vision of “Technology in Mobility” to young people, so that the best talent is attracted to spend their most productive years working within it. If it is able to do this successfully, then I have no doubt that the most vital building block will also fall into position. This will ensure that the auto industry’s transformation into a global green mobility hub, providing hundreds of thousands of jobs of all skills during Amrit Kaal all the way to India @100, will be extremely successful!

The writer is chairman, CII National Committee on Future Mobility and Battery Storage, and former MD and CEO, Ashok Leyland and JCB India