Green Automotive Trends for a Sustainable Future

The Government of India ratified the FAME II scheme recently that has an outlay of INR. 10,000 crores over the next 3 years to promote Electric Mobility

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The automobile sector is rapidly increasing its market share worldwide in recent years. It is because of various business strategies by automobile manufacturers such as increased focus on small cars and fuel-efficient cars, with a low market price that is targeted to capture the maximum market. The automotive sector faces an unprecedented change with regard to the far-reaching effects it will have


on the industry and its users. Today's economies are dramatically changing, triggered by development in emerging markets, the accelerated rise of new technologies, sustainability policies, and changing consumer preferences around ownership. Digitization, increasing automation, and new business models have revolutionized other industries, and automotive will be no exception.

India faces huge Challenges with regards to pollution. 14 of the 20 most polluted cities exist in India. The government and Media have both woken up to this and it is heartening to see both policy initiatives and pollution as a topic addressed in some political party manifestos. The Government of India ratified the FAME II scheme recently that has an outlay of INR. 10,000 crores over the next 3 years to promote Electric Mobility. How can India address it's own challenges and what trends would exist in the automotive space to combat this:

  • 2 wheelers account for about 72per cent of India's automotive transport. This sector requires urgent intervention and is the best candidate for electrification. 3 wheelers are extensively used for last mile connectivity and short distance travel. They too are the right candidates for electrification and gas fuel. India will see the fastest adoption of electric mobility in this sector. The challenges of upfront cost shall be addressed through different business models that focus on TCO (total cost of ownership) rather than outright purchase. Shared mobility in urban areas will therefore be a norm rather than exception. Easier availability of finance at lower interest rates can also help tremendously in increasing penetration of this sector.

  • Passenger cars or 4 wheeler trends will probably be more focused on gas fuel and forms of hybridization rather than full electric. Worldwide full electric cars will make a bigger impact and India may sadly be a laggard in this area. Good news is that most big automotive companies realize that diesel will not be sustainable due to the new and upcoming emission norms in future and have already announced discontinuation of such vehicles 2020 onwards. This should encourage higher penetration of both gas and forms of electrification in passenger cars.

  • Finally within the segment of commercial vehicles gas is already getting more important. This trend will continue and what today constitutes 5per cent of their production could jump to 15per cent within the next 2 years. As the case of gas refueling infrastructure improves, the adoption will be higher. For longer distance LNG (Liquified Natural Gas) and maybe in the next 7 years hydrogen fuel cells will play an extremely important role as well.

The green trends in the automotive sector will really start showing a hockey stick growth curve in the next 2 years. This is driven both by stricter emission norms, policy push and constant awareness. We are extremely hopeful and excited to play our part in the new "Green Revolution".