India’s Automotive Industry in the Future – How the Auto Industry is Likely to Shape?

future of indian automobile industry

The global automobile industry is undergoing enormous transformations, with electric vehicles (EVs) at the forefront. It is progressively becoming the favoured choice for customers because of fewer emissions and vehicle running costs, among other factors. According to the CII Deloitte Report on the “Future of Mobility in India: Modern Automotive Technologies,” 40% of customers prefer a hybrid-electric or all-battery electric car as their future vehicle.

In 2015, India announced the Faster Adoption and Manufacturing of (Strong) Hybrid and Electric Vehicles (FAME) India Scheme to encourage the usage of electric vehicles. While FAME I provided demand incentives for roughly 2.8 lakh electric and hybrid vehicles, FAME II was introduced in April 2019 with a budget of INR 10,000 crore. Aside from that, the Goods and Services Tax (GST) on EVs sold with batteries has been decreased from 12 percent to 5%. The Ministry of Road Transport and Highways has freed EVs from permission requirements and urged that states lower or waive off-road charges to encourage EV use.

Several Indian automakers are pursuing EV manufacture, as well as the development of Advanced Chemistry Cell (ACC) batteries and other EV components. The government has proposed an INR 18,100 crore Production-Linked Incentive (PLI) plan for ACC makers in order to promote ACC batteries. In addition, the government is speeding up the installation of electric charging stations around the country.

With growing EV adoption, it is projected that manufacturing prices would decrease, better battery technologies will be available, charging infrastructure will improve, and customers will benefit from more affordable financing and insurance.

EVs are the next big thing in the globe, and India, as the world’s fourth-largest car market, is positioned to become a market leader, fueled by urbanization and rising income levels.

IoT & AI

AI is progressively being incorporated with autos, from autonomous cars to voice requests to start the car. Cars with internet connectivity are becoming more popular, and manufacturers are working to make them more interactive.

According to PWC research, autonomous (self-driving) vehicles might cover 40% of the kilometres travelled in Europe by 2030. For the first time, big IT firms are spending extensively on self-driving vehicles and are at the top of the rankings.

Autonomous vehicles are capable of traversing highways (complicated, reversible lanes) and even changing lanes based on traffic. The majority of self-driving cars are currently automated to level 2 (partial driving). Gradually, we’ll get to level 3 (Conditional Driving Automation) and level 4 (High Driving Automation), which will make autonomous driving more intelligent and safe.

If something goes wrong, Level 4 automation will detect it and intervene. Infrastructure and legislative constraints, on the other hand, have slowed the deployment of fully autonomous vehicles.

On the other side, the Internet of Things (IoT) is linking car-owners with their vehicles both on and off the road. A linked automobile can conduct voice commands to turn on the car, manage the temperature, and start the audio system, as well as remote starting and air conditioning. IoTs also allow automobiles to alert their owners about potential traffic jams and offer them the best route to their destination.

Alternative Energy Sources

Technology and fuel choice were the emphases of the CII Future Mobility Show 2021. India aims to attain a 20 percent ethanol-to-petrol ratio by 2023-24, with a long-term goal of 100 percent ethanol-powered cars. India has also permitted the use of ethanol-based ‘flex engines’ to lessen reliance on fossil fuels.

Electric automobiles powered by hydrogen fuel cells are also making their way onto the market. Green hydrogen will become more appealing and sustainable as a result of the drive.

Electric cars will lead the charge in putting India at the forefront of the automotive sector during the next few years. Electric, sustainable, renewable, cost-effective, and technology-driven vehicles are the future of the automobile industry.

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