With the Indian government announcing an ambitious target to bring in 100% electric mobility by 2030 and various leading automotive companies such as Maruti Suzuki, Toyota, Tata and others firming up plans to roll out electric cars and SUVs, automotive parts makers, especially engine manufacturers, see a major disruption ahead.
They are now wary of putting in more money into their businesses, with a majority of them contending that the move will alter their businesses drastically. Internal combustion engines, which are used in most cars, have more than 2,000 moving parts, while an electric vehicle has about 20.
Auto Component Manufacturers Association of India (ACMA), a lobby group that represents auto parts makers, is conducting a study to assess the impact of such a transition on the industry, reports Mint newspaper. A report containing the outcome of the study will be submitted to the government in a month for further deliberations, the daily added, quoting an anonymous source.
Among the parts that will see demand dry up once electric vehicles dominate in India are engines, transmission, aluminium castings, cylinder blocks and cast iron. These will give way to an electric motor run by batteries.
As much as half of the US$ 45 billion in annual revenue generated by component industry in India comes from vendors associated with the manufacturing of combustion engines and power trains, the daily noted.
This is awesome. The world needs a social and governance revolution, guaranteed annual income of some sort? to accompany the technological one.