Electrification of the automotive industry is picking up the pace throughout the globe, with China, and several European countries focusing on electrifying their powertrains. While India currently is in a nascent stage, with EVs forming less than 1 per cent of overall vehicle sales, significant growth momentum is expected in the coming years.
Given that the Indian government is encouraging EV adoption and aims that by 2030, EV sales should account for 30 per cent of all new vehicle sales, it is a golden opportunity for the Indian automakers to escalate their technical know-how and existing auto ancillary muscle to create a global EV ecosystem.
However, the EV ecosystem is an interplay of several sectors and stakeholders. So, it's imperative for all key stakeholders in the industry, including the government, OEMs/automakers, energy companies, and component manufacturers, to collaborate and capitalize on the opportunities in the EV sector.
In light of the above, these are few considerations for the industry participants that could help India create an EV ecosystem in the medium term.
Setting the direction
Both central and state governments have been introducing conducive policies to promote electric mobility. The National Electric Mobility Mission Plan (NEMMP) and Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME I and II) helped create initial interest and exposure for electric mobility. State Governments including Telangana, Andhra Pradesh & New Delhi have launched policies supporting the electrification drive, stimulating demand, infrastructure development, local manufacturing, and R&D to incentivize the EV manufacturers and consumers.
What we need is to define a green mobility roadmap for India and secondly, boost collaboration both on the supply side - battery manufacturers, drivetrain, and electronics, as well as on the demand side by incentivizing and building charging infrastructure.
Building the product
Given that the most crucial aspect of the EV ecosystem is the electric vehicle itself, it makes immense sense to build the right product at the right cost. Addressing customer challenges such as high costs, speed, and range anxiety, and charging infrastructure is the need of the hour to lure price-conscious Indian customers. This can be made possible by localizing indigenous manufacture of vehicles, batteries, and auxiliary parts and eliminating over-dependency on imports as well as creating awareness about the product features and the need for EV adoption. Another important area is the total cost of ownership of the EV. Making the TCO attractive and competitive with ICE offerings, including costs related to the acquisition, running, and other expenses such as insurance and replacement batteries will make for faster adoption of EV.
Collaborating for the next phase of growth
To build a successful ecosystem for EVs in the future, solutions need to be constructed keeping all stakeholders in mind. Automakers, battery manufacturers, suppliers, dealers, and energy companies need to collaborate to pave the way for EV growth in India. Some examples of collaborations include the partnership between Sun Mobility and Ashok Leyland for electric buses and between Suzuki and Toyota for a host of electric and hybrid vehicles for the Indian market. More such partnerships and alliances including foreign collaborations between OEMs, battery producers, and other suppliers will bolster local economic growth, strengthen the supply chain and job creation, and help India unlock the next phase of EV growth.
Similarly, both the automotive and the energy sectors will need to be working closely and synergistically. Enabling this association will require policies and investments both in terms of supporting domestic manufacturing of vehicles, batteries, and components as well as in upgrading of distribution networks and grids to deliver the power infrastructure required to support EVs.
How is SKF preparing for supporting EV growth in India
Bearings, although buried deep within the vehicle, are on the front line in contributing to drivetrain efficiencies and delivering reliability for automotive manufacturers. At SKF, we have been helping the automotive industry to meet these challenges since the beginning of the EV revolution. The early involvement of SKF engineering team allows the design of high-efficiency bearings to meet the demanding performance specifications. SKF hybrid Deep Groove Ball Bearings (DGBB), for example, use ceramic rolling elements and steel rings. Bearings of this type offer improved high-speed performance and best-in-class electrical insulation characteristics, making them the premium choice for high-performance EV powertrains. In addition, SKF is also developing application-specific solutions to mitigate the risk of current leakage at a system level and to protect the entire EV transmission.
Conclusion
EVs are the future. Though they currently account for a relatively small part of the market, however, demand is building fast for EVs. The next wave of growth of EV will happen by creating the appropriate ecosystem for its faster adoption in India. As of now, the focus must be on technology development, demand creation, charging infrastructure, investment in R&D, and greater collaboration between private players, energy companies, and manufacturers to play an active role in the EV space.