As the automotive industry shifts to alternative propulsion systems, particularly electric vehicles, Tata Technologies Ltd., a Tata Motors subsidiary with expertise in providing end-to-end solutions, plays a pioneering role in helping automotive companies adapt to change. In an interview with The Hindu, the company's CEO and MD, Warren Harris, says that because of its strengths in frugal engineering, India has the potential to lead the EV revolution globally.
Moving to electrification, moving to wired utilities, ride share-cost sharing, and switching to autonomous travel.
The explanation I am bullish is the price point at which those approaches are produced today is not only appropriate to India but the international automotive market. I believe that India has a major role to play in helping to achieve a price point that will make it possible to deliver these technologies to the mass market. To be developed for this, it has a great role to play in the IP. Here's technology capability and India's capacity in software and megatronics likes will once again make India a source of supply for the world's OEMs and engineering services firms will play a pioneering role.
What do you need to do?
As far as the market is concerned, much will depend on the laws of the government. The companies that produced the best products have won in the past.
But in the future, the ability to develop the best product will require the ability to build partnerships across the stack of technology. India will determine whether it wants to push this transition or whether it wants to wait for the rest of the world to make it and then pursue it.
I trust and hope India will play a leading role in this.
It's a hard market. The Indian market is a very difficult one. 20 companies are competing in the passenger vehicle sector and two companies have 67 percent of the market. For the others, you've got 18 firms vying. Investing in it is, therefore, a tough market. If nothing is done to make sure they invest in the market, other companies like GM and Ford will be out of the market. That's the real threat.
What is your opinion of the EV revolution that reportedly encroaches on India?
Global EV demand forecast has risen from 3 million units in 2017 to 30 million units in 2020. Several optimistic estimates say that by 2030 it will rise to 130 million units. There's a lot of hype, hence. And now I guess some of the excitement is desiccated.
I believe the Indian government is doing the right things and finding out what's unfair. But the partnership between the public and the private is critical. There's the alignment. When you look at the automotive industry,
But we haven't seen that translate into legislation and a regulatory framework that will provide the OEMs with the incentives, the safety net to make real investments. India is a price-sensitive market and it's a bit of a deterrent for EVs, but it's also a possibility. Of example, an autonomous vehicle is valued at around $300,000 now, but if it is going to be successful, it has to come down or $50,000 to $60,000.
A lot of frugal creativity will be expected. In providing an environment in which people can invest, the government must take a proactive stand.
Tags : megatronics , technologies , passenger vehicle sector, EV revolution, Indian market,