Manufacturing Today – July 2019

JULY 2019 | Manufacturing Today http://www.manufacturingtodayindia.com

FOCUS

AUTO COMPONENTS

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close relationship we share with OEMs who want dif-

ferent kinds of components for the new models they

launch. In terms of an electric vehicle, it is relatively

simpler to build with only 20 moving parts against

around 2,000 in an ICE (internal combustion engine)

vehicle. This will have an impact on automakers while

also disrupting the supplier ecosystem on the back

of a major decrease in the addressable market for

vehicle repairs/service and would require them to

build new capabilities.”

Despite the uproar about the IC engine, Sand-

eep Sinha, MD, Cummins India, believes that the

engine is here to stay. “India has a long way to go

before it can adopt electric. Much work needs to be

done and considering that we are perhaps the only

country in the world to move to BS VI from BS IV,

auto component makers are not having it easy.”

The transformational shift is expected to have sig-

nificant implications for the existing supply chain as

well. From the perspective of component suppliers,

large automotive suppliers are likely to adapt to the

dramatic changes; however, small players could be

hit the hardest by this disruption.

Convincing the price-conscious Indian consumers

about EVs will have to focus on two factors: the cost

of ownership and vehicle quality. It is necessary to en-

“The transition from

internal combustion

engines to EVs as

proposed by GOI will

follow a linear trajectory,

with a surge only

expected in the 2025-

2030 timeframe.”

• Prashanth
  Doreswamy

3 & 4. The jump

from BSIV to BSVI

is compelling

component makers

to look outside for

acceleration.

FROM THE

PERSPECTIVE

OF COMPONENT

SUPPLIERS, LARGE

PLAYERS ARE LIKELY

TO ADAPT TO THE

DRAMATIC CHANGES.

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4