The Green Road Ahead: How Is The Future Of Automobile Industry
The automotive sector has indeed been the backbone of the modern economy. There are countless stories about the innovation, resilience, drive, and impact that the sector has made. Looking at the latest numbers alone, it has contributed a massive 7.1 per cent to India's GDP and 49 per cent of manufacturing GDP, and provides direct and indirect employment to 19 million people. On the flipside, environmental pollution has been the price for the sector’s rapid growth. On the upside, the industry and key stakeholders are unanimously making multiple efforts towards the innovation and regulation change required to ensure a far more sustainable growth.
Electric vehicles (EVs) are transforming the automotive industry and are essential to reaching environmental objectives. They provide numerous important contributions to building a sustainable future by moving away from internal combustion engines. A recent study found that over its lifetime, the average new battery-electric vehicle produces roughly half the global warming pollution of a comparable gasoline or diesel vehicle.
Renewable energy sources like solar and wind energy have the potential to power EVs. This integration encourages the use of clean, sustainable energy while reducing dependency on non-renewable fossil fuels. If we can make our grids zero-carbon, then vehicle emissions reduce significantly, making EVs an appealing climate solution.
Further, automobile manufacturers can also start looking at investing in research and development to find and use alternative materials. This could involve looking into the possibility of bio-based materials, sustainable composites, and recycled plastics. Also, effective recycling programs and cooperation with suppliers and recycling facilities may guarantee the ethical disposal and repurposing of materials, lowering the environmental impact of the sector. Automakers need to approach sustainability from a long-term perspective. Theoretically, a carmaker could lower its emissions profile in the immediate future without giving up on the use of internal combustion engines. For instance, it could offset its carbon emissions by making investments in renewable energy sources.
But there is hope. India has already launched several policies and taken steps to make the auto industry a sustainable space. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme was launched to promote the adoption of EVs. The policy aims to achieve the adoption of 20 per cent battery-electric vehicles in all vehicle registrations by 2025. The National Electric Mobility Mission Plan (NEMMP) has set ambitious targets for the widespread adoption of EVs and the establishment of charging infrastructure across the country. India is also looking to reduce carbon emissions to zero by 2050, and EVs will play a big role in that. In addition to this, several incentives for EV manufacturers, including a reduction in GST rates and a waiver of road tax, have been initiated.
We can also consider taking cues from some best practices in sustainability that are underway around the world. For example, Singapore is aggressively pursuing the Singapore Green Plan 2030, which promotes sustainability by putting a particular emphasis on various pillars, including transportation. The country is also encouraging the use of greener technology with the help of a carbon tax.
The European Union has been investing in its green transition for decades. It has multiple incentivisation tactics like Germany’s ‘Umweltbonus’ (environmental bonus) programme, the UK’s The Road to Zero’ electrification strategy, or France’s bonus-malus scheme, which has not only brought down the cost of electric mobility solutions but also made them more feasible thanks to the vast charging infrastructure.
Conclusively, it takes the coordinated efforts of multiple players within the automobile ecosystem, as well as sustained investments over time, to make this transition successful. Congestion and reliance on private automobile ownership can be reduced by promoting eco-friendly transportation options and making infrastructure investments in public transit. Sustainability requires ongoing research and development of alternative propulsion technologies as well as government funding for innovation. We must work together towards a green future.
The article has been authored by Raghavendra Vaidya, MD & CEO, Daimler Truck Innovation Center India.
