New Delhi: At the 9th edition of the ET Auto EV Conclave 2024 held in New Delhi, Raghu Ramamurthy, Senior Director at Cognizant Technology Solutions, shared valuable insights into the ongoing transformation of the automotive industry. His analysis focused on the rapid advancements in electric vehicles (EVs), connectivity, and Advanced Driver Assistance Systems (ADAS), which are shaping the future of mobility.
Technological advancements driving change
Ramamurthy discussed how the automotive sector is experiencing a paradigm shift, with a growing emphasis on sustainability, digital retailing, and cutting-edge technologies. The rise of electric vehicles, alongside the increasing adoption of connected and automated driving technologies, is poised to redefine the industry. He pointed out several key trends that will significantly impact the sector in the coming years:
- Electrification: By 2030, it is expected that 65% of new car sales in Europe will be fully electric.
- Customer experience: 60% of car buyers under 45 prefer digital, contactless sales and service options.
- ADAS market growth: The ADAS market is projected to grow from USD 2.1 billion in 2023 to USD 9.9 billion by 2032, at a CAGR of 18.8%.
- Shared mobility: Shared mobility services are expected to see a CAGR of 15.8% from 2023 to 2030, potentially generating up to USD 1 trillion in consumer spending by 2030.
- Connectivity and digitalisation: The connected automotive market is set to grow from USD 80.9 billion in 2023 to USD 386.8 billion by 2032, at a CAGR of 19.2%.
- Sustainability: Zero-emission targets aim to phase out new petrol and diesel vehicle sales globally by 2040 and in leading markets by 2035.
Impact of ADAS and EV adoption on India’s automotive value chainRamamurthy highlighted the factors driving the growth of the ADAS market in India, including the increasing demand for passenger vehicles, government road safety initiatives, and rising consumer awareness. Additionally, he discussed the transformative effect of EV adoption on the automotive value chain, outlining key segments:
- Raw material allocation: The EV industry faces challenges in securing essential materials like lithium, cobalt, and nickel, even as manufacturers innovate to increase efficiency.
- Ecosystem development: Public charging infrastructure will become more critical as EV adoption increases. Companies such as Attero and Lohum are advancing circular economies by recycling battery materials and reducing emissions.
- Battery supply chain: Leading manufacturers like CATL, LG Chem, and Panasonic are driving demand for key EV components, including batteries, semiconductors, and electric motor systems.
- Battery innovation: Innovations like ultrafast charging systems and battery-swapping solutions are redefining the EV charging landscape, with companies like Tesla and Nio at the forefront.
India’s future mobility landscapeRamamurthy also provided an overview of India’s evolving mobility ecosystem, identifying critical pillars for future growth:
- Software-Defined Vehicles (SDVs): SDVs, which integrate features like voice assistance and real-time diagnostics, are becoming central to modern mobility.
- New mobility models: The rise of shared mobility and subscription-based services is expected to reshape how people access vehicles.
- Collaborative automotive ecosystems: Cooperation between competitors, regulators, and digital firms will be crucial in addressing emerging challenges in mobility.
- Regulatory support: Policies that promote EV adoption and green fuels like hydrogen will be key to accelerating the transition to sustainable mobility.
Key enablers for EV adoption
Ramamurthy emphasised the importance of three key enablers in driving EV adoption in India:
- Power: India’s electricity demand is expected to increase by 100 TWh by 2030 due to the surge in EV adoption.
- Infrastructure: He pointed to China’s extensive public charging network as a model for India to emulate.
- Incentives: Drawing inspiration from Norway’s successful EV policies, such as VAT and toll exemptions, he urged for similar incentives to support the transition to electric mobility.
The ET Auto EV Conclave 2024 showcased the immense potential of electric vehicles and the collective efforts required from various stakeholders to build a sustainable and connected future for the automotive industry.
