The e-mobility or green mobility transition is gaining momentum in India and hence the government is constantly encouraging faster adoption of electric vehicles (EVs) to achieve the target of carbon neutrality by 2070. A combination of supportive government policies, infrastructure development, technology innovation, and awareness will be crucial to facilitate India’s transition into the EV space.
Spark Minda, a leading manufacturer of automotive components for the OEMs, is committed to reduce the environmental impact of the automotive industry and is relentlessly working towards promoting a more sustainable future. The company has taken several initiatives towards sustainable mobility and to reduce its carbon footprint. More than 95 per cent of Spark Minda’s product portfolio is ICE to EV change agnostic, which gives significant headroom for quickly scaling up in the EV segment. Other noteworthy initiatives adopted by the company includes; products customised for the EV segment, manufacturing of lightweight components, use of renewable energy, research and development, creating sustainable reports, as well as collaborating with prominent EV solutions providers.
How do you see green mobility shaping the future of the Indian Automotive industry?
Green mobility is pushing the Indian automotive industry towards sustainable transportation. The transition is picking up fast and India is taking a lead. In fact, aiming at 100 per cent electric mobility by 2030, the Ministry of Road Transport and Highways has recently announced a dedicated policy for the automakers to move to 100 per cent manufacturing of electric vehicles.
Green mobility ushers in various economic and environmental benefits. Adopted by players across all layers with equal conviction and agility will help in lowering the carbon footprint of the automotive industry. Sustainable mobility also reduces dependency on non-renewable sources of energy like petrol, encouraging indigenous manufacturing. The subsidiaries and incentives launched by the Government of India are bound to add to fastest adoption and demand of EVs.
During the COP27 climate change conference held in Egypt last year, India has been ranked amongst the top five countries in the world based on its climate change performance. Promoting the use of green transportation will further reduce the effects of climate change and improve air quality, leading to better climate protection performance marked by the country.
The favourable tailwinds provided by collaborative efforts of government and industry players across the value chain is clearly shaping the future of the automotive sector faster than anticipated. Encouraging innovation in EV space, cutting emissions will spur economic development and facilitate seamless adoption of green mobility by the Indian automotive industry.
Can you underline the role of auto component manufacturers, tier-I suppliers in driving India’s net zero targets?
India’s commitment to pursue low-carbon strategies for development depends on the agility of players across the spectrum. The responsibility to drive India’s Net Zero targets is collective. The role of auto component manufacturers/ tier-I players is critical to ensure that the automobile sector is able to meet the dynamic and fast evolving demands of the industry and the government.
As major stakeholders in the automotive industry, their actions have a significant impact on the overall transition of the sector towards sustainability. They have already taken the leap towards changing the game. These companies are developing and producing low-carbon technologies, adopting sustainable manufacturing practices, promoting technology and innovation by research and development, and providing sustainable aftermarket solutions.
Ensuring change across supply chain and operations, tier-I companies are agile with adoption and also investing in renewable energy, and collaborating with national and global organisations to make the products to best suit EV vehicles encouraging the adoption of electric and hybrid vehicles. Continuous focus on sustainable practices and development of low-carbon technologies, will help them contribute to building a sustainable and resilient future for India.
In your opinion, how will the present challenge in the semiconductor industry be resolved?
The current supply challenge in the semiconductor industry is complex and multifaceted, but there are several ways that it may be resolved:
Investment in new production capacity: The current supply challenge for semiconductor manufacturers can be addressed by investing in new production capacity. This involves building new fabrication facilities or upgrading existing ones. By expanding their manufacturing capabilities, companies can increase their output and meet growing demand.
Collaboration between industry players: Encouraging sharing of resources, expertise, and technology to improve production efficiency and boost output.
Diversification of supply chains: In order to address the risks associated with relying on small number of suppliers for critical components, companies can diversify their supply chains, working with multiple suppliers to reduce the risk of disruption.
Innovation in manufacturing processes: Advances in manufacturing technology and processes can also help address the current supply challenge. By developing more efficient and flexible manufacturing techniques, companies can increase output and reduce costs.
The Indian government has made rapid strides to encourage large scale electronics manufacturing possible for indigenous players. In 2021, India announced its roughly $10 billion-dollar Production-Linked Incentive (PLI) scheme to encourage semiconductor and display manufacturing in the country. Also, a Design-Linked Initiative (DLI) scheme to drive global and domestic investment related to design software, IP rights etc. This is a huge push for the semiconductor industry, encouraging more domestic players to invest in R&D and focus on new technology, promoting self-reliance.
The resolution of the semiconductor supply challenge is a gradual process. The favourable policy landscape should be supplemented with concerted effort and investment from all stakeholders to gain much needed impetus.
What are the key factors which will facilitate India’s transition into EV space?
There are several key factors that will facilitate India’s transition into the electric vehicle (EV) space. These include:
Collaboration between stakeholders: Collaboration between government, industry, and academia will be important for the development and growth of the EV industry in India. Partnerships and collaborations can help address challenges such as battery technology development and charging infrastructure deployment.
Financial incentives and tax benefits: Financial incentives and tax benefits will play a vital role in encouraging consumers to adopt EVs. The government can provide incentives such as lower taxes on EVs or subsidies on EV purchases to make them more affordable for consumers.
Integration with renewable energy: Integrating EVs with renewable energy sources such as solar and wind can help reduce the carbon footprint of transportation and support India’s energy transition to a more sustainable future.
Building a robust charging infrastructure: A robust charging infrastructure is key to help India help realise its EV dream. The rise in adoption of EVs will invariably lead to a spike in the demand for charging solutions. Adoption and setting up of infrastructure have to be implemented at the same pace for this transition to be a success.
Well-defined regulations: Well-defined regulations around EVs can help create a level playing field for all stakeholders in the industry. Regulations can also help maintain safety and quality standards for EVs and their components.
Innovative business models: Innovative business models such as EV leasing and battery swapping can help make EVs more accessible and affordable for consumers. These models will also help address challenges such as battery range anxiety and high initial costs of EVs.
A combination of supportive government policies, infrastructure development, technology innovation, and awareness will be crucial to facilitate India’s transition into the EV space.
Could you elaborate on the various initiatives undertaken by Spark Minda which are contributing towards sustainable mobility and to reduce its carbon footprint?
Spark Minda’s focus on EV portfolio significantly contributes to our overall focus on sustainability. More than 95 per cent of Minda’s product portfolio is ICE to EV change agnostic, which gives significant headroom for quickly scaling up in the EV segment. Other noteworthy initiatives include:
Products customised for EV segment: We are also offering products customised for the EV segment like DC converters and battery chargers. Focus is to also offer EV solutions like battery management systems, power distribution units, and electric motors. We have already introduced the advanced versions of our legacy solutions for flagship products, wiring harnesses, digital clusters, keyless locking systems, etc.
Manufacturing of lightweight components: The lightweight components for vehicles developed by Spark Minda, such as plastic parts and aluminium castings. These components reduce the weight of vehicles, leading to improved fuel efficiency and lower emissions.
Use of renewable energy: Solarization is one of the key pivots driving sustainable operations across our plants. We are expanding the infrastructure and upgrading technology to provide clean energy across all businesses.
Waste management: Our manufacturing facilities are equipped with several waste management initiatives such as recycling of scrap materials and waste water treatment. These initiatives help reduce the environmental impact of our operations.
Research and development: Spark Minda Technical Institute (SMIT), our dedicated research centre focuses on developing innovative technologies and products that promote sustainable mobility. We also collaborate with academic institutions and research organisations to advance sustainable mobility research. With significant human capital employed in our Spark Minda Green Mobility division, we are ensuring to put the best minds on to bringing the best technologies for our customers and lead the EV transformation.
Collaborations: We are also entering into new partnerships to bring in quality, scalable and cost-effective solutions in the EV space. Realising this vision, we have partnered with EVQPoint, EV Solutions provider from Bengaluru.
Sustainability reporting: Spark Minda publishes an annual sustainability report that outlines its sustainability initiatives, targets, and performance. The report helps stakeholders, including investors, customers, and employees, understand the company’s sustainability practices and progress.