CIO Insider

CIOInsider India Magazine


Reshaping the Automotive Industry Through Green Transition


In a world embracing sustainability and eco-consciousness, the automotive industry stands at a pivotal moment. The surge of electric vehicles (EVs) marks a paradigm shift in transportation, fuelled by a collective effort to reduce carbon emissions and combat climate change with manufacturing innovation and green technology in the automotive industry. As this revolution unfolds in the automotive industry through the green transition, several key trends are propelling the evolution of electric vehicles, driving innovation, and reshaping the automotive landscape.

Advancements in Battery Technology
The energy required for the car to operate is stored and supplied by the EV batteries. In the early 1900s, lead-acid batteries, which were large, heavy, and had a short battery life, powered the first electric cars. The 1990s saw the development of nickel-metal hydride batteries, which had a shorter operating range than lead-acid batteries but were still more efficient. The introduction of lithium-ion batteries, which transformed the electric car market, did not occur until the early 2000s.

Compared to earlier battery technologies, lithium-ion batteries are far lighter and have a higher energy density, allowing them to store more energy in a smaller package. Longer range and quicker charging periods for electric vehicles are now possible thanks to this. The performance, longevity, and affordability of lithium-ion batteries have all steadily improved since they were first introduced.

The next big thing in battery technology is to reduce cost and boost energy density even more. Longer ranges could be achieved by electric vehicles with higher energy-density batteries, and mass-market electric vehicles could become cheaper. These objectives may be met with the aid of several exciting new technologies, such as flow batteries, lithium-sulfur batteries, and solid-state batteries.

The high cost of importing batteries is one of India's largest problems when it comes to batteries. The cost of producing electric vehicles in India is now higher since nearly all of the country's battery cells are imported from China, Japan, and South Korea.

In response to this problem, the Indian government has launched several programs and incentives to support homegrown battery production. One such program is the Production Linked Incentive (PLI) plan, which provides financial rewards to Indian businesses that produce cutting-edge battery cells. The government has also revealed plans to establish other lithium-ion battery production facilities across the nation.

The effects of battery manufacture and disposal on the environment present another difficulty for battery technology. Lithium-ion battery production involves significant energy and raw material use, which may have detrimental effects on the environment. In addition, improper recycling practices can have a detrimental effect on the environment when batteries are disposed of at the end of their useful lives. Scientists and producers must create more environmentally friendly and sustainable battery technology.

Investments in EV Manufacturing
Indian manufacturers planned to invest over $ 10 billion (Rs. 80,000 crore) by the end of this decade to build the infrastructure required to produce electric vehicles (EVs). The decision was taken during the global electrification revolution that was engulfing the car industry. It has also been driven by the government's preference for battery-powered vehicles over those with only internal combustion engines. The capital expenditure would include building a few green field EV plants, supporting grid charging infrastructure, and investing in battery factories to produce batteries starting at the cell level. India's passenger car fleet could consist of 25–30 percent electric vehicles by 2030, as new carmakers are expected to enter the market in 2025 and established manufacturers expand their production capacity.

Maruti declared that it would increase its installed capacity from the existing 2.25 million to nearly 4 million units by 2031 by introducing six electrified vehicles. It is estimated that US$ 5.47 billion (about Rs. 45,000 crore) will be needed to double the capacity. During the next five to seven years, Mahindra and Tata Motors said that they would incur EV capital expenditures of US$ 1.21 billion (about Rs. 10,000 crore) and US$ 1.82 billion (approximately Rs. 15,000 crore). Hyundai recently declared that it will invest US$ 2.45 billion (around Rs. 20,000 crore) in the southern Indian state of Tamil Nadu.

BMW, starting at the end of 2027, will devote €650 million to converting its main manufacturing facility in Munich, Germany, to the production of only electric vehicles. On-site construction is underway for four new facilities, including a body shop and vehicle assembly line. Approximately 1,200 workers have been retrained or transferred to other sites as the manufacture of internal combustion engines has been moved to the UK and Austria. In contrast to other automakers, BMW has not established a deadline for ending the production of combustion-engine vehicles. However, starting in 2035, the European Union will impose regulations that would effectively prohibit the sale of new petrol and diesel vehicles within the EU.

We want to make this vehicle generation so modern that it looks like we skipped one generation. That is necessary because of those new players that are coming in

At the auto show, BMW unveiled the Neue Klasse EV concept, the culmination of a multibillion-euro endeavor to bridge the technological divide with rivals such as Tesla and other electric vehicle manufacturers. The vehicle, which will resemble the present BMW 3-series model line in size, is expected to be produced in Munich beginning in 2026 alongside combustion engine vehicles. It will also be manufactured in Shenyang, China, San Luis Potosi, Mexico, and BMW's new facility, which is now under development in Debrecen, Hungary.

BMW Chief Designer Adrian van Hooydonk says, “We want to make this vehicle generation so modern that it looks like we skipped one generation. That is necessary because of those new players that are coming in. You know the debate that’s been going on: Oh, traditional OEM over 100 years old, can you make this step? We can, and we want to.”

“Neue Klasse is by far the biggest investment in our history. Because the technology we are using all over BMW is all new in all areas, without exception,” says Frank Weber, BMW’s Chief Technology Officer.

Current Issue
Ace Micromatic : Pioneering Excellence in Comprehensive Manufacturing Solutions