Indian Auto Industry to See Stronger Growth in 2021-22, Nomura Research Institute Finds
CEO Insights team, 0
However, the personal vehicle segment will realize slow growth. It will reach the levels of 2018-19 only in 2022-23, it added.
According to Society of Indian Automobile Manufacturers (SIAM), in 2018-19, passenger vehicle sales rose 2.7 percent to 33,77,436 units from 32,88,581 units in 2017-18.
“After the devastating effects of the COVID-19 pandemic, it is expected that the auto industry will see stronger growth in 2021-22,” Ashim Sharma, partner and group head (business performance improvement consulting-auto, engineering and logistics) at NRI Consulting & Solutions India, said.
“In addition price hikes expected with introduction of new regulations could delay the recovery even further,” he added.
When it comes to EVs, Ashim said that 2021-22 would witness positive rise, especially the two-wheeler segment, with new players entering the market.
“In addition, on the EV components side, we could finally see cell level manufacturing starting off in India with technological collaborations focusing on cutting-edge technologies such as LTO (lithium titanium oxide) batteries,” he said.
The LTO batteries can be fast charged at high temperatures as well as last for 10,000-plus cycles and other enhanced chemistries like NMC811, he said. NMC811 is a cathode composition with 80 per cent nickel, 10 per cent manganese and 10 per cent cobalt.
In case of other EV components such as motors and controllers, Ashim said, “We could see a wider participation by local component players and also the entry of some new players especially to cater to the rise in domestic EV two-wheeler and three-wheeler demand.”
In addition, export opportunities for EV components as well as batteries could certainly emerge for domestic players as the world struggles to find alternative sources for supply chain resilience, he added.
Ashim said players that show preparedness for this can certainly capitalize on the opportunities.
When it comes to EVs, Ashim said that 2021-22 would witness positive rise, especially the two-wheeler segment, with new players entering the market.
“In addition, on the EV components side, we could finally see cell level manufacturing starting off in India with technological collaborations focusing on cutting-edge technologies such as LTO (lithium titanium oxide) batteries,” he said.
The LTO batteries can be fast charged at high temperatures as well as last for 10,000-plus cycles and other enhanced chemistries like NMC811, he said. NMC811 is a cathode composition with 80 per cent nickel, 10 per cent manganese and 10 per cent cobalt.
In case of other EV components such as motors and controllers, Ashim said, “We could see a wider participation by local component players and also the entry of some new players especially to cater to the rise in domestic EV two-wheeler and three-wheeler demand.”
In addition, export opportunities for EV components as well as batteries could certainly emerge for domestic players as the world struggles to find alternative sources for supply chain resilience, he added.
Ashim said players that show preparedness for this can certainly capitalize on the opportunities.