New Delhi: “The automotive industry’s contribution to Indian manufacturing will grow to about USD 2 trillion to USD 4 trillion by 2047 from about USD 0.2 trillion currently, said CV Raman, Chief Technical Officer (CTO), Maruti Suzuki.”
In the keynote address at the 8th edition of the ETAuto EV Conclave, CV Raman, CTO of Maruti Suzuki India and President of SAE India, outlined a visionary roadmap for India’s economic growth, emphasizing the pivotal role of the auto industry and the imperative of sustainable mobility.
Raman highlighted India’s ambitious goal to evolve into a $30 trillion economy by 2047, underlining the importance of sustainability in achieving this target. He noted key government initiatives, including the aim for 500 gigawatts of non-fossil energy capacity, a 50% share of energy from renewables, and a substantial reduction in carbon emissions, setting India apart with a carbon neutrality goal by 2070.
Going forward, he stressed the need to focus on alternative fuels. “Currently, the Corporate Average Fuel Economy (CAFE) norms are based on tank to wheel emissions, we need to work on well to wheel emissions.”
By FY41, Raman expects that about 50% of the total vehicles sold in the country will be ICEs, including alternative fuels.
“Alternative fuels, ethanol, along with EVs and hybridization will result in faster decarbonization going forward. But a large portion of about 85% is still going to be ICE-related technologies, the alternative spheres and hybridization.”
He also finds opportunity in the Indian market as only about 15% of the population today moves on private vehicles.
Raman projected the auto industry’s role in this economic trajectory, foreseeing it as a major contributor, potentially reaching a scale of USD 2 trillion to USD 4 trillion by 2047. He emphasized the need for enablers to realize this vision, pointing to infrastructure development, urbanization trends, and the demographic dividend as key drivers of growth.
Addressing the inhibitors specific to India, Raman identified challenges such as low purchasing power, high congestion, pollution, and a significant import bill for crude oil. Despite these obstacles, he expressed optimism about the government’s pro-growth policies, including support for startups, the Production-Linked Incentive (PLI) scheme, and the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) initiative.
He underscored the critical role of infrastructure development, particularly in the road sector, and highlighted the reduction in logistic costs as a positive outcome. He commended the government’s focus on creating an enabling policy and startup ecosystem, emphasizing their contribution to driving growth.
Moving to the future of mobility, Raman emphasized the importance of a sustainable approach. He discussed India’s unique demographic advantage, with a young and digitally connected population driving rapid technology adoption. The integration of digitalization, infrastructure development, and the startup ecosystem, he argued, would create new business opportunities and enhance India’s competitive advantage.
He then delved into the challenges and opportunities in the passenger vehicle segment, projecting growth to six million vehicles by 2030. He acknowledged the need for sustainable solutions, considering factors such as affordability, congestion, pollution, and road safety. The CTO expressed confidence in the potential of alternative fuels, hybridization, and electric vehicles (EVs) for faster decarbonization.
In conclusion, Raman shared Maruti Suzuki’s commitment to sustainability through a technology-agnostic approach. He highlighted the company’s investment in hybrid technology, the establishment of a battery plant, and plans to introduce six EV models by 2030. Raman envisioned a future where sustainable mobility solutions prioritize affordability, connectivity, shared transport, and safety, culminating in a smarter and greener India.
