WION World Pulse: Sustainability and emerging tech to steer India's automobile future

Auto experts, observers, and industry leaders converged at the WION World Pulse Summit in the national capital on Wednesday (Mar 18) to discuss India's ever-evolving auto industry. The discussion titled Auto Pulse focused on the growing adoption of electric vehicles, self-driving cars, and the rising aspirations of consumers as the country emerges as the world's third-largest auto market, trailing only the United States and China.

The discussion aligns with the summit's theme, "Rhythm of the New World Order," as India's auto sector has navigated global supply chain disruptions caused by COVID-19 and the subsequent conflicts in Europe and West Asia. Simultaneously, Indian automakers are eyeing expanding global opportunities, bolstered by New Delhi’s recent signing of multiple Free Trade Agreements (FTAs) with both emerging and advanced economies.

The session featured Vikram Gulati, Country Head & EVP (Corporate Affairs & Governance) at Toyota Kirloskar Motor, and Shubhranshu Singh, who serves as a Global Board Member for the Effie Lions Foundation in New York.

Indian Auto Industry at an inflection point

Speaking at the WION World Pulse Summit, Vikram Gulati said the Indian auto sector is looking at huge growth potential. "Currently, India's car sales are around 4.5 million, with 6.6 per cent growth," he noted, highlighting the increasing adoption of cars across all segments of society. He emphasised that as the penetration of personal vehicles increases over time, the Indian auto sector will see a massive shift in scale.

Echoing Gulati's views, Shubhranshu Singh stated, "The penetration is 3 per cent; in a country where 40 crore Indians are less than 20 years of age and 65 crore are less than 35 years of age, you can look at the opportunity, that is why global players are flocking here. First-time buyers and users are present in huge numbers."

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Sustainability in focus

The Toyota India head said sustainability remains the core focus of his company, which has set a goal of "life cycle zero carbon by 2050."

He mentioned that Toyota’s Net-zero ambitions align with New Delhi's priorities, as "India's energy imports bill stands at 162 billion dollars, with 137 billion in fossil fuels. With 20 per cent consumed by the transport sector, it accounts for 35 billion dollars. As per IEA projections, energy demand will quadruple," Gulati added.

Customer aspirations are evolving rapidly

Singh, who recently completed a four-year tenure (2021–2025) as Global Chief Marketing Officer (CMO) at Tata Motors passenger vehicles, said that at the heart of the market, "the customer is looking for a great machine; they are looking for safety, security, comfort, sustainability, and reliability."

He hailed Indian customers as being the "sharpest and most value-seeking in the world," noting that this unique trait has led some prominent global players to be less successful compared to domestic brands. Singh remarked, "There is nothing called an 'average consumer.' There is the aspirational status seeker, the aspirer who looks for affordability, and the struggler who wants to move up."

Gulati observed that although incumbent petrol and diesel vehicles currently have an edge, the gap is closing due to advancements in battery and EV technology, supported by government subsidies. "Clearly, the consumer's preference will eventually tilt in favour of electric vehicles. As of today, hybrids are practical," he said.

Contemplating a scenario in 2035, Gulati predicted that consumers will pivot toward sustainability and electric power, paired with a digital-first buying experience. Both leaders agreed that online platforms have become the preferred mode for customers to perform due diligence, while stressing that customisation will be key to success in the future.