Report

Government announcement on 100% EV by 2030 has hit the overall Automotive Industry like bolt from the blue and almost all industry stakeholders are at various stages of planning to make themselves immune to the emerging EV disruption that is likely to render companies staying in denial mode obsolete. Companies that will remain focussed on legacy products will face an existential crisis and those that will embrace the EV and new-age mobility disruption are likely to survive and thrive.

Push towards EVization will see some companies entering into new while existing traditional business and recent sales of BOSCHs’ starter and generator division to SEG is indicative of that trend. The e-rickshaw space is gaining traction when compared to PV, 2W, and 3W that are still a few years away from industrialization, this has led to companies like SEG, TVS Lucas Ltd to launch products that cater to e-rickshaw space.

Both automobile OEMs and automotive component OEMs are at crossroads in terms of making investment EV and also at what pace they should go about their investment, this to ensure that the breakeven point is not a stretched one. Automotive Industry worldwide is fast changing from IC to Hybrid to EV, while IC will not vanish over next 5 -10 years but it will eventually succumb to newer technology over a period of 20-30 years if not in the next 10 years. InfraInsights have been researching and advising companies on risks and opportunity in EV since the time Minister of Roads & Transport, Mr. Nitin Gadkari made the announcement on EV in 2017. InfraInsights through its detailed research-based consulting proposition, aims to enable auto component manufacturers to navigate the transition from IC to EV seamlessly and provide them with a transition blueprint that outlines roadmap towards a sustainable EV business.

There are both early movers and those that are yet to take a call as far as navigating into EV is concerned. Bharat Forge, for instance, has been investing into companies in EV space and is also looking for investing in electronics and embedded system. Samvardhana Motherson Group is already making electric wiring for trucks and buses, apart from supplying parts to Mahindra Reva and mirrors to Tesla. Component makers understand that investing in EV component technology and capacity is a matter of survival. Once the shift happens, huge numbers of current components will become obsolete. InfraInsights sees that the recent slowdown in the auto industry has pushed Government to go slow on EV ambition but by no means it will shelve its EV plans and hence the breather provided by Government should be taken as the advantage for auto component OEMs to accelerate their preparedness for the successful EV strategy & implementation. InfraInsights through its research aims to provide a playbook that will be useful for auto-component manufacturers that are at various stages of carving out a successful strategy to stay relevant in the inevitable EV regime.

1. Executive Summary
2. Approach & Methodology
3. EV in India: Roadmap, Progress, Roadblocks
4. Decoding the Impact of EVization on Auto Component OEMs
5. IC 2 EV: Roadmap, Progress & Roadblocks
   1. Auto OEMs
   2. Auto Component OEMs
6. As-Is Analysis of the Auto Component OEM
   1. Overall business and business portfolio of Large, Medium and Small auto component OEM
   2. Evaluating the existing manufacturing & sourcing capabilities
   3. Evaluating the existing clientele / Supplying to OEMs in 2W, 3W, PV & CV
   4. Evaluating the existing business model – Direct to Auto OEM, Direct to Large auto component OEM, Contract Manufacturing, catering to the domestic market and/or overseas
7. Quantifying the impact of EVization on the auto component OEMs
   1. Risk of obsolescence to the different products in the product portfolio; identifying what’s immune to EVization and what’s likely to become obsolete eventually
   2. Pace at which OEMs to which company is supplying ICE components are EVizing their product portfolio
   3. Understanding what other auto component OEMs are doing to remain immune from disruption
8. EVization in India – Optimistic, Realistic & Pessimistic Scenario
   1. Estimating IC to EV Mix in Overall Automobile Sales till 2030 for 2W, 3W, PV and CV
   2. EV Roadmap of different Auto OEMs in India in 2W, 3W, PV & CV
   3. EV components sourcing strategy of Auto OEMs
9. Government Regulations & Policies to Support to Auto component OEMs in EV Transition
10. Factors Influencing change in ICE
    1. Shift in ICE technology in BSVI regime
    2. Migration to 48V architecture
    3. CAFÉ norms influence
    4. Shift from alternator & generator to ISG etc.
11. Right Sizing the ICE Portfolio for the auto component OEM
    1. Demand: Product demand linked to transmission, electrical, engine and the underlying demand for each of these
    2. Supply Competitiveness: capacity vs capacity utilization for each product which will indicate supply absorption velocity and how it has performed over recent 2-3 years
    3. Sustainability: Future of demand for mother part of the vehicle that uses subcomponents manufactured by the company
    4. Technology Innovation in ICE: Relevance of product in the new ICE landscape that will be focused on improved fuel efficiency and least possible emission, shift in fuel to BSVI
12. Evaluating right fit EV portfolio for the auto component OEM
    1. Estimating the demand for different EV components [Power Train, Battery, Control Gear, Battery Management System, etc]
    2. Shortlisting the EV product portfolio for auto component OEM
    3. Basis demand and supply
    4. Basis indigenous supply vs imports
13. Go-To-Market Blueprint
    1. Indigenous Manufacturing
       1. Existing capability
       2. Augmentation of capability
    2. Supply Chain
       1. Domestic sourcing
       2. Overseas sourcing
    3. Potential Opportunity Sizing
    4. Potential Target Market Segment; e-rickshaw, e-2W, e-3W, e-PV, e-CV
       1. OEM
       2. After Market
14. Strategic Partners for successful IC 2 EV migration
    1. Sourcing
    2. Joint Manufacturing
    3. Trading route
    4. Others

Please contact us at info@infrainsights.com for the flyer