The International Forum for Environment, Sustainability and Technology (iFOREST), a non-profit environmental think tank, released the first comprehensive study titled “ICE to EV: Just Transition Roadmap for India’s Automobile Sector” in association with Confederation of Indian Industry (CII) in Chennai.
The report was launched by K Senthil Raj, Managing Director, SIPCOT; Srivats Ram, Chairman, CII Tamil Nadu & Managing Director, Wheels India, Srinivasan, Senior Advisor, EV, FaMe TN, Government of Tamil Nadu; Sriram Viji, Chairman (Southern Region). ACMA & Managing Director, Brakes India, and T R Kesavan, President, The Madras Chamber of Commerce and Industry & Group, President, TAFE.
The report highlighted Hosur, one of the auto clusters in Tamil Nadu delving into the challenges and opportunities of transition to electric vehicles (EVs) for businesses, workers, and the environment at large. An analysis of 759 auto component manufacturers in the Hosur cluster showed that about 20% would be highly or moderately impacted by the transition. Most of these enterprises produce parts for ICE powertrain sub-assemblies. Further, of the 759 enterprises, MSMEs constitute 95%. These enterprises remain particularly vulnerable, given their limited financial resources and capacity for technology adoption.
Extracts from the report state: “Depending on the vehicle type, 45-84% of parts of the internal combustion engine (ICE) vehicle, primarily powertrain components, will become obsolete due to the electric vehicle transition, impacting the manufacturers of such components. The number of job roles in the EV ecosystem will be 5% higher than in the ICE vehicle ecosystem and require more educated and skilled workers. Jobs in the PV manufacturing sector alone will double from 1.7 million in 2023-24 to 3.3-3.7 million in 2036-37.”
Senthil Raj said, “Apart from reforms brought in to help in land acquisitions, there is a single window guidance system to fast-track other clearances for companies manufacturing EVs in Tamil Nadu.” Industries Secretary V.Arun Roy said: “We are actively developing a strategy to cater to the increasing electricity demand not only from the mobility sector but also related to the greater development of Tamil Nadu. We are also focusing on conventional power sources, green power sources as well as importing power to complement the domestic generation.”
