India needs to build chip capability for electric mobility, says CII president1 min read . Updated: 29 Aug 2021, 03:00 PM IST
CII president T V Narendran said that a collective ecosystem needs to be created to foster the growth of electric mobility in India.
Confederation of Indian Industry (CII) president T V Narendran recently said that India needs to create capabilities in semiconductors since it is going to become more critical as electric mobility gains momentum in the country. To this, he added that the country's auto ancillaries industry should also look to expand its export list and push to achieve at least five per cent of global components trade by 2026, a PTI report stated.
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Speaking at the 61st annual session of the Automotive Component Manufacturers Association of India (ACMA), the body's president conveyed that semiconductors are going to play a crucial role in the electric future. “With the growing adoption of electric mobility, semiconductors are going to become more and more critical. It's important for us as an ecosystem, as a country, as an industry, collectively or individually, to invest in creating these capabilities in India," said Narendran, who is also the CEO and managing director of Tata Steel Ltd. However, he did mention that it will take some time to create this collective ecosystem. He also added that since it is capital-intensive development and significant business, it will need the government's support.
As the semiconductor shortage intensifies around the globe, Indian automaker majors such as Maruti Suzuki India, Tata Motors and Mahindra & Mahindra have also been badly hit due to the crisis. Many have also mentioned the semiconductor shortage might not get resolved until next year. Narendran also shared that the government is also aiming to make India more environment-friendly with its efforts to slowly phase out petrol- and diesel-based vehicles.
The president also mentioned that this period has changed the very nature of the industry. “The very nature of the industry has also transformed during this period, and technology-centric features, safety, comfort emissions and energy consumption have taken centre stage in recent times," he added.
Exhorting the country's automotive industry to enhance localisation efforts throughout the supply chain, Narendran said, “India must emphasise on the targeted export expansion of key components and expand the share in the global auto components trade to at least 4 to 5 percent by 2026."
(With inputs from PTI)