India offers huge opportunity, EVs can transform auto industry: Nissan1 min read . Updated: 26 Aug 2021, 03:35 PM IST
Nissan Motor COO Ashwani Gupta said low penetration offers a huge opportunity for vehicle manufacturers in India to capitalise.
Nissan Motor feels India offers a huge opportunity for vehicle manufacturers to increase their presence among customers and help the country graduate to the third biggest car market in the world within the next few years. Ashwani Gupta, COO of Nissan Motor Corporation, also said that electric vehicles will be able to help in transforming the auto industry in the country.
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Gupta explained his views during the 61st Annual Session of Automotive Component Manufacturers Association of India (ACMA). He said carmakers in India should adopt digitalisation in areas like business, process and consumer experience to transform the industry by letting individual innovations become 'disruptions'.
“India is the fourth largest (automotive) market. In five to six years, it should be the third-largest market," said Gupta, while saying that improving the low car penetration of just 20 per 1,000 offers a ‘huge opportunity’ in front of all manufacturers.
"Today, 22% of the users check the availability of vehicles digitally before going for an on-ground experience. This trend is going to continue as we move towards removing the pain points from a customer's journey. The challenge, which we all have, is how we are going to capitalise on this opportunity," he said.
Gupta also backed local manufacturing of electric vehicles in India. According to the Nissan COO, EVs form the pillar based on which the auto industry in the country could transform in coming days. He said, "This is where the tipping point (is) and we all have to work towards this tipping point so that it becomes a natural choice for the customer to go for electrification."
According to the Nissan COO, the country's "great know-how" of digitalisation must be utilised to foster innovations. "We in India are doing innovations. However, we are limiting it to individual innovation," he said.
By 2030, Nissan aims to achieve 100 per cent electrification of its cars globally. The target for Europe is much earlier by 2026. According to the Nissan COO, the total cost of ownership, price point, and driving excitement seen from the customer on electric cars will be better than the ICE (internal combustion engine) cars.