WHEN COOPERATION & COLLABORATION IN THE EV INDUSTRY IS COOL
“Collaboration divides the task and multiplies the success”
The need to switch to renewable energy sources in any field is inevitable to secure our future during these global warming times. But the shift towards an alternate cleaner energy source should be accelerated in the auto sector as it is one of the biggest contributors to climate change. As per the International Energy Agency, the auto industry is responsible for around 18% of all carbon emissions worldwide. This clearly means that the auto industry has a major role to play in helping a country in bringing down the Green House Gas Emissions. Recognizing the necessity of this, the Government of India, during the recent budget has come up with policies that help the evolution of the Electric Vehicle (EV) sector. These new policies have fuelled the demand for EVs alongside the environmental consciousness of consumers. While this has led to attracting a large number of new-age start-ups, the veterans in the auto field have now joined hands with their counterparts with a common goal of pushing these EVs into the masses by sharing the knowledge and ideas on this new technology. To mitigate the risks and manage uncertainties while developing new technology, partnerships are necessary. Let’s take a look at the major collaborations in the auto sector.
Suzuki, Denso, and Toshiba are set to start commercial production of the lithium-ion cells at their joint venture unit at Hansalpur, Gujarat. These 3 auto giants entered into a JV in the year 2017 and subsequently entered into a memorandum of understanding with the Gujarat government to invest a total of Rs. 4,930 crore to manufacture 30 million lithium cells a year. The development brings Suzuki’s Indian subsidiary, Maruthi Suzuki, closer to the plans of introducing new technology EVs by 2025. Lithium cells are the heart of an EV. Most EV manufacturers buy these cells from China. With this manufacturing unit in Gujarat, which is the largest lithium-ion cell manufacturing plant in India, the EV manufacturers need not depend on China for cells.
Ashok Leyland and Sun Mobility had entered into a strategic alliance to develop world-class electric mobility solutions. Ashok Leyland has already been developing electric and hybrid buses both in CNG and diesel. Sun Mobility aims to be the leader in providing universal energy infrastructure and services. It has plans to revolutionize the transport sector by deploying a unique open-architecture ecosystem built around its proprietary smart batteries. This alliance will accelerate mass electric vehicle usage in the country, hopefully!
Hero Electric and Mahindra Group joined hands and announced a strategic collaboration to cater to the growing demand for EVs in the country. Hero Electric aims to produce over one million electric two-wheelers from this year 2022. The company aims to achieve this from the expansion of its existing Ludhiana facility and also with the alliance made by Mahindra Group. Mahindra Group will manufacture two of Hero Electric’s most popular electric scooters, the Optima and NYX at Madhya Pradesh’s Pithampur plant.
Mahindra & Mahindra and Ideal Motors have formed a joint venture to assemble vehicles in the latter’s facility in Sri Lanka. Ideal Motors has been a trusted Mahindra distributor for the last couple of years and with this JV, Mahindra will strengthen its presence in the island country. The plant will be developed under the competence of the Mahindra team and will incorporate global technologies. The Mahindra Group along with Ideal Motors Ltd. Became the first automobile company in Sri Lanka to discover an all-electric three-wheeler, a sustainable choice for the country.
Volkswagen and Ford deepen their e-mobility partnership in recent development and the US carmaker Ford will produce a second electric vehicle for the European market based on its German rival’s platform. Based on Volkswagen’s modular electric-drive platform known as MEB, Ford is now planning to produce double its volume of vehicles to 1.2 million units over the next six years.
When we talk about the future of e-mobility, EVs are the only option. From April 1, 2020, to
January 31, 2021, India’s fuel price has increased almost 75 times. But when we consider the fuel price of EVs, surprisingly they can be as low as only Rs. 1.1 per km. This means, Rs. 20,000 saved while traveling every 5000km by an EV, not to mention the reduced vehicular emission! Addressing India’s automobile industry at ETAuto EV Conclave 2022, Union Minister Piyush Goyal opined that EVs do not have a demand-side problem today and it is a supply challenge that needs to work upon. He felt that consumers are ready to embrace EVs but they want more options.
To attain a positive momentum in this direction, Cooperation and Collaboration in the Ev Industry and between global automobile manufacturers is necessary and with more and more JVs and collaborations forming between various players in the field, it is only a matter of time before the consumers find an abundant option in the EV sector. When you think of collaboration instead of competition the world will look a little different to you and you will begin to see opportunities all over the place!