The Indian auto industry is in a delicate state. From the implementation of the BS6 specification to the promotion of the adoption of electric vehicles, some important changes have taken place recently. In addition to the automakers themselves, auto parts suppliers are also facing difficult times. With the first wave of coronavirus and lockdown, the entire industry is facing difficult times.
However, in this era, companies are looking for innovative ways to overcome difficulties. In order to better understand the market, Express Mobility contacted Venkat Subramaniam, Director of SKF's India Automotive Business.
The pandemic has had a major impact on the automotive industry. If such incidents happen again, is there a fixed plan?
There is no doubt that the pandemic has had a serious impact on the automotive industry. However, the industry has been experiencing long-term negative growth for a long time. The current decline in the automotive industry can be attributed to a variety of factors. Rising fuel prices, slowing revenue growth and confusion about BS-VI emission standards have led to a general slowdown in consumer confidence. In addition, in the past few years, the organized used car market has expanded significantly, affecting the demand for new cars. Currently, semiconductor shortages are disrupting car sales, which may affect the entire 2022.
At SKF, we focus on gaining share in the automotive sector, especially in the two-wheeler and tractor sectors, and will continue to work with customers to meet their growing needs. For example, we recently launched three new automotive aftermarket products, including chains and sprockets for two-wheeled vehicles, timing belts and steering and suspension systems for four-wheeled vehicles, to meet customers’ demands for improved performance and durability. Sexual needs.
What was SKF's successful strategy to overcome the crisis last year?
At SKF, the impact of the second wave of COVID-19 has not changed our strategy, and we remain confident in future growth opportunities. We will continue to focus on executing our strategy, maintaining operational efficiency, maintaining customer focus and ensuring cost discipline to achieve strong financial performance and shareholder value.
Looking to the future, we see digitalization as a driving factor for the implementation and provision of proactive solutions, and lay a solid foundation for SKF's long-term growth. For example, a major trend is the after-sales industry using digital and e-commerce technologies to reach customers. We recently launched our e-commerce portal, emarketplace, which has a wide range of products and solutions and provides a reliable and seamless online experience for our existing and new customers. All automotive aftermarket retailers, mechanics and fleet owners will benefit from these wide range of products and solutions.
Similarly, the field of electric vehicles (EV) has also gained a lot of momentum for development. Therefore, OEMs, suppliers and distributors must be prepared for this change brought about by electrification. At SKF, we are always ready to provide customers with solutions and design alternatives to reduce overall system power loss, thereby maximizing the range of electric vehicles per charge. We are working with customers to ensure that the bearings are improved in terms of performance, efficiency and reliability to suit the future.
If things like 2020 (epidemic, lockdown) happen again, what measures should the auto industry take?
Almost nothing is common to all industries, especially the automotive industry. First, the company must focus on reducing risks in its supply chain. As the market begins to recover, minimize costs, and optimize manufacturing and distribution, maintaining continuous contact with suppliers will help rapid growth.
Second, given the new purchase behavior of customers, it is important to keep in touch with customers digitally. The company will have to rethink the sales model by embracing digital channels and considering the direct sales model.
Third, in order to avoid the challenges of labor shortage and productivity loss, automotive original equipment manufacturers and component suppliers must focus on strengthening the digitalization process and introducing more automation, interconnection technology and mechanization. Finally, car companies must increase participation by inventing new and innovative methods to continue to interact with consumers.
What setbacks does the automotive industry face on the road to electric vehicles? One thing is certain, electric vehicles are the future. Although they currently account for only a small part of the market, the demand for electric vehicles is growing rapidly. From inadequate charging infrastructure, price differences between electric vehicles and internal combustion engines, to mileage anxiety, financial choices, and low consumer awareness, much work needs to be done to promote consumer adoption of electric vehicles.
What do you think India lacks in the electrification of commercial vehicles?
We need to consider two main aspects. The first is insufficient charging stations. Generally, commercial vehicles travel 300 kilometers per day on average. With only 1,800 charging stations in India (according to the Association of Electric Vehicle Manufacturers), the EV option for commercial vehicles does not seem feasible. Although traditional vehicles can be refueled at gasoline/diesel stations, electric vehicles are not yet able to use this standardized infrastructure.
The second is the high price of electric vehicles. At present, from the perspective of total cost of ownership, electric vehicles do not have a good value proposition. Batteries are one of the most important components in electric vehicles, and having local manufacturing capacity is very important to reduce the total cost of vehicles. Although the government is helping to build the required infrastructure, more efforts are needed to encourage the adoption of electric vehicles by using old batteries and using more efficient technologies.
What technologies/innovations does SKF integrate for electric vehicle bearings because they need to withstand higher torque (compared to ICE)?
We are investing in new technology development and adjusting or redesigning traditional bearings. In general, we have a series of innovative solutions to achieve powerful and efficient electronic power system drive. Many leading original equipment manufacturers in Asia, Europe and North America trust SKF bearings and solutions as part of their electric drive system design. For example, SKF hybrid deep groove ball bearings (DGBB) use ceramic rolling elements and steel rings. This type of bearing has higher high-speed performance and first-class electrical insulation characteristics, making it the best choice for high-performance electric vehicle power systems. In addition, SKF is also developing application-specific solutions to reduce the risk of system-level current leakage and protect the entire EV transmission.
In your opinion, how can the government formulate better policies to support electric vehicles and their popularization?
The government encourages the adoption of electric vehicles and plans to account for 30% of all new vehicle sales by 2030. So far, the impact of electric vehicles on manufacturers throughout the entire automotive value chain is limited, but as the government introduces strict regulations and policies (FAME 2 and PLI) and more and more people switch to electric vehicles, this shift may be even greater. More suddenly than we expected. Therefore, attention must be paid to supply-side measures, including manufacturing key components of electric vehicle technology.
Several states have developed their own electric vehicle policies aimed at incentivizing buyers and original equipment manufacturers. However, it is necessary to coordinate policies and focus on a unified long-term policy to increase the confidence of automakers.
Similarly, in addition to policy, infrastructure is also important in determining the ultimate viability of electric vehicles. The government needs to speed up the construction of charging infrastructure in India to speed up the popularization of electric vehicles. Most importantly, major stakeholders such as automakers, battery manufacturers, suppliers, dealers, and energy companies need to work together to pave the way for the growth of electric vehicles in India. Partnerships and alliances are valuable because they will advance charging infrastructure and solve scope issues. Another important criterion is to formulate policy intervention measures to provide financial support for the electric vehicle industry through concessional loans or government-guaranteed loans to help expand the electric vehicle industry in India.
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