Proud and Prudent

 “See, going to net zero is imperative and everyone feels the responsibility to accelerate and participate in every formal manner.”, were the words of Mr. Natrajan Chandrashekaran, the Chairman and Managing Director of the Tata Group, at the Indian Auto Expo 2023.

 Tata is proving itself as the trendsetter in the manufacturing and sales of electric vehicles in India and its EV story isn’t all about Nexon, Tigor, or Tiago. With its new models in the electric segment such as Punch and Harrier Sierra, the company is striking the right chords between consumer demands and product variety. The newly launched Avinya is a stunning amalgamation of luxuries and versatility of an SUV with the roominess and comfort of an MPV. A sky dome to enhance the overall sense of space, voice-activated systems, Pure EV GEN3 architecture, and use of sustainable materials for better structural stability and to deliver the ethos of the product, make it a commendable feat of engineering achieved in product design as the world witnesses the dawn of EVs. Tata’s ACE EV (mini-trucks) and fuel cell buses are also putting a dent in the market. 

With all its initiatives and innovations, the team of Tatas does stand strongly in the market but what makes them stay there isn’t only the car but also what they bring along with it. We all know that Tata is massive and it's everywhere. So, the company’s ability to not just provide a commodity or means of transport, but rather come up with an entire ecosystem has brought brighter prospects for the company's profits, the policies of the government, and the concerns of climate.

Tata Power, Tata Chemicals, Tata Autocomp, TCS, Tata Digital, Tata Elxsi, Tata Motors, and Tata Finance come together under one umbrella known as the UniEVerse-al Mission of the Tata group that promises to provide sustainable and innovative solutions for e-mobility in India. Problems such as high prices, unavailability of charging infrastructure, risk aversion to new technology, and range anxiety are what the conglomerate intends to cater to. Driving a circular economy in light of the current scenario of global supply chains isn’t going to be an easy task.  Project Alingana, is an ambitious endeavor of the company that intends to drive the decarbonization of their businesses and apply a systemic, circular economy approach to reduce resource use and waste. Thus, preserving and restoring the natural environment.

Tata isn’t the only company that’s levelling up its game to address the net zero agenda, but in recent times the automotive industry has seen a steep rise in investments in the direction of electric vehicles and fuel alternatives. Startups are coming up and how companies such as Tesla and BYD are taking on the global market, sending not just waves but rather tides of products that are equipped with state-of-the-art technology and even competitiveness not in just terms of performance but also services, is what sets them apart from others.  

Talking of global markets, an interesting notion of the GOI can't be left unaddressed, and those are the trade tariffs that impact the competitiveness of Indian automotive manufacturers. Being a part of the industry, and a firm believer that trade leads to competitiveness and competence, the concept of considering the Indian automotive industry still in its infancy is the reason why we aren’t able to stand proudly on all four wheels.

In 1990 the GOI came with a certain set of policies that led to a “favored child-treatment” of the automobile industry. The policies outlined certain strong restrictions on imports and freed them from investment licensing thus supporting the growth of the industry within the nation. Behind the tariff wall, which stood with 125% customs duties on imports of automobiles and automotive industrial products, slowly and gradually the Indian industry picked up the pace.

But this model is what economists in the West consider a faulty one, and their argument stands on the example of our textile industry. Post-independence, the policies framed by the government were such that they favored the growth of heavy industries on our land. The challenge was that these companies and organizations were less labor intensive, and the participants weren’t well-trained or equipped to take on the scale of production expected, which led to a slowing down in production and a compromise on the quality of the products. Companies such as Ford left, giving room to Hindustan Motors and Premium Motors to take charge, but the momentum wasn’t the same. Meanwhile, the well-established textile industry with all its big players witnessed a shift towards being a cottage-based industry with small enterprises started taking the lead. Owing to their limitations in terms of facility, scale, and investments we lost the edge in the global textile market and Japan took over the empty spot that was vacated by the UK and the USA, and we missed out on the crown.

The point is, that a government’s inadequacy in understanding the dynamics of the market, the gravity of monopoly in the industrial world, and not encouraging laissez-faire business and the concept of free-trade and can make us lose not just opportunities to improve but also what we have attained. On noticing the demerits of the existing system, the GOI took immediate action encouraging duty-free textiles and a capped limit of imports of automobiles in our nation. Thus, addressing both competition and collaboration.

“The Indian automobile industry is competent, and the trade barriers pose a false image of us. Our products are good and efficient and with open arms, we welcome international players out in the field here,” is the idea of Mr. R.C. Bhargava, the current chairman of Maruti Suzuki.  A change in the orientation and perception of world markets will bring not just trade opportunities but even develop the scope of manufacturing in India while also addressing the concerns of climate.

We are more than prepared to take on the world with our products and combine forces with the big players. Our companies such as Aether, Ola Electric, Hero, Tata, Exponent Energy, etc are bringing newer solutions for customers and redefining the Indian way of working. Massive investments in newer battery technologies and greener solutions are paving the path to providing cogent solutions to the perturbing concern of climate change. The shift in the paradigm has brought newer products and new players to the market, which eye to grow upon the concern and reap benefits while even providing economical, efficient, and eco-friendly solutions

These companies have entirely revamped their system. From supply chains to retail outlets, from shop floors to corporate offices, from forklifts to massive trucks, from energy consumption to giving back to the grid, from policies of minimalist consumption to practices, everyone’s going green to save the Big Blue we call home.

 

Be a yardstick of quality. Some people aren't used to an environment where quality is expected.