TiEcon Delhi-NCR 2023: Future Of Mobility Lies In Finding Right Balance Between Profitability And Affordability — Experts
The future of the automotive industry is always looked forward to by both, market players and consumers. Experts from the industry shed light on the future of mobility at TiEcon Delhi-NCR 2023.
TiEcon Delhi-NCR 2023: Startups, entrepreneurs, investors and many more came together on one platform of TiEcon Delhi-NCR 2023 on March 17-18 to churn out profitable solutions to the problems that exist in the ecosystem. From deep tech to the participation of women in the startup community, the experts pondered over a range of issues, enlightening the budding entrepreneurs who attended the event.
When it comes to technology and innovation, the automobile industry comes forth as one of the areas where a lot of work has been done and much more scope is left. It is responsible for the pace of the world on roads and needs to evolve.
An expert industry panel consisting of Punit K Goyal - Co-Founder BluSmart, Aravind Sanka - Co-Founder, Rapido, Kunal Khattar – Founding Partner, AdvantEdge Founders, Priya Singh - Co Founder & Director, Chalo, and Gaurav Gupta – Senior VP & Chief Commercial Officer, MG Motor came together to present a futuristic view of the automotive industry.
Problems
The experts talked about how the Indian market is difficult to penetrate with modern solutions which are expensive. Kunal Khattar said that higher asset utilisation, and affordability at a scale are problems as India has a large population with less money.
Aravind asserted that cities like tier 2 and tier 3 lack proper infrastructure which hinders the balance of profitability and affordability for the market players. He said, “Vehicle cost is rising, and fuel price is going up and on the other hand. Vehicle ownership has not declined in these years.”
They were discussing if shared rides have really brought a change that can be put into numbers in terms of lesser numbers of vehicles.
Talking about her venture Chalo, Priya Singh said that her team decided to solve the problem of intra-city buses. She said that around 70 percent are being run by private players across the country and in some places, there are more operators than buses on the road.
Noting that the market is very fragmented, Priya said that her venture began innovation by providing information to passengers like about how crowded the bus is, its exact location, the next stop and much more. She said that Chalo also tied up with the ferries in Cochin. She emphasied that people do not only want cheaper solutions, but rather they want better solutions. It can only be done, she added, by design empathy and environment-friendly solutions.
Punit Goyal highlighted how despite being supported by the government, the purchasing of Electric Vehicles is not showing great numbers. He suggested charging infrastructure as one of the reasons for the same. Although, he admitted that since the government is moving to buy and use electric buses, the future and decade ahead are bright.
MG Motors’ Gaurav Gupta however differed from Goyal’s opinion that charging infrastructure is hindering the purchasing of EVs. He backed the argument by saying that 90 percent of consumers buying EVs are using their home chargers. He claimed that roadside charging stations are used for less than 4 percent.
Adding to his data, he said that around 71 percent of vehicles have a single occupant, while 88 percent travel on average less than 30 Km a day. Gupta mentioned that 81 percent of occupants only carry a bag pack or laptop with them. He said that these numbers suggest the need for smart urban personal solutions.
Remedies
Kunal Khattar clearly said that it was not possible for just one or two startups to solve the mobility problem in India. Adding that an ecosystem of Original Equipment Manufacturers (OEMs) with multiple startups and the government is necessary.
Backing Khattar’s remark, Aravind said that users generally need multiple solutions at multiple times and hence a multi-model approach is required to tackle the problem. He said it was important to connect public transport with private players as one of the steps to solve the mobility issue.
Having ground experience with the public transport system, Priya said that what people need is efficiency. She termed EV aspirational, adding that basic issues need to be resolved like the trained crew in buses, and clean public transport. She emphasied on building a reliable, cleaner and trained public transport system in the automotive business.
Punit brought in the example of London’s Ultra Low Emission Zone (ULEZ) where strict fines are imposed for not following environmental guidelines in place. He proposed that the government can take inspiration from this structure to work on an environment-friendly transport system as a whole. To this, Gaurav added that everything the problems can be solved ‘when all stakeholders come together’.
The panelists also focused on how renewable energy sources like solar energy and electric power are not totally used anywhere around the world and some dependency would be there on coal-based power generation.
On the question of the danger to the environment that the garbage of used Lithium batteries poses, the panel explained how recycling of these batteries is being worked upon. Gaurav mentioned that MG Motors has recycled India’s first Lithium-ion battery that is used in vehicles in Roorkee.
Other experts shared views on how Lithium-ion batteries have different stages of life that give a push to the circular economy in the country.
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