Author: Mr. Shailesh Chandra, MD, Tata Motors Passenger Vehicles Ltd. & Tata Passenger Electric Mobility Ltd.
The global automotive industry stands at a pivotal moment. After over a century of incremental evolution, we are now witnessing a true revolution — one that is reshaping not only the technologies that power mobility, but also the very way in which it is conceived, delivered, and experienced. Amidst global economic volatility, rising geopolitical tensions, and the urgent call for climate action, mobility is being redefined in fundamental ways. What once ran smoothly on horsepower, steel, and combustion is now being dismantled and rewired for a future that demands silence, sustainability, and sentience.
Five Forces Reshaping Mobility
The automotive sector is being transformed by five converging forces: electrification, digitalization, sustainability, autonomous technologies, and new business models. Traditional automotive hubs in industrialized economies face stagnating demand, regulatory headwinds, and market saturation. Meanwhile, emerging markets offer fertile ground for innovation and growth.
Fast-Tracking the EV Revolution
Sustainability has moved to the forefront of the global agenda. Governments, businesses, and consumers increasingly view clean mobility as a necessity. Electric Vehicles (EVs) are central to this shift, with countries implementing stricter emissions norms, carbon pricing mechanisms, and aggressive EV adoption targets. Global EV sales exceeded 14 million units in 2023, up from just 2.2 million in 2019, representing nearly 18% of total car sales (Source: IEA Global EV Outlook 2024). The future of transport is being built around low-emission, energy-efficient platforms — and the race is on to scale production, infrastructure, and innovation in this space.
Digitalization as a Catalyst
Equally transformative is the digitalization of mobility. Today’s consumers expect vehicles that are connected, intelligent, and seamlessly integrated with their digital lives. In response, software has emerged as a decisive differentiator in the automotive industry. The competitive edge no longer lies solely in mechanical engineering, but in delivering rich, software-defined experiences.
Technologies once considered futuristic — such as Advanced Driver Assistance Systems (ADAS) — are becoming mainstream. Consumers are increasingly embracing features like adaptive cruise control, lane-keeping assistance, and automatic emergency braking. By 2030, software is expected to account for up to 30% of a vehicle’s value, up from 10% in 2020 (Source: McKinsey & Co). As these technologies mature, they will redefine safety standards and revolutionize the way mobility services are delivered and consumed.
Circularity and the Future of Sustainability
Another transformative shift lies in the global transition from linear to circular economic models. The traditional “take, make, dispose” paradigm is giving way to systems based on reuse, remanufacturing, and recycling. As resource constraints tighten and environmental pressures mount, circularity will become a strategic imperative across the mobility value chain.
The India Opportunity
India stands uniquely positioned to lead the next era of sustainable and intelligent mobility. With low vehicle penetration — only 30 cars per 1,000 people, as compared to 980 in the U.S. and 850 in Germany (Source: World Bank) — a rapidly growing middle class, and strong macroeconomic fundamentals, the country offers one of the most dynamic and underpenetrated markets globally. Recognizing both the strategic and environmental imperatives, India has committed to achieving net-zero carbon emissions by 2070 and aims for EVs to account for 30% of private cars, 70% of commercial vehicles, and 80% of two- and three-wheelers by 2030 (Source: NITI Aayog) — a bold and ambitious roadmap that signals clear national intent.
To accelerate the zero-emission mobility transition, the government has introduced several progressive policies to promote EV adoption and support the development of an enabling EV ecosystem — PM e-Drive, PM e-Bus Seva, NEMMP, and PLI schemes — aimed at localizing advanced technologies and components. To accelerate this transition, our country aims to scale public EV charging stations to 100,000 by 2030 (Source: Ministry of Power, India). The Vehicle Scrappage Policy further supports this shift by retiring older, polluting vehicles in favor of cleaner alternatives.
Globally, the industry is also looking to diversify its supply chains further. India presents a compelling alternative with its blend of market scale, policy momentum, and technological capabilities. India produces over 1.5 million engineering graduates annually, with a growing focus on AI, machine learning, and mobility systems (Source: AICTE). With Indian engineers already driving innovation for top global automotive players and their suppliers, the country is well-positioned to become the global hub for software-defined vehicles, connected mobility solutions, and autonomous technologies.
To fully unlock this opportunity, India must continue to build a stable, future-forward regulatory environment, singularly focused on promoting zero-emission technologies at every level. It must additionally invest in developing a nationwide EV charging infrastructure and nurture a new generation of professionals skilled in AI, machine learning, cybersecurity, and systems integration.
The convergence of demographics, demand, and digital depth puts India at the cusp of a transformative leap. The potential is clear: with coordinated efforts across stakeholders, India can be more than a participant in the global mobility transformation — it can be the defining force.
Published: 30 May, 2025 | Forbes Anniversary Issue
