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Posted by admin on 2024-11-29 17:35:49 |

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Bosch Ltd's senior executives predict that by 2030, up to80% of vehicles sold in India will still be powered by internal combustionengines (ICE), contrary to the government's goal of achieving 30% electricvehicle (EV) penetration by the same year. According to Soumitra Bhattacharya,Managing Director of Bosch Ltd, while the electrification of vehicles in Indiawill begin with two- and three-wheelers, ICE technology will remain dominant,with a 20% share potentially coming from electrified vehicles. The pandemic hasfurther complicated the situation, hindered the government's EV adoption plansand exacerbated the slowdown in automotive manufacturing. Bhattacharyaemphasized that the economic impact of the pandemic could delay the adoption ofEVs by a few years and that it may take 4-6 years for the auto industry torecover from the setbacks caused by FY20, unless the government provides directstimulus.

Bosch, a key supplier to Bajaj Auto for its electric Chetakscooter, believes that electrification will first gain traction in two- andthree-wheelers, particularly in commercial applications like fleet services,taxis, and last-mile deliveries. Bhattacharya also pointed out that the totalcost of ownership model makes electric two- and three-wheelers viable, andwhile electric cars could work in fleet applications, they are still a fewyears away from being feasible for personal use.

Suraj Ghosh, a principal analyst at IHS Markit, echoedBhattacharya’s view, noting that ICE technology is expected to remain dominant,comprising more than 90% of light vehicles through 2030. The pandemic hascaused significant disruptions in the auto industry, with new investments inEVs becoming unlikely and pre-pandemic commitments to EV technologiespotentially being reevaluated. Investments in powertrain technologies are nowexpected to focus more on regulatory compliance rather than disruptive advancements.

In Bosch's Q4 results, the company reported an 80% drop inits consolidated net profit to ₹81 crore and an 18% decline in consolidatedrevenue to ₹2,237 crore. The company’s FY20 consolidated net profit fell 59%,mainly due to a tough market environment and restructuring expenses. Bosch hasresponded by focusing on cash flow management, reducing capital expenditure by50% for FY21, and cutting back on non-essential areas.

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