It is that time of the year when we pause, look back and calibrate what to look forward to. As we count days to step into the new year, 2023 for the automotive sector has been a year of highs, driving on innovation with an eye towards the future– a year that was all about ‘shared, sales and sustainability’ – a journey of reinventing the wheel while keeping the sales chart ticking.
The year kicked off with the much awaited biennial Auto show, Asia’s largest and the one that celebrated the core theme of shared and sustainable mobility at every step. Was it then a surprise that one saw more concept vehicles and buses running on alternate fuel being launched at an event that’s conventionally known its car launches. The likes of Ashok Leyland, Volvo and JBM jostled for space with the Maruti, Hyundai and Tata of the auto world. Hydrogen and electric emerged as the driving themes. Almost every automotive company pushed the pedal to the metal in terms of showcasing electric variants and new models that leant heavily at the SUV end of the car designs…
The other segment that’s seen poised for robust growth, especially in terms of sales and demand is decidedly the bus segment. With push from both policy and business, the electric buses have become the poster boys of shared and sustainable mobility. As per independent studies, the country’s inter-city bus market could exceed well over Rs 65,000 crore by FY26. Most of the inter-city bus market in India is fragmented with nearly 4,500 private bus operators across 25 State Road Transport Corporations offering north of 100,000 daily services. As a result these numbers have the prospect of increasing even further. Several factors have contributed to this surge. Airlines are operating at nearly 90 per cent capacity leading to high ticket fares. In that scenario buses offer an affordable and accessible alternative that’s also more flexible. The long waiting lists for trains also contributed to the upswing.
It goes without saying that a higher number of buses plying also means that the country is seeing some steps towards decarbonization. After all, vehicular transportation contributes to nearly one-third of the carbon emission in our country. A year that’s ending with the COP28 declaration in December calling for a roadmap for “transitioning away from fossil fuels”, the rising awareness and understanding of sustainable mobility is both an opportunity and necessity. The nations at COP28 also agreed to triple renewables capacity and double energy efficiency by 2030. Probably the current dynamics and trend going forward for mobility is best described in the words of UN Climate Chief Simon Stiell, “While we didn’t fully turn the page on the fossil fuel here in Dubai, this is clearly the beginning of the end…..the progress is not fast enough, but it is ‘undeniably’ gathering pace. ”