Mercedes Benz’s India electric car venture may bring cheer to domestic aluminium part makers

After Tesla it is turn now for the luxe car maker Mercedes Benz to turn to India for setting up its next electric car manufacturing base. The German automaker has approached Indian government to consider offering incentives on electric car manufacturing till the time local output becomes viable. The project, if materialises, will bring in some cheer for the country’s automotive aluminium die-casting parts manufacturers. They will get to cut teeth in a hitherto unexplored market with great potential.

The global brand is currently in the process of investing heavily in electric car technology. Merc Benz claims that, if adequate support is extended by India’s regulatory authorities, it will be able to introduce electric vehicles in the country by 2020.

The vision is in line with Indian government’s plan to replace all gasoline and diesel cars in the country with vehicles powered by electricity by 2030. The government is working on the measures.

Terming the plan “ambitious”, International Energy Agency said, "Regardless, the exact formulation of the target and the extent of its long-term achievement, it is a good step that will help India to be among the global leaders in deploying a technology that is crucial to temper increasing oil import needs, local air pollution in cities, and limit CO2 emissions."

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According to the Society of Manufacturers of Electric Vehicles statistics, although, there has been a 37.5 per cent rise in the overall sale of EVs in India, electric cars form only 9.09 per cent of the volume. If brands like Tesla, Mercedes Benz get to open their manufacturing facilities here, aluminium producers and makers of aluminium parts and automotive body sheet will be able to expand their markets.

Aluminium is one of the most preferred metals to be used in electric cars for lightweighting and cosmetic benefits. If we consider government’s Make in India policy, these investments will open up huge business prospects for the domestic OEMs.