As Maharashtra accelerates its electric vehicle (EV) transition, the state’s prominent automobile sector faces both new opportunities and considerable challenges.
On Thursday, September 26, 2024, industry leaders, policymakers, and stakeholders will come together for a crucial workshop titled “Exploring a Just and Inclusive EV Transition for Maharashtra’s MSMEs,” aimed at addressing the issues surrounding this shift.
Organised by the WRI India in collaboration with the Marathwada Auto Cluster (MAC) and Laghu Udyog Bharati, the event will be held at the Nanasaheb Bhogale Auditorium in MIDC WALUJ, Chhatrapati Sambhajinagar.
Maharashtra’s automobile industry, primarily based in hubs like Pune and Aurangabad, plays a significant role in the state’s economy, contributing 7% to the Gross State Domestic Product (GSDP) and 15.3% to the industrial GSDP. However, the road transport sector remains the second-largest source of greenhouse gas emissions in the state. The shift from Internal Combustion Engine (ICE) vehicles to EVs is therefore a critical part of Maharashtra’s climate strategy.
Maharashtra has emerged as a leader in EV adoption, with EVs rising from just 0.4% to 7.6% of vehicles on the road between 2020 and 2023. Despite this progress, the transition presents a challenge for the state’s automotive manufacturing industry, which heavily relies on Micro, Small, and Medium Enterprises (MSMEs).
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These small enterprises represent 97% of the auto manufacturing sector and employ approximately 200,000 workers. Transitioning to EV production requires substantial adaptation from businesses and workers alike, and experts emphasize the importance of policy measures to safeguard MSMEs throughout this period.
The upcoming workshop will bring together MSME owners, workers’ associations, Original Equipment Manufacturers (OEMs), and academic representatives to discuss the risks and opportunities associated with this transition. Key speakers at the event will include Ashish Garde, Director of MAC, Arpit Save, President of the Chamber of Marathwada Industries & Agriculture (CMIA), Suresh Todkar, Director of Marathwada Accelerator for Growth and Incubation Council (MAGIC), Prasad Kokil, Director of MAGIC, and Manas Vora, Director of Vroomble Services Pvt Ltd. Delegates from the Deogiri Electronic Cluster will also be present.
Commenting on the significance of the dialogue, Ashish Garde stated, “The transition to EVs is crucial, and MSMEs must prepare for this shift. Building the necessary EV ecosystem is vital, and OEMs can play a pivotal role by actively engaging with auto component manufacturers in the MSME sector.”
Discussions will center on the implications of the EV shift for MSMEs, with the aim of shaping policies that ensure a fair and inclusive transition. The insights gained from the workshop are expected to help formulate pathways for Maharashtra to transform its auto industry while simultaneously protecting and enhancing the livelihoods of small businesses and workers.
As Maharashtra continues its push towards a cleaner and more sustainable future, the voices from this workshop will be instrumental in ensuring that MSMEs, the backbone of the state’s automotive sector, are not left behind in the EV revolution.
