EV Shift: Key stakeholders from Maharashtra’s automobile sector convened in Chhatrapati Sambhajinagar on Thursday to address the challenges and opportunities posed by the state’s transition from Internal Combustion Engine (ICE) vehicles to Electric Vehicles (EVs).
The workshop, organized by WRI India in partnership with the Marathwada Auto Cluster (MAC) and Laghu Udyog Bharati, focused on the impact of this shift on the Micro, Small, and Medium Enterprises (MSMEs) that dominate the industry.
Maharashtra, which contributes 7 percent to the state’s Gross State Domestic Product (GSDP) and 15.3 percent of its industrial output, is a key hub for automobile manufacturing in India. However, it also faces significant environmental challenges as road transport is the second-largest source of greenhouse gas emissions in the state.
Ashish Garde, Director of MAC, opened the event by urging MSMEs to prepare for the inevitable transition to EVs. “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,” he said.
Mihir Soundalgekar from the Chamber of Marathwada Industries & Agriculture (CMIA) introduced the innovative micro-factory model, which allows for the local production of entire EVs using a single robotic cell.
The workshop, organized by WRI India in partnership with the Marathwada Auto Cluster (MAC) and Laghu Udyog Bharati, focused on the impact of the EV shift on the MSMEs
“Under the micro-factory model, a single robotic cell can manufacture an entire vehicle. In addition to being cost-efficient, it reduces the carbon footprint by minimizing transportation emissions and waste through local production,” he said, emphasizing the potential for environmental sustainability.
Ranjeet Bhelke, CEO of Kinetic Communications Ltd., emphasized the importance of MSMEs enhancing their testing, validation, and servicing capabilities to collaborate effectively with OEMs, especially tier 1 suppliers. “MSMEs must not only focus on sales but also build strong servicing teams to support the transition. OEMs also have a key role in educating consumers on the correct usage of EVs,” Bhelke said.
Maharashtra has seen a sharp rise in EV adoption, with EVs now making up 7.6 percent of vehicles on the state’s roads, up from just 0.4 percent in 2020. As MSMEs account for 97 percent of the auto manufacturing sector and employ approximately 200,000 workers, the workshop underscored the need for a balanced transition that supports both the industry’s growth and the livelihoods of smaller enterprises.
Insights from this event are expected to shape future strategies for integrating EV technology while protecting the MSME sector in Maharashtra.
