Thiru Srinivasan (TS) has over 30 years’ experience in the field of mechanical engineering. He had first hand witnessed how industries changed the landscape of a region and ever since wanted to be involved in them. He rejected an offer for MS from Boston University as it was not mechanical engineering and took it up at Ohio State University. He has been an advisor to several EV companies and Ather is one among them. Today, he spearheads the EV taskforce for the TN government.
IE: Your views on the ongoing ICE to EV transition.
TS: ICE industry is characterised by its mature technology, leading to stability but limited opportunities for innovation. Existing players hold their positions firmly due to profit margins and established market shares, making it challenging for newcomers to break in. On the other hand, the electric vehicle (EV) industry presents a fertile ground for new ideas and ventures.
EV is challenging for established players because they’ve made investments expecting returns over the next five years. They’re hesitant to abandon these investments. However, I suggest they maintain their current operations while pursuing global opportunities. For component manufacturers, with the shift away from ICE to EVs, there’s a window of opportunity for the next few years. They can produce parts that are no longer locally manufactured and focus on exports without making new investments. The EV market offers potential for growth in electrical, electronic and software components. While the export market may seem enticing, caution is advised against expanding capacities due to uncertain future trends.
The transition to EVs is inevitable due to their lower operating costs and efficiency. Current challenges like battery cost and charging time will get solved and lead to widespread adoption of EVs.
IE: Power and grid capacity play a major role in successful EV transition. Your views.
TS: One common question raised is the potential impact of a nationwide shift to EVs on power consumption. Surprisingly, transitioning all vehicles to EVs would only increase power demand by approximately 7-10 per cent. Despite this relatively modest increase, power supply remains a challenge, especially considering the escalating demands. Interestingly, if we redirect the energy used in burning petrol and diesel, to power stations and convert it into electricity for EVs, we can achieve a 50 per cent increase in travel distance due to the higher efficiency of EVs. This transition also aids in reducing emissions. While the shift to EVs may pose challenges, they ultimately offer greater efficiency and value for the input energy. To support this transition, it’s imperative to strengthen our grid infrastructure, especially the last-mile connectivity. Similar to the development of road infrastructure, a robust grid network is essential to ensure efficient power distribution, down to the grassroots level.
IE: At the task force, how do you enable this transition?
TS: The task force aims to foster a USD 40 billion EV industry in the state. It is like an orchestra where several elements like skill development, land allocation, infrastructure and investment promotion play an important role. We are looking to attract investments about USD 40 billion over the next five years to drive this transition. We will not only bring in new companies but also work with them to ensure their success here.
We also work with existing companies and focus on extensive awareness campaigns and fostering collaboration. By bringing stakeholders together and engaging in meaningful discussions, we aim to educate and understand various perspectives of the transition. Through this approach, we’ve identified Coimbatore as an ideal hub for motors and power electronics, with plans underway for a common facility center. These decisions have been shaped by numerous group meetings and one-on-one interactions, where participants have contributed valuable insights and ideas. Embracing change as an opportunity rather than resisting it, is the key to success.
IE: How do you handhold MSMEs in this transition?
TS: One of the key reasons I joined FAME TN is because it falls under the MSME sector. This is a critical area as MSMEs play a crucial part in this transition, as otherwise the development will be hollow. We risk having a superficial facade without a strong foundation. The sector has the potential to lead globally, especially in two-wheelers, three-wheelers and light commercial vehicles. All they need is a hand holding. Once a few of them succeed, others are likely to follow suit – a phenomenon we’ve witnessed in Coimbatore time and again. While access to finances hasn’t been a major issue, MSMEs seek assurance and clarity before venturing into the unknown terrain of the EV industry. Technology support is another crucial aspect. Though partnerships are readily available from countries like China, South Korea, Japan and Germany, facilitating them is paramount.
Additionally, enticing the next generation of MSME leaders to continue their family businesses is crucial. By infusing modern technology, for eg. traditional industries like the pump sector can venture into a similar yet technology oriented EV motor sector. This can make the businesses more attractive to the younger generation. Ultimately, MSMEs have long been the backbone of Tamil Nadu’s economy and will continue to play a pivotal role in its success.
IE: How will the VinFast investment change the EV game for Tamil Nadu?
TS: The success of Tamil Nadu’s automotive hub, particularly in Chennai and Hosur, can be attributed to historical strengths in mechanical engineering and the proactive efforts of the government and industry players. Hosur’s recent growth in the EV sector, exemplified by Ather’s establishment, underscores the region’s potential. The availability of land, government support, and existing industrial infrastructure have been instrumental in this growth.
Similarly, VinFast will create that moment for Thoothukudi. The region has abundant land, skilled labour, potential for renewable energy and two ports. Despite the economic potential, ensuring social cohesion remains a challenge. If we develop correctly, the area has the potential to be like the Shenzhen of China. In Vietnam, VinFast assembles the cars, while all components are majorly imported. The value addition is very less. But they’re very interested in developing local component technologies here. This will help develop the electronic ecosystem in the state.
With Jaguar Land Rover coming to Tamil Nadu, it is indeed a significant development and a source of pride for the state’s automotive industry. JLR’s presence brings access to top-tier automotive talent and research expertise from Warwick University, renowned for its R&D contributions to the automotive sector. Foreign investors like the state’s openness to industry advisors and the collaborative efforts seen in the formation of the task force involving various departments. This collaborative approach, akin to practices in Singapore, marks a new and promising direction for Tamil Nadu’s automotive sector.
IE: Isn’t job loss a concern with transition to EVs as they require much lesser components?
TS: With any major change, there are areas of growth and areas that may see a decline in job opportunities. The shift towards EVs will reduce the demand for mechanical components such as machining, sheet metal and castings. To counter this, we can focus on developing capabilities in manufacturing tools and machinery, thereby reducing dependence on imports and retaining talent in this field.
Conversely, the rise of EVs means a surge in job opportunities in areas like battery technology, electric motors, power electronics and software development. However, there’s a gap in understanding and awareness among students and professionals about these emerging fields. We need to initiate educational programmes to familiarise with these technologies and encourage them to pursue careers in these domains.
Reskilling and upskilling initiatives are crucial, not just for new graduates but also for the existing workforce. We must revamp university labs and develop certification courses to equip workers with the necessary skills. Additionally, incentivising companies to invest in employee training and offering financial support for retraining programmes can facilitate this transition.
While we may not have a comprehensive plan in place yet, there’s a clear understanding of the direction we need to take. Initiatives like the Naan Mudhalvan scheme are already leading the way in re-skilling efforts. With our gross enrolment ratio nearing 70 per cent, we have a vast pool of motivated youth eager to succeed. It presents both a promising opportunity and a challenge. This is where the EV industry shines. It not only creates opportunities but also appeals to the aspirations of our youth.
IE: Is EV just a transition phase for automobiles as the research for green fuel options like hydrogen are being undertaken?
TS: It’s quite complex topic, especially when considering hydrogen as an alternative to batteries. Hydrogen offers the advantage of quick charging, but it’s important to recognise that it isn’t an energy source by itself; rather, a carrier of energy. It can compete with batteries which directly store energy.
In essence, hydrogen vehicles operate similarly to electric vehicles, with hydrogen being converted into electricity, to power the vehicle. However, hydrogen vehicles face efficiency challenges compared to battery-powered electric vehicles. While hydrogen may have a place in specific niche markets, advancements in battery technology could potentially render hydrogen obsolete in the long term. As battery technology continues to improve, the need for hydrogen may diminish, especially if batteries become capable of rapid charging.
However, the evolution of electric vehicles is inevitable. Those accustomed to the stability of internal combustion engine technology may struggle with the rapid changes in electric vehicle technology. Investment approaches will need to adapt to the shorter payback periods, characteristic of a rapidly evolving ecosystem.
For urban commuting, battery capabilities will mature within the next few years. However, it may take longer for battery technology to meet the demands of heavy-duty vehicles like trucks, potentially requiring another decade or two to mature sufficiently.
