| | AUGUST 20228INDUSTRY INSIGHTSBy Jeffry Jacob, Partner, KPMGF our megatrends are today continuously disrupting the automotive industry, both globally and in India. At Roland Berger, we call them MADE­ Mobility, Autonomous Driving, Digitalization and Electrification. Electrification is one of the most disruptive amongst these, as it impacts the entire format of the automotive industry that has operated since inception. It also has consequent impacts on business models, supplier ecosystems, and distribution structures, amongst others.Most Governments everywhere are today enacting their own emission and xEV targets. Some examples include London's 2020 Ultra Low Emission Zone which will assess daily fines for high-emission vehicles and Paris' proclamation of banning all diesel cars by 2020. In China, Beijing has plans to convert all its taxis to xEVs, while Munich & Stuttgart in Germany are contemplating outright ban of diesel vehicles within city limits. In certain cases, these actions have even been in the nature of outright bans, such as China's target of 20 percent PHEV/BEV sales by 2025 and UK/France Government's plans to enforce ban on all non-xEV cars by 2040. Similarly, Netherland's parliament is also proposing a law to end sale of ICE cars by 2025.Driven by the aim for sustainable transportation and emission reduction, strong growth is expected in all geographies globally for xEVs going forward. Declining costs of Li-Ion batteries would further increase the attractiveness of xEV for customers, while development of charging infrastructure would be critical to sustain the demand in the market. Globally, China is expected to remain the leader in xEV sales by 2025 with over six million units. xEV sales in Europe are projected to reach 4.8 million, with BEVs accounting for 61 percent, while in US, it is expected to reach 4.6 million with PHEV/HEV ELECTRIFICATION OF THE INDIAN AUTOMOTIVE INDUSTRYJeffry Jacob,Partner
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