Hero chief Munjal calls for drive towards electric mobility

Growth of electric mobility, although disruptive for the automotive industry, especially in India where it is growing much faster than in most other economies, is inevitable and companies will have to transform or perish, says SK Munjal, chairman of Hero Enterprises.

Addressing the media at a function in Hyderabad, Munjal, who also heads the CII Task Force on Ease of Doing Business, said disruption was a new normal for India.

A number of countries have set deadlines to move to electric mobility, some by 2025, others by 2030 and 2040. This calls for preparedness, he said.

''We are going through a structural change and the automotive industry is transforming to meet the new challenges and norms,'' he said.

''Just like in the past where we have witnessed disruptive developments, and industry had to quickly change and adjust, the automotive industry will have to brace up. Companies are aware of the unfolding situation and gearing up,'' he said.

''I had the opportunity to witness the demo of Google's car. It is like a computer-packed one inside without a combustion engine. Any company that does not accept the changes and transforms will perish,'' he said.

''The challenges that global warming and climate change pose are quite alarming. While we are still seeking to address concerns about air quality and pollution, there is also threat to another major resource, water. Which calls for a concerted effort,'' he said.

Munjal said the government on its part should act as a facilitator by providing sops to encourage both the consumer and the producer in order to ensure growth of electric mobility.

He also struck a positive note on economic growth, saying India is growing much faster than most economies in the world. But he said the pace of growth is still not adequate considering its size and requirement.

On the GST-led slowdown, he said, ''We have just seen one quarter. A tax reform like this may take about three-four quarters to show its positive impact on the economy. I am certain the economy will pick up as the transition passes off.''

''India is a significant size economic player and has potential for a double-digit growth, once various elements of the reform process begin to impact. It takes few quarters and sometimes couple of years for major reform to show their impact'' Munjal said.

He also said job creation would mostly happen in the emerging and new enterprises in the services and other sectors.

The construction and infrastructure industry is the second largest job creator in the country, which can accommodate semi-skilled and other workers.