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BRSR Barometer 2023 Series: Decarbonizing the Automotive Industry.

BRSR Barometer 2023 Series image with text "Decarbonizing Automotive Industry."

The BRSR Barometer 2023 report, a collaborative effort by ECube and StepChange, serves as a pivotal resource in understanding the landscape of corporate sustainability in India. This comprehensive analysis synthesizes insights from over 1,000 Business Responsibility and Sustainability Reports (BRSR) across 13 sectors, highlighting more than 50 Environmental, Social, and Governance (ESG) metrics. As businesses face increasing pressure to demonstrate accountability and transparency, the report provides a crucial benchmark for evaluating sustainability performance and identifying areas for improvement.


In this series titled "BRSR Barometer 2023 Series," we will delve into each of the 13 sectors analyzed in the BRSR Barometer 2023. Each installment will explore the unique challenges and opportunities within these sectors, emphasizing their specific ESG metrics and implications for sustainable practices. 


This series will cover these thirteen sectors: Automotive, Cement, Chemicals, Construction, Financial Institutions, Information and Communication Technology (ICT), Fast-Moving Consumer Goods (FMCG), IT/ITES, Metals, Manufacturing, Pharmaceuticals, Power and Textiles. 


Through this series, we aim to provide a detailed examination of how each sector is addressing its sustainability challenges, the effectiveness of current practices, and how certain companies are tackling these challenges. Join us as we uncover the critical findings of the BRSR Barometer and explore how businesses can leverage these insights to enhance their sustainability efforts in a rapidly evolving regulatory landscape.


Industry Overview: Sustainability in the Indian Automotive Sector 

The Indian automotive industry is at a pivotal juncture, where the roar of engines must harmonize with the urgent call for sustainability. As one of the largest contributors to air pollution and greenhouse gas emissions in India, the sector faces mounting pressure to reduce its carbon footprint and embrace cleaner technologies. 


The Indian automotive sector has long been a significant player in the pollution game, particularly in urban areas where vehicle emissions contribute heavily to poor air quality. In cities like New Delhi, two- and three-wheelers account for nearly 50% of surface PM 2.5 levels, highlighting an urgent need for cleaner alternatives. This stark reality has spurred both government and industry leaders to take decisive action, as the consequences of inaction are too severe to ignore. 


In response to these pressing challenges, the Indian government has introduced several initiatives aimed at greening the automotive landscape. The Bharat Stage VI (BS-VI) emission standards, implemented in April 2020, represent a significant leap from BS-IV norms, mandating stricter limits on particulate matter and other pollutants from vehicles, compelling  manufacturers to adopt advanced technologies such as diesel particulate filters (DPF) and catalytic converters. This leapfrogging from BS-IV to BS-VI norms is a crucial step towards reducing vehicular emissions and improving air quality across the country. 


Moreover, initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme are driving the transition towards electric mobility. The National Electric Mobility Mission Plan (NEMMP) further incentivizes manufacturers to invest in electric vehicle (EV) technology, thereby reducing reliance on fossil fuels.


Companies like Tata Motors are leading the charge by introducing innovative solutions such as hydrogen fuel cell vehicles and affordable electric vehicles (EVs). Tata Motors has captured over 89% of the Indian passenger EV market and is committed to making green mobility accessible to all. Their efforts exemplify how traditional manufacturers can pivot towards sustainability without sacrificing market share.


However, not all manufacturers have embraced this shift equally. These recent fines serve as a stark reminder that compliance is non-negotiable. Recently, eight automobile manufacturers were fined a staggering ₹7,300 crore for exceeding mandated fleet emission levels in the financial year 2022-23, highlighting the severity of non-compliance with stricter Corporate Average Fuel Efficiency (CAFE) norms introduced by the Bureau of Energy Efficiency (BEE). These norms require automakers to calculate their carbon emissions for their entire fleet of vehicles and mandate manufacturers to enhance fuel efficiency significantly, with targets set for a 30% reduction in carbon emissions over the next three years.


These penalties highlight a critical point: the automotive industry must evolve or risk facing severe financial repercussions. As noted in industry analyses, disruptive technologies are key to driving this sustainability agenda within India’s auto sector, pushing manufacturers to invest in cleaner technologies and alternative fuels beyond just electric options. 


The transition to sustainable mobility is not solely about electrification; it encompasses a broader range of strategies to reduce emissions across the board. Leading two-wheeler manufacturers such as Hero MotoCorp, Bajaj Auto, and TVS Motors are planning to introduce flex-fuel models by 2024, showcasing a commitment to diversifying fuel options and reducing dependency on fossil fuels. Similarly, Maruti Suzuki is developing vehicles powered by biogas, aiming for carbon neutrality in India by 2070 while addressing urban pollution challenges.


As India navigates its path towards sustainable mobility, automotive manufacturers must rise to meet these challenges head-on. The combination of stringent regulations, consumer awareness, and technological innovation presents an opportunity for the sector to redefine its legacy from being a significant polluter to becoming a leader in sustainability.


The transition will not be without its hurdles—balancing emissions reduction with affordability remains a critical concern. However, companies embracing sustainability demonstrate that they can lead to market leadership rather than disadvantage. The future of the Indian automotive industry hinges on its ability to innovate and adapt; after all, in an era where every gram of CO2 counts, it’s time for manufacturers to accelerate their efforts toward cleaner alternatives.


The BRSR Barometer Findings in the Automotive Sector

Chart depicting 2023 automotive ESG benchmarks with environmental, social, and governance metrics. Includes company and revenue data.

The BRSR Barometer 2023 report analyzed 44 BRSR reports from automotive companies - 32 companies from NIC Code 29 (Manufacture of motor vehicles, trailers, and semi-trailers) and 12 companies from NIC Code 30 (Manufacture of other transport equipment comprising the automotive sector). 


Environmental Metrics:


Scope 1 and 2 Emissions

The BRSR Barometer 2023 report finds that the median Scope 1 and 2 emissions intensity by revenue was 9.78 tCO2e. This means that for every crore of revenue generated, the automotive industry produced approximately 9.78 tons of CO2 equivalent emissions. 


Scope 1 emissions for the automotive industry arise from multiple sources. These emissions are directly linked to the combustion of fossil fuels during the manufacturing of vehicle components such as engines and frames. Additionally, transportation of parts and finished vehicles—running on gasoline or diesel—between production facilities, manufacturers, and distributors contributes significantly to Scope 1 emissions. Other sources include fleet vehicles used by employees for business purposes and emissions generated by suppliers that produce vehicle parts through processes like metal forging and plastic molding. Furthermore, service vehicles used for customer service operations or repairs, along with emissions from equipment and processes in R&D activities, such as testing engines or materials involving combustion processes, also contribute to the overall Scope 1 emissions.


Indirect emissions, or Scope 2 emissions arise from the electricity consumed during manufacturing, often come from plants that burn fossil fuels for energy. The report points out that the median energy intensity by revenue for the automotive sector was 63 GJ/Cr. 


This primarily arises from the industry’s reliance on non-renewable energy sources for electricity generation. In fact, on average, only 11% of the total energy consumed by the sector was renewable and 28 companies (of the 44 analyzed) reported an increase in energy consumption from renewable sources compared to the previous year. 


A majority of Scope 2 emissions for the industry come from HVAC systems and automated assembly lines that require substantial amounts of energy to operate robotic machinery. Additional sources include equipment used for welding and painting vehicles, as well as general electricity usage within facilities such as lighting and equipment operation. Recognizing these areas is crucial for automotive companies aiming to transition towards more sustainable practices.


In October 2018, Škoda Auto installed a 1 MW solar carport at their manufacturing facility in Aurangabad, Maharashtra, expecting to generate 1,475 MWh/year, which would meet over 30% of the facility’s annual energy consumption and reduce 922 tCO2e/year. In December 2019, Škoda commissioned 8.5 MW of solar rooftop systems at their Pune plant, anticipating a total of 12.2 MWh/year, meeting approximately 15-20% of the facility's annual electricity requirement. The combined technical capacity of these two plants stands at 9.4 MWp, projected to save around 10,000 tCO2e/year.


Similarly, Maruti Suzuki is investing in renewable energy initiatives. Earlier in 2024, they allocated Rs 120.8 Cr towards renewable energy projects, including a biogas facility within its Manesar plant that will utilize food waste and Napier grass as resources—aligning with the Ministry of New and Renewable Energy’s ‘Waste to Energy’ program. Alongside two greenfield manufacturing sites in Kharkhoda, Haryana, and Gujarat, this pilot biogas facility is engineered to generate 0.2 tonnes of biogas daily, expecting an output of approximately 100,000 standard cubic meters of biogas in FY25 and mitigating around 190 tCO2e/year. Maruti Suzuki's solar capacity for 2024 stands at 43.2 MWp, with plans to add 15 MWp at the Manesar facility and 20 MWp at the upcoming Kharkhoda facility within two years—aiming for a total solar capacity of 78.2 MWp by FY2026.


These initiatives highlight how automotive companies are increasingly investing in renewable energy solutions as part of their commitment to sustainability and reducing their carbon footprint across operations, further reducing their Scope 2 emissions. 


Scope 3 Emissions

The BRSR Barometer 2023 report goes on to highlight that Scope 3 emissions accounted for a staggering 91.09% of the total emissions when combined with Scope 1 and 2 emissions in the automotive industry.


Scope 3 emissions are indirect emissions that occur in a company’s value chain, both upstream and downstream. In the automotive sector, these emissions arise from various activities that are not directly controlled by manufacturers but are nonetheless integral to the overall environmental impact of their operations.


From the industry’s upstream emissions, the production of raw materials such as steel, aluminum, plastics, and rubber contribute significantly as they include energy-intensive processes in extracting and processing these materials often relying on fossil fuels, leading to a high carbon footprint. Another contributor to the upstream emissions for the auto industry is the transportation of raw materials to the manufacturing site. For instance, the production of aluminum can contribute between 10% to 20% of emissions for electric vehicles (EVs), while steel can account for 15% to 20%


The largest share of Scope 3 emissions comes from the use phase of vehicles sold by manufacturers, including the emissions from fuel combustion in internal combustion engine (ICE) vehicles and electricity consumption in EVs during their operational life. For example, private cars and vans generate about 10% of energy-related carbon emissions globally. 


When we look at EVs, the production of lithium-ion batteries is highly energy-intensive, accounting for a substantial portion of the total lifecycle emissions of an EV. The vast majority of lithium-ion batteries—about 77% of the world’s supply—are manufactured in China, where coal is the primary energy source. (Coal emits roughly twice the amount of greenhouse gases as natural gas, another fossil fuel that can be used in high-heat manufacturing.) Studies estimate that battery manufacturing can generate between 40% to 60% of the total production emissions for electric vehicles, depending on various factors such as battery size and production location. Another point to note is that approximately 50% of the emissions from the battery lifecycle come from the electricity consumed during battery manufacturing and assembly. 


Emissions associated with the disposal and recycling of vehicles at the end of their life cycle also contribute to Scope 3 totals. The processes involved in dismantling, recycling, or landfilling can release greenhouse gases if not managed properly.


To effectively address these challenges associated with Scope 3 emissions, automotive companies must adopt comprehensive strategies that encompass their entire value chain. This includes engaging suppliers, optimizing logistics, and promoting sustainable practices throughout their operations.


Mahindra and Mahindra Ltd has set ambitious targets to tackle Scope 3 emissions as a part of its broader sustainability strategy. The automaker aims to reduce its Scope 3 emissions by 30% per sold product unit by 2033, and reduce its Scope 1 and 2 by 47% per equivalent product unit by 2033, both using 2018 as the base year, under its SBTi commitment. As a pioneer in the Indian EV market, Mahindra promotes electric mobility through initiatives like the EV100 initiative, which seeks to create a conducive environment for electric vehicle adoption. By 2021, Mahindra-manufactured EVs had saved over 29,500 MTCO2e. 


NITI Aayog has developed a Circular Economy Action Plan specifically for lithium-ion batteries (LIBs) used in electric vehicles (EVs), focusing on sustainable production, recycling, and disposal methods. This plan is essential for mitigating Scope 3 emissions associated with the entire battery lifecycle. The plan emphasizes the need for environmentally friendly practices in manufacturing lithium-ion batteries, minimizing energy consumption during production, and localizing the supply chain for crucial minerals like lithium, cobalt, and nickel to reduce reliance on imports. A significant focus is placed on establishing robust recycling frameworks for end-of-life batteries outlining strategies for collecting used batteries from consumers and dealers and safely transporting them to registered recyclers. 


In addition, the introduction of the Battery Waste Management Rules (BWMR) in 2022 mandates extended producer responsibility (EPR), holding manufacturers accountable for collecting and recycling used batteries. 


Addressing Scope 3 emissions is critical for automotive companies aiming to enhance their sustainability profiles. By implementing comprehensive strategies such as setting ambitious reduction targets, promoting electric mobility initiatives like those undertaken by Mahindra & Mahindra, and supporting regulatory frameworks like NITI Aayog's Circular Economy Action Plan for lithium-ion batteries, these companies can significantly mitigate their overall carbon footprint. As they work towards these goals, collaboration across the entire value chain will be essential for achieving meaningful reductions in Scope 3 emissions and contributing positively to global climate goals.


Water Consumption:

The BRSR Barometer 2023 report reveals that the median water consumption in the automotive industry was 63.8 KL/Cr (kiloliters per crore of revenue). This figure highlights the significant volume of water utilized in various processes, from manufacturing operations to vehicle assembly. This underscores the need for automotive companies to adopt more sustainable water management practices, especially in a country like India, where water scarcity is becoming an increasingly pressing issue.


In the automotive sector, water consumption is a critical concern due to its extensive use in various manufacturing processes. The painting department is the largest consumer of water, accounting for nearly half of total water usage. This includes water used for surface preparation, cleaning booths before painting, and the actual spraying process. For instance, a typical coating operation can require thousands of liters of water each week for cleaning and maintenance of equipment.


Additionally, processes like phosphate treatment and surface rinsing for metal finishing operations are notorious for their high water consumption requirements, as thorough cleaning and treatment are essential to ensure optimal adhesion of coatings. Another significant source of water consumption is through cooling systems, which regulate temperatures in machinery and equipment during production. Water is also used for washing vehicles and components at various stages of production, including rinsing off contaminants from parts before assembly and cleaning vehicles after manufacturing.


It’s interesting to note that the majority of the water consumption for both electric vehicles (EVs) and traditional internal combustion engine vehicles (ICEVs) comes from fuel production rather than the manufacturing process itself. For ICEVs, about 72% of water use is attributed to fuel extraction and refining. In contrast, for EVs, approximately 82% of water usage is linked to electricity generation. This indicates that the source of electricity plays a crucial role in determining the total water footprint of electric vehicles. Moreover, a study suggests that the lithium needed for a 64 kWh battery would require some 3,840 liters of water.


Honda Cars India has implemented various water conservation strategies, including rainwater harvesting at its manufacturing plants including capturing runoff from factory roofs, and establishing advanced wastewater treatment facilities to ensure that the water used in production processes is treated and recycled effectively - both the treated water and the rainwater are used for landscaping and other non-potable purposes, reducing freshwater intake and minimizing wastewater discharge. 


Moreover, the company has established specific targets for reducing water consumption per vehicle produced and regularly monitors its progress towards this, by focusing on efficiency improvements and optimizing water usage in various processes. 


As the automotive industry continues to grow in India, addressing water consumption through sustainable practices becomes increasingly vital. By implementing effective strategies like those seen at Honda Cars India, automotive manufacturers can significantly reduce their environmental impact while ensuring compliance with regulatory standards. These efforts not only contribute to resource conservation but also support community resilience against ongoing challenges related to water scarcity. 


Waste Management

The BRSR Barometer 2023 report highlights critical insights into waste management practices within the automotive industry, revealing a median waste intensity of 1.36 MT/Cr (metric tons per crore of revenue.) 


In the automotive sector, waste generation is a significant concern due to the extensive materials used throughout production. The median waste intensity of 1.36 MT/Cr indicates that for every crore of revenue generated, approximately 1.36 metric tons of waste are produced. This waste can include scrap metal, plastics, packaging materials, and other by-products from manufacturing operations. 


The automotive industry generates waste from various processes throughout the manufacturing process. Metal stamping and machining processes produce significant scrap metal and shavings from the cutting, shaping, and forming components. There’s the painting process requiring cleaning solvents, paint booth filters, and changeovers between different paint types. Waste from lead-acid batteries and lithium-ion batteries contain hazardous materials that require special handling and recycling processes. The transportation of finished vehicles requires cardboard, foam, plastic wraps, etc. In routine maintenance activities, there’s waste, such as used oils, lubricants, and coolants. At the end-of-life vehicles, there’s auto shredder residue (ASR) resulting from the dismantling and shredding operations consisting of non-recyclable materials such as plastics, foams, and rubber; In fact, ~25% of a vehicle's weight is typically disposed of as ASR after recycling efforts. 


Tata Motor’s Re.Wi.Re Vehicle Scrapping Facility is one of India's first registered vehicle scrapping facilities, known as Re.Wi.Re - Recycle with Respect. This facility is designed to address the inefficiencies associated with end-of-life vehicle (ELV) management and to promote sustainability practices in the automotive sector. The facility employs environmentally friendly processes for dismantling vehicles, ensuring that hazardous materials such as batteries, oils, and gases are disposed of safely, and has the capacity to dismantle 21,000 vehicles annually, significantly contributing to responsible ELV management. Their new Pune facility is the sixth location, joining existing facilities in Jaipur, Bhubaneshwar, Surat, Chandigarh, and Delhi NCR. It has specialized de-pollution stations that systematically remove hazardous substances from vehicles before dismantling to ensure compliance with environmental regulations and mitigate the risk of pollution from discarded vehicles.


Automotive companies in India are also increasingly implementing Extended Producer Responsibility (EPR) for plastic waste as part of their commitment to sustainable practices and environmental compliance. EPR is a policy approach that holds producers accountable for the entire lifecycle of their products, including waste management and recycling. The Indian Ministry of Environment, Forest and Climate Change (MoEFCC) has established regulations that require producers, importers, and brand owners (PIBOs) to manage plastic waste generated from their products. These regulations mandate that automotive companies implement systems for collecting and recycling plastic packaging waste. This includes registering with centralized EPR portals to report and track their waste management efforts. 


To support initiatives like the Extended Producer Responsibility, Mahindra Accelo collaborates closely with the state transport department to enforce vehicle scrapping policies required to implement incentives and certifications that encourage consumers to responsibly scrap old vehicles. Recognizing that a significant portion of vehicle dismantling occurs in the informal sector, Mahindra Accelo is involved in training informal dismantlers to adhere to environmental and safety standards. This initiative aims to improve waste-handling practices across the industry and promote a more sustainable approach to vehicle disposal. 


The insights from the BRSR Barometer 2023 report highlight the pressing need for effective waste management strategies within the Indian automotive industry. With a median waste intensity of 1.36 MT/Cr, addressing this challenge is crucial for promoting sustainability and reducing environmental impact. Initiatives like Tata Motors’ Re.Wi.Re facility and the adoption of Extended Producer Responsibility demonstrate a commitment to responsible waste management practices. By fostering collaboration between manufacturers, policymakers, and informal sectors, the automotive industry can enhance its sustainability efforts while contributing positively to environmental conservation. As these trends continue to evolve, they will play an essential role in shaping a more sustainable future for the automotive sector in India.


Social Metrics:

Female:Male Employee Ratio

The median Female:Male Employee Ratio in the automotive industry is 0.06, and the overall median (for those sectors that were analyzed), is 0.09. The low female participation in this sector can be attributed to several interrelated factors that have historically contributed to gender disparity in this field.


The automotive sector has traditionally been viewed as a male-dominated field, often associated with engineering and technical roles that have historically not been as accessible or welcoming to women. This cultural perception and socio-cultural barriers, and prevailing stereotypes about gender often dissuade women from pursuing careers that require STEM (Science, Technology, Engineering, and mathematics) which are crucial for careers in such industries, and there’s also a notable gap in access to skill development programs tailored for women. Structurally, although there has been a growing recognition of the need for gender equality, existing policies often lack robust support for women’s employment in the automotive sectors. 


However, looking at the current trends - technological advancements, targeted recruitment initiatives, supportive workplace policies, the burgeoning focus on the EV sector, and commitment to Gender Diversity Goals is slowly but surely bringing around this change. 


The adoption of advanced technologies such as robotics, automation, and precision handling has opened up new roles that are more accessible to women. Companies like Tata Motors have established all-women assembly lines, notably for their Harrier and Safari SUVs, employing around 1,500 women at their Pune plant. This shift not only enhances operational efficiency but also promotes female representation in technical roles, setting role models in the traditionally male-dominated positions. 


Major automotive firms are actively pursuing gender diversity by setting ambitious targets for female hires. For instance, Hero MotoCorp aims to increase its female workforce to 30% by 2030, focusing on recruitment drives specifically aimed at attracting women into technical and managerial roles. This proactive approach is critical for changing the gender dynamics within the industry. 


The automotive sector is also collaborating with educational institutions to encourage women to pursue careers in STEM fields. Recent data shows that about 30% of new hires in design roles from colleges are women, reflecting a concerted effort to attract female talent into technical positions. This collaboration is vital for building a pipeline of skilled female professionals who can contribute to the industry.


The burgeoning EV sector presents unique opportunities for women, with projections indicating that women's participation in this workforce could reach 50% by 2030-33. As the industry evolves towards sustainable mobility solutions, women are increasingly stepping into roles related to product development, technology innovation, and research within the EV ecosystem. 


The Indian automotive industry is undergoing a transformative phase aimed at increasing female participation through strategic initiatives, supportive policies, and a focus on technological advancements. By fostering an inclusive environment that encourages women's contributions across all levels—from shop floors to leadership positions—the industry can not only enhance gender diversity but also drive sustainable growth and innovation in a competitive market. 


Female:Male Wage Ratio

The median Female:Male Wage Ratio in the automotive industry is 0.09, and the overall median (for those sectors that were analyzed), is 0.92, indicating that women earn only 9% of what their male counterparts earn on average in the automotive industry. 


There are several factors that contribute to this - the automotive industry has long been male-dominated, with cultural norms and biases leading to the undervaluation of women’s work, resulting in women being concentrated in lower-paying roles, often with less access to opportunities for advancement. Women are often underrepresented in higher-paying technical and managerial roles due to lack of encouragement to pursue STEM careers, reflecting in the low number of women supervisory or executive positions, where the wages are typically higher. The sector also faces unique challenges such as a high prevalence of temporary or contract jobs among female workers, which often comes with lower ages and fewer benefits compared to permanent positions.


To address these, companies like Tata Motors has initiated measures to conduct regular audits of pay practices to identify and rectify disparities between male and female employees. Programs like Hero MotoCorp’s ‘women in leadership’ initiative aims to empower women through mentorship and training, enabling them to ascend into higher-paying roles. 


The Indian automotive industry is undergoing a transformative phase aimed at increasing female participation through strategic initiatives and supportive policies while addressing wage disparities through targeted measures. By fostering an inclusive environment that encourages women's contributions across all levels—from shop floors to leadership positions—the industry can enhance gender diversity while driving sustainable growth and innovation in a competitive market. As these trends continue to evolve, they will play a crucial role in reshaping the industry's workforce dynamics and ensuring equitable opportunities for all employees.


Governance Metrics

The Indian automotive industry is increasingly recognizing the importance of sustainability, with 75.68% of companies reporting research and development (R&D) expenditures on technologies that have positive social and environmental impacts. Additionally, 42.39% of companies have made capital expenditures related to sustainability. These trends reflect a significant shift in the industry's approach towards integrating sustainable practices into their operations and product offerings. 


R&D Investments in Sustainable Technologies

Focus on Electric and Hybrid Vehicles:

A substantial portion of R&D spending is directed towards the development of electric and hybrid vehicles. Companies like Tata Motors and Mahindra Electric are investing heavily in electric mobility solutions, which not only reduce greenhouse gas emissions but also align with global trends towards cleaner transportation. For instance, Tata's Nexon EV has gained popularity as a sustainable alternative in the passenger vehicle segment.


Advanced Emission Control Technologies:

Indian automotive manufacturers are investing in advanced emission control technologies to comply with stringent Bharat Stage VI (BS-VI) norms. This includes research into catalytic converters and particulate filters that significantly reduce harmful emissions from vehicles. The transition to BS-VI standards is a critical step towards improving air quality and reducing the environmental footprint of the automotive sector.


Sustainable Materials Development:

R&D efforts are also focused on developing sustainable materials for vehicle production, such as bio-based plastics and recycled materials. Companies are exploring ways to reduce reliance on conventional materials that contribute to environmental degradation. For example, Maruti Suzuki has initiated projects to incorporate recycled materials into their vehicle manufacturing processes.


Capital Expenditures Related to Sustainability:

Infrastructure for Electric Vehicles:

A significant portion of capital expenditures is being allocated towards building infrastructure for electric vehicles, including charging stations and battery swapping facilities. The government’s push for electric mobility is complemented by investments from companies like Bajaj Auto, which is expanding its EV charging network across urban areas.


Sustainable Manufacturing Practices:

Many automotive firms are investing in sustainable manufacturing practices aimed at reducing waste and energy consumption. For instance, Hyundai Motor India has implemented energy-efficient technologies in its manufacturing plants, resulting in reduced carbon emissions and operational costs.


Green Supply Chain Initiatives:

Companies are increasingly focusing on greening their supply chains by partnering with suppliers who adhere to sustainable practices. This includes sourcing materials from eco-friendly suppliers and implementing waste reduction strategies throughout the production process. Initiatives like this not only enhance sustainability but also improve overall supply chain resilience.


The commitment of the Indian automotive industry to invest in R&D for technologies with positive social and environmental impacts, along with significant capital expenditures related to sustainability, indicates a transformative shift towards more responsible manufacturing practices. By prioritizing electric mobility, advanced emission control technologies, and sustainable materials, companies are not only addressing regulatory requirements but also responding to consumer demand for greener vehicles. This proactive approach positions the industry for long-term success while contributing positively to environmental conservation and social responsibility. As these trends continue to evolve, they will play a crucial role in shaping a more sustainable future for the automotive sector in India.


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