With new requirements on the horizon, the Indian government is challenging OEMs to improve their fuel efficiency averages. An increase of 14% in mileage is slated to occur between 2016 and 2017, which is coupled with a fleet average emissions target of 130g/km. A further 38% increase in fuel efficiency is required across the following five years.
According to Thalavai Venkatesan, Head of Diesel & Gasoline Programmes, Engine Management Systems, Continental, these targets are driving the adoption of a number of powertrain technologies.
Speaking ahead of his appearance at Automotive Megatrends India, Venkatesan described Continental’s approach in the Indian market, with specific attention on the adoption of technologies during 2016.
What are the major powertrain technologies for India’s market?
Downsizing and turbocharging are perhaps the most important. Aside from those, the electrification technologies used in electric vehicles (EVs) and hybrid electric vehicles (HEVs) are also witnessing growing attention. Many people are interested in enhancing overall fuel efficiency using electrification. Our focus here is with the 48-volt (48-v) system.
Despite the issues surrounding electrification, like lacking charging infrastructure and battery costs, we see potential in the segment. Continental is confident that the 48-v system is gaining momentum, primarily as it helps to achieve the ever-tightening fuel efficiency targets.
Is there a timescale of adoption for these technologies?
EV and HEV technologies are already seeing limited adoption, and turbochargers matched with downsized engines are quite popular. But we think it’s likely that turbocharging will get even more popular in India before electrification takes hold.
There is an ongoing discussion at Continental as to whether we should hone our efforts in the gasoline direct injection (GDI) turbocharging area, or focus on 48-v technology. The investment required for the later is higher, but we think it is a reasonable option, especially if the battery technology is made available.
What is the Indian government interested in?
The Indian government is actually focused heavily on helping develop battery technology now. Investment is steady, and there are strong partnerships with the defence industry and the Indian Space Research Organisation (ISRO). They want to make lithium-ion battery (LiB) technology a more viable option, as well as simultaneously adding more value to the Indian automotive and technology market.
As a combination, I think this will make electrification pop up all across India. Some of our market leaders have already introduced certain technologies for the automotive market, though there hasn’t been a complete 48-v system yet. This is where we hope to step in.
Do Indian consumers want these technologies?
The majority of cars in India are operating in megacities, so this is where the technologies really need to work. But I think OEMs want their technologies to penetrate all across the country, in tier two cities too. Therefore, growing urban population isn’t the most important trend.
The two most important ones are probably fuel efficiency and value for money. Companies must hit the right balance between the two. All the OEMs have realised this, and are acting accordingly by adopting technologies.
The powertrain technologies that Continental are developing for the Indian market are heavily related to fuel economy, but also tick the value for money box. We believe that these are among the first factors that consumers consider when buying a new car. On all the television adverts, you can see that every OEM is trying to publicise and attract people by highlighting their fuel-efficient models.
Power and torque is secondary, but at the same time, I think India’s consumers desire a vehicle that drives well. They’re also far more interested in the infotainment systems. People want more functions and features. So, with value for money in mind, the Indian consumer wants to have the full package – a fuel-efficient vehicle that is good to drive, with up-to-date infotainment systems. This way of thinking is getting increasingly common, and we need to learn from it.
In which segment does Continental expect to see growth?
For us, one of the most important trends at the moment is the persistently good growth in gasoline technologies. With the current legislation in place, diesel is not subsidised, and sales of gasoline vehicles are going strong.
People are also moving towards upper class vehicles – the B segment is the best seller.
With 2016 in mind, turbocharging is going to be a major area of concentration for Continental. The 48-v system will come into play later, maybe in 2018.
Michael Nash
