Lessons from space can help Indian auto leap ahead, says Pawan Goenka

Time of India

18 hours ago

As India races towards an electric mobility future, industry veteran
Dr Pawan Goenka
, Chairman of
IN-SPACe
and former Managing Director of
Mahindra & Mahindra
, believes the road ahead must begin with a fundamental transformation of India's automotive supply chain — starting with localising high-quality component manufacturing.
'In EVs, low-hanging fruits are already picked. We need to reach higher now,' Goenka told ET Manufacturing at the sixth edition of the Auto Tech Summit. 'India simply cannot afford to lag in developing capabilities for all major EV components — battery packs, motors, controllers, chargers, power electronics — everything. Today, the challenge isn't talent or ambition. It's scale.'
Despite the emergence of hundreds of Tier-1 and Tier-2 suppliers across the country, Indian manufacturers still depend heavily on imports for several critical components, especially motors and advanced battery systems in the four-wheeler segment. Goenka pointed out that although battery pack assembly is now being done locally by most OEMs, large-scale motor manufacturing for electric cars remains elusive. 'Three-wheeler and two-wheeler motors are made here, but four-wheeler motors are still being imported. That must change,' he said.
The Indian auto component industry recorded its highest-ever revenue of ₹5.6 lakh crore in FY24, according to the Automotive Component Manufacturers Association (ACMA), representing a 14.6 per cent year-on-year growth. The country also exported components worth $20.3 billion during the same period, showing India's competitiveness in global supply chains. But growth, Goenka said, is being held back by fragmentation and lack of scale. 'Multiple suppliers catering to small volumes means no one achieves efficiency. What's needed now is collaboration among OEMs — not competition — in sourcing key EV components. That's how we built scale in
ICE
vehicles over 25 years. We need to do the same for EVs.'
He also warned OEMs not to regress to a 1990s mindset — prioritising short-term margins over long-term capability building. 'This is the time to push the supplier ecosystem forward, not cut corners,' he said.
Space-age lessons for automotive scale
Goenka's transition from the automotive sector to leading India's space commercialisation push has only reinforced his perspective on building ecosystems. 'Every sector change is an opportunity to learn and contribute. When I moved from cars to space, the technology complexity was staggering. But what I brought from automotive — supplier development, manufacturing discipline, ecosystem thinking — proved very useful.'
He noted that while technology is unlikely to flow from automotive into space due to complexity gaps, process innovations certainly can. 'Space manufacturing today operates in batch mode. Automotive has mastered continuous flow. That's a mindset we can apply in space to scale faster,' Goenka said.
India's space sector is also witnessing a parallel shift. Since the opening of the space economy to private players in 2020, over 190 space-tech startups have emerged in India, with investments crossing ₹1,000 crore in the past 24 months, as per IN-SPACe estimates. The ambition now is to grow India's share in the global space economy from the current 2 per cent to 10 per cent in the next decade — a leap that would require ecosystem-level thinking similar to what the automotive industry experienced two decades ago.
Conversely, the automotive sector can stand to gain a lot from aerospace — if cost barriers are cracked. Technologies like advanced sensors, gyroscopes, anti-vibration systems, and thermal insulation, which are critical in space missions, could be translated into automotive use cases — particularly safety — if frugally engineered. 'The real challenge is bringing those costs down by removing unnecessary features and localising production. Institutions like ARAI could play a key role in bridging that gap,' he noted.
Road Safety: A Cultural Imperative
When asked about safety — especially for India's vulnerable two-wheeler users — Goenka acknowledged that while vehicle safety has improved drastically, the deeper issue lies elsewhere. 'Ten years ago, Indian cars weren't safe. Today, thanks to Gadkari's push, our norms match global standards. But the bigger problem is behaviour — lack of discipline on roads, refusal to wear helmets, disregard for rules. That's where we are failing.'
India accounted for nearly 1.68 lakh road accident deaths in 2022, with two-wheelers involved in over 44 per cent of fatal crashes, according to
Ministry of Road Transport
and Highways data. Despite improved crash-test regulations and the proliferation of safer cars, India still leads the world in road fatalities.
Goenka was blunt in his criticism: 'Educated people not wearing helmets — what could be more foolish? You're risking your life for what? There's no excuse. It's not a technology issue; it's a societal one.'
EV Adoption: From promise to pragmatism
Goenka was candid about the electric vehicle (EV) adoption journey in India. 'Three-wheelers led the charge because it made direct economic sense — more earnings, lower running costs. Mahindra's Treo helped create that ecosystem. Two-wheelers followed due to aggressive startup activity and affordability. But four-wheelers and commercial vehicles? OEMs just didn't back them early enough.'
He believes momentum is finally picking up, thanks to improving products and falling battery costs. The average price of lithium-ion cells dropped by nearly 14% in 2023 globally, according to BloombergNEF, making EVs more competitive with ICE vehicles. 'New launches like the Tata BE.9, Maruti's eVX, and upcoming Korean models are changing the landscape. Once these vehicles become mainstream, adoption will accelerate. I drive a BE.9 myself — it's a joy. Costs ₹2 per km to run, compared to ₹17 for petrol. I took it to Pune and back without charging — range anxiety is no longer a real issue.'
India's overall EV penetration stood at around 6.4 per cent in FY24, led primarily by electric two-wheelers and three-wheelers, which together account for nearly 90% of total EV sales. The passenger car EV segment, while growing, still forms only about 2 per cent of the total car market.
Goenka expects this to change steadily: 'Let's not expect miracles. I would cautiously say 10 per cent penetration for EV four-wheelers by 2030 is achievable — provided manufacturers continue to launch compelling products and maintain pricing discipline.'
He also dismissed the often cited charging infrastructure concern. 'Range has gone up so much that charging at home is enough for most use cases. Public chargers are growing anyway. That challenge is mostly behind us.'
From space-grade safety principles to coordinated localisation in EVs, Dr Goenka's central message is clear: India must stop thinking small. Whether it's components, scale, or vision, the next phase of Indian mobility will demand more collaboration, deeper innovation, and unwavering focus on long-term value.