Kerala targets EV investments to build automotive tech hub

The southern Indian state of Kerala is actively pursuing investments in electric vehicle (EV) manufacturing from both domestic and international companies, while simultaneously working to establish its capital city, Thiruvananthapuram, as a hub for automotive technology. This ambitious initiative aims to capitalize on Kerala’s existing leadership in EV adoption and further strengthen its position in the rapidly evolving automotive industry.

Kerala’s Industries Minister, P Rajeeve, highlighted the state’s prominent position in EV sales, stating, “In the EV sector sale, Kerala is number one. We have created an ecosystem and a mechanism for e-charging.” This achievement serves as a foundation for the state’s broader aspirations in the EV manufacturing sector.

Minister Rajeeve revealed ongoing discussions with various companies, both from within India and abroad, to establish manufacturing units in Kerala. He specifically mentioned that Mahindra, a major Indian automobile manufacturer, was scheduled for talks in the coming week. These discussions underscore Kerala’s commitment to attracting diverse investments in the EV manufacturing space.

The minister’s statements were made during a roadshow in Chennai, part of the build-up to Kerala’s Global Investors Meet scheduled for February next year. This event is expected to serve as a platform for showcasing Kerala’s potential in the EV and automotive technology sectors to a global audience.

Acknowledging the state’s geographical and infrastructural constraints, Minister Rajeeve noted that while large-scale automobile manufacturing facilities might not be feasible for Kerala, the state is well-positioned to support the development of automotive technology. This strategic focus aligns with Kerala’s strengths in human resources and its established reputation in the technology sector.

Kerala’s push towards becoming an automotive technology hub is timely, considering the broader trends in the global automotive industry. Industry projections suggest that by 2030, nearly all new vehicles will feature connectivity, with approximately 60% equipped with autonomous driving capabilities. Electric vehicles are expected to constitute 35% of vehicle sales by that time.

However, the increasing connectivity in vehicles also brings heightened cybersecurity risks. To address these challenges, the automotive industry is evolving its cybersecurity practices. Strategies being developed include securing external communications, enhancing in-vehicle network security, and fortifying Electronic Control Units (ECUs) to ensure the safety and reliability of connected and autonomous vehicles.

In parallel with these industry trends, educational institutions are playing a crucial role in preparing the workforce for the future of manufacturing. The Indian Institute of Science (IISc) in Bangalore, for instance, has introduced an Advanced Certification Programme in Digital Manufacturing and Smart Factories. This program, developed in collaboration with TalentSprint, aims to bridge the skills gap in Industry 4.0 technologies. It combines theoretical knowledge with practical applications, equipping participants with the necessary expertise to navigate the evolving landscape of digital manufacturing and smart factories.

Kerala’s initiative to transform Thiruvananthapuram into an automotive technology hub aligns well with these broader industry and educational trends. By focusing on automotive technology rather than large-scale manufacturing, Kerala is positioning itself to leverage its existing strengths in human resources and technology infrastructure.

The state’s proactive approach in creating an ecosystem for EV adoption, coupled with its efforts to attract investments in EV manufacturing and automotive technology, demonstrates a comprehensive strategy to participate in and benefit from the ongoing transformation of the automotive industry. As the sector continues to evolve with advancements in electric vehicles, connectivity, and autonomous driving technologies, Kerala’s initiatives could potentially establish it as a significant player in the automotive technology landscape of India and beyond.