Trontek has established itself as a versatile and customer-centric player in the industrial and consumer infrastructure markets, addressing a broad spectrum of needs. With a focus on innovation and adaptability, the company is currently expanding its battery devices business beyond domestic borders, aiming to develop new ventures and foster a robust network of satisfied clients in the power industry.
In the automotive battery segment, Trontek supplies lithium-ion batteries with a proven track record, catering to a diverse range of vehicle models, including plug-in hybrids and electric vehicles. For industrial applications, the company continues to strengthen its reputation by offering advanced EV charging stations, points, and chargers, alongside high-efficiency battery systems integrated with solar technology.
In a recent interview, Abdullah interacted with Samrath Singh Kochar, Founder and CEO, Trontek in which he discussed about traditional OEMs implementing to transition from internal combustion engines to electric vehicles, partnerships and collaborations with tech companies and battery manufacturers playing in helping OEMs navigate the EV market, traditional OEMs balancing their existing product lines while investing in and developing new EV models, challenges traditional OEMs facing in terms of EV manufacturing infrastructure compared to newer EV-only companies, traditional automotive companies adapting their sales and after-sales service models to cater to EV customers, innovations in vehicle design and performance are traditional OEMs adopting to remain competitive in the evolving EV market.
1. What strategies are traditional OEMs implementing to transition from internal combustion engines (ICE) to electric vehicles (EV)?
Traditional Original Equipment Manufacturers (OEMs) are expediating their shift from internal combustion engines to ((ICE) to EVs through multifaceted strategic innovations. The initial transition requires global OEMs to juggle their product portfolios including ICE, electric batteries, hybrid, and plug-in hybrid vehicles -which requires seamless integration of designs and manufacturing processes to handle any complexity efficiently and cost-effectively.
OEMs have adjusted to market demands by securing collaborations with battery specialists, ensuring high-performance, safe, and sustainable battery solutions that will enhance EV ranges and meet consumer expectations. The winners in this race will be those who can keep pace with the evolving technologies, adapt to consumer demand, and cut lead times.
Simultaneously, OEMs are investing heavily in areas like research and development to improve EV performance and safety, incorporating advanced solutions that are different from those of traditional models. They are also expanding their charging infrastructure, making ownership of EVs more convenient and reliable with access to fast charging and battery swapping stations.
With the right agility and process rebuilding, OEMs can set the stage for a smoother transition because the market for electric vehicles is growing immensely, according to a Bloomberg report, passenger EV sales are expected to cross 30 million by 2027.
Source-https://about.bnef.com/blog/electric-vehicle-sales-headed-for-record-year-but-growth-slowdown-puts-climate-targets-at-risk-according-to-bloombergnef-report/
2. What role are partnerships and collaborations with tech companies and battery manufacturers playing in helping OEMs navigate the EV market?
Partnerships and collaborations are the hidden assets for OEMs which can help them in navigating the competitive EV market. By teaming up with tech companies and battery manufacturers, OEMs can easily gain access to critical expertise and cutting-edge solutions allowing them to accelerate EV manufacturing.
The battery, after all, is the heart of an EV, and collaborations provide OEMs with high-efficiency batteries that deliver longer range, quicker charging, and robust safety features. Moreover, the demand for EV batteries reached more than 750 gigawatts per hour (GWh) in 2023, 40 % higher than in 2022, partnering with battery manufacturers would help OEMs tackle costs efficiently.
The partnerships will empower them to leverage advanced battery management systems and data analytics that can optimize battery health and longevity. They will also enable the creation of flexible supply chains and localized production hubs which will bring EVs closer to customers and build a self-reliant ecosystem.
Source-https://www.iea.org/reports/global-ev-outlook-2024/trends-in-electric-vehicle-batteries
3. How are traditional OEMs balancing their existing product lines while investing in and developing new EV models?
Traditional OEMs are skill-fully balancing their established product lines while giving a bold push into EV development, a dynamic shift that requires both strategic decision-making and innovative investment. In 2023, ICE-based vehicles still dominated the Indian market capturing 65% of its share, despite rising fuel costs, though it experienced a noticeable drop from 68% in 2022. Meanwhile, EV and hybrid car sales made a big leap, climbing from 1.8% to 4.3% in just a year.
Source-https://www.statista.com/statistics/1234230/india-share-of-car-sales-by-fuel-type/#:~:text=Share%20of%20car%20sales%20in%20India%202020%2D2023%2C%20by%20fuel%20type&text=In%20the%20year%202023%2C%20the,previous%20year%20to%204.3%20percent.
This shows that while ICE models constitute a major chunk of the vehicle market, OEMs have started electrifying their lineup. This dual-track strategy of maintaining their production line efficiency for the popular ICE model while also ramping up their EV innovation will keep them on a competitive edge in the market.
To balance this shift, OEMs are also increasingly partnering with EV manufacturers and battery providers to bring EV models into the market that can compete with ICE vehicles in terms of their longer range. Additionally, OEMs have started investing in modular platforms, which will enable them to adapt components across ICE and EV models, saving time and resources while balancing them efficiently.
4. What challenges are traditional OEMs facing in terms of EV manufacturing infrastructure compared to newer EV-only companies?
Traditional OMEs often find themselves at a crossroads when it comes to EV manufacturing infrastructure, facing unique challenges as compared to contemporary EV-only companies. With their legacy in ICE-based vehicles, OEMs navigate through hefty investments in their transition to EVs.For instance, in 2018, traditional OMEs launched around 100 new EV models globally, showcasing their commitment to market demands.
However, they often struggle to recoup the cost associated with EV production, which averages about USD 12,000 more than that of their ICE segments this directly makes their EV costly. In contrast to this, the newer EV companies typically enjoy economies of scale by focusing entirely on EV production and its technology, keeping their cost lower.
Source-https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/making-electric-vehicles-profitable
Another challenge lies in revamping their existing manufacturing plants designed for ICE vehicles for EV ones, which can be both time-consuming and resource-intensive. Unlike newer EV companies who have designed their operations around EV-specific needs, traditional OEMs grapple with the challenges of dual-line production and associated logistics complexities.
Additionally securing a reliable supply chain of advanced battery components is crucial, newer companies often forge direct collaborations with battery manufacturers, enhancing their agility in responding to market demands.
5. How are traditional automotive companies adapting their sales and after-sales service models to cater to EV customers?
Traditional automotive companies are actively reshaping their sales and after-sales services to expand them within consumer demands. Recognising the active proliferation of social media and online buying, many traditional companies have started incorporating digital tools and their presence on online platforms. According to a survey conducted by McKinsey, one in three consumers considered not only researching but purchasing their car online, emphasising speed and simplicity as the main drivers. This has prompted companies to optimise their service digitally and offer personalised experiences to consumers.
Source-https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/electric-vehicle-buyers-demand-new-experiences
In terms of after-sale services, traditional automotive companies are diverting their ways from conventional maintenance models to focusing on software updates and battery health maintenance which is extremely crucial for EV performance.
For instance- companies are implementing remote diagnostics to monitor vehicle performance which gives people roadside assistance and enhances consumer satisfaction. Battery charging stations are another key milestone by companies to lower range anxiety among consumers.
Moreover, the establishment of a dedicated EV service center equipped with expert technicians and providing video consultations have aided traditional automotive companies in meeting the unique needs of consumers and building brand loyalty.
6. What innovations in vehicle design and performance are traditional OEMs adopting to remain competitive in the evolving EV market?
To remain competitive in the evolving EV market, traditional OEMs are embracing a wave of innovations in vehicle design and performance that will enhance consumer satisfaction and efficiency. A key focus is the development of modular platforms that facilitate versatile designs across different vehicle types. This approach has reduced the production cost and enabled OEMs to respond quickly to changing consumer demands.
Investments in lightweight materials such as aluminium and advanced composites are also crucial. By reducing their vehicle weight, manufacturers can significantly improve energy efficiency and extend the driving range. With global electric light commercial vehicle (LCV) stock reaching approximately 4,35,000 units these advancements can easily put traditional manufacturers on a competitive edge .
Source-https://www.iea.org/reports/global-ev-outlook-2021/trends-and-developments-in-electric-vehicle-markets
Additionally, they have started adopting advanced battery management systems for battery longevity and to enhance battery health. For instance, lithium-ion batteries are becoming increasingly popular due to their high energy density and fast charging properties. According to Statista, the demand for lithium-ion batteries will increase almost seven-fold between 2022 and 2030. Furthermore, stringent protocols are established to ensure the reliability and safety of vehicles.
Source-https://www.statista.com/topics/2049/lithium-ion-battery-industry/#:~:text=It%20is%20projected%20that%20between,lithium%2Dion%20batteries%20for%20power.
7. How are legacy automakers addressing the concerns surrounding EV charging infrastructure and range anxiety for their customers?
Legacy automakers are tackling range anxiety and EV charging infrastructure with a blend of technology, partnership, and infrastructure expansion. To ease range concerns, automotive companies have assimilated a range of advanced battery technology, creating batteries that can store more energy and charge. They have also started rolling out a new range of EV batteries for instance lithium-ion, solid-state batteries that have abilities to provide more energy density and have a low discharge rate, therefore impacting the vehicles’s range and charging convenience.
Expanding charging infrastructure through installing multiple charging stations is another priority for automotive companies. As of 2024, India has only 12,146 EV charging stations which leads to the needs of its expansion. Automotive companies have started taking initiatives to install multiple charging stations along highways in residential as well as public areas easing EV mobility. They are also committed to ensuring that these stations are reliably operational and have enough equipment available for EV drivers.
Source-https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2003003
To further boost customers’ confidence, they have started developing navigation and AI-based predictive tools that can easily estimate ranges based on battery health and driving habits. Regenerative braking is another important step to ensure EV maintenance as it captures and recycles energy during deceleration thereby extending its range.
Lastly, partnerships with tech companies have helped in advanced connectivity and autonomous driving features, elevated the consumer experience
8. What regulatory changes and government policies are influencing traditional OEMs’ timelines for electrifying their vehicle fleets?
Government policies and regulatory shifts are rapidly accelerating traditional OEMs’ timelines for fleet electrification, especially in India where pro-Ev initiatives have already been taken. For instance, through Faster Adoption and Manufacturing (Hyrbid&) Electric vehicles (FAME I and II scheme ), the government has incentivised both EV manufacturing and adoption, followed by a GST reduction of 5 %. Additionally, EV buyers also benefit from an income tax exemption of up to INR 1.5 lakhs on interest for EV loans, making EVs an attractive and affordable deal.
Source -https://pib.gov.in/PressReleseDetail.aspx?PRID=1577407®=3&lang=1
For traditional OEMs, these policies are offering a valuable push to enter into a competitive market. With eased regulations on EV charging standards, relaxed licensing for charging stations, and capped tariffs, OEMs can confidently invest in manufacturing as well as expansion of EVs.
9. How are traditional OEMs repositioning their brand image to align with the growing demand for eco-friendly, sustainable vehicles?
Traditional OEMs are revamping their brand image to resonate with present-day consumers, who are eco-conscious and opt for sustainable vehicles. According to a survey conducted by Accenture, 64% of the respondents want their next vehicles to be sustainable and clean like EVs, Hybrids, etc.
Sourcehttps://newsroom.accenture.com/news/2021/two-thirds-of-consumers-are-sustainability-minded-drivers-accenture-report-finds
This transformation requires traditional OMEs to mend their ways by redefining their marketing campaigns and showing their commitment to sustainability. Many OEMs have announced their ambitious goals for carbon neutrality by 2040, using their EV lineup.
To further align with sustainability, traditional OEMs are sourcing eco-friendly materials such as recycled aluminium and vegan leather interiors and adopting more energy-efficient manufacturing processes. These steps not only promote a clean and green environment but also attract an eco-conscious customer base. Advancements in battery solutions and charging infrastructure powered by renewable sources also aid in building brand image.