TVS Group's auto-component maker Sundram Fasteners has accepted an order from Tesla to supply it with key parts in gear transmission and equivalents of radiator caps, according to a report on ETAuto. This development, the company says, will help it move towards the electric era eventually. Sundram Fasteners MD Suresh Krishna confirmed to ET that the supply of bevel gears - teeth-edged parts mounted on the shafts in a gear system - and surge tank caps, which protect coolant, has been on for months now.
"We knew this was coming. Even in 2030, the prognosis is that only 8% of the vehicles in the world will be electric, but that will be the inflexion point. Around 2040, that ratio will jump to 30-40% and anybody in the auto-component industry has to take that into account," Krishna said.
Electric vehicles had so far only been a supplement to the auto-component company, but slowly and steadily as the world moves on to electric powered vehicles, Sundram Fasteners will also have a rethink on the core of its business.
"Any investment or project needs to stand a test: 'Will this be electric-vehicle compatible.' By 2030, or around that time, nearly 15% of my business would have been reinvented to reflect this transition," the company MD explained.
The reason behind the initiating of this transition can be attributed to better battery technology and infrastructure, competitive pricing and cost of owning an electric car and the government's push towards bringing in green forms of transport.
There may be positive signs of auto manufacturers working on all-electric versions of some cars - such as the General Motors' Bolt, electric Tata Tiago and Toyota's progress in battery technology - but Krishna thinks that cars will be the last to make the complete transition to electric.