The domestic forging business despite poised for a robust growth during current financial year, was facing a threat following the Centre's "renewed focus towards electric vehicles (EV)," an industry official said.
"The introduction of EVs will have an adverse impact on the forging industry in the long run, as 60 per cent of forging units are into manufacturing auto components particularly engine and transmission related application," Association of Indian Forging Industry, President, S Muralishankar said here.
Stating that the 'internal combustion engines' in automobiles have approximately 2,000 moving parts as compared to only 20 parts in electric vehicles, he said, "electric vehicles do not have engine and transmission parts completely."
The government needs to draw a clear road map towards electric vehicles, he said, adding, the need of the hour was to take "aggressive and assertive political action."
On the outlook for the current financial year, Muralishankar said, with the increase in sales of automobiles including commercial and tractors, the domestic forging industry was expected to "grow at more than 10 per cent."
Noting that the exports of forging industry witnessed an increase in demand from Europe and North American markets, he said, "backed by the strong demands, the forging industry is likely witness to a growth of more than 10 per cent in the new fiscal year."
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