Telangana Mobility Valley strategy drawn up with BCG strategists

06 March 2023 4 min. read

The Telangana Mobility Valley seeks to establish itself as a leading economic and innovation cluster for sustainable mobility by bringing together companies in electric vehicles and energy storage systems. Boston Consulting Group serves as the hub’s strategic partner.

Located in southern India, Telangana has over the years emerged as a major hub for India’s IT sector, centered around state capital, Hyderabad.

Building on its achievements in the IT space, Telangana’s government aims to replicate its success in the sustainable mobility space, an industry touted to disrupt the automotive sector and see sustained double-digit growth over the coming years, as part of a national and global push to meet climate change goals.

Telangana Mobility Valley

Branded as the Telangana Mobility Valley (TMV), the cluster has been tasked with expediting the progress of sustainable mobility. Key plans include building four large clusters in and around Hyderabad across 3,000 acres for electric vehicle production, energy storage systems, and innovation, and bringing together companies from all parts of the sustainable mobility chain to unlock synergies.

The Telangana government plans to bring in investments worth approximately $50 billion and generate over 400,000 job opportunities by 2030 via this program.

“TMV will create best in class infrastructure making Telangana the most competitive destination for both manufacturing and electric research & development in India,” said Telangana Minister for IT & Industries, Rama Rao.

To help strategise and develop “a truly differentiated vision” for the cluster, the state worked with Boston Consulting Group for strategic advice, and engaged with participants from both industry and academia.

Continuing its role on the engagement, Boston Consulting Group has been appointed as the knowledge partner for Telangana Mobility Valley. This will going forward see the strategy consulting firm create further strategies, conduct studies, identify growth opportunities, and help formulate policies.

Sustainable mobility

Sustainable mobility is focused on reducing the environmental impact of transportation and involves various technologies and modes of transportation that are energy-efficient, emit fewer pollutants, and rely on renewable energy sources.

At the heart of the sustainable mobility revolution are electric vehicles, which run on electricity stored in batteries. According to a report by Arthur D. Little, the penetration rate for electric vehicles in India (in volume terms) will reach 25% to 30% by 2030, up from just 2% in 2020.

Supporting the electric vehicles revolution are a range of supplier companies, such as OEMs, battery manufacturers, automotive engineering R&D companies, software providers, and mobility startups.

Tier 1 and Tier 2 component manufacturers produce key components for vehicles such as engines, transmissions, and suspensions, which can help reduce environmental impact by developing more efficient and lightweight components.

Advanced cell chemistry is a focus area for battery manufacturers, with emerging battery technologies such as solid-state batteries and lithium-sulphur batteries offering greater energy density, faster charging, and better safety than conventional batteries. Hydrogen fuel cells are a zero-emission technology powering fuel cell vehicles by producing only water and heat as exhaust, with potential for long-haul transportation.

Auto engineering R&D companies meanwhile are critical for innovation in sustainable mobility, developing new technologies, materials, and manufacturing processes to make transportation more sustainable.

Together, these players form the value chain that aims to create a more sustainable transportation ecosystem that reduces environmental impact while providing reliable and efficient transportation.

Commenting on the firm’s work with the Telangana Mobility Valley, Rajiv Gupta, senior partner at Boston Consulting Group said: “India should be dictating what are the future technologies and should be proactively creating those centres of excellence.”

Having arrived in India some 25 years ago, Boston Consulting Group has played an integral role in the growth and development of government agencies and private sector companies.