Page 129 - CW E-Magazine (28-11-2023)

Point of View

Automotive industry will stay an important driver of

chemical demand

The automotive industry is a key driver of demand for chemicals, consuming directly and indirectly a range of polymeric materials, functional
chemicals and commodities. While the dynamics of the industry – notably the electrification of mobility – will have an impact on the kind and
quantum of chemicals that come to be used, the relevance of this sector will continue. India’s automotive industry has been through challenging
times of late, but a recovery seems to be on the cards – evident from the long waiting time for several new car launches – and that bodes well
for the chemicals sector.

The kind of chemicals and materials used in a vehicle include in the main: natural & (increasingly) synthetic rubbers; commodity & engineered
plastics used inside a vehicle and increasingly under-the-hood; and coatings that protect and embellish the exterior and the interior. Less evident
is the chemical industry’s relevance in the form of the ‘three-way’ catalytic converter, which converts noxious emissions into relatively less
harmful products; and the lubricants, coolants and fuel additives that keep the engine humming without over-heating and choking up.

Synthetic & natural rubbers
The largest volume polymeric material used in an automobile is rubber – be it synthetic (SR) or natural (NR). Conversely, the automobile
industry is the most important end-use segment for rubbers, accounting for nearly two-third of all rubbers produced. While the main use is in
tyres, other applications such as tubes, pipes, cushioning, dampeners, etc., are not insignificant.

India’s share of global output of tyres is well above its share of the automotive market, implying local producers not just cater to domestic
markets, but exports as well. This bodes well for demand for many rubbers.

In India, NR availability and pricing have been serious concerns with the tyre industry and, given the limited scope to enhance its production,
SR will have to pick up much of the slack. The good news is that in response to market needs, investments are being made by petrochemical
companies in SR production. The range of elastomers on offer locally has expanded in recent years to include polybutadiene rubber (PBR), butyl
rubber, and styrene butadiene rubber (SBR), but capacity is still lacking for chloroprene rubber, ethylene-propylene-diene monomer (EPDM)
rubber, as well as speciality fluoro-elastomers.

Plastics in automotives
A variety of plastic materials are now used in a modern automobile, not just to replace metal, but also glass. Much of this is done for
light-weighting to improve fuel efficiencies, and for the design, production and functional benefit they brings. Today, plastics are ubiquitous
in cars in the trims and fittings that enhance visual appeal through colour and texture, as well as in demanding under-the-hood applications.

Polypropylene (PP) – the versatile and economic thermoplastic – is the most commonly used plastic (in terms of weight), and is found
mainly inside the car for instrument and door panels. While it faces competition from other polymers such as polycarbonate (PC) and acrylonitrile
butadiene styrene (ABS) blends, in entry level cars, which account for a large portion of the Indian market, PP is set to remain the dominant
polymer as the cheapest option. Under-the-hood, a range of engineering plastics, such as high-performance polyesters and polyamides, are
increasingly being seen, driven by the need for light-weighting – a even greater imperative in EVs, often described as ‘battery on wheels.’
One of the constraints to wider adoption of plastics (aside the resistance to change) is cost. Many engineering plastics – such as high-
performance polyamides – are expensive, and more so in India, where they are made in small quantities, if at all, and do not enjoy economies
of scale. While on a one-to-one substitution basis, engineering plastics may not make for a strong case for substituting metals, the business
case needs to factor in the many benefits afforded by integration of multiple parts and operations through advanced moulding techniques.
At the OEM these translate into significant gains in productivity, especially for complex parts.

Localization of supplies of compounds and associated support services is also aiding the faster adoption of plastics. Over the last decade,
a sizeable eco-system of suppliers has emerged in and around major automotive hubs, capable of meeting the demanding performance and
technical requirements of OEMs. While most compounds needed are available from domestic sources, most base resins, such as polyamides
and polyesters, are still imported. High quality engineering capabilities amongst vendors of compounds – often multinational companies – enable
them to offer product design and performance simulation services, vital to make a compelling case for metal substitution.

One area where much still remains to be done in India is with regards to safety and sustainability, including on choice of plastic additives.
In the so-called synthetic leathers, widely used for seat covers in 2-, 3- and 4-wheelers, for instance, plasticizer migration, and consequent

Chemical Weekly November 28, 2023 129

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