In the coming decade, automotive players may have to embrace new technologies and trends which are driven by changing consumer demands and government regulations on safety and environmental concerns. The Indian market is price-sensitive which is driving critical changes in the industry that may require innovations in both products and processes.
In the coming decade, automotive players may have to embrace new technologies and trends which are driven by changing consumer demands and government regulations on safety and environmental concerns. The Indian market is price-sensitive which is driving critical changes in the industry that may require innovations in both products and processes. This transformation may not just need an active collaboration between all the existing players of the value chain, but may also require leveraging synergies of non-automotive industries.
A new KPMG whitepaper discusses technologies and trends in the automotive industry, its implications and the need for transformation of the traditional value chain. The key trends that are covered in the whitepaper are:
Changing Regulatory landscape: With rising number of road fatalities and high pollution levels in India, the government has been working on regulatory measures to tackle the situation. Stricter regulations would mean the Indian automotive industry would have to reshape itself while continuing to remain
Lightweighting: Though usage of light weight materials in automobiles is gaining momentum globally - low R&D investments, high material costs, investment in new machinery and new manufacturing processes are a few challenges the industry faces in India. OEMs in India will have to provide technical and financial assistance to Tier 1 suppliers for the evolution and adoption of lightweighting.
Electrification of Powertrain: The penetration of electric vehicles depends on the acquisition and ownership costs as well as the quality and accessibility of the charging infrastructure. India currently lags behind in the EV industry compared to its economic rival China. For this to change continued government interventions are required to spur growth in this industry.
Connected Vehicles: According to estimates, by 2025, 90 per cent of new cars sold globally would have embedded telematics. India with the world’s second and third largest number of users of mobile phone and internet respectively, is positioned to capture a substantial share in the connected vehicles market. Besides traditional automotive players, connectivity also provides scope for non-automotive players to enter the supply chain and unlock the latent value.
Electronics: There has been a significant growth in the use of automotive electronics in the recent years, but the percentage of automotive electronics in India is far below global standards. There is immense scope for automotive electronics in India where the world-renowned Indian IT industry can play a major role in this transformation.
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