Intelligent vehicle is the word often used in the context of technology trends in auto manufacturing and components. With the increasing usage of terms like Advanced Driver Assist System (ADAS), Artificial Intelligence (AI) Machine Learnings (ML), Shared Mobility, Big Data & Analytics, Internet of Things (IoT) and Blockchain, the technology has taken a centre stage of all developments happening in the automotive industry.
“The technology landscape is changing rapidly in the automotive industry. We see evolution and adoption of information and communication related technologies at an unprecedented scale,” says Vineet Sahni, Group Chief Executive Officer, Lumax DK Jain Group & Senior Executive Director – Lumax Industries Limited.
Technology trends
Owing to the change in environment and consumer preferences, Sahni says innovation driven industry such as automotive is seeing Connected, Autonomous, Shared and Electric Mobility taking centre stage. “Technologies that enhance comfort and safety are most sought after. Safety is driving technological innovations such as electronic sensors, telematics, lighting technologies etc.”
While the movement towards smart vehicles is in nascent stages, Sahni feels it is bound to gain trajectory in future.
The industry is witnessing a shift towards electric mobility, energy efficiency, light-weighting of vehicles and alternate fuel usage.
Anuj Talwar, Jt. Managing Director at Talbros Automotive Components Limited, says the tech-savvy population is now all set to experience a whole new level of driving experience. The most fundamental constituent of such vehicles is insightful with amazing sensors.
“Subsequently, sensors are the key fixings that permit vehicles to gather pivotal data, which is then handled progressively to empower automation.”
He says there are different sorts of sensors that are helping the vehicle business to enhance safety and navigation, and fuel efficiency.
“The automobile manufacturing industry is as of now gaining incredible headway in mechanizing a few activities underway plants to improve quality, cut expenses, and improve the rate of production. Sensors at key spots give administrators the control that is important to screen if the robotized facilities are working smoothly or not,” explains Talwar.
Some of the latest technology trends that he says the automotive and auto component industries are witnessing include light weighting, clean mobility, connected vehicles, human-machine interface and IoT.
As the world adopts more digital technologies, Thalavai Venkatesan, Head of Sales & Key Account Management at Continental Automotive India, points out that vehicles also become ‘digital devices on wheels’.
“This trend is seeing its course of realization already. The industry has been through a transformation influenced by connected technologies, advanced safety systems, electrification, and so on, but in the past year or so, this transformation has become more and more obvious,” he says.
According to a recent report by Deloitte, over 80 percent of Indian car buyers think increased vehicle connectivity will be beneficial in the long term. Technologies like navigation, vehicle tracking, smartphone connectivity can be seen in almost every modern car today on Indian roads.
“The demand is constantly growing, and we have the next-gen technologies available that can be quickly deployed in the market as soon as the infrastructure can support it,” says Venkatesan.
With the introduction of 5G hyperconnectivity, the industry is expected to see more development in smart sensor technology, holistic camera systems, eHorizon, V2X, C-V2X, CoSmA, etc. “These technologies will contribute to the convenience of the vehicles but also increase the safety quotient,” he says.
Driving factors
Industry players say the auto industry and its supply chain has been most affected by the second wave of covid-19. “However, there are many reasons that will impact growth in the coming years, vehicles are an aspirational purchase for many Indian even today, that will revive once things improve and the market sentiment improves,” says Sahni of Lumax.
He says the pandemic has made people cautious about safe distancing while commuting. “Personal mobility will see a rise as the need for personal vehicles owing to lack of robust public transport and last mile connectivity. Also, a good monsoon will provide a thrust to pent up rural demand,” says Sahni, but adds that affordability remains a key factor influencing the decision of buying a new vehicle.
With a large young population, buoyant economy and growing foreign direct investment, Talwar of Talbros Automotive points out that India has been an attractive investment destination for global automobile and component manufacturers.
He says the Indian government has consistently assumed a critical part in figuring new policies and establishing an empowering climate with the goal that OEMs and providers can carry fitting and important advances to the market.
According to Venkatesan of Continental Automotive, the growth of the automotive industry is can be related to the four megatrends – Safety, Information, Environment (Sustainability), and Affordable Mobility. While the pandemic has created some short-term challenges and timeline changes, he says the industry has continued to invest in the R&D of technologies contributing to these megatrends during the pandemic.
“With our ‘In the Market, For the Market’ approach, we have been localizing the entire value chain starting from R&D, design, validation, and manufacturing. On the other hand, government policies have a strong influence on manufacturing too. Manufacturing centric policies apart, recent safety mandates also catalyzed an increase in the production of components such as ABS, speed sensors, airbag control units, etc,” says Venkatesan.
Key challenges
The biggest challenge in adapting new technologies is Investments, according to Sahni. He explains the rapid change in regulatory framework and safety preferences need massive investments and related costs in R&D as also innovation. “This is to keep pace with these changes and developing capability to manufacture new products. The customer desires new technology at old price points, which becomes another challenge to innovate further and keep costs low,” says Sahni, adding that availability of right skill set is also a challenge.
For Talwar, excess production capacities and unpredictable demand supply graph are some of the key challenges. “The inexorably cutthroat situation in auto assembling has prompted the overcapacity springing up as perhaps the most essential difficulties the auto business is confronting today.”
With an erratic interest supply diagram at work, related to changes in the automotive supply chain ecosystem, he points out that manufacturers have been getting carried away and have invested assets in developing vehicles maybe that not really ought to be delivered.
Industry players say almost every average car today features connected technologies like navigation, internet applications, mobile syn, etc.
“The challenge, particularly in India, is to ensure that these are cost-effective while providing the same value. This is where R&D has a major role to play,” says Venkatesan of Continental Automotive.
Moving ahead
Sahni says the task of planning and strategy in the auto component industry has become increasingly demanding in these uncertain times. “Industry will adapt to disruptive technologies; regulatory framework and consumer buying behaviour will force these changes.”
Talwar of Talbors is of the opinion that the automotive industry is ready for more change in the following ten years than it’s found in the previous 100 years.
However, he says OEMs will need to develop new core capabilities – such as partnering, agile operations, an ability to sense and respond to constantly changing customer needs, collaboration across disparate teams and testing new business models.
The technological landscape in India is projected to change significantly in the coming years, says Venkatesan. He says many Continental’s technological products have now started seeing more assured projections for the Indian market.