Arnav Soam
Arnav Soam
Arnav Soam
INDIAN AUTOMOBILE
INDUSTRY
Submitted for the Partial fulfilment of the Requirement of Award of
(2021-2023)
This course does not come as a surprise, in the event of a pandemic, purchasing of
vehicle would be the least priority of a person. Despite the anticipation the
numbers are pretty shocking- according to the society of Motoring Manufacturers
and Traders, the UK automotive industry lost GBP 1.3 billion in sales in 2020. Lack
of sales have led to excess inventory, high level of debt and demand uncertainty.
5: - Liquidity: - Liquidity was the biggest challenge facing the automotive industry
last year. The pandemic regime reemphasized that cash is indeed king. Production
shutdowns and slumping sales gradually led to heavy financial losses, OEMs
operating on minimal liquidity. Lack of funds is likely to result in many small-time
automotive companies going out of business. Cash reserves were at all time low
during COVID-19, the situation is not likely to be reversed soon enough.
As financial automotive industry challenges continue to reign, automakers will
need to secure government support measures to secure liquidity assistance. Using
artificial intelligence in automotive market to predict real time cash influx and
establishing a liaison with financial institutions for investment in connected
technologies and automation are also some options automakers can tap into as
they deal with liquidity challenges of the automotive industry.
6: SHORTAGE OF SEMI CONDUCTOR CHIP: The shortage of semiconductor chip is
one of the biggest problem faced by the Indian automobile industry in recent
times because of the global lockdown due to COVID-19 the production became
short and now the automobile companies are not able to fulfil the demand of the
customers because to make a car with fully loaded features companies needs
semi-conductor chips, more the features in the car more the need of the
semiconductor chip and the companies totally imports the semiconductor chip
from foreign countries because there is not even a single semiconductor
production plant in India.
7: - CHANGE IN CONSUMER BEHAVIOUR: The collapse of the economy, rise in
prices, and the all-around dire states of public health and financial brought about
a considerable change in the buying patterns of consumers. To begin with tough,
during a critical time like the pandemic, purchasing a car was least of everyone
worries. Scarce finances and uncertainly about the future led the consumers
backing out of making vehicle purchases, that emerged as one of the key
challenges of automotive industry.
For ones that could afford, buying cars from dealership and offline showrooms
was next to impossible, given to stringent protocol of lockdowns. To combat the
same, post COVID-19 many automakers attempted to go offline, offering short
term subscription-based lease models for consumers, making car purchases
digital, and undertaking numerous other steps to restore declining consumer
confidence.
Although 2021 saw the resurgence of percentage of the consumer base, overall
customer footfall is still low and likely to remain one of the significant problems of
automotive industry for a few years. Changing customer behavior may, however,
lead to considerable alteration in business model of automakers, ushering in a
new era for electric mobility, connected cars, and automation.
Experts anticipate the automotive sector to be replete with risks and challenges
for quite a while, it may take years before pre pandemic success levels for this
industry are restored. In the years ahead, automotive companies must work on
resolving the existing challenges through strategic measures. To begin with,
opting for digital modes and bringing about convenience for consumers could
work. Further on, automakers need to shift from the conventional manufacturing
models to automated working processes while ensuring flexibility.
Adoption of the latest technologies and bringing connected vehicles to the
mainstream are likely to open up new income sources for automakers in the years
ahead. As government help out by bringing in changes in emission laws,
automotive companies work on creating a more resilient supply chain, and more
intense R&D programs are carried out to set new standards, the automotive
industry could slowly itness a rebound within the next half decade or so.
EMERGING TECHNOLOGY IN AUTOMOTIVE INDUSTRY: -
1: AUTONOMOUS VEHICLES: - Self driving autonomous vehicles minimize the
need of human drivers and look poised to transform everyday transportation.
Fleets of AVs expand the scope of last-mile deliveries, reduced downtime, and
aim to make public transport relatively safer. For example, by reducing accidents
caused due to driver fatigue or negligence. Avs are equipped with advanced
recognition technologies, such as AI advanced computer vision to identify
obstacles along the route.
3: - ELECTRIFICATION: The depleting fossil fuel reserves and the harm to the
environment caused by their use call for prompting the use of electric mobility
solutions. For greater adoption, EVs need to address issues such as high price,
poor battery, inadequate charging infrastructure, fleet electrification, as well as
powering renewable energy-based charging grids. These challenges, along with
the need to tackle increasing greenhouse gas emission across the world, startups
are working on electrification solutions.
4: SHARED MOBILITY: With connected vehicles, new business models have come
up that focus on shared mobility as an alternative to traditional vehicle ownership.
These enables mobility-as-a service (MAAS)and discourages unused vehicles. Such
solutions meet the requirements of a city or a business without adding new
vehicles, thus reducing waiting time for fleets and pollution caused by petrol or
diesel vehicles.
5: ARTIFICIAL INTELLIGENCE: Artificial intelligence technologies such as machine
learning, deep learning, and computer vision find applications in robotic
automation within the automotive industry. These guide self-driving cars, manage
fleet assist drivers to improve such as vehicle insurance or inspection. AI also finds
applications in automotive manufacturing, where it accelerates the rate of
production and reduce costs.
RevitsOne provides AI based fleet management solutions: Indian startup
RevitsOne offers an AI power fleet management software that is suitable for fleets
of varying sizes. The startup vehicle management system provides insights into
speed, running vitals and health information. Drivers benefits from VOICERA ID, a
voice based virtual assistant that helps them keep track of the information they
need.
Additionally, the onboard speed recorder limits the speed to discourage
dangerous drivers behaviors.
6: Big Data & Analytics: The age of big data and analytics informs various
decisions throughout the life cycle of a vehicle. Data gathered from vehicles
enable predictive maintenance, informs managers about their fleets, and alert
concerned authorities in case of emergency. Moreover, customer automotive
data finds applications in driving sales optimizing supply chains, and enhance
product design for newer vehicles. Startups and emerging companies develop big
data solutions to help automotive manufacturers, as well as ancillary industries,
streamline their operations to maximize their margins.