- March 3, 2017
- Posted by: Wevio
- Category: Market Research & Analysis
India has become now the center for all kinds of business, which is looking for full fledge development in different fields such as automobiles, automotive, economic development, employment opportunities and striving to become one of strongest country in the world. In this procedure, Business had become the main target and giving opportunities to all intelligent and worthy people to become entrepreneur’s.
Business is the organizational entity involved in the provision of goods and services to consumers that may be vehicles, food, electronics etc.
As the world is continually searching for the new inventions and new strategies and achieve profits, each of the industry is searching and predicting the future by changing their trends. From a technical perspective, these trends involve looking at statistical analysis of historical data over a selected timeframe and charting the progression. If the data suggests consistent increases, decreases and eventually constancy or flatness, there exists a trend. Business of all sizes use this kind of data to help in predicting the future and help in taking strategic decisions. These may be of financial trends, market trends etc.
India is one of the largest country in the world which is mainly focusing on automobiles followed by electronics, science, technology and many more. The automotive industry of India is one of the largest in the world with an annual production of 23.96 million vehicles in FY 2015-16 with growth of 2.97 % over a year. This industry account 7.5% of country’s GDP. The two-wheeler segment with 81% market share is the leader of Indian Automobile Market owing to a growing middle class and a young population.
India is also a prominent auto exporter and has a strong export growth expectations for the near future. The demand for the automotive industry has been increased in recent times. To keep with growing demand, several auto makers have started investing in various segments of this industry during last few months. This industry has attracted Foreign Direct Investment worth 16 billion dollars in a minimum amount of time.
This Automotive industry deals with the design, manufacture and operation of ground based vehicles. It includes motor vehicles, cars, buses, trucks and their engineering parts. It mainly focuses on research and development and production. This may be further be specialized in any of the aspects of the entire engineering process like on design or on testing and research.
According to Society of Indian Automotive Manufacturers, India Automotive sector today is 74 billion $ industry and by 2026, the industry is expecting to reach a turnover of $300 billion clocking a CAGR of 15 %. The Automotive mission plan (AMP) have been drafted in 2006 to map the aspirants of auto and auto component industry, to promote India as a Preferred Global Manufacturing destination and introduced intervention and prescription mechanisms for promoting the industry. The First phase of plan was called Automotive mission plan 2006-2016 and focused broadly on five aspects Economic growth, passenger comfort, sustainability, quality, cost competitiveness.
Based on the brief overview provided by the SIAM conference, AMP 2016-26 envisions at developing India as one of the top three automotive manufacturing hubs in the world. An optimistic revenue target of $300 billion for FY 2026 has been set.
Some of the salient features of AMP 2016-2026 are as below
- Auto Industry to contribute 13 % to the GDP-present contribution is <13%.
- Creation of incremental 100 million jobs.
- Projects $80 billion in capex investments.
- BSV emission norms to be adopted by 2019 and to be implemented by 2023 for passenger vehicles.
- AMP envisages to implement “end of life policy” for old vehicles.
Some of already implemented projects are
- Make in India
- Nation Automotive Testing and R & D Infrastructure Project.
- The National Electric Mobility Mission Plan 2020(NEMM).
- Increases customs duty of CBU’s of the commercial vehicles.
In an Industry, such as Automotive Industry where technology is pouring in at an unprecedented rate, incipient trends are multiplying like vehicles on roadways at rush hour. Some trends in 2017 are inevitable given developments in recent years while others are more disruptive and bleeding into multiple areas. Just like UBER which changed the taxi market and transportation sector.
Trends first emerge among early adopters so watching their behavior is a good ball. The best news for automotive OEM’s and its related companies who are involved in this business are likely to get more funding in next years to develop new technologies embraced by early adopters and refine current technologies due to political and financial forces. This year is going to be more exciting year for the Automotive Industry.
Some of the trends in latest Business development and most provocative trends are those on disruptive side are ………………
- Auto Suppliers discover sizzling block chain: A super-hot technology which is now gaining complete intense attention is block chain; the first auto suppliers will begin to use it in 2017. This establishes a system of checks and balances for the whole supply chain community, with cloud servers validating and recording everything.
- Augmented reality will assist driver safety and impact areas from designing to repair: In Auto Industry, some AR solutions should begin to start in 2017, starting with smart head-up displays and infotainment displays followed by apps of repair shops.
- Saving Money and increasing safety through3D-printing: 3D-printing is cost effective and challenging today’s fundamental approach to car design. Currently cars are designed to withstand with three, four or five crashes and last perhaps seven years. But 3D printing enables industry to build cars on a solid chassis with an outer body designed for single crash, then cost effectively replace that while leaving the basic vehicle skeleton in place.
- Autonomous vehicles continue to drive safely the industry: Autonomous vehicles capabilities such as self-parking and adaptive cruise control will be available from virtually every auto OEM in new vehicles. This is unstoppable and even ford, tesla is launching their autonomous vehicles in mass production by 2017.
- Machine learning based vehicle cyber security: Today, Network on the wheels that are modern cars use anti-virus and other common software security technologies that identify known threats and try to quarantine some of the unknown ones. Machine learning in AI space lets computers learn without being explicitly programmed, getting more adoptive when exposed to new data. These cyber security systems are self-adapting, self-defending creating new ways to guard against new threats without any humans need to program the system to identify specific incoming trouble.
- Collaborative monetization to see exponential growth: While it goes in different direction other than auto industry traditional approach then go-it-alone approach of vertical integration years ago, today’s world demands that auto companies collaborate
- Almost self-governing cars are predicted to be on roads by 2020.
- Industry watcher Gartner indicates that 30 % of people of motorists want parking info. This facility is likely to come up after glitches in the infrastructure catch-up.
- High performance Hybrid cars are likely to gain greater popularity among consumers.
- More than half of the cars on the streets are going to be powered by diesel by 2020.
The Tamil Nadu Technology development & promotion center of CII is organizing “9th Edition-conference on Automotive R & D Trends on 9th March 2017 at hotel Taj Coromandel, Chennai with a theme of “Strategizing R&D: Products for India and Global Market”. The main is to help Stakeholders understand the current scenario of Automotive R&D, challenges ahead, technologies involved and share their experiences. The conference attempts to project the future of the Automotive R&D in comparison with Global Market and to bring in stake holders views for matching this growth with the global standards. This conference is for automotive and allied industrial sector to share their experiences and views on strengthening the base for Automotive R&D; develop a systematic approach to address the key gaps in R&D domain; understand the domestic and global R&D phase to plan the future developments; Catalyze the automotive growth through innovation and evolving technology; Facilitate knowledge flow by working with international organizations through bi-lateral/multilateral cooperation mechanisms.
The proposed sessions for the conference are as follows:
- Automotive R&D mega trends- Global Perspective and Indian Standpoint
- Safety & Integrity mobility.
- Affordability and competitiveness.
- Industrial IOT and Industry 4.0.
- Panel discussion on-Make in India-Manufacturing capital for emerging markets.
The Indian Automotive industry has a prominent future in India. Apart from meeting advanced domestic demands, it is penetrating the international market too. Favored with various benefits such as global competitive auto-ancillary industry; production of steel at low cost; inexpensive and high skill man power; entrenched testing and R&D centers etc. This industry will provide immense investment and employment opportunities. The key challenges for meeting these targets set out in various plans are alignment with global emission standards and safety norms, lack of infrastructure, urban congestion, integration of small concepts, meeting efficient needs and safeguarding intellectual property rights. To help the industry leapfrog for the next generations of opportunities, we believe that a two-way road map has to be built by GoI as well as Indian Automotive Industry. While the government must take responsibility and serious efforts in implementing, industry has to take promise of for making Make in India truly Made in India campaign.
Wevio’s participation for Business Development between India and South Korea:
Wevio had great experience in Automotive sector and it is one of major industry that we are working for global business development. Since 2010, wevio focused on India – Korea automotive business development working with industry associations and organization like CII, ACMA, SIAM, ARAI, Pune Auto Cluster and exploring the opportunities between companies not only big but also small to medium sized companies India and Korea who are OEM suppliers.
More details at: https://www.wevio.com/industries/automobile/