Automotive development needs dynamic strategies which emphasize independent innovation, greater flexibility and quick on road

Automotive Industry policies worldwide are getting nailed and narrowed., Example: ISO PAS 8800 Road Vehicle Safety and AI.? United States, Germany, South Korea, and Japan are summarized in terms of their industrial structure adjustment, technological innovation, taxes and financial subsidies and infrastructure construction. Benchmarking the policies of international automotive industry powers provide a reference and basis for integrating their experiences in the formulation of our product development policy.?

The European Automobile Manufacturers Association (ACEA) said the industry was trying its best to comply with decarbonization targets but was constrained by problems including a shrinking EV market, lack of charging infrastructure and unfortunate manufacturing attractiveness.?

Vehicles are also becoming more smarter and ever more connected, i.e. able to exchange information with other vehicles (V2V) and roadside infrastructure (V2X). They are also becoming more autonomous with higher safety integrity levels. In addition, shared mobility is expected to become more common across widely. Vehicles are therefore tending to become ‘High Performance Computers (HPCs) on wheel‘, increasingly dependent on semiconductors and software.?

Vehicle manufacturers across are struggling with weak sales figures and the high costs of switching to electric drive systems.? Many of them recently had to cut its profit forecast for this year due to stuttering sales in China. For the first time in 30 years, Volkswagen could face compulsory redundancies and plant closures. According to a media report, the European auto giant could cut 30,000 of its 300,000 jobs in the recent days. Does that mean., technological development and automotive marking is getting dimmer? Straight answer will be “NO”!!!?

Where is the Gap??

Traditional way of innovation and travels in terms of automotive technological developments stirred by taking long history and past best practices. In this path we didn’t noticed one point pricelessly “Who is our target customer?” !! Understanding next gen users expectation and convenient in terms of solution convergence has the starting point of gap.?

Reducing and avoiding risks., sometime it been taken to the extreme when it is comes for new things or first time. Other hand slight difference in the general understating., what defines good product and service??

Technological evolution and adaptation need extensive focus in Iterations speed or response time of service which can’t be compromised.? One of the most misunderstood concepts in risk management is., by the way we were taking the real relationship between risk and opportunity!!!?

During Initial estimation few dimensions like real Market Size &Time to Market need more emphasis.? When bring new solutions and innovations., once after rolling out getting market feedback need intensive care and well-defined process. Module and modular concepts enhance the Reusability and Fast Development.??

If your work is done fast and cheap, it doesn't mean reasonable., also can expect it to be very good. If our customers need something put together quickly, and for little cost, fine!!?

Tackling and Transformation?

Sustainable Business Strategies: As on today refence market were offering attractive cum overwhelming development cost of around 25-45% cheaper than classic models around. We have to figure out how to play the eco system game, manage the supply chain and take advantage of the low labor cost in the country to manage this. Production capacities, the availability of cheap raw materials, and advanced technologies - such as simplified NGEeA, ePowertrains, Giga Casting, and advanced Platformization strategies - all contribute to the final nail.?

Transformational Megatrends?

Rising Electrification: Sales figures for an EV in worldwide are expected to triple by 2030, presenting a perfect opportunity for manufacturers to expand the EV ecosystem via accessible charging stations and battery-swappable vehicles that boost customer convenience.

SDV & Connected Vehicles: Autonomous trends are advancing rapidly with new connected vehicles leveraging AI, Internet of Things (IoT), and Big Data to transform logistics and e-commerce in worldwide.?

Disruptive Technologies?

Software-Defined Vehicles (SDV) with Service Oriented Architecture (SOA). Think of services as independent modules that perform specific tasks, like controlling the air conditioning or managing driver assistance features. These services communicate with each other and with various hardware components to manage the whole vehicle's operation.?

Digital Aftermarket Solutions: Leveraging AI, IoT, and the latest innovations, automakers are providing efficient and personalized vehicle maintenance, seamless parts supply and warehouse management, and even automated field services operations.?

Digitalized Driving Experiences: An increasingly younger driver base is seeking digital innovations, including Features on Demand (FoD) and Advanced Driver Assistance Systems (ADAS).?

Low Hanging Fruits?

1. Consumers are continuing the trend of trading up --> Auto market continues to introduce various competitive new models of smart electric vehicles (EVs), Hydrogen ICEs, FCEVs. Which gradually increasing their attractiveness to consumers and shifting consumer attention toward mid- and high-price models. Meanwhile, escalating price competition’s impact on consumer decision making remains limited, with 80 percent of respondents indicating that price competition hasn’t accelerated their vehicle-purchasing decisions.?

2. Perceptions of EV and Internal Combustion Engine (ICE) brands are diverging --> Multinational OEMs no longer command premium prices, and their brand halos are almost gone, a trend especially evident in the EV industry. Meanwhile, owners of traditional premium multinational company brands are switching to premium Chinese EV brands - a trend flowing almost entirely in one direction.?

3. EV penetration is rising fast, with a hidden concern of charging anxiety --> EV consumers who make purchasing decisions are increasingly considering the performance of the vehicles themselves rather than regulatory incentives, such as road tax & registration. Also, acceptance of EVs by Chinese consumers has seen its first-ever decline, as EV charging infrastructure is being deployed slowly in some areas. The situation highlights the extreme importance of optimizing charging infrastructure to support the sustained development of the EV sector.?

4. Direct-to-consumer model is winning consumer trust, which gives high transparency across customer journey --> Premium EV brands have to adopt omnichannel direct-to-consumer models, which have achieved remarkable customer satisfaction. Even in after-sales maintenance, where the previous year’s survey found a performance gap with traditional OEMs, premium EV brands are catching up.?

5. Autonomous driving enjoys great popularity, but chance of monetization is coming under pressure. Consumer demand for autonomous driving continues to increase. However, the free-software strategy of top technology-oriented OEMs has made consumers less willing to pay for the related technologies. Among those willing to pay, the amount they are willing to pay has declined.

6. Consumers are aware of low-carbon vehicles but less willing than before to pay a premium for them. Next gen consumers are aware of low-carbon vehicles and willing to pay extra for them, but both the willingness to pay and the amount they would pay have declined.

Get ready for a software driven mobility future!!!