The new look auto industry

Issue # 108, Sept 12th, 2021

It is not only the car designs that are changing in the auto industry. Car shows shift focus from roaring engines to sustainability and climate friendly vehicles. Low cost, low range batteries are an alternate for regular batteries, for customers who do not want to wait long. Dealers are a key stake holder in the automotive ecosystem. They gear up to face the new world of digital channel sales. U.K. is making it mandatory for new homes and office spaces to have provision for electric vehicle charging. The tyre industry in India is talking about a tax for users at the end of life of these products. New tyres custom made for electric vehicles, lighter and less noisier are designed. Below are some recent media reports that show the new look auto industry.

How futuristic car shows may look like

Europe’s first major car show in two years, which opened in Munich on Tuesday, looks like this: the latest models are being exhibited in outdoor plazas rather than expensive pavilions. Serious discussions on topics like autonomous driving have replaced light shows. And bicycles are on display. The German Association of the Automotive Industry, which organizes the show every two years, is responding to changes in technology as well as the increasing awareness among consumers that a car’s throaty roar means it is spewing poisons into the air. - New York Times

Low cost, low range batteries for EVs

In late August, Tesla offered U.S. customers a chance to skip the queue and take delivery of their new cars as early as Sept. 1. The catch: their EV would have around 10 miles less range than they originally paid for, since these Model 3s would be equipped with a chemistry more commonly found in cars produced China, called LFP, rather than the nickel-based NCA batteries made by Panasonic with Tesla at their factory in Nevada. LFP batteries are nothing new and have been a mainstay of the Chinese EV industry over the past decade. Tesla started using these batteries in China in 2020. U.S. and European automakers now seem to be coming around to the idea, after shunning LFP for the past decade.?- Bloomberg

Managing EOL tyres

Today about 3 billion tyres are being manufactured globally out of which 1 billion tyres are scrapped every year. This is a huge problem globally. It's high time that we found some alternative way. The Indian government is in the process of replicating the vehicle scrappage policy in the tyre industry also. Collection of end-of-life tyres at one place requires massive logistic costs. Then these scrap tyres have to go for distribution in different channels for recycling and reuse. This whole process requires huge fund and the government is looking at how to get the funds allocated. Today the customer gets some money for scrapping tyres but with the implementation of tyre scrapping norms end users will have to pay. Quantum change will come in the shape and designing of tyres for electric two-wheelers and three-wheelers. In future these tyres will be more lightweight and noise proof. - Economic Times

The changing role of auto dealers

The way people buy and sell cars is changing. More of it is happening online. It is a shift that started before the pandemic but accelerated over the last 18 months as Covid-19 spurred people to do more of their shopping from home and demand for cars unexpectedly surged. Another blow to the traditional dealership model came from the surge of online-only used car sellers, which don’t have the same state franchise restrictions as new car sellers. Some dealers say the only way to survive long term is to get bigger. - WSJ

New homes in U.K. with EV charging

The British government will introduce legislation in 2021 that will require all newly built homes and offices to feature electric vehicle chargers in England, the media reported. Specifically, all new homes and offices will have to feature "smart" charging devices that can automatically charge vehicles during off-peak periods. New office blocks will need to install a charge point for every five parking spaces. - ET Auto

Road pricing in U.K. to avoid congestion

There’s the risk that demand for green cars is as strong – or perhaps even stronger – than forecast, in which case governments are going to face problems of greater congestion. There is a high cost from gridlock, no matter whether a driver is sitting in a petrol, diesel, hybrid or battery electric vehicle. All of which raises the question of whether technological innovation needs to be matched by new thinking in the way motorists pay to drive. Specifically, it raises the question of whether a system of road pricing would solve the dual congestion and revenue problems. - The Guardian