New practices in the auto industry

Issue #31, Nov 25th 2020

The automotive industry continues to innovate, being the torch bearer in the innovation race. Mobility may grow from the road to air. The focus is not limited to new cars but subscription services and used cars. Electric Vehicles keep gaining traction, supported by growing demand, expertise in software and more importantly government incentives. Here are some recent updates or 'new practices' in the automotive industry reported this week.

Electric plane for rooftop-to-rooftop taxi service

On a ranch outside Santa Cruz, JoeBen Bevirt has developed an electric airplane with six tilting propellers that he says can carry a pilot and four passengers 150 miles at up to 200 miles per hour. He envisions the as-yet-unnamed aircraft, which experts speculate could cost $400,000 to $1.5 million to manufacture, as the foundation for a massive rooftop-to-rooftop air-taxi network—one he plans to build and run himself. Toyota pumped roughly $400 million into his Joby Aviation in January. - Forbes

GM's acceleration for EVs

General Motors is laying the groundwork for a bigger bet on electric vehicles. It plans to boost spending on them as part of a push to introduce 30 battery-powered models by 2025. The initiative outlined represents an increased investment of $7 billion and 10 more EVs than previously planned, including some that will be cheaper than $35,000. It’s a big move from Chief Executive Officer Mary Barra, who has made the electrification of GM’s lineup and a push for technology the keystone of her six years atop the largest U.S. automaker. - Bloomberg

Incentivizing automobile manufacturing

The Indian government had announced a production-linked incentive (PLI) scheme of about ?2 trillion to encourage firms in 10 sectors to boost manufacturing in India. The automotive sector comprising vehicle makers and their parts suppliers will receive subsidies worth ?57,000 crore—the biggest chunk of the scheme. Most automakers have started looking at opportunities to maximize exports, which will allow them to qualify for the PLI scheme. - Live Mint

Hydrogen fuel-cell vehicles

Hyundai Motor struck a deal with European chemical giant Ineos to explore joint development of hydrogen technology—giving a boost to the South Korea car giant’s ambitions in zero-emission vehicles. Ineos, which is run by founder and British billionaire Jim Ratcliffe, said on Sunday that it had signed a memorandum of understanding with Hyundai to explore producing and supplying hydrogen for commercial use. - Forbes

Leveraging software expertise for e-mobility ambitions

India could harness its software technology prowess to fulfill e-mobility ambitions. Developing solutions using local technology and manufacturing software driven vehicles aligns with the government’s vision for Atma Nirbhar (self-reliance) in the manufacturing sector, “The country needs a lot of hyper local solutions in the EV space because of unique market conditions. We will need local software architects to come up with ideas unique to India.” said Dattatri Salagame, managing director, Robert Bosch Engineering and Business Solutions, India. - Economic Times

Unicorn status for used-car website

A second-hand car website has seen its value rocket to more than $1bn (￡750m), putting it into unicorn status. India's Cars24 has seen a big rise in business during the pandemic as people look to alternatives to public transport such as pre-owned cars. - BBC