EkaLore has previously released analysis and notes on the vehicle marketplace in India, which is now emerging as a critical increasing volume market for electric vehicles/new energy vehicles (EV/NEV). At the same time, India is emerging as a development and engineering center for global vehicle manufacturers moving for advantages from Indian brainpower and talent infrastructure. In this release, EkaLore takes a quick look at what this implies for a Dynamic India.
The accelerating race for EV/NEV development across all of the major global marketplaces for vehicles sees specific manufacturing and technology developments in the key markets. The largest factor affecting all vehicle concepts, design, and production – even more than the choice of the internal combustion engine (ICE), or EV/NEV -- is the development of ‘software defined platforms’.
The software defined platforms have features like:
· Automated Drive Assistance Software (ADAS),
· integral 4G/5G communications (Over The Air (OTA), safety, and Internet access),
· infotainment and features,
· passenger accessible software features,
· energy/drive management, and
· support for direct-to-consumer business models.
China’s accelerating marketplace segmentation for EV/NEVs changes how global manufacturers service the market. Large multinational vehicle manufacturers (like Mercedes, VW Group, and others) are responding to structural changes in the Chinese market. Traditional global vehicle manufacturers see India as a similarly large market with enormous sales growth potential over a longer period but without the highly competitive Chinese manufacturers and brands. The structure of the Indian vehicle markets includes:
· Local and joint-venture producers
· Fragmented business models for distribution, sales, and service
· Growing consumer demand for larger and aspirational brands/models.
These marketplace structures seem ideal for continued growth for foreign manufacturers. Long term local partners and joint ventures sustain this market view. The collateral benefit of locating some development, engineering, and services in India (for reasons of talents and lower costs) is seen as helping ‘jump start’ sales via workers (as Ford Motor did at the start of the 20th Century in the USA).
These strategies of traditional vehicle manufacturers are now in doubt. To Be Continued You’ll find the 2nd part of Dynamic India manufacturing and markets at www.ekalore.com/india-business
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