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The Top Automotive Trends for This Year

At the very least, we can expect both motorists and automotive companies to have confidence in the future on account of robust sales figures

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Electric cars are gaining more and more popularity in India and are sure to see a boom in their sales and production in the coming future. Photo: M. Rittgerott
Cadillac Unveils a Photo of What You Would Call its First Electric Car. VOA
  • Sale of vehicles and automotive parts is on an all-time-high
  • Last year 4 million cars were sold alone in India
  • The numbers are indicating towards a potential upswing

Sales of vehicles and automotive parts continue to increase in India. And just last year, the country saw at least four million cars sold. For a country touted to be one of the largest automotive industries in the Asia-Pacific region, the numbers only show a potential upward swing.

The increase in cess for large cars and sports utility vehicles jumped from 15 per cent to 25 per cent.

India saw the sale of 4 million vehicles last year.At the very least, we can expect both motorists and automotive companies to have confidence in the future on account of robust sales figures. Industry projections also provide reasons to feel elated. For one, the industry is set to grow at a pace of 10 to 15 percent. Given the right conditions and institutional support, it is set to reach a value of $16.5 billion by 2021.

Despite these positive figures, however, it is important to recognize the factors that will either bring new innovations to the table or worsen current challenges.

Here are some of the most important trends to watch out for this year.

Low-cost labor

India is indeed a haven for international car companies seeking to establish assembly lines at low costs. The availability of skilled labor and, with that, low wages will continue to play a vital role in improving annual production rates. China is the powerhouse for now, but local car manufacturers in India are maximizing the current labor climate in a bid to outrank its oriental neighbor.

 

Research and Development of features like fuel efficiency will be one of the main trends.

 

Focus on research and development

Safety and environmental concerns continue to be a priority among international car manufacturers. Consumers are still reeling from the serious recalls Toyota had to implement in response to factory defects. The experience created an atmosphere of caution, where buyers have become more focused on ensuring their own safety on the road. Design and manufacturing have thus skewed more towards ensuring better airbag systems, quality assessment procedures and environmental compliance.

Ventures with other companies

Innovations and technological shifts are a given, but it remains crucial for manufacturers to forge stronger relationships with OEM and tier partners such as machining services, AC parts suppliers, and windshield installations. However, due to incessant innovations, suppliers will have to update existing technologies or undergo acquisitions by larger OEMs where the sharing of vital resources of knowledge is very much possible.

 

Also Read: Electric Cars: The Newest Trend In India

Reliance on digital marketing

As with previous years, manufacturers and dealerships will continue to adapt to current digital trends. In terms of distribution, using online platforms can actually help in saving costs by selling directly to buyers, hence bypassing retailers. What’s more, using their online brand presence, car manufacturers can do better market research and outreach activities, allowing them to shorten the time it takes before buyers can make their decisions.

 

Digital marketing is another popular profession among graduates. Wikimedia Commons
Digital marketing will potentially increase the sales of cars. Wikimedia Commons

 

Focus on reforms

In a 2017 blog article by Priyam Saraf for The World Bank, policy reforms in the country are crucial for enhancing India’s competitiveness. Investments in research and development should also go hand in hand with reduction of tariffs as a way towards lessening the pressures on the automotive industry. More importantly, measures for improving compliance to global standards can further strengthen the industry’s performance in the face of rising competition that lies close to home.

Next Story

eSim in Car Set to Jazz up Your Weekend Road Trips

eSIMs have already been chosen by the European Commission to form a part of in-car emergency call systems

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Here are some top recommendations for your next best road trip in this season of Monsoon. Pixabay

In October 2013, GSMA which is the mobile network operators’ trade body worldwide, revealed it was developing a new kind of SIM that could be soldered in place and then programmed to connect to a chosen carrier remotely.

GSMA called this the embedded SIM, or eSIM for short, which has potential for several “connected” devices like smartwatches, smartphones, homes — and cars.

Several automakers came forward to back this move, like General Motors, Jaguar Land Rover, Renault Nissan, Scania and Volvo Cars.

The Cloud-connected virtual eSIMs would enable automakers remotely provision connectivity over the air to vehicles with an operator of their choice.

These were to deliver a range of in-vehicle services such as infotainment, real-time navigation, insurance and breakdown services, as well as telematics and remote diagnostics.

Hyundai has come with an inbuilt Vodafone-Idea eSIM card for its compact SUV called Venue. The SUV does not need the user’s smartphone to connect to plethora of options like entertainment, navigation and emergency response etc.

MG Motors has entered the race with an SUV named Hector. It is supposed to launch in India in the latter half of the year.

How does an eSIM work and what does it offer?

There has been a slot for standard SIM cards available in some cars but it always had disadvantages like high and low temperatures within cars, exposure to different weather conditions, corrosion and constant vibration from the engine and road conditions.

Standard SIMs can also only connect to a single network at a time, reports whatphone.com.

Road trip. Giphy

eSIMs address many of these problems as they are directly soldered into the car making them more secure and resistant to the adverse conditions within vehicles.

The car owners can swap between networks and use the eSIM for different purposes without having to change cards.

“With embedded LTE solutions, car manufacturers can offer high-speed, low latency connectivity and a suite of advanced services and features that enhance ‘on the road’ experiences for both drivers and passengers,” the cyber security firm Gemalto wrote in a blog post.

Users can enjoy simultaneous embedded voice and data services, allowing one passenger to search online for the best nearby restaurant while another passenger calls for a reservation.

Embedded eSIMs identify individual vehicles, encrypt communications and ensure secure global connectivity for smart vehicle systems including eCall emergency solutions, vehicle telematics, navigation and more.

eSIMs have already been chosen by the European Commission to form a part of in-car emergency call systems.

Also Read- US President Donald Trump Defends Far-right Personalities, Attacks Facebook

This means all cars manufactured from 2018 were required to have an eSIM that can perform emergency functions, especially in relation to breakdowns and crashes via machine-to-machine (M2M) communication technology.

“In the future, secure Cloud-based service enablement and next generation features such as secure ID-based ignition, integrated NFC and mobile wallet applications will further contribute to convenience for drivers and passengers,” Gemalto added.

According to GSMA, eSIMs would help car manufacturers offer any type of in-car connected service through a single SIM, which can be provisioned with the profile of a mobile operator once the car is shipped, as well as at the end of a contract — without the SIM needing to be changed. (IANS)