Automotive industry

10 Things 2 Look Forward 2 in 2022, Auto News, ET Auto

The electric mission saw enablers in the form of Auto PLI, FAME and ACC. It now needs performance, security, exchange, charging, and disposal regulations to complete the protocol. J

By Avik Chattopadhyay

Well, the year didn’t start off better. The third wave will keep the auto industry in limbo for some time to come. Consumer sentiment will continue to border on anxious and negative. The experiences and scars of the first two waves have taught us how to embrace difficult times and plan better for them. Unless the situation spins completely out of control, experts say, we should see the curve flatten by the end of March. This means that this exercise should be amortized for car manufacturers.

A flattened curve and enough chips won’t be enough to rekindle feelings. Social psychologists say that the end of negative events and material reasons are not enough to instill positivism in the human spirit. The end of the Second World War and the Marshall Plan were not enough to revive Europe. There are larger and deeper factors, events and initiatives that must work together to create the right waves and symbols of optimism and pride.

Likewise, if the Indian auto industry is hoping for a recovery after three years of decline, it takes a combination of actions and events to create the spark! Some of them might be global being suitable for our market but all of them will be relevant for Indian customer. Some will directly impact the buyer while others will impact those who offer the solutions to the buyer.

I look forward to 10 such actions and events happening over the next 12 months that could play this role.

#1 – Complete EV Protocol

The electric mission saw enablers in the form of Auto PLI, FAME and ACC. It now needs performance, security, exchange, charging, and disposal regulations to complete the protocol. This will demonstrate a real government commitment to the cause.

#2 – A Cohort Battery

Along with the regulations, battery makers need to form a consortium to combine research, manufacturing and recycling resources for the Indian market. In the early years of this “start-up” industry, it had to be all about collaboration and co-creation. Concurrency may occur later when the base is built. This is the only way for India to earn a place on the global electric battery and BMS map.

#3 – 2W Rework

Along with establishing order, there also needs to be healthy chaos to spark consumer interest. This will happen in the 2 wheel industry. Challengers are gaining ground at the expense of legacy brands, which is brilliant for the overall maturity of the product segment. The fact that 2W electrics now represent more than 10% of total sales means that the inflection point has been reached. Ola, Ampere and Ather will soon go mainstream creating their own heirlooms.

#4 – The return of the “Jodi” (pair)

With all due respect to Mr. Spielberg, the pair of Maruti and Bajaj will fight back. Both of these brands have been the butt of jokes and memes for seemingly losing the “plot”. Both will bounce back in 2022. Maruti Suzuki will reappear all the blazing guns with new products and a renewed focus on CNG and flex fuels. Bajaj, like Toyota, might come a little late, but the upgraded electric Chetak will set new benchmarks. And it will be a huge boost for the market as the crowd loves that the bruised hero is coming back strong! Even today’s generation is waiting for the next release of Rajinikant or Salman movie.

#5 – CX on showrooms

I hate to use jargon, but Metaverse is finally happening. Basically, virtual experiences are taking over physical experiences. Hyundai launched Wia. Volvo has developed a 100% immersive AR showroom with Microsoft. Challenger brands will use it as part of their reach strategy. We will see the birth of EFH – Experience from Home. This will make it better for consumers as a whole because the experiences will be tailored to them and not the other way around.

#6 – Leasing becomes the norm

Given the global realignments occurring in this space, leasing will become a critical tool used by both automakers and independent brands to make the personal vehicle more affordable and accessible, especially electric vehicles. The solution will also cover used vehicle businesses, as this segment will overtake new vehicles by 2:1 over the next two years. Twelve-month rental offers may well become the norm very soon to ensure penetration.

#7 – Public transport version 2.0

One of the lessons of the pandemic is the need for cleaner and safer multimodal public transport systems, combining road, rail and water. Key cities have revamped their networks and will roll them out in 2022, offering the average man and woman a viable alternative mode of mobility to purchasing personal transport. World-class bus and metro/train services will be seen in major metropolitan cities this year, ushering in new era green technologies in public transport.

#8 – More than crisps

This is an area where global developments will impact Indian needs. Given the temporary paralysis due to the shortage of semiconductors, the industry will work to develop other embedded alternatives. The entire chip and software structure could be redesigned with other processing modes as well as higher processing powers in place. 5G will provide ultra-reliable, low-latency communication. And the Indian automotive and IT industries must create an R&D consortium to imagine solutions to tomorrow’s mobility needs.

#9 – Components are the pride of India

Component makers are making India a global automotive powerhouse to be reckoned with. They’ve created a value standard that allows automakers to be hyper-competitive. While the market is still untapped in terms of penetration and maturity, the supply chain is robust and ultra-refined in capabilities and the drive to innovate.

#10 – The SMEV takes matters into its own hands

The pandemic has been a tremendous opportunity for SIAM (Society of Indian Automobile Manufacturers) as an industry body to set the agenda for action and thinking for one of the country’s key industries. Unfortunately, he chose to remain silent and play a passive role. With the growing narrative of electric mobility, it is time for SMEV (Society of Electric Vehicle Manufacturers) to step up to represent a proactive and progressive industry. The change of order itself will shake the industry to adopt a more involving and inclusive stance in nation building!

While I anticipate all of the above will take shape for sure, it may not all start in tandem, which is only natural. The vibrations and ripples they will create will have a huge impact on the entire ecosystem supported by the industry. This will send the right signals to the average man and woman to look at an automobile again, without apprehensions or anxieties. The industry must reach out to reassure and empower potential and existing customers.

Sounds a lot like multiple clues from a Dan Brown novel…they seem harmless enough on their own, but together they’re powerful enough to unlock hidden power and create miracles!

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Aided by exports, demand from the electric vehicle sector and sales of high-value components to high-end cars, the automotive components industry is expected to reach a new peak in revenue collection by the end of the fiscal year. 2021-22.

Despite the growth in sales of 2 and 3W electric vehicles in India, there has been no significant growth in charging infrastructure. There are only about 1,000 public EV charging stations in India. We still hear about concerns about billing. It is also not yet clear what form of charging will dominate India’s 2/3W EV landscape. With government incentives and increased 2/3W EV ownership, many charging infrastructure business models that weren’t viable before have started to make sense. If 2021 was the year EV adoption took off, 2022 is the year EV infra deployments will take off.