The automotive ecosystem is in the midst of significant change, with increasing challenges in consumer demands, technology development, globalization, integration and collaboration. A new era is rapidly approaching in which the very definition of personal mobility will change. Automotive companies are racing to develop new business models to help them maintain responsible growth. In this dynamic new age, we believe a focus on the development of compelling personal mobility solutions, retail transformation, global execution and extensive partnering will be the keys to success in 2020.
Technology Development While demand for incumbent technologies will remain strong, alternative power trains could capture more than 20 percent of the global market by 2020, depending upon boundary conditions such as fuel taxation and emissions regulation set by governments as well as oil price development. Energy storage is in the heart of the next generation of efforts for fuel economy.
• Internal combustion engines (ICEs) would continue to have the potential to greatly increase their fuel efficiency by 2020. Diesel will remain competitive: contrary to popular belief, diesel will retain a cost of ownership advantage of 5 to 8 percent over ICE gasoline, driven by a fuel efficiency advantage of 15 to 20 percent, thus enabling diesels to become the strongest power train in the majority of future scenarios. • EVs/Hybrid and zero emission vehicles would constitute significant portion of the vehicle fleet. • More realistic scenario will emerge for technologies using Hydrogen as automotive fuel. • Intelligent use of NCES (Non conventional energy sources) for powering Public Transport.
Consumer The industry has become more consumer driven and the consumer will be dictating the terms. Consumers, regulatory and environmental requirements would compel the auto industry to extend outside the borders of its own ecosystem to tap into the innovation and resources of others. The mode of transportation will also be dictated by them.
Infrastructure The road transport sector has been declared a priority and will have access to loans at favorable conditions.
The National Highways Act has been modified to help the reduction of tolls on national motorways, bridges and tunnels. Private participation in the energy sector has been encouraged with the reduction of import duties, a five-year tax exemption for new energy projects and a 16% return on equity.
The government is also following a new telecommunications policy that aims for the improvement of quality to a worldwide standard and, as a result, India could emerge as a major producer and exporter of telecommunication systems. Advantageous policies in this sector are encouraging private and foreign participation.
In conclusion Automobile Industry in India is still in its developing stage however in the next few years a rapid growth is expected and by 2020 the volumes are going to reach significant levels. The challenges for the society would be to provide sustainable mobility to the people. The industry would have to develop vehicles which would have minimum impact on Air Quality and confirm to the Safety Norms with cost of fuel increasing rapidly. The Industry would also need to provide energy solutions for economic activities to sustain. When we compare 2020 with the present, we cannot think about the growth of the automobile enterprise without also paying attention to the safeguarding of the world environment. In the next ten years, we will experience more change than in the 50 years before.
The industry would not only need to address the technology challenges but also look at cost competitiveness and human resources challenges. The policy makers would have to provide infrastructure to absorb the volumes that are expected to come into existence. Challenges beyond 2016 would make it necessary for Private & Public Sector to join hands and come out with effective solutions for sustainable mobility
