India has always been a fast adaptor, be it penetration of mobile phones, internet (Jio 4G), shared
mobility (Ola, Uber, Zoom, Revv, etc) or any other thing. The pace at which things
penetrate in India and go viral has a huge potential.
If we notice the trend of how disruption takes place in any Industry is when a new technology
comes and removes the entry barrier and thus allowing multiple manufacturers to
enter in the industry. This type of disruption is always beneficial for the customer
as companies innovate fast to create differentiators and also the margins are
reduced due to cut-throat competition.
The above trend
can be mapped when Windows came in allowing multiple OEMs to assemble computers
using its operating system, breaking the monopoly of Apple Machintosh. Although I
am a huge fan of Steve Jobs the harsh reality is when Windows licensed its
operating system, it allowed multiple OEMs to enter the market and assemble
computers. The same trend was followed in Mobile phones when android was
developed by Google allowing multiple OEMs to assemble mobile phones under their
brand. Android also removed the entry barrier of making an end to end solution and
hence inspired many new brands to come in and launch mobile phones.
Tcarz team
envision a disruption coming in the automobile industry. The future of the automobile
industry will be defined by a new technological platform that removes the
entry barrier for new manufacturers. The next big player in the automotive industry
in India may not necessarily be Maruti Suzuki, Hyundai or Tata Motors, it can
be any player like Apple, Google, Xiaomi, Ola or Micromax. Telsa being in the
elite class will always play a role like Apple in mobile phones but the Indian market is also about affordability which attracts new OEMs to enter the
automotive market.
Automobile Industry will also shift to the aggregator market wherein an OEM will be a pure assembler. New OEMs will be contracting with suppliers of Tyres, Suspension, Seat Manufacturers, Infotainment partner and Operation system partner. All the components will be assembled under one roof in a small assembly line with the branding of the manufacturer and new vehicles will be launched. Players with huge manufacturing facility will have to operate as Foxconn, wherein they can utilize their economies of scale and produce car shells or provide end to end solution like Foxconn where the specifications and designs will be shared by manufacturers and factories will engage workers to assemble the same for car manufacturers.
Tcarz envisions that the above take will start around 2025 and the future of the automobile industry will completely change by 2030. Please share or comment, if you like the article or want us to share more insights on the future trends in the automobile industry.
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