Mini Project on-

“APPLICATION OF EMERGING TECHNOLOGY IN

AUTOMOTIVATE INDUSTRY”

Submitted for the Partial Fulfilment towards the awards of the Degree in
Master in Business Management (MBA)

of
Dr. A.P.J Abdul Kalam Technical University, Lucknow
By

Fayza Khan
Roll no- 2401270700024

Under the guidance of

Dr. Sahadev Singh Tomar

Assistant Professor at

IIMT ENGINEERING COLLEGE MEERUT 127

1
 STUDENT DECLARATION
I hereby declare that the work presented in this report
entitled “MINI PROJECT-II", was carried out by me. I
have not submitted the matter embodied in this report
for the award of any other degree or diploma of any
other University or Institute. I have given due credit to
the original authors/sources for all the words, ideas,
diagrams, graphics, computer programs, experiments,
results, that are not my original contribution. I have used
quotation marks to identify verbatim sentences and
given credit to the original authors/sources.
I affirm that no portion of my work is plagiarized, and
the experiments and results reported in the report are not
manipulated. In the event of a complaint of plagiarism
and the manipulation of the experiments and results, I
shall be fully responsible and answerable.

Name : Fayza Khan

Roll. No. 2401270700024

(Candidate Signature)

2
 CERTIFICATE

This is to certify that FAYZA KHAN has undertaken this

project titled EMERGING TECHONOLOGY IN AUTOMOBILE
INDUSTRY “: Challenges and how Technology can Enhance
Automobile industry “for the partial fulfillment of the award
of Master of Business Administration degree from Dr. A P J
Abdul Kalam Technical University, Lucknow (U. P.).

I wish him/ her all the best for his/her bright future ahead.

Head of Department
Dr. Vikhyat Singhal

Date

3
 ACKNOWLEDGEMENT
I express my sincere thanks to Dr. Sahadev Singh Tomar for
guidance & encouragement in accomplishing this project report.
I am extremely thankful and pay my gratitude to my faculty
guide Dr. Vikhyat Singhal for his valuable support on
completing this project report.
I also acknowledge with a deep sense of reverence, my
gratitude towards my parents and member of my family, who
has always supported me morally as well as economically.
At last, but not least gratitude goes to all of my friends who
directly or indirectly helped me to complete this project report.

Name- Fayza Khan Date- / /

4
 MINI PROJECT
1. INTRODUCTION

1.1. Industry overview

1.2. Investments
1.3. Government initiatives
1.4. Road ahead
1.5. India’s automobile exports policy
2. BACKGROUND
2.1. Brand performance outshines industry output
2.2. Ev’s – the new era for automotive DOMINANCE
3. SCOPE OF INNOVATION
4. KEY PLAYERS IN INDIA
5. CHALLENGES IN AUTOMOBILE INDUSTRY
5.1. Why there is low export in automobile industry from
India?
6. EMERGING TECHNOLOGIES IN AUTOMOTIVE
INDUSTRY
7. AUTOMOBILE INDUSTRY : SWOT ANALYSIS
8. CONCLUSION
9. REFERENCES

5
 INTRODUCTION

The Indian automobile industry has historically been a good indicator of how well

the economy is doing, as the automobile sector plays a key role in both

macroeconomic expansion and technological advancement. The two-wheelers

segment dominates the market in terms of volume, owing to a growing middle

class and a huge percentage of India’s population is young. Moreover, the

growing interest of companies in exploring the rural markets further aided the

growth of the sector. The rising logistics and passenger transportation industries

are driving up demand for commercial vehicles. Future market growth is

anticipated to be fueled by new trends including the electrification of vehicles,

particularly three-wheelers and small passenger automobiles.

India enjoys a strong position in the global heavy vehicles market as it is the

largest tractor producer, second-largest bus manufacturer, and third-largest

heavy truck manufacturer in the world. India’s annual production of automobiles

in FY22 was 22.93 million vehicles.

India is also a prominent auto exporter and has strong export growth

expectations for the near future. In addition, several initiatives by the

Government of India such as the Automotive Mission Plan 2026, scrappage

policy, and production- linked incentive scheme in the Indian market.

6
 INDUSTRY OVERVIEW

India's economic progress over the past 20 years is widely known, yet it is

frequently attributed to a services-driven phenomenon. But some

manufacturing industries—the car industry foremost among them—have

contributed significantly to this economic expansion.

The automotive industry makes a significant contribution in terms of quality

procedures, efficiency enhancements, and product innovation, in addition to

sales, earnings, taxes, and employment. This sector-wide dynamism has been

observed in the industries that produce cars, two-wheelers, commercial

vehicles, and utility vehicles.

With regard to its profitable and sustainable expansion, the Indian automobile

industry is undergoing major change. The foundations that underpin the

automotive industry's growth drivers are still in place, and as the economy

recovers and investments rise, the sector is anticipated to experience an increase

in demand. In the previous three to four years, India has improved on nine out

of 10 criteria for the ease of doing business, thanks in large part to the

government's "Make in India" campaign. India is now regarded as a good location

for low-cost manufacturing. On the Global Manufacturing Index3, which rates

the manufacturing ability of nations, the World Economic Forum placed it 30th.

7
  The Indian passenger car market was valued at US$ 32.70 billion in 2021, and

it is expected to reach a value of US$ 54.84 billion by 2027 while registering a

CAGR of over 9% between 2022-27.

 The electric vehicle (EV) market is estimated to reach Rs. 50,000 crore

(US$ 7.09 billion) in India by 2025. A study by CEEW Centre for Energy

Finance recognised a US$ 206 billion opportunity for electric vehicles in

India by 2030. This will necessitate a US$ 180 billion investment in vehicle

manufacturing and charging infrastructure.

 According to NITI Aayog and the Rocky Mountain Institute (RMI), India's

EV finance industry is likely to reach Rs. 3.7 lakh crore (US$ 50 billion)

by 2030. A report by the India Energy Storage Alliance estimated that the

EV market in India is likely to increase at a CAGR of 36% until 2026. In

addition, the projection for the EV battery market is expected to expand at

a CAGR of 30% during the same period.

 Indian automotive industry is targeting to increase the export of vehicles

by five times during 2016-26. In FY22, total automobile exports from India

stood at 5,617,246.

INVESTMENTS

To keep up with the growing demand, several auto makers have started investing

heavily in various segments of the industry during the last few months. The

8
 industry attracted Foreign Direct Investment equity inflow (FDI) worth US$ 33.77

billion between April 2000-September 2022, accounting for 5.48% of the total

equity FDI during the period.

Some of the recent/planned investments and developments in the automobile

sector in India are as follows:

• In January 2023, MG Motor India to invest US$ 100 million to expand capacity,

eyes 70 percent growth in 2023.

• In December 2022, Mahindra & Mahindra to invest Rs 10,000 crore (US$ 1.2

billion) for an EV manufacturing plant in Pune.

• In November 2022, Maruti Suzuki India announced plans to spend nearly Rs.

7,000 crore (US$ 865.12 million) on several projects this year, including the

building of its new facility in Haryana and the introduction of new models.

• In October 2022, the total production of passenger vehicles*, three wheelers, two

wheelers, and quadricycles was 2,191,090 units.

• In October 2022, Maruti Suzuki was India’s biggest car seller, with 136,700 units

9
 In October 2022, Hero MotoCorp sold 507,587 two-wheelers, the highest in the

segment, which gave it a market share of 32.31%.

• In September 2022, Maruti Suzuki launched the Grand Vitara at a starting price

of Rs. 10.45 lakh (US$ 12,915).

• In September 2022, Hero MotoCorp announced an investment of US$ 60 million

in California-based Zero Motorcycles to collaborate on the development of

electric motorcycles.

• In August 2022, Volkswagen Group's Indian subsidiary, Skoda Auto Volkswagen

India, has begun a feasibility study for its next phase of investment in India after

rolling out its India 2.0 strategic plan.

• In July 2022, TVS Motor lines up fresh investments of Rs 1,000 crore in EV push.

• In April 2022, Tata Motors announced plans to invest Rs. 24,000 crore (US$ 3.08

billion) in its passenger vehicle business over the next five years.

• In March 2022, MG Motors, owned by China's SAIC Motor Corp, announced

plans to raise US$ 350-500 million in private equity in India to fund its future

needs, including EV expansion.

• In March 2022, Hyundai plans US$ 79.2 billion investment through 2030, to

focus majorly on EVs.

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 In February 2022, a memorandum of understanding (MoU) was signed between

electric two-wheeler company Ather Energy and Electric Supply Companies

(ESCOMs) of Karnataka for setting up 1,000 fast charging stations across the

state.

• In February 2022, Tata Power and Apollo Tyres Ltd announced a strategic

partnership for the establishment of 150 public charging stations across India.

• In January 2022, Kinetic Green Energy announced plans to invest Rs. 80-100

crore (~US$ 10-13 million) in a two-wheeler EV project, in collaboration with

Chinese EV major Aima Technology Group.

• Two-wheeler EV maker HOP Electric Mobility, a diversified business venture of

Rays Power Infra, is looking at investing Rs. 100 crore (US$ 13.24 million) over

the next two years to expand manufacturing capacity for its EVs.

• Investment flow into EV start-ups in 2022 (until September 15) has raised

funds worth around US$ 673 million, according to Fintrackr.

• In December 2021, TVS Motor Company and BMW Motorrad, announced a

partnership in the two-wheeler EV space, with plans to release their first electric

two-wheeler within the next two years.

• In December 2021, Hyundai announced plans to invest Rs, 4,000 crore (US$

530.25 million) in R&D in India, to launch six EVs by 2028.

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 A cumulative investment of Rs. 12.5 trillion (US$ 180 billion) in vehicle

production and charging infrastructure would be required until 2030 to meet

India’s EV ambitions.

12
 RECENT INVESTMENTS IN INDIA FROM TOP
COMPANIES ( IN MILLIONS)
INVESTMENTS (SEP 2022 - JAN 2023)

60

100

865.12

1200

13
 GOVERNMENT INITIATIVES

The Government of India encourages foreign investment in the automobile

sector and has allowed 100% FDI under the automatic route. Some of the recent

initiatives taken by the Government of India are:

• In July 2022, Gujarat government announced a semiconductor policy, where it

will set up Dholera Semicon City and offered incentives for investment in this

sector.

• In July 2022, the Government amended the National Policy on Biofuels – 2018.

The target of 20% blending of ethanol in petrol and 5% blending of biodiesel in a

diesel by 2030 was brought forward to 2025-26.

• As of July 15, 2022, under the FAME India Scheme I & II, a total of 532 EV

charging stations have been installed by oil companies under the Ministry of

Petroleum and Natural Gas (MoPNG).

• In February 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways,

revealed plans to roll out Bharat NCAP, India’s own vehicle safety assessment

program.

• In February 2022, 20 carmakers, including Tata Motors Ltd, Suzuki Motor

Gujarat, Mahindra and Mahindra, Hyundai, and Kia India Pvt. Ltd was chosen to

receive production-linked incentives (PLI) as part of the government's plan to

14
 increase local vehicle manufacturing and attract new investment. The 20

automobile companies have proposed a total investment of around Rs. 45,000

crore (US$ 5.95 billion).

• In the Union Budget 2022-23, the government laid out the following initiatives:

o The government introduced a battery-swapping policy, which will allow drained

batteries to be swapped with charged ones at designated charging stations, thus

making EVs more viable for potential customers.

o India’s National Highways would be expanded by 25,000 km in 2022-23 under

the Prime Minister’s Gati Shakti Plan.

• In November 2021, the Union Government added >100 advanced technologies,

including alternate fuel systems such as compressed natural gas (CNG), Bharat

Stage VI compliant flex-fuel engines, electronic control units (ECU) for safety,

advanced driver assist systems and e-quadricycles, under the PLI scheme for

automobiles.

• In September 2021, Minister of Road Transport and Highways, Mr. Nitin Gadkari,

announced that the government is planning to make it mandatory for car

manufacturers to produce flex-fuel engines after getting the required permissions

from the Supreme Court of India.

• In September 2021, the Indian government issued a notification regarding a PLI

billion). This scheme is expected to bring investments of over Rs. 42,500 (US$
15
 5.74 billion) by 2026 and create 7.5 lakh jobs in India.

• In August 2021, Prime Minister Mr. Narendra Modi launched the Vehicle

Scrappage Policy, which aims to phase out old polluting vehicles in an

environmentally safe manner.

• The Indian government has planned US$ 3.5 billion in incentives over five years

until 2026 under a revamped scheme to encourage the production and export of

clean technology vehicles.

• In July 2021, India inaugurated the NATRAX, which is Asia’s longest high-speed

track and the fifth largest in the world.

• As of June 2021, Rs. 871 crore (US$ 117 million) have been spent under the

FAME-II scheme, 87,659 electric vehicles have been supported through

incentives, and 6,265 electric buses have been sanctioned for various state/city

transportation undertakings.

• In May 2021, the Central Government approved a PLI scheme for manufacturing

Advanced Chemistry Cells (ACC) with a budget of Rs. 18,100 crore (US$ 2.33

billion). In March 2022, four firms, namely Reliance New Energy Solar Limited,

Ola Electric Mobility Private Limited, Hyundai Global Motors Company

Limited, and Rajesh Exports Limited, were elected to receive the incentives.
ROAD AHEAD

16
 The availability of competent labour at a reasonable price, strong R&D facilities,

and affordable steel manufacturing are only a few of the elements that influence

the car business. In addition, the sector offers fantastic investment prospects as

well as both direct and indirect employment for both skilled and unskilled

personnel. By 2030, the electric car sector is anticipated to generate five crore

employment.

The Indian government introduced the nation's first double-decker electric bus

in Mumbai in August 2022. The administration believes that modernising the

nation's transport infrastructure is vital in the long run. With an emphasis on

urban transport reform, it is trying to develop an integrated electric vehicle (EV)

mobility ecosystem with a low carbon footprint and high passenger density.

In response to rising public demand for more environmentally friendly

transportation choices, the government's policy and regulations are meant to

encourage broader use of electric cars.

By 2023, the Indian government anticipates that the vehicle industry would bring

in $8–10 billion in domestic and foreign investments. By 2030, India may be a

global leader in shared transportation, opening doors for electric and driverless

cars.

17
 After recovering from the COVID-19 pandemic's impacts, the Indian car industry

is anticipated to have rapid development in 2022–2033. In 2022–2023, sales of

electric vehicles, particularly two-wheelers, are projected to increase.

India has long considered the automobile industry integral for economic growth

in their developing country (Government of India 2006). Due to its forward and

backward linkage effects, the development of the automobile industry can foster

the manufacturing sector, which is an efficient means of employment

generation. Hence, the Government of India has implemented several policies to

promote the automobile industry. Furthermore, India has tried to attract Foreign

Direct Investment (FDI) to establish itself as a global manufacturing hub.

According to the International Organization of Motor Vehicles Manufacturers

(OICA), India’s automobile production was the sixth largest in the world in 2014.

India’s automobile production recorded 3.844 million in 2014, increasing from

2.253 million automobiles in 2007. However, automobile sales capacity in the

domestic market is limited and stagnant as the domestic market is dominated by

two-wheeler vehicles due to the lack of road infrastructure and heavy traffic.

Indian automobile companies are working to increase exports as a way to tackle

the problem of over-production capacity (Narayanan 2008). Furthermore,

exports can be a catalyst for further development of the industry by increasing

productivity and efficiency to meet tough competition in global market.

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 INDIA’S AUTOMOBILE EXPORTS POLICY

Auto Policy 2002 was introduced as the first separate automobile policy to

establish a globally competitive automobile industry in India. In Auto 2002, R&D

activities were highlighted to improve exports of Indian automobiles . Moreover,

Auto Policy 2002 stipulates the goal of developing small-car manufacturing

capacity to establish an international hub for manufacturing small and affordable

passenger cars. The automatic approval of 100 percent of foreign equity

investment was authorized and procedures for exports were also simplified in

Auto 2002, which as a result has improved India’s automobile exports. In

Automotive Mission Plan 2006-16, the Government of India recognized the

importance of manufacturing competitiveness to increase exports. In this policy,

investment incentives were suggested for automotive firms, especially those

engaged in exports. Excise duties were also lowered by ten percent on small cars

to encourage small car manufacturing (Government of India 2006). As the next

phase of AMP 2006-16, AMP 2016-26 was published with an emphasis on

improving environment and safety standards to meet international standards. It

has been argued that the major obstacle to achieving consistency for Indian

automobile exports was unsatisfactory pollution and safety standards related to

advanced technology.

BACKGROUND

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 India’s exports of vehicles declined across segments with the exception of

passenger vehicles in 2022-23. While factors like global macroeconomic

environment and dollar strength are cyclical, one clear reality that India needs

to be cognisant of is the growing share of EVs in automotive exports and

consequent decline in ICE-based vehicles. This trend merits a timely shift in

capabilities with the goal of making India an EV manufacturing hub. But will India

be able to catch the bus in time?

The auto industry in India has made a splendid comeback in the domestic market

after the past few tumultuous years. In 2022-23, domestic sales of passenger

vehicles saw a growth of 15%, and growth was in fact witnessed in nearly all

segments. However, according to latest auto figures, released by different

companies, exports of both four-wheelers and two-wheelers shrunk in FY23.

The Society of Indian Automobile Manufacturers (SIAM), in its latest report,

mentions the growth of domestic sales and the decline in exports. The apex auto

association has observed that in FY23, total domestic sales stood at 2,14,04,162

units, as compared to 1,76,17,606 units in the previous FY.

BRAND PERFORMANCE OUTSHINES INDUSTRY OUTPUT

Some of the biggest two-wheelers manufacturers such as Chetak, Hero

Motocorp, Honda, Piaggio and TVS Motor took a dive in international sales. On

20
 the other hand, Yamaha, Royal-Enfield and Suzuki Motorcycle emerged as top

gainers with sales of 274,986, 100,055 and 207,615 units respectively in the last

financial year.

The country’s auto export figures have been affected largely by the threat of

global recession which visibly slowed economic capacities along with purchasing

power of developed economies.

While China is recuperating from its endemic situation, India emerged as a major

auto exporter, as the share of vehicle sales increased to the US, UAE, Singapore,

Israel, Germany, Spain and Russia. In January 2023, it was reported that India

overtook Japan to become the world’s third-largest vehicle market. Production

and demand within Japan took a beating in 2022 and have been on the decline

even in preceding years.

500
400
300
200
100

2022 2021

EVs – THE NEW ARENA FOR AUTOMOTIVE DOMINANCE?

21
 India still faces tough competition from China. The China Association of

Automobile Manufacturers reported that the country shipped 3.11 million

vehicles to foreign countries in 2022. Export figures were significantly more than

Germany, previously the second-largest exporter, which sold only 2.61 million

vehicles in international markets in 2022.

China is also advancing in auto sales in the international market with the increase

in preference for sustainable cars and electric vehicles. In 2022, China exported

around 679,000 new energy vehicles (NEVs, an umbrella term that China gives

to fully electric and PHEV cars), an increase of about 120% YoY. India’s export

share of EVs remains less than 1%, while for China, they have become a driving

factor for export growth. India, on the other hand, is struggling with EV sales in

its domestic market itself, wherein the 2-wheeler EV adoption was 25% short of

the target laid out by NITI Aayog and other research organisations. Society for

Manufacturing of Electric Vehicles has attributed this to the subsidies worth Rs

1,200 crore that were withheld because of ‘delay in localisation’.

The share of electric vehicles is rising globally at a very brisk pace. According to

a report by International Energy Agency, global sales of electric cars rose by 6o%

in 2022, and crossed 10 million for the first time. Now, one in every seven cars

sold is an EV, as compared to one in seventy cars in 2017.

22
 Even as it addresses the short term volatilities in the international car market,

India needs to aggressively pitch itself in the EV space now. Doing this will firstly

require, as affirmed in a report by Arthur D. Little, investments of at least US$ 10

billion to boost cell manufacturing and raw materials refining. This minimum

amount is required to just service the local demand of Li ion batteries. Currently,

around 70% of this requirement is sourced from China. Local Indian firms also

need to secure global partnerships and JVs to boost capabilities and ensure a

robust supply chain with access to critical raw materials like lithium, nickel,

cobalt and manganese. As the arena shifts, India needs to shift too, and fast!

23
 SCOPE OF INNOVATION

In these times of technological disruption and fast-paced and dynamic business

environment, successful breakthrough of new product is of utmost importance

for survival and success of the existing players in the market. In the automotive

industry, these changing dynamics have had the most direct impact on the new

product development (NPD) cycles that the players experience. Automotive

companies have traditionally been used to predictable NPD cycles which have

been fine-tuned over the last few decades of functioning. However, there are

several factors which are impacting the overall NPD cycles, which are listed

below:

 TECHNOLOGY-LED

New technology adoption

Electrification of cars and the emergence of ‘connected cars’ have paved the way

for NPD by unlocking multiple opportunities for NPD. For example, automakers

are exploring various alternatives for the existing Li-ion battery packs in EVs like

graphene-based battery packs, battery swapping mechanism, etc.

New players in the auto ecosystem

Entry of new players in the domain has increased the already fierce competition

24
 and Google offer infotainment products, CarPlay and Google Android Auto

respectively. Google has also ventured into the development of autonomous car

technology and vehicle prototypes.

 OEM – LED

Change in OEM expectations

Auto manufacturers are gradually shifting their process outsourcing strategy to

OEMs from the ‘build-to-print’ model to the ‘design-for-manufacturing’ (DFM)

model, which allows them to transfer responsibility partly and shrink overhead

costs resulting in increased focus on their core competencies.

Alliances towards sharing of platform to generate

economies of scale
Auto manufacturers are forming strategic alliances to benefit from the synergy

created by combining their specialised capabilities in shared vehicle platforms.

Ford India and Mahindra & Mahindra have established a partnership to share

vehicle architecture, electric powertrains and common sourcing and leverage

each other’s distribution network. Nissan and Renault have extended their

alliance to become a leader in electrification and build on its current competitive

position.

 BUSINESS MODEL – LED

25
 IOT-led product development
IOT has acted an enabler for various disruptions in the auto industry like

connected mobility, vehicle-to-vehicle (V2V) communication and vehicle-to-

everything (V2X), leading to a need for the development of various integrated

and centralised devices which will be relaying information between each other.

Bundling software and hardware could lead to new ways

for product updates

The modifiability of a product throughout its lifecycle to enable its continuous

development has developed a potential to alter product strategies of auto

manufacturers. As functionalities can be modified and activated by updating

software, a manufacturer can continue to sell additional features of a product

throughout its lifetime. For example, Tesla has led this change through remote

OTA updates for Tesla cars.

KEY PLAYERS IN INDIA

The market is characterised by the existence of prominent firms who control a

significant portion of each segment's market share. More than half of the

nation's market for passenger automobiles is made up of Maruti Suzuki India

Limited and Hyundai Motor India. Long the market leader, Maruti Suzuki India

Limited has maintained its dominance by providing a variety of models in each

26
 passenger vehicle sub-segment at affordable costs. Ford Motor Company, Tata

Motors, Honda India, and Mahindra & Mahindra Ltd. are some of the other

wellknown companies in the passenger car market.

Two companies, Bajaj Auto Ltd. and Piaggio & C. SpA, control over three-

quarters of the global demand for three-wheelers in 2019. However, the

introduction of electric rickshaws is anticipated to increase market rivalry in the

nation for businesses like Mahindra Electric Mobility. The electrification trend is

anticipated to alter the competitive environment of the nation's whole

automotive industry, aside from the market for three-wheelers. To keep up with

the increasing competitiveness, businesses have introduced or announced the

introduction of electric automobiles, buses, and trucks. In India's automobile

industry, some major players include:

• Tata Motors ltd.

• Mahindra & Mahindra ltd.

• Maruti Suzuki India ltd.

• Hero MotoCorp ltd.

• Bajaj Auto ltd.

• Ashok Leyland ltd.

27
 • Sundaram Clayton ltd.

• TVS Motor Company ltd.

• Eicher Motors ltd.

Honda Motor Co. ltd.

MARKET SIZE :

Number of Automobiles Produced ( in

millions)
32
30.92
31

30
29.1
29

28

27
26.36

26

25

24
FY18 FY19 FY20

Series 1

28
 Number of Automobiles Sold in India
( in millions)
30
26.27
24.97
25
21.55

20

15

10

FY18 FY19 FY20

Series 2

SECTOR COMPOSITION :

29
 Share of each segment in Total Production
Volume (FY20)

13%

3%
3%
Passenger vehicle
Commercial Vehicle
Three Wheelers
Two Wheelers

81%

CHALLENGES IN AUTOMOBILE INDUSTRY

The Indian automobile industry appears to be overcome most of its obstacles,

and many are already in the rearview mirror, notwithstanding the lingering

problem of COVID-19. The industry is also gaining from fresh tailwinds, including

as the rebalancing of the global supply chain, government export subsidies, and

technological innovations that open up new market opportunities.

Opportunities will be created at all points throughout the automotive value

chain as a result of these advancements.

30
 In an effort to meet the unprecedented challenge, the stakeholders in the auto

industry turned to digitization to serve customers, adapt to the new normal,

keep factories running under COVID-19 restrictions, and focus on financial health

by cutting costs and generating free cash flows.

These difficulties include a lack of steel and microprocessors (semiconductors),

which have an effect on electronic systems and components.

In addition, maintaining corporate operations and safeguarding the

organization's financial stability present the biggest obstacle. Each player in the

value chain, from vendors to dealerships, affects how well the automobile

industry performs.

Here are a few of the difficulties the automobile sector may face in 2023:
 Recent regulations include:
If we look at the number of units sold, China is currently the largest market for

automobiles worldwide. Whether manufacturers should think about joining the

market and trying to compete will be the issue in this situation.

 More Independent Traders are needed:

Additionally, we can anticipate a rise in demand for independent auto dealers.

Although the demand for new cars in 2020 was more than anticipated, the

market should decrease this year.

31
 Additionally, it would be the ideal time to launch an independent auto retailer.

 Vehicles Using Alternative Fuels:

The need for not only fuel-efficient automobiles but also vehicles that don't use

any gasoline at all means that automakers can no longer afford to ignore

alternative fuels. Every day, a deluge of information is published about both new

vehicle technology and the effects of fossil fuels on the environment.

The next ten years will see a continued rise in this discussion, which is not going

away anytime soon.

 WHY THERE IS LOW EXPORT IN AUTOMOBILE

INDUSTRY FROM INDIA?

India’s total exports of vehicles for FY 2022-23 stood at 47,61,487 units, a decline

by 15% YoY. While exports of passenger vehicles have gone up by 15%,

commercial vehicles recorded a decline by 15% YoY. The three-wheeler auto

segment sold 365,549 units in the last fiscal year, a dip of 27% YoY. SIAM’s report

records that cumulatively, only passenger vehicle segments are clocked a

positive trend. The two-wheeler segment witnessed a decline by 18%. It can be

noted that while overall exports dipped, some auto brands managed to increase

their export size.

32
 Under the PV segment, Honda, Hyundai and Isuzu recorded growth in exports in

FY 2022-23 with sale increase of 18%, 18% and 27% respectively. Other PV

manufacturers such as Toyota, Renault, Nissan, Maruti, Mahindra & Mahindra

and Kia also saw an increase in exports. But Volkswagen, Ford, Force Motors and

MG Motors recorded a decline in international sales. The overall figures, though

do look positive, given that the exit of Ford from India has significantly impacted

PV export figures.

The auto company exited from the country in 2021, though, it reconsidered its

decision to re-enter India in February 2022, after securing PLI scheme benefits.

Three months later, the American auto brand once again announced its decision

to give up on the project to make electric vehicles for exports.

The major reason for the decline in sales is seen as the

resurgent dollar leading to devaluation of currencies in

some of the key export markets. Speaking to IBT

exclusively, SIAM President Vinod Aggarwal said:

“They (export figures) will resolve in any way because we as industry leaders

are very optimistic. Even if the export numbers are down,

we are confident
33
 that they will pick up. We are not saying that things are gone. But it will take

time to rebound”

Talking about foreign exchange, the SIAM president believes that leveraging the

option of rupee trade may give due export advantage to the country. He also

added that the FTAs with UAE and Australia could positively impact India’s auto

exports.

For two-wheeler manufacturers, it's turning out to be a bittersweet financial year.

Although their domestic sales have been impressive, their export numbers are

steadily declining and don't seem to be stopping anytime soon.

EXPORT VOLUME OF TOP THREE COMPANIES

Hero Motocorp’s volumes plummeted the most by 37%.

APR-DEC (FY23) APR-DEC (FY22) YoY(%)

HERO MOTOCORP 1,36,745 2,17,626 -37.2%

BAJAJ AUTO 13,26,541 16,75,781 -20.8%

TVS 7,54,376 8,13,406 -7.3%

So, what is keeping Indian two-wheelers homebound?

 Macroeconomic headwinds: The main causes of the current export

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 difficulties have been rising inflation and weak demand in Africa and Latin

America, key regions for two-wheeler export leaders like Bajaj Auto, Hero

MotoCorp, and TVS Motors. Additionally, Sri Lanka's ongoing economic

crisis has made the decline in exports worse.

 The Curse of a high base: Exports of two-wheelers saw a surge in FY22,

increasing by 39% over FY21 export volumes. It has gotten harder for auto

manufacturers to maintain the volume growth this fiscal year, as was to be

expected.

 Currency Depreciation: Most currencies have depreciated by double

digits as a result of the US Dollar's recent rise. Due to this, two-wheelers

are more expensive in emerging economies

EMERGING TECHNOLOGY IN AUTOMOTIVE

INDUSTRY

The development of emerging markets, the quickening adoption of new

technology, environmental policies, and shifting consumer ownership

preferences are all factors that are causing significant change in today's

economies. Automobiles will undergo a similar revolution to other industries

that have already been impacted by digitization, increased automation, and new

business models. Four disruptive technology-driven trends are emerging in the

automobile industry as a result of these factors: diversified mobility,

autonomous driving, electrification, and connection.

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 Companies must put in a lot of effort to stay ahead of the curve given how quickly

smart technology is developing. Huge advances have already been made, such

as dash cameras, Bluetooth in-car systems, and key finders. But what lies ahead

for the automotive technology industry?

The way people drive is predicted to undergo a complete upheaval thanks to

smart technologies.

These innovative concepts will put a strong emphasis on making driving safer,

simpler, and more enjoyable.

Numerous and quickly developing technologies will speed the change of the

automobile industry. These are factors that will affect connected vehicles, ADAS

(advanced driver assistance systems), driverless vehicles, and vehicle telematics.

Some of the emerging technologies which we think would changethe automobile

in coming decade are:

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 1. ELECTRIC VEHICLE BATTERY :

An electric vehicle battery (EVB, also known as a traction battery) is a

rechargeable battery used to power the electric motors of a battery electric

vehicle (BEV) or hybrid electric vehicle (HEV).

The future of the automobile industry will be electric vehicles, and batteries will

be essential to this. The future of the car industry depends on batteries. In the

global battle to profit from emission-free electric vehicles, government

organisations, investors, and automakers are pouring money into battery

development. According to the Indian Brand Equity Foundation, two-wheeler-

driven EV sales in India, excluding e-rickshaws, increased by 20% in FY20 to 1.56

lakh units. The future for the automotive industry has changed as a result of the

growing reliance on fossil fuels and the damage they inflict to the environment.

Additionally, it has highlighted electric vehicles

(EVs).Manufacturers of electric vehicles need to find answers for issues such as

fleet electrification, expensive batteries, poor charging infrastructure, and high

prices.

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 2. BATTERY INFUSED BODY PANEL / ENERGY STORING

BODY PANEL:

Flexible super-capacitors were incorporated into the carbon fibre composite

panels so they could capture the energy produced by regenerative braking and

discharge it back into the electric motor as needed. Additionally, the weight of

the composite material was 60% lower than that of the original components.

Commercialization will depend on the cost of carbon fibre, especially recycled

carbon fibre, which is too expensive when compared to steel or aluminium even

though the technical outcome was good.

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 3. SMART TYRES :

The tires’ outer layer is constructed of elastic polymer, or "bionic skin," giving it

elasticity similar to that of human skin and enabling it to expand and contract in

accordance with the state of the road's surface. In the event of a puncture, the

tread's sensor can identify it, and the tyre spins to adjust the contact patch. By

releasing some of the pressure on the puncture, the self-healing process can

begin. The materials that are specifically created to be able to flow towards the

puncture are what enable the self-healing to function. They interact chemically

and physically to create new molecular bonds that seal the puncture.

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 4. ARTIFICIAL INTELLIGENCE AND MACHINE

LEARNING:

The auto industry is setting the pace with AI-based autonomous vehicles. By

enabling self-driving cars, AI is allowing smart travel strategies. These vehicles

operate on sensors and software for control and navigation, and they do not

require drivers.

The goal of autonomous vehicles is to minimise the need for human drivers

and simplify daily transportation. Major industry giants like Uber, Tesla, and

Google are strongly in favour of efforts to improve the reliability of

autonomous vehicles. It is predicted that at the current rate, further

applications will be investigated, and investments will flood the market.

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 5. INFLATABLE SOLAR PANEL CAR COVER:

A roof-mounted gadget that can cover the entire parked car with solar panels

with the flick of a switch. More than six years have passed since Ford unveiled its

C- Max Solar Energy Concept. The rooftop solar system may generate 8 kilowatts

of power by tracking the sun's movement and concentrating its energy through

the use of a Fresnel lens to power the C-Max plug.

Ford is not the only company attempting to mount solar panels on EVs. Toyota,

Hyundai, Nissan, and Tesla have all experimented with solar-powered EV and

hybrid charging on rooftops.

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 6. BIG DATA AND ANALYTICS

Big Data analytics has the ability to give the automobile sector a competitive

edge by opening up new avenues for income generating.

These days, businesses develop their capacity to use big data analytics by

rapidly developing fresh insights based on an analysis of structured and

unstructured data. Companies are utilising these insights to create novel and

data-driven products and services that address customer needs and business

priorities. Data analytics is being used to glean insightful information from data

sets derived from vibration, temperature, and pressure sensors in automobiles.

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 7. BLOCK CHAIN:

Information is now more secure and difficult to alter, hack, or manipulate

thanks to block chain technology. The processes of the organization are

changed. It makes it possible to share vehicle data via a secure network for

connectivity and shared mobility solutions like deliveries, ride-hailing, and

urban transit. It is additionally applied during the verification process to boost

productivity in back-office tasks and the supply chain. Future predictions

predict that block chain will cause further upheaval in the auto industry.

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 8. HUMAN-MACHINE INTERFACE:

Drivers' interactions with their vehicles will radically shift as self-driving and

connected automobiles change the automotive industry. Vehicle controls are

made possible through human-machine interfaces (HMI), which use haptic or

voice feedback. These broaden the range of car-related functions that users can

operate.

As a result, these interfaces improve the safety and fun of driving. Smart virtual

assistants that aid users in interacting with vehicles and other service providers

are another type of HMI.

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 9. MICROMOBILITY :

Micro mobility, which entails lightweight, low-speed vehicles that can be shared

or privately owned and are propelled by pushing, pedaling, or electricity, is

becoming more and more popular as a substitute for conventional

transportation for short distances. It offers creative and efficient solutions to

problems like parking and traffic jams.

Many cities are constructing bike lanes and car-free areas to reduce congestion

on shared and public transit and to promote the usage of private micro mobility

vehicles.

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 10. INTERNET OF THINGS (IOT):

IoT makes it possible for automobiles and infrastructure components as well as

between vehicles to communicate securely in the automotive sector. With

better fleet management, the technology raises road safety, eases traffic, and

lowers pollution and energy use. Startups and growing businesses create

sophisticated sensing technologies to learn more about the vehicle and give it

the ability to comprehend its environment. Additionally, gasoline and toll

payments are automated via technology.

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 11. 3D PRINTING-A NEW GENERATION

MANUFACTURING :

Industrialists and end users constantly strive for newer, better performing

automobiles, therefore manufacturing must be optimized together with supply

chains and logistics due to the rising demand for new vehicles and spare parts

in the auto industry. In order to handle all of these demands and problems, 3D

technology is helpful. It has been researched in all facets of automobile

manufacturing. In addition to being utilized for quick prototyping, it is also used

to make tools and end components.

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 AUTOMOBILE INDUSTRY: SWOT ANALYSIS

 STRENGTH: Automobile Industry has some solid strengths like :

1) Growing Industry: Since the beginning of the 20th century, the mobility,

comfort, and safety provided by automobiles have improved people's

quality of life. Additionally, this sector helps with job growth and skill

development. It creates both direct and indirect jobs, directly contributing

to economic growth.

2) Innovation and Advancement: Consumer demand drives automakers'

R&D expenditures. With the development of technology and the use of

alternative fuels like CNG and shell gas, it is rising.

3) Luxury commercial vehicles: While the economic climate in many Asian

nations is stable, lifestyles are evolving. It also results in a rise in demand

for upscale public transport.

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  WEAKNESS: Automobile Industries also has a few flaws and 

faults, which to some extent hinder the company's development.

1) Recalled Cars: Many vehicles are being recalled for domestic reasons,

such as technical malfunctions or disregard for laws set forth by the

government. This is in the way of the expanding market.

2) Power of Bargaining: The market is expanding, and business

competition is escalating quickly. Due to the companies' increased

internal competitiveness, this is allowing customers to negotiate their

own terms.

 OPPORTUNITIES: The most promising aspect of the potential

provided by the automotive industry is shown by a SWOT analysis. Let's

examine them:

1) Efficiency: People are being increasingly watchful about efficiency

levels as technology advances. Because of this, the number of

automobiles with cost and fuel efficiency features will increase during

the coming ten years. Utilising renewable energy sources could boost

the market's success considerably.

2) Alliances: The growing competition among businesses may lead to a

better way for both parties to grow. Companies could offer a variety of

options to the consumer by merging various specialized strategic

49
 competencies, which could result in successful sales for collaborating

businesses. This can have advantages in the fiercely competitive market.

3) Changing lifestyle & customer groups: A change in lifestyle is

becoming more noticeable as the entire world experiences rapid

economic growth. Many developing families are interested in private

vehicles for a variety of factors, including comfort and safety.

4) Expansion of Market: Rising demand for autos will result from

entering and growing into Asian and BRIC nations. Additionally, this

growth can spread to other nations. As additional nations become

accessible to the auto sector, the market will continue to grow and

flourish.

 THREATS: Automobile industries face specific threats, but with the

right planning, they can survive the situation. The following is a list of

some of the threats:

1) Intense competition in the market: The more participants there are,

the more shares of the wealth the market offers, which makes it harder

to scoop up a significant amount of wealth.

2) Volatility in the fuel prices: It plays a significant role in the market,

especially for developing nations where vehicles are primarily used for

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 daily transportation. Additionally, different government regulations

pertaining to alternative fuels may also have an impact on inventories.

3) Slow Economy: The automobile industry is subject to a variety of

economic conditions, including sudden unemployment, pandemics

(such as the current COVID-19 situation), etc. The industry already

faces challenges like COVID-19 bringing vehicles to reduce its

mobility.

4) High fixed cost & investment in R&D: Companies are attempting to

invest more in research and development centers due to an overly

competitive market. Capitalization of ROI is required. However, it can

be viewed as a potential threat given the uncertain nature of the world

and the future.

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 CONCLUSION

To survive and thrive in the face of today's tough challenges, the automotive

sector must discover new ways to add value. Companies must be able to

respond to changes with focus, responsiveness, variability, and resilience if they

hope to successfully adapt these levers.

The automotive industry is adapting to the yearly increase in demand for newer

technologies. Industrialists and researchers are developing the newest

manufacturing technologies to meet those demands. Car manufacturers all

over the world are putting various strategies into practice to provide the end
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 users with the best and most innovative technology. The automotive industry is

looking forward to the numerous technological advancements that will change

the industry's landscape globally in the upcoming years.

REFERENCES

ibef.org/industry/India-automobiles

gvpress.com/journals/IJSBT/vol4_no2_2016/4.pdf

tpci.in/indiabusinesstrade/blogs/declining-auto-exports-time-for-a-gear-shift/

grantthornton.in/globalassets/1.-member-firms/india/assets/pdfs/indian_auto_industry_2.0.pdf

valueresearchonline.com/stories/51991/why-are-two-wheeler-exports-falling/

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