The Automotive sector is witnessing healthy growth as the disruptions caused by various policy implementations (demonetization, ban on BS-III vehicles, GST, rate revisions) have now moderated. India has declared an audacious plan to turn every vehicle into an electric vehicle by 2030. Four disruptive technology-driven trends are clearly emerging: diverse mobility, autonomous driving, electrification, and connectivity.
All players are introducing new products/ platforms. Tata has launched new products like Tiago, Tigor, Hexa and Nexonand has outperformed the market by driving volumes. The Ioniq EV sedan is claimed by Hyundai to be the first car offering three electrified drivetrains. Mahindra and Ford are partnering to jointly develop mid- sized and compact Electric SUV. Volkswagen has introduced a special edition Sports model of its popular carlines – Polo, Ameo and Vento. Bajaj Auto, is all geared up for rolling out its quadricycle ‘Qute’ in the next 3-6 months after overcoming the regulatory hurdles. SUVs have become the industry’s growth engine– Fiat, Volvo, MG Motors are all lining up new SUV products for India. And finally Fiat seems to have cracked the segment with the launch of Jeep.
With the continuous market disruption in the sector, there will be a need for senior leaders to grow the business & drive the transformation agenda in a technologically advanced, fast-paced and highly competitive environment. The sector will need leaders for Electric Mobility, Automation and digitization verticals, where a lot of talent will move cross border.
Tata Motors reclaimed its leadership position in LCV,Ashok Leyland has launched its first Electric bus-Circuits.There is a demand for medium and heavy commercial vehicles on account of the robust pace of infrastructure activities. Bharat Benz crossed into doubledigit market share territory for the first time and DICV plans to sell around 200 units of its new Mercedes-Benz Super High Deck automatic coach this year and has ambitious plans to achieve 80% growth in the buses segment this year. Last 2 years have been productive for Volvo Eicher with over 40% growth in top-line and the company is committed to invest in technology.There is a need to find the right strategy for differentiating products and services in highly competitive and volatile markets.
2 Wheeler Segment
The scooter segment is witnessing a shift towards electrification, ahead of all automotive products. Start-ups like Ather Energy launched the EV but we will need to build the ecosystem, be it the suppliers, partners, charging infrastructure and even the engineering talent. In the premium category, both Triumph and Royal Enfield are announcing new launches. BMW Motorrad has announced bookings for two of the most anticipated motorcycles – the G 310 R and the G 310 GS. The agenda is to increase the speed of growth – to achieve these dynamic milestones, demand of leadership talent is expected to grow in engineering, and marketing. Ducati has launched Multistrada 1260 and 1260S with commitment to bring the best of Italian design, engineering and performance to Indian roads.The functions of Sales, aftermarket services and design are presently the hot beds of activity, with the demand for leadership talent not being able to keep pace with the availability.
Technology disruption along with market trends has the potential to create multiple job opportunities in the coming years. The business transformation will require significant investment and the development of new core competencies and appetite to take on these challenges. The AutoComponent companies are gearing up for the likely disruptions and looking to diversify, scouting for technology acquisitions to stay relevant in the newly emerging eco-system. New market entrants are expected to initially target only specific, niche economically attractive segments and activities along the value chain. Sill there is no clear integrated perspective on how the automotive industry will look in 10 to 15 years and that is keeping multiple bets alive and attracting investments from players.
Two key areas of focus for the next 6 months remain Procurement & Supply Chain along with Quality as demand pressures are causing stress fractures in the system and leadership gaps are emerging.
Big News and Investments:
• Mahindra has entered into a partnership with Uber India to deploy electric vehicles.
• Ashok Leyland to invest Rs 400 crore in LCV push.
• VE Commercial Vehicles to invest Rs 500 crores for BS-VI technology and partners KPIT for EV buses foraying andsetting up a new manufacturing plan.
• Tata Motors has announced partnership with Jayem Auto tolaunch Nano EV.• Bajaj Auto entered into partnership with Triumph Motorcycles to grow the 250cc700cc market.
• SAIC Motor commenced operations with a target launch for MG brand in 2019, investing over Rs 5,000 crores.
• Mahindra will invest an additional Rs 500 crores to expand its electric vehicles portfolio.
• EESL to float another global tender for 10,000 e-vehicles.