SUBMITTED BY

TIJO THOMAS

CONNECTED CAR P17217

PGDM

MARKET STUDY - INDIA RAJAGIRI BUSINESS

SCHOOL

TIuser [Date] [Course title]

INTRODUCTION
The world including India is moving towards digitalization at a great pace. We are
seeing the advent of smart cities, entire nation being connected by Internet of Things, now it’s
the automobile sector which is building connected cars to take this era of digitalization a step
further. . In recent years, many Indian organizations have started investing in this industry to
gain market share by capitalizing on the growing Indian consumer automobile market the
global connected car market grew by 18% last year, but in India it is still at a very nascent
stage. By 2020 the connected car market in India will be increasing, there are also many start-
ups are in India for connected car market so the advent of mobiles and improved technology
has influenced the connected car industry some of the start-ups which is concentrating on this
sector are CarlQ, Reksha, Ather Energy etc.in terms of connectivity India has massive
opportunity only1.4% cars are still connected in India according to research the connected car
is growing to 4% in next 5 years
Demaand for cc services in customers

But there are several challenges which tensioned the industry in implementing
connected cars in India they are

 Is the consumer ready to pay for the services?

 Will consumer ever pay for connected services?
 Indian consumer is highly price conscious and he/she would like to derive
maximum out of the money they spent.If not, who will sponsor?
 How to justify the investments and recover the incurred investments through
other means?
 OEMs have challenge to find out sponsor for meeting these expenses and
justifying the RoI for these investments.
  How the V2V and V2I services going to evolve?
 How to provide connectivity in the vehicle?
 Who will ultimately pay for high consumption of bandwidth that will be
consumed for bandwidth sucking infotainment /entertainment services?
 Constant connectivity is still a problem in India, especially in rural areas and
stretches on highways where connectivity dropouts are constantly experienced.
How to ensure service continuity and SLAs in such cases.
These are some of the challenges facing by the connected car market in India

COMPETITORS IN INDIA
HONDA
Honda is partnering with AutoNavi, a navigation and location-based services provider owned
by Chinese e-commerce giant Alibaba, to develop new services for connected cars, according
to PYMNTS
HYUNDAI
Hyundai Motor Company is accelerating developments in connected car technology by
collaborating with Cisco, a worldwide leader in IT and networking equipment. The
cooperation is part of Hyundai Motor’s wider strategy to establish an industry-leading
connected car platform through collaboration with leading technology partners

TOYOTA
Toyota kirlosker has launced Toyota connect app in india customer can download 3D aps
online for their connected cars it is a new milestone in their category Toyota is a major
competitor in india

TATA MOTORS
Tata Motors and Microsoft India announced a strategic agreement to redefine
connected and personalized driving experiences for Indian customers. Tata Motors
will leverage Microsoft’s connected vehicle technologies that bring together artificial
intelligence (AI), advanced machine learning, and the Internet of Things (IoT)
capabilities on the global hyper-scale Azure cloud, to traverse the digital and
physical worlds and create a highly personalized, smart and safer driving experience
across the digital life of a vehicle owner.

MARUTI SUZUKI INDIA

Maruti Suzuki India announced the launch of its new telematics solution
system 'Suzuki Connect' for its Nexa-branded cars. An advanced integrated safety
and connected car solution, the new Suzuki Connect offers benefits like vehicle
tracking, emergency alerts, live vehicle status, driving behavior analysis and
preventive maintenance calls. The company claims that Suzuki Connect is a
telematics control unit a.k.a. TCU based solution which has been designed to offers
ECOSYSTEM PARTNERS
 Honda has Honda Connect, which it has built in partnership with IBM.
 Globally, Ford has acquired Livio to get a foothold in the connected cars.
 Nissan and BMW is integrating Microsoft assistant Cortana in their cars.
 Audi is working with Nvidia and Hyundai is also building its own connected cars.
 Nissan has Nissan connect which currenty announced on 3 models. Nissan joins
carmakers such as Toyota and Honda who have rolled out similar services accessible
through a smartphone application.
 The connectivity platforms such as GM's "OnStar", BMW's "Connected Drive" and
"Audi Connect" are offering various services while creating new revenue streams and
bridging the gap to stay connected with the consumers.
 Hyundai is joining hands with cisco for improving their connected car software
platforms.
 Tata Motors join hands with Microsoft's connected vehicle technologies to bring
together artificial intelligence (AI), advanced machine learning, and the Internet of
Things (IoT) capabilities on the global hyper-scale Azure cloud.
 Recently Reliance Jio had announced a project for manufacturing a telematics device.
The telecom giant has acquired Airwire a car telematics startup.
 Mahindra also joined with wipro to introduce car solution called konnectfirst in India

Key players and the partners

ORIGINAL EQUIPMENT MANUFACTURE(OEM’S)

ONSTAR(GM): On Star Corporation is a subsidiary of General Motors that

provides subscription-based communications, in-vehicle security, emergency
services, hands-free calling, turn-by-turn navigation, and remote diagnostics systems
throughout the United States, Canada, China, Mexico, Europe, Brazil, and Argentina.

 ·QUALCOMM(FORD): Qualcomm is an American multinational semiconductor

and telecommunications equipment company that designs and markets wireless
telecommunications products and services. It derives most of its revenue from chip
making and the bulk of its profit from patent licensing businesses

 HUWAEI(AUDI): Huawei Technologies Co. a Chinese multinational networking,

telecommunications equipment, and services company headquartered in Shenzhen,
Guangdong It is the largest telecommunications equipment manufacturer in the
world, having overtaken Ericsson in 2012.

 IBM(BENZ): international Business Machines Corporation (IBM) is an

American multinational technology company headquartered in Armonk, New York,
United States, with operations in over 170 countries. The company began in 1911 as
the Computing-Tabulating-Recording Company (CTR) and was renamed
"International Business Machines" in 1924.

 DiGi SENSE(MAHINDRA): Spot & track your vehicle real-time. Get history of the
vehicle travel during the past period .Have total control over your driver & manage
your business, "On the Go".

COMPETITOR BENCHMARKING WITH NISSAN

Framework HONDA HYUNDAI TOYOTA MARUTHI
indicators
STATEGY/POSITION Focused on Popular in Topped 10 Indian
localization has India recently million preferred car
built joined with production because of
partnership cisco for first introduce cheap cost
with IBM globally connect car in and Indian
connected India platform
market
Competitive advantage Strong Advanced Strong brand Many models
manufacturing technology image cheap for
technology with cisco Indian buyers
 Weakness Decreasing Cisco Connected car Technology
sales of its technology can only be should be
premium should cope implemented advanced
models up with in high models
Indian due to price
service
providers
Strength Strong brand Connect with Popular brand Cheap cost
image global giant acceptance
cisco among
middle class
customers

Toyota will be a major competitor for Nissan in india as maruthi also offered cheap models in
their nexa platform but luxury customers often don’t choose maruthi Nissan will have a
competitive advantage of its japan technology as it is the finest as cicsco later cooperate with
huyndai that will help them toimprove their value manily Nissan has the upperhand that it is
amking technologyon their own

MONETISATION PLANS
1. Consumers love to buy products which are easy to install and maintain. Hence the
companies should offer connected IOT solutions with hardware as a packaged kit.
2. Vendor development for the hardware and software for the connected vehicles.
3. Aftermarket services for the connected vehicles should become the revenue source for
the companies. A product never develops a relationship, services do
4. Active data acquisition from the customer of the product and service to enhance the
quality of the product as well as the services and gain customer loyalty.
5. Use of big data to analyse the patterns of usage of the vehicle to reduce the cost of
maintenance for the consumer and improve the lifecycle of the vehicle which thus will
help in controlling emission.
6. Offer vehicle as a service. Urban residents in today’s markets appear to be losing
interest in owning their own cars, where cars simply aren’t a requirement, and where
public transport and ride-sharing apps can easily fulfil their needs.
7. It will be useful to put it all in context, and look at the market shifts and structural
changes that are underpinning the current and future development of the connected car
and autonomous vehicle.
CONCLUSION
The internet connected car is no longer a distant future. It is already happening and by 2020
it’s highly likely that it will get into mainstream. Given the fact about security and cost, it is
important to create a balance between the pace of connecting the cars to the internet and the
level to which cars are to be connected to the internet. In order to grab maximum share of the
connected car pie, auto companies might expedite the development of internet connected cars
without giving due diligence to security. We need to be mindful that securing digital products
and services fully is a difficult and time taking process.

In 2050, OEMs will generate 50% of their revenue from data-driven services. They will have
very different operating models compared to current times (ecosystem, alliances, consortiums,
…). To get there, they will need to undergo a monumental cultural transformation in at least
four dimensions:

 OEMs need to anchor AI on group level and route it deep in their corporate strategy –
this requires new roles and capabilities – Chief-AI-Officer or Ecosystem Orchestrator
would be an example. ▪
 OEMs need to capitalize on additional rents that are generated by hosting digital
ecosystems – organizational repercussions are not yet reflected but there will be totally
new processes, revenue models, incentive schemes, and roles that need to be managed
at board level.
 ▪ Hardware will be augmented by software and algorithms. The smartest interplay of
the three will generate the best customer experience and thus provide the best customer
lock-in.
 ▪ Premium car manufacturers possess a very valuable asset: an emotionalized brand.
This is an advantage they have over tech companies which they need to leverage for
digital services. This will demand for a rigidly customer-centered approach with a clear
focus on end-to-end experience.

There is also additional threat from reshuffling cards that presents itself to OEMs: due to
pressure from tech players, they have pivoted their business to digital and astonishingly quickly
adopted key success factors. The industry is in front of a next frontier – Artificial Intelligence
– and OEMs need to be very careful that they do not miss to catch-up. As they successfully
managed the first wave of transformation, there is a danger that they do not rest on their laurels.
They could be tempted to underestimate the threat as they have successfully mastered the first
wave of disruption. That stance would not only be a misjudgment of the ongoing forces, but it
would also put OEMs in danger of missing out on a fundamental opportunity to lead the way
into a new paradigm where they can play out the core strengths of their business DNA.