Mumbai: The 10th edition of the Ipsos Global Trends Report 2024 has identified 3 trends for the automotive industry through 2025, in the realm of sustainability, make in India and equitable access to technology – christened Climate convergence, Globalisation Fractures and Techno Wonder – and these trends will shape the future of the automotive industry. These trends have emerged after the detailed study of the two key target groups of Digital Indians and Early Automotive Adopters.
There is a growing perception among citizens that companies are not paying enough attention to the environment. While 30% believe the onus rests with private companies to provide sustainable options, 45% are willing to make sustainable choices themselves. Electric vehicles are seen as the most suitable sustainable option; with early adopters believing EVs could provide a transformative step towards reducing carbon emissions and facilitating a greener future. This trend further emphasises on the key enablers of rising localisation, falling battery prices and expected benefits from production linked incentive schemes that will help vehicle manufacturers reduce cost and arrive at a viable model to cater to the increasing demand for EVs.
Balaji Pandiaraj, Executive Director, Head of Ipsos Automotive Research & Customer Experience, Ipsos India said, “The manifestation of Climate Convergence for the Indian automotive industry would entail carmakers aligning their strategies and practices to address climate change and reduce carbon emissions. Though several OEMs are making changes through electrification of vehicle fleet, choosing alternate fuels and hydrogen fuel cell technology, collaborating for growth and faster lead times (like the deal between M&M & Volkswagen for electric components and unified cells) and retrofitting vehicles with Battery Electric Vehicles (BEVs) is seeing traction.”
Globalisation Fractures shows the world getting increasingly polarized and divided. While globalisation is an unavoidable phenomenon, we see consumers displaying increasing affinity for vehicles custom made for Indians and produced in India. Several OEMs now make-for-India and make-in-India, With the budget further putting more money in the hands of the consumers, India’s per capita income projected to reach $4500 from the current $2600, low penetration of car ownership, the demand for ICE and EVs is likely to surge in the coming years. There needs to be the right balance of global integration with local resilience.
“Global co-operation remains pertinent in the areas of climate change, pandemics and technological advancements – the dual approach of harnessing the potential of global scale and protecting the local turf through nurturing of local identities and economies will help OEMs navigate in the marketplace,” stated Pandiaraj.
The trend of TechnoWonder shows the increasing impact of technology in daily lives. While 42% of respondents believe that modern technology is essential for solving future challenges, there is also a growing sense of apprehension. 33% hold the view that technological advancements are detrimental to our lives – a paradox.
AI is revolutionizing the automotive industry in the safety features of Advanced Driver Assistance Systems (ADAS) – these features incorporate sophisticated AI algorithms to assist drivers, increase vehicle safety, and facilitate autonomous vehicles. Further, govt’s push for sustainable mobility solutions is seeing more offtake of EVs and their adoption. For the digital first audience, they cannot imagine their life without the internet and connected vehicles.
“Technology will have far reaching implications for the automotive industry. AI driven features like ADAS will drastically reduce road accidents, EV adoption will reduce AQI and carbon emissions, shift to sustainable mobility will also stimulate advancements in renewable energy infrastructure and technologies; connected vehicles will be the norm and not an exception and providing equitable access to technology with foster inclusion,”said Pandiaraj.