Continental India is planning to grow 21% this year with the rolling out of multiple new locally manufactured products. New Delhi: The auto industry is observing a paradigm shift with the Internet of Things (IoT) by enabling connectivity features and smart functions such as remote diagnostics, customisation for the consumer, etc. The demand for connectivity in vehicles is driven by customisation for buyers. “Now we see more growth driven by consumer preferences for connected and convenient features," Prashanth Doreswamy, president and CEO, Continental India told ETAuto.
Today, buyers’ criteria for selecting a vehicle have shifted from focusing on the engine power to convenience, and smart features. However, investments are needed to grow the connected vehicle segment, and Continental India is working to that extent, the chief executive said.
Continental India develops technologies and services for sustainable and connected mobility. The company targets to provide safe, intelligent, efficient, and economical solutions for vehicles, and transportation.
Investments in making the latest technology available to the masses will remove the entry barrier for many. OEMs provide connectivity-based features in high-end models with several up-to-date functions that require healthy investment.
Thus to make the vehicles more affordable and accessible at a wider range, localisation (done through investment) of the R&D (research and development) is the key, added Doreswamy.
Continental’s bet on localisation
Continental India is planning to grow 21% this year with the rolling out of multiple new locally manufactured products. The reason for the infusion of more locally manufactured products is due to a higher demand for more content per vehicle than earlier.
Continental India has lately expanded its manufacturing capabilities to include airbags, and tyre pressure sensors, and others.
“We expanded our capacity in terms of localising the tyre pressure sensor because it is becoming a convenient safety feature and also to meet the CAFE norms, OEMs are looking at tyre pressure monitoring sensors that we have localised here,” added Doreswamy.
CAFE or Corporate Average Fuel Efficiency, rules are a set of standard that restricts the amount of CO2 (carbon dioxide) that an OEM (car manufacturer) can emit in a financial year.
The company is also working on providing some level of autonomy for two-wheelers in India.
“Under the two wheeler rider assistance system; an assisted function, aids in enhancing the safety which is yet to be commercialised,” Ganesh Rao, Head of R&D ADAS Engineering, Business Area Autonomous Mobility, Continental Automotive India. Though the hurdle for implementing it in the country is the high technology cost; and it also demands for good infrastructure and connectivity while deploying the technology in the cost sensitive market, he said.
Autonomous vehicles
Another topic that is the talk of the town with connected vehicles is autonomous mobility. However, for India, it is still a long journey to travel.
“Maybe automated and autonomous could be a long way for India, because that's not the only technology being ready, but it's dependent on infrastructure, driving discipline, roadside, there are a lot of things that have to come together,” Doreswamy said.
With multiple players aiming to bring this technology into the country, Rao believes it will go downwards, and become available in the mass segment. He is optimistic that by the end of the decade, the country might observe some level of autonomy in the passenger vehicle segment.
Upcoming trends in the industry
Multiple trends are defining the automobile industry today.
“First is the focus on connectivity and auto technology, the second is sustainability, and the third is safety,” Latha Chembrakalam, Vice President and Head of Technical Center India - Continental Automotive told ETAuto. She added these three major trends are driving the market globally as well as India.
The company is planning to build India-centric solutions based on the country’s diverse scenarios such as road conditions, market conditions, and many more.
“All our products by 2050 will be contributing to zero tail pipe emissions and we will achieve 100% circularity by 2050,” added Doreswamy. Talking about sustainability, Continental is aiming to be carbon neutral in operations by 2040 and the entire value chain by 2050.
