It’s no surprise anymore if your neighbour can start their car or switch on the air conditioning using their smartphone. The very first Internet-connected car in India was the Hyundai Venue and now, there are several to choose from, for example, Kia Seltos and Carnival, Hyundai Verna, and MG Hector. Infotainment features for improving in-cabin comfort, convenience, and entertainment experience have always been given hefty importance in car buying decisions in India. Now that the cars are connected to the Internet, they’re all the more sought after.
A recent report by Deloitte titled ‘Journey through the future of Connected cars and OEM outlook in India’ suggests that two in three Indian buyers are willing to spend up to Rs 50,000 for connected tech features in the car. The report highlights the automobile industry’s evolution that is likely to focus heavily on digitalisation considering restricted public transport and growing scope for personal mobility in the wake of the pandemic.
India is one of the largest and fastest-growing digital markets with more than 520 million internet subscribers. With travel being restricted due to COVID safety concerns, along with growing relevance of seamless online and offline experiences, connected vehicles have a huge opportunity to grow in the country, Rajeev Singh, Partner and Leader Automotive, Deloitte India said.
o The Deloitte report suggests that connectivity will help bridge the gap between consumer expectation and OEM product manufacturing plan. With the change brought in by digitalisation, personalisation and focus on the consumer is expected to lead the game of product manufacturing.
o WFH amplifying the demand for connected vehicles: With the outbreak of the COVID-19 pandemic, working from home has become the new normal and will be for a substantially long time. A person could work from their home or a restaurant, or a hotel room as well. The report, however, points to the fact that travel for leisure or personal purchases may pick up in the next two to three months. This is where the car will become a personal space for people with important digital requirements.
o Convenience through technology will be an important component of product purchase decisions where customers will be willing to pay a bit more if needed. About 65 percent of respondents in a survey conducted by Deloitte said they would pay up to Rs 50,000 for Internet-connected infotainment.
o Collaboration between OEMS and technology start-ups, insurance companies, OTT platforms: OEMs are seen forming partnerships across sectors to bring together infotainment and tech-led convenience with mobility. Partnerships between OEMs and insurance companies (that can use the data from connected cars for more personalised insurance plans) are likely to increase significantly.
o Data utilisation and monetisation will need OEMs to embrace data security
– Forming new partnerships across sectors, OEMs also need to focus on data protection by addressing issues of – monetisation of data without compromising data security.
– Cybersecurity strategies to mitigate risks: According to the Deloitte Global Automotive Survey, 80 percent of respondents say they don’t mind sharing personal information with OEMs or third parties if a significant value could be received. However, several cyber risks like personal information loss, vehicle theft, safety feature manipulation, and vulnerable mobile application security do arise from increased connectivity.
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