China are known as the two largest growing markets in whole automotive
globalized industry. Working on a report on the face of Indian Automotive
industry in 2020, Sanjay D Rishi, global leader of IBM catering global
business services had spoken in an interview about various challenges faced
and posed by the two countries in automotive industry. The excerpts of the
industry is given below:
'Skills shortage is the biggest concern in auto industry'
Q. What are the major concerns of the automotive industry?
Ans. The major concern which is faced by all automotive
companies is skills shortage. Limited talent is available for everyone here
either Indian or some other's OEM's (original equipment manufacturers).
Considering the future of vehicles, new skills are needed and required in
areas like engine control units, seamless integration of codes, new
components and integrated working of all these components.
All this is new in the automotive sector in India. Thus few OEM's are
setting up design and embedding system centers in India. As India is new in
automotive industry thus it may look to acquire more and more companies in
developed markets especially in Europe. Some Indian companies are showing
their design engineering capabilities and crediting their manufacturing
capability to grow outside India.
In all, more skills related with embedded system and design engineering are
to be addressed all across the world and top cream of people with these
skills are needed by all OEMs.
Q. How would you compare the two big markets, India and China?
Ans.OEMs from both countries China and India will go after
developed country markets. The Indian automotive industry has developed on
locally built on technology and has done well. On the other hand, Chinese
automotive industry has done well through joint ventures, creating a
manufacturing capacities and footprints, all of which are large.
The value that OEMs bring from these countries is low-cost small vehicle
with great mileage. It is a known fact that the US cannot build low cost
vehicle with great mileage. The global concern related with China is IP
protection whereas when it comes to India, global concern is mainly over
regulation as frequent changes in regulation and infrastructure are a worry
feature for India.
Where do you see the convergence of the automotive sector with
Ans. Already, convergence is taking place between
different sectors like industries and eco systems related to oil, gas,
electronics. All of them need to co exist cohesively. Sharing market growth,
oil gas industry can grow hand in hand with automotive industry. But some
industries, with the growth of alternative energy, may not be in tune with
each other. For example both automotive and electronic industries were
loosely tied, but now driven by demand, they are very close to each other.
Q. What has been the global impact of the launch of the Nano?
Ans. With the launch of Nano, individual can think of a
low cost car at $5,000. It has transformed automotive industry in multiple
ways and brought down definition of low cost car from $7,000-8,000. This car
has been manufactured to cater requirements of Indian market. Nano has
imparted a global impact as well as created a new segment for the future
with prominent growth opportunity in Africa, Vietnam, etc. Later on the car
be transformed into a very small luxury car. It can also have a green or
sustainable version. No doubt the Nano has opened up a new segment and it
will definitely affect close segments.