'Skills shortage is the biggest concern in auto industry'

India and 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:
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 other sectors?
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.