Cars have evolved.
There is really no other word for it. From the steam-powered curiosities of the 18th century that could barely keep pace with the horse-drawn carriage, to the sleek, sophisticated EVs of today that all but need you to put on your seat belt to take you to your destination--cars have come a long way. Today, alongside real estate, they have also become the ultimate aspirational product.
The automobile industry as a whole has gone through a turbulent couple of years. While 2020 saw demand take a massive hit due to the COVID-19 pandemic, car manufacturers were plagued with supply-chain issues in 2021. This year, the automobile market is expected to continue growing as demand for Light Motor Vehicles, or LMVs, slowly inches back towards pre-pandemic levels.
Recognising its value as an important component and contributor to the overall economic health of the nation, the Indian government has been driving policies that favour growth in the automobile vertical. This includes extending the FAME-II (Faster adoption and manufacturing of hybrid and electric vehicles) scheme till 2024, and announcing new production-linked incentive schemes for auto and auto component sector (INR 26,000 crore) and for advanced chemistry cells (INR 18,000 crore).
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The Indian government is not unique in its desire to promote the EV segment, this is a trend visible across geographies. In the US for instance, the Biden administration aims to implement policies that will ensure that 50 percent of all vehicles sold in 2030 are zero-emission. The European Union has set similar targets aligned with its goal of becoming a carbon-neutral continent by 2055.
Clearly, manufacturers as well as governments are betting big on electric vehicles. However, electric vehicles are not alone in stirring the waters.
Let’s take a look at some of the key trends beyond EVs, that are expected to drive the growth of the automobile sector in 2022 and beyond:
The Rise of the Digital Chassis
Electric cars are expected to complete the vehicle’s transformation into the third space. As the bridge between your workspace and home, the cars of the future are envisioned as moving powerhouses capable of delivering entertainment and other auxiliary services on the go on an hitherto unprecedented scale.
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At the recently concluded CES 2022 event, Qualcomm gave us a peek into this future with its Snapdragon Digital Chassis. The chassis is a complex amalgamation of key SoCs and software that automakers can integrate within their cars including the Snapdragon Ride Platform (automated driving), the Auto Connectivity Platform (Cellular services, Wi-Fi, Bluetooth and GPS) and digital cockpit and infotainment systems. Qualcomm competitors such as Nvidia and Mobileye are also working with automakers to launch and integrate similar systems in their cars.
Autonomous Cars to See Growth
Completely autonomous, self-driving cars have been a long-enduring concept in the automobile space. Automobile manufacturers are joined by core technology companies such as Google (whose cars have already logged over 10 Million miles of driving) and Uber in their quest to make it a reality.
Of late however, manufacturers have also started focusing on advanced driver assistance systems or ADAS, positioning them to support drivers in scenarios like highway driving and parking, while they continue working on Level 4 or completely autonomous cars.
According to IEEE, within the next couple of decades, well over 75 percent of all cars on the road will be autonomous. At CES 2022, manufacturers showed off some of the systems that would be instrumental in bringing this change about. From GM’s new Ultra Cruise hands-free ADAS that is powered by Qualcomm Snapdragon to Volvo’s Ride Pilot that will be available as an optional subscription with its upcoming EV line, autonomous cars are clearly right around the corner.
Upgradable Cars--Modular Hardware & Software
Elon Musk’s Tesla can arguably be credited with bringing about the EV renaissance. A novel concept that the company introduced was OTA software updates that allowed it to inject everything from new map information, audio capabilities to iteratively improving its autopilot functionalities to its cars after they had been sold, similar to how our smartphones receive OS updates.
Going forward, OTA updates will become ubiquitous across automobiles. What’s more, manufacturers are very likely to introduce an element of modularity in the hardware through blades or cartilages as well, allowing cars to be refreshed from time to time even beyond what’s possible with software updates.
Luxury Cars Leading the Way With New Tricks
Luxury carmakers such as BMW, Mercedes and Audi are rapidly moving to adopt new technology trends. Beyond utility, they are also drawing upon these paradigms to add extra flair and panache to their future cars. Mercedes for instance, showed off a one-piece 47.5-inch LED display concept with 8K resolution that spans the width of the vehicle.
BMW meanwhile exhibited its iX Flow at the CES, 2022. Wrapped with a colour changing e-Paper, the iX flow can flow between black and white colours, and BMW has promised to add-in more options soon, allowing drivers to personalise their cars in sync with their mood.
Luxury cars may be leading the way with these neat tricks, but one can expect them to start trickling down to mid-range cars in the future as well.
A Cross Between A Personal Device & A Third Space
Digital transformation has reached the automotive industry in earnest. The next few years will see cars transform into intelligent devices that are continuously connected, aware and processing data from their surroundings. In real-world terms, this can translate into use cases like cars intelligently modulating internal temperature, recognising and playing the passenger’s favourite entertainment playlist, scheduling and undertaking trips in sync with the work calendar etc. Personal transportation as a concept will continue to evolve as well with shared mobility and fractional ownership of vehicles coming to the fore.
As the actual driving process gets easier (until manual driving eventually becomes a matter of choice) courtesy progressively more powerful autonomous/assisted driving compute capabilities, manufacturers will rapidly ramp up the infotainment available inside their vehicles as well, essentially converting them into moving theatres and workstations that are immersive, safer and more convenient. Some of this may sound closer to science fiction, but it is squarely in the realm of possibility as we move into what promises to be one of the most exciting decades in the history of automobiles.
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