Home >News >India >Preference for connected cars to grow sharply in next few years: Deloitte

NEW DELHI: Customer preference for passenger vehicles with connected software solutions is likely to witness a significant jump in the next few years and vehicle manufacturers should align their strategy to take advantage of this evolution in the automotive ecosystem, consulting firm Deloitte said in a report.

Vehicle manufacturers like Hyundai Motor India Ltd, MG Motor India Pvt Ld, Kia Motors India Ltd and Honda Cars India Ltd have already started collaborating with telecom service providers to offer connected software solutions with their new product offerings.

The automotive industry's next evolution is expected to hinge on digitalisation. Connected cars offer large volumes of data, pertaining to almost every aspect of the car and the driver. This data explosion, coupled with an increased matrix of connected devices and longer commutes could open up a plethora of possibilities for (OEMs) to create value for themselves and their customers, the report noted.

According to Deloitte, In India, connected car technology is still at a nascent stage with a meager 5% penetration of infotainment systems and digital cockpits. Connectivity is largely restricted to smart phones and in-car infotainment devices. However, globally, connectivity penetration stands at 30%, while Japan leads with 90% penetration of connected vehicles.

“With the evolution of the automotive industry landscape, OEMs will need to broaden their focus from their physical offerings to the value and customer experience they can provide through connectivity. Additionally, while designing connected car solutions, auto OEMs will also have to consider local geographical trends and market drivers," the report further mentioned.

In India, Hyundai was the first manufacturer to launch its BlueLink connected vehicle technology with its Venue compact sport utility vehicle. New entrants MG Motor and Kia Motors were the ones to follow with their respective products.

“Over the next five years, connected cars are expected to change the way people perceive and use vehicles. By 2025, most cars in India are expected to be connected to users’ homes and offices. Partnerships between OEMs and insurance companies (who may want to use the data from the car to design personalised insurance products) are likely to increase significantly," the report added.

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