Embracing the Trends & Technological Advances in Automotive Industry

In an exclusive interview with Industry Outlook, Ganesh Mani, President and Chief Operating Officer at Ashok Leyland, discusses Indian consumers' shift towards safety, comfort, and digital features, alongside the increasing adoption of electric vehicles. He highlights how manufacturers, including Ashok Leyland, are integrating advanced safety and infotainment systems while managing costs to meet the demands of India's price-sensitive market. He is an industry expert with over three decades of experience in operations, having honed his expertise at companies such as Hyundai Motor India, Maruti Suzuki, and BHEL. 

In your perspective, how is the automotive industry advancing and adapting to current trends, particularly in response to shifting consumer preferences? 

The automotive sector has experienced a robust recovery post-pandemic and sustained demand over a couple of years which were driven by healthy economic factors in India (growth momentum fuelled by overall macro-economic indicators, micro-economic factors & infrastructure development). Currently, consumer preferences are increasingly focused on overall safety, comfort & digital features. In specific, there has been a swift adoption of electric vehicles (EVs) in 2 & 3-wheeler segments, due to FAME, PLI & increases in fuel prices. In the passenger vehicle (PV) segment features like sunroof, connectivity, infotainment, and new sub-segments mini & sub-SVU models coupled with alternate energy ranges have gained traction. In the commercial vehicle sector which Ashok Leyland caters to, the drive came from reliability, fit & finish, fuel economy, high tonnage segments, different operating models (TCO based), emission, safety features, electrification (bus & LCV), alternate energy options such as CNG, LNG, H2ICE, FCEV drive the industry forward. The new battleground involves connected, tech-enabled, data-rich consumer experiences being pivotal for business sustainability. These trends are expected to continue evolving in line with customer expectations, and the industry is well-prepared to meet these demands.

What specific safety features are gaining the most attention among Indian consumers, and how are they influencing their purchasing decisions in the automotive market?

It is encouraging to observe the heightened emphasis on safety by both consumers and the Government. Safety feature requirements vary across different segments. In the PV segment, safety enhancement features such as traction control, auto gear shift, rear airbag, ABS, Cruise Control with speed sensitivity, and vehicle health reporting are trending. The commercial vehicle segment, in particular, gained prominence in Electronic Stability Control, Advanced emergency braking systems, collision prevention, driver alerts, Lane Departure warning systems, and vehicle health reporting/alerts. For EVs, a significant focus is placed on preventing fire incidents.  Introducing additional safety features incurs higher costs, and given India’s price-sensitive market. OEMs must find ways to introduce safety features at an optimal cost so that customers can afford them. Ashok Leyland, as an automotive manufacturer, is actively working on this to stay ahead in the market to provide the best safety features.

With the rise of electric and hybrid vehicles in India, how do you foresee the integration of safety features differing from traditional combustion engine vehicles, and what impact might this have on consumer preferences? 

Safety remains a top priority across all energy options, instilling confidence in customers and fostering faster adoption rates. As these features evolve, consumers will likely prioritize safety more when choosing their vehicles. Especially in EVs, battery security, crash protection, fire protection, and autonomous safety systems are meticulously designed. Safety regulations for FCEVs and H2ICEs are evolving, emphasizing compliance with international standards while considering local traffic conditions and safety needs. With regards to Ashok Leyland, we have always given paramount importance to safety and have consistently kept safety at the forefront, especially during the trial stage.

How are automotive manufacturers adapting their infotainment and connectivity offerings to meet the digital demands of Indian consumers, and what are some key features that are proving to be particularly popular?

Indian consumers increasingly seek seamless connectivity and advanced infotainment systems in their vehicles which is witnessed across the sectors & segments but is predominantly observed in the passenger vehicle (PV) sector. Manufacturers are responding by integrating features such as smartphone integration, Bluetooth, in-car WiFi, advanced infotainment systems, navigation services, remote diagnostics, over-the-air updates, and voice recognition. These features significantly enhance the driving experience & as the automotive industry evolves, manufacturers are actively enhancing their infotainment and connectivity offerings to cater to the digital demands of Indian consumers. With increasing customer education, these features have become a priority today when choosing a vehicle.

As clean mobility becomes increasingly important, what initiatives are being undertaken by the Indian government or automotive industry to promote the adoption of environmentally friendly vehicles, and how are consumers responding to these efforts?

India has set ambitious goals for achieving net zero emissions by 2070. To achieve this, the country is focusing on low-carbon development paths and is actively working towards promoting clean mobility and sustainable transportation. In the past, the Government took aggressive measures on Leapfrogging Emission Norms (BSIV to BSVI) and legislated Vehicle Scrappage policy towards emission reduction. Currently, the government is promoting Electric Vehicles (EVs) and Green Mobility by creating an eco-system for various energy options in the automotive such as BEV, H2ICE, FCEV, LNG, CNG, Bio Fuels & flex-fuel. The auto OEMs and the technology providers collaboratively bring the products with innovative ideas with superior quality & cost. Government policies such as FAME, PLI, National Green Hydrogen Policy, Biofuel Policy & Vehicle Scrappage Policy, etc, support the creation of an ecosystem. The adaption has been picked well for the EV & CNG energy options supported by infrastructure developments and other energy vehicles are picking pace. Ashok Leyland has manufactured Hydrogen Fuel cell buses for NTPC to be operated in Leh and Ladakh. Ashok Leyland, as a pioneer in technology, has already introduced alternate energy vehicles to the market and has been an early adopter. The domestic EV market, especially buses & LCVs, is expected to grow significantly between 2022 and 2030. As technology matures and becomes more affordable, this momentum will continue. India is making significant strides in clean mobility through a combination of government policies, automaker initiatives, and consumer awareness campaigns. The transition to sustainable transportation is a collective effort involving all stakeholders. Our products have received bulk orders awaiting delivery, which is an encouraging sign.

Considering safety regulations, EV proliferation, and the demand for enhanced connectivity, how will the Indian automotive market evolve in the coming years? What opportunities and challenges await manufacturers and industry stakeholders?

The adoption of electric vehicles, safety standards, and increased desire for connectivity are causing a sea change in the Indian automobile industry. Although this progression brings with it expenditures for EV infrastructure and tighter safety regulations, it also creates opportunities for innovation. For manufacturers to prosper in this changing climate, they need to collaborate, invest in sustainable technology, co-formulation Policy, and focus on agility. At Ashok Leyland, we offer our own Telematics solution called i-ALERT, which is used by over 3.8 lakh customers and includes 50+ inbuilt features, making our vehicles smart and our customers even smarter.