The global auto industry is confronting fundamental changes and four major trends are reshaping the industry, according to Dr. V. Sumantran, chairman of Celeris Technologies and former CEO of Car Business at Tata Motors.
“Today we have very different choices of mobility,” said Sumantran. “Efficient and time effective transportation will fundamentally change how we think about selling cars and buses.”
The combination of multiple modes of mobility, such as driving, metro, BRT, car sharing such as car2go, Zipcar and Uber is one of the four trends shaping the industry, according to Sumantran.
The other three are connectivity and functionality, reshaping of the supplier chain and global tilt toward the east.
“By 2025, 60 percent of the global sales will come from India/China/Brazil combined,” said Sumantran. “In the last five years, demand created from the east primarily came from China and to some extent India. The center of gravity of the industry has fundamentally changed.”
Sumantran believes that India and China are similar countries and emerging markets and there are huge synergies in what the two countries can offer to each other.
“There are huge opportunities for Chinese and Indian companies to collaborate. We are neighbors and the recent visit by Prime Minister Modi has created interests to work together,” said Sumantran.