Autocar Professional - Latest Articles

Why Clearer Vision Could Be the Next Big Leap in Road Safety

Autocar Professional Bureau — Sun, 14 Dec 2025 12:52:22

While the human eye instinctively adapts to rapidly changing lighting conditions, vehicle cameras and their “brain” — the image signal processor (ISP) — face a far greater challenge. To keep these systems both cost-efficient and fast, automotive cameras typically use neither an iris nor an ND (neutral density) filter to regulate incoming light. In real driving scenarios, scene contrast can reach up to 160 dB in critical situations such as bright sunlight at tunnel entrances, headlights on dark roads, LED traffic lights, or reflections on wet asphalt. At the same time, there is zero tolerance for safety-critical artefacts like ghosting or LED flicker.

Dynamic range describes the ratio between the brightest and darkest signal levels an image sensor can accurately capture. To faithfully reproduce a high-contrast scene, the sensor’s dynamic range must match or exceed the scene’s contrast.

Only recently have image sensors capable of reaching 160 dB dynamic range without safety-critical artefacts become available. These sensors combine several sophisticated HDR techniques — such as multiple conversion gains, charge overflow, and staggered exposure schemes.

Side note: In small automotive cameras, the optics will inevitably introduce stray light, limiting the effective dynamic range in extreme contrast situations. Still, a 160 dB sensor (including stray light) retains far more critical information than a sensor whose signal simply clips. Even with imperfect optics, extremely high dynamic range sensors make clear sense in safety-critical systems.

To process such vast dynamic-range imagery, specialized HDR ISPs are required. These processors are typically implemented in hardware to achieve acceptable power consumption and are offered as semiconductor-based digital IP for integration into complex systems.

Real-World Applications of HDR ISPs

HDR images may use up to 28 bits per channel to represent a 160 dB signal in linear space.

One key use case is rendering this high dynamic range content as a natural-looking image on a display — for instance, in digital mirrors. Most displays today support just 8 to 10 bits per channel. Therefore, advanced tone-mapping algorithms, especially grid-based local tone mapping, are essential. They preserve both global contrast and fine details when compressing a 28-bit HDR frame to an 8- or 10-bit output.

The comparison below illustrates the difference: global tone mapping looks fine, but local tone mapping reveals additional subtle structures — the kind of details that might correspond to a pedestrian in the shadows or a bright vehicle emerging from a sunlit tunnel.

Another important application is machine-vision data generation for AI-driven perception systems. The HDR preprocessing required for object detection differs substantially from that used to produce natural images for human viewing — yet local tone mapping remains essential here as well.

To address these diverse demands, HDR ISPs use a modular architecture that scales seamlessly across application requirements. This flexibility enables customers to fine-tune performance, power efficiency, and silicon area, while allowing easy integration of new features or pipeline optimizations.

HDR ISPs are already embedded across a wide range of automotive domains, particularly:

Advanced Driver Assistance Systems (ADAS):
Crucial for pedestrian detection, forward-collision warnings, lane-departure alerts, and other functions where clear visibility enables fast, potentially life-saving decisions.
Autonomous Driving Systems:
These rely heavily on precise, HDR-based environment mapping to maintain continuous 360° situational awareness.

Beyond automotive, HDR ISPs are becoming essential across industrial automation, security, robotics, quality control, and consumer electronics. In industrial environments — where lighting may change rapidly — real-time ISP processing enables fast and accurate machine vision. In consumer markets, HDR ISPs power action cameras, smart home devices, drones, and wearables, ensuring stable, high-quality imagery in all lighting conditions.

Overall, HDR ISP technology offers transformative potential across numerous sectors, playing an increasingly vital role in safety-critical and data-driven applications.

The Critical Role of Semiconductors

Semiconductors are central to the rising capabilities of automotive and autonomous mobility systems. They integrate complex technologies into power-efficient packages, enabling smarter, safer operation. Their roles include:

Sensor Integration:
Modern vehicles blend data from image sensors, LiDAR, radar, and ultrasonic devices. Semiconductors synchronize these inputs into a unified 360° environmental model.
Tone-Mapping Acceleration:
High-performance ICs enable the computationally intensive local tone mapping used in HDR ISPs — with power budgets suitable for embedded automotive platforms.
Real-Time Processing:
Vehicles generate enormous volumes of data every second. High-performance semiconductors ensure this raw sensor data is processed in real time, with very low latency of just a few image lines and with acceptable power consumption — a prerequisite for safety-critical decision-making.
Scalability:
Custom semiconductors allow ISPs to adopt a modular architecture, supporting tailored feature sets and more efficient development in terms of time, performance, and cost.

Conclusion

Although they operate behind the scenes, HDR ISPs are becoming a cornerstone of road safety and many other industries. They capture, interpret, and process complex imaging data in real time and very low latency. As ADAS and autonomous driving technologies continue to advance, the ability for vehicles to “see” clearly across extreme contrast conditions becomes increasingly crucial — and this is precisely where powerful semiconductors and HDR ISPs excel.

With global demand for smarter, safer, and more reliable mobility rising, HDR ISPs are rapidly becoming foundational components in modern vehicles. Continued innovation will be essential to meet evolving safety standards and unlock the full potential of next generation driving systems.

Beyond automotive, HDR ISPs are now proliferating wherever high-dynamic-range imaging must be processed — a trend that will accelerate as more HDR sensors of varying pixel counts and form factors enter the market.

Jens Benndorf is the CEO of Dream Chip Technologies & Head of Custom Silicon at Tessolve. Views expressed are the author's personal.

The Missing Link Between Digitisation and Agility in Auto Manufacturing

Autocar Professional Bureau — Tue, 09 Dec 2025 18:14:56

India’s automotive industry has transformed from a limited, tightly controlled market into a highly competitive, multi-fuel and variant-rich landscape. Rising competition, rapid technology shifts, and higher customer expectations have made an already complex supply chain even more dynamic.

Liberalisation and the growth of EVs, hybrids, and alternative fuel platforms have opened the market to numerous new players, creating a crowded and fast-moving environment. To compete, OEMs now offer a wider range of models and configurations, but this variant expansion drastically reduces production volume per SKU and increases operational and inventory complexity.

At the same time, vehicle lifecycles have shortened significantly, with frequent updates becoming the norm. Customers now expect immediate availability and are unwilling to wait, putting pressure on OEMs and suppliers to respond rapidly. Predicting demand at an SKU level has become increasingly unreliable, leading to significant mismatches between production and actual consumption.

Without agility, the industry is caught between excess inventory and stockouts, resulting in delays, lost sales, and dissatisfaction in a market driven by speed and choice.The Push Toward Digitisation

To overcome these challenges, automakers turned to digitisation. Real-time visibility across the value chain, knowing what is ordered, where inventory is placed, and how consumption is changing, became critical for improving agility. In response, automakers invested heavily in digital systems to enhance transparency and coordination across internal teams and external partners such as suppliers, dealers, and logistics.

Tools like ERP, DMS, CRM, MES, and supplier portals were introduced to streamline operations and support faster, data-driven decisions, based on the belief that greater visibility would improve agility.

However, most digitisation has focused on automating transactions, not decisions. While systems now track enquiries, bookings, orders, production, advanced shipment notifications and dispatches in real time, decisions about what to produce and when still rely on forecasts and manual judgement. Planning remains tied to rigid monthly cycles. Visibility has increased, but responsiveness has not; the organisation sees more, yet reacts late.

This creates a dangerous illusion: real-time dashboards may make the organisation appear agile, but decisions still lag behind ground reality. Firefighting continues, and gaps between supply and actual consumption widen in a fragmented, high-SKU, short-lifecycle environment.

In short, visibility has improved, but true agility is still missing.

The Unresolved Conflict

Some companies tried shifting to agile, demand-triggered planning promises for better responsiveness, but it created more instability, frequent schedule changes, supplier volatility, production disruptions, and execution challenges.

On the other hand, monthly planning creates a perception of stability through fixed schedules and predictable operations, but in most cases, companies can never adhere to the rigid schedule in the face of changes in market demand.

Thus, the industry is trapped between two extremes: A monthly system, which promises to cushion the customer experience, but compromises adaptability; agile/responsive systems try to improve alignment with demand but make internal execution highly unstable.

To succeed amid fragmented preferences and short product lifecycles, companies must move beyond either of the approaches and build a planning model that adapts to real-world complexity without imposing chaos in supply chains.

A Practical Path

True agility requires balancing demand uncertainty while providing stability across the supply chain. Forecasting cannot accurately predict demand due to frequent model refreshes and rapidly shifting customer preferences. Hence, supply chains need a way to absorb the variability in demand and unreliability of supply rather than attempting to eliminate it, and this is where buffers become essential.

Unlike conventional inventory, which is a result of poor planning, buffers are strategic stock positions designed to protect flow and ensure availability. They will act as shock absorbers, providing stability without sacrificing responsiveness, when the supply chain is designed to respond to the changes in inventory level against buffers.

The buffers provide stability to the supply chain to the extent of protection they provide, while the response to the inventory level against buffer makes it dynamic to actual consumption. This is a shift from either reacting to every change (agile planning) or delayed response (monthly planning) to a clear replenishment signal to ensure availability. This makes the supply chain more predictable and self-regulating. This approach aligns all the stakeholders in the supply chain to one goal, simplifies execution and reduces firefighting.

Buffers at right locations enable proactive planning even for seasonal peaks or promotions and prevent last-minute disruptions. Ultimately, they absorb demand variability, improve supply reliability, and allow operations to run with stability and agility simultaneously.

Achieving Flexible Stability Through Buffers

Protective buffers enable a major breakthrough by separating unpredictable demand from rigid supply operations. They allow sales teams to respond quickly to market shifts without waiting for long lead times, reducing lost sales and improving responsiveness.

For supply functions, buffers provide time to respond and predictability of urgencies. Clear visual signals guide priorities, making the system largely self-regulating and keeping inventory at optimal levels.

Digitisation alone increases visibility but cannot resolve variability. Real agility comes when digital tools are combined with buffer-driven, flow-based planning that balances responsiveness with stability, turning firefighting into controlled, reliable execution.

Ravindra Patki is Managing Partner at Vector Consulting Group. Views expressed are the author's personal.

Why Indian EVs Can Worry Less About Rare Earths

Autocar Professional Bureau — Mon, 08 Dec 2025 14:07:59

The global EV sector is at a critical stage, with ongoing supply chain disruptions and geopolitical tensions due to overdependence on China for critical minerals such as Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb). Rare-Earth magnets manufactured from these minerals are core for high-performance EV motors, which come with steep environmental, economic, and strategic costs.

In India, where domestic reserves are scarce for these minerals, the challenge is twofold - mining and extraction & making the magnets - which then poses greater difficulties in advancing the EV industry’s progress: accelerating cost-efficient EV adoption, and increasing volatile import channels. India’s leadership in this transition could position it as a critical hub in the next phase of motor technology, as global automakers are slowly moving toward Rare-Earth-Free motor solutions

Rare-earth-free motors on redefining India/ Global EV landscape:

Over centuries, engineering innovation has consistently replaced scarcity with ingenuity, and Rare-Earth-Free motors continue that lineage.

Recent market studies show that the Rare-Earth-Free motor market is valued at USD 1.35 billion as of 2025 and is projected to reach USD 2.5 billion by 2033, with a CAGR of 9.1% largely driven by EVs and Industrial automation. Asia-Pacific alone accounts for 40% of this segment, with India leading the race.

Technologies such as Synchronous Reluctance Motors (SynRM) and Externally Excited Synchronous Motors (EESM) deliver competitive efficiency and performance without Rare-Earth magnets, setting up a strong foundation in reshaping cost structures and eliminating environmental inefficiencies tied to mining and processing.

The transition is not only cost-driven, but also sustainability-driven with a focus on technological self-reliance. What was once a mere technological shift is now underscored as a matter of national importance.

The evolution progress must happen on three fronts, starting from advancing material science, scaling alternative motor technologies, and mining where it is possible. As technology matures and control architectures upgrade, Rare-Earth-Free motors have the potential to move slowly and steadily towards mainstream.

India’s leadership in the rare-earth-free motors segment:

India’s advantage lies in its frugal engineering capabilities, where, with the convergence of its cost-efficient manufacturing and software-hardware integration capabilities, we can highlight the broader vision of moving from imported designs to building systems within our ecosystem.

Constant conversation between the government and technology developers clearly reflects one main ambition, and that is to reduce dependence on China to support indigenous R&D in motor architectures. With larger EV manufacturers exploring alternatives through ferrite-based motors, India’s ever-growing EV ecosystem and deep engineering roots strengthen its position to lead a global Rare-Earth-Free revolution in the EV sector while shifting from dependency-led assembly to a design-driven innovation.

Setting a global benchmark for technological independence:

China currently commands 90% of the world’s Rare-Earth resources, creating structural vulnerabilities across EV and renewable energy value chains. Environmentally, the case is equally compelling, as extracting one ton of Rare-Earth material creates nearly 2,000 tons of toxic byproducts. Along with this, the demand for Rare-Earth magnets can double by 2030, where India alone might need up to 10,000 tons annually for its EV targets.

While global automakers are already investing in magnet-free designs to combat supply risks, India can help in de-risking the mobility future by offering export-ready solutions to global markets through indigenous motor technology. A success here would showcase India’s sustainable and frugal engineering efforts in reinstating industrial competitiveness, helping other countries move towards cleaner and resilient supply chains.

Role of policy and Industry-Government collaboration:

Today, the Ministry of Heavy Industries is exploring long-term frameworks to support domestically developed motor technologies. Industry bodies like ACMA are calling for nationwide critical materials measures to protect EV production from global shortages.

Our country can be built into a preferred global destination for magnet-free technologies through Investments in materials processing, manufacturing, and testing ecosystems. Along with the above, government and industry can help drive innovation and adoption through policy incentives, targeted R&D funding, and collaborative models

Deeptech-hardware demands the same support extended to batteries and semiconductors, as such incentives in lines of PLI schemes, pilot deployment programs would support in fueling innovation and signal long-term commitment.

Conclusion:

India’s rise in this segment can become a marker of sovereign capability for a cleaner and independent EV mobility future. Rare-Earth-Free motors represent both a sustainability and strategic opportunity, as this could lead to the next generation of EV technologies that are not only cost-efficient and greener but geopolitically resilient. Combined measures across policy, research, and industry can help India redefine the global benchmark for clean mobility through Rare-Earth-Free motors in the coming years.

Bhaktha Keshavachar is the Co-Founder & CEO of Chara Technologies. Views expressed are the author's personal.

India’s Passenger Cars Charge into an Electric Future

Autocar Professional Bureau — Sat, 06 Dec 2025 12:12:31

India’s passenger car market has shifted gears, what looked like a slow build-up is now accelerating into a full-blown electric vehicle (EV) revolution. Vahan data reveals that, EV share, which had been range-bound between 2 to 3% for the last two years, has now consistently stayed above 4% for the past four months and further climbed to more than 5% in last two months. This could well be the inflection point from which penetration leaps to ~15% over the next 4 to 5 years.

New model launches such as MG’s Windsor and Mahindra’s BE.06 and XUV.e9 (XEV 9e) over the past year have fuelled this growth. While the Windsor has reached sales of over 4,000 units per month, the BE.06 and XEV 9e are together adding another 3,000 monthly units to the segment. The average monthly electric car sales crossed 14,000 this year; a jump of over 60% over last year.

India today stands at a similar inflection point as China and Europe did around five years ago. In those regions, a combination of wide model choice, sufficient range, narrowing upfront premiums, and a robust charging network propelled EV penetration between 5 to 8% within a year post they hit a critical mass.
The question, then, is what has changed in recent months to transform optimism into momentum. Here are some factors that played a big role.

The Power of Born-Electric Designs: Distinct value proposition

Windsor from MG has targeted value-conscious buyers with a born-EV platform and attractive pricing model. Making Battery purchase optional has made a unique offering lowering purchase cost. Mahindra has positioned its EVs toward tech savvy customers with futuristic design and advanced features. It has a distinct and aspirational positioning for new electric cars, shifting the perception away from being merely a lower-cost, low-maintenance extension of ICE vehicles. The success of these new models underscores the distinct positioning of born electric vehicles resonating with customers.

Price Barriers Fall: EVs Becoming Affordable Upfront

EVs are becoming increasingly affordable. For example, the top-selling JSW-MG Windsor, offered with a battery-rental option at ₹9.99 lakh and with battery included, at ₹13.99 lakh. This makes it competitively priced against automatic ICE variants starting at ₹13.44 lakh. As battery costs continue to fall, the attractiveness of EVs will further enhance. For instance, the premium on the compact SUVs compared to ICE counterpart is projected to drop to around 13% in next 5 years.

Saving While Driving: The TCO Advantage

Electric cars already enjoy lower lifetime costs compared to their petrol counterparts across most segments. For example, the Creta EV currently has ~7% lower lifetime costs than its petrol version, with savings expected to rise to ~13% in the next five years. The primary drivers are lower fuel and maintenance expenses: electric SUVs typically cost 5% lower in running costs; added advantage include insulation from petrol price volatility, reduced maintenance needs, and state incentives such as toll exemptions on several highways and expressways, all of which make EV ownership more attractive and stress-free.

Range Anxiety Fades: Expanding charging network & longer drives

While EVs have the inherent advantage of convenient home charging: a robust public charging infrastructure is still critical. India has seen rapid expansion of charging network to ~35,000 AC and DC fast chargers across cities and highways in recent years. Government’s support through FAME and PM E-DRIVE schemes (₹3,000 crore subsidy), and guidelines for charger interoperability have played critical role in this.

Additionally, recently launched EVs from Mahindra and Tata are offering range of around ~500 km. This are changing the landscape and assuring customers of long drives without anxiety.

Accelerating the Next Phase of EV Adoption in India

While differentiated product value proposition, monetary incentives, increasing range and expanding charging networks have kick-started EV uptake in India, the sector still needs a few last-mile fixes to move from momentum to mass adoption.

Government and Policy Support

Make home charging possible for all residential types: RWAs at time don’t allow the installation of private or shared chargers-limiting the target customer segment for EV. Laying down clear rules/SOP, setting up empowered regulatory body for enforcement and grievance redressal will bring clarity, confidence and also empowering authority for RWAs for compliance. Mandating upcoming residential projects to have private charging provisions can resolve the situation for future.

Standardize incentives & stabilize policy: Standardize perks like toll, parking waivers or lower registration fees across all states. This will provide prospective EV buyers much more assurance on the expected savings irrespective of place of running. Improving consistency of policy terms-such as eligibility criteria, assessment and incentive calculation methodologies along with timely benefits disbursals are need of the hour. Increasing policy tenures from current 3 years to more than 5 years will also boost OE confidence to evaluate and deploy large scale investments.

Industry Actions and Innovation

Expand EV choices & improve charging time: India currently offers about 25 battery-electric vehicle (BEV) models, but only 7 of these are in the mass-market (around ₹12 lakh) range. More affordable options are needed across all price bands. Entry of prominent OE such as Suzuki’s planned launch of EV models could further help move demand from early adopters to the mainstream. Leading EV makers (like BYD, Lucid, Hyundai and Zeekr) have already demonstrated ultra-fast charging (5~10 C) using high-voltage (~800 V) and innovative battery systems. 5~10 min charging can eliminate range anxiety and unlock the next wave of EV growth. Therefore, Indian automakers need to develop and offer such technologies.

Provide resale assurance: Practical innovations-financed battery replacement plans, guaranteed buyback schemes and service packages that protect resale value-can erase lingering consumer worries and tip more buyers toward electric
India is at a real tipping point for electric cars; distinct value proposition, lower costs, more models and better charging are driving strong growth. If government and industry work on above levers, India can look towards mirroring the rapid adoption trajectory of China, Europe, and the US.

Akhilesh Sahu is the Managing Director, Business Transformation Services at Alvarez & Marsal India. Views expressed are the author's personal.

How AI and Edge Computing Are Transforming Road Safety and Fleet Performance in India

Autocar Professional Bureau — Sat, 29 Nov 2025 18:28:02

India’s road-safety reality is unambiguous and, for commercial fleets, it’s impossible to ignore. In the calendar year 2023, the country recorded 4,80,583 crashes, 1,72,890 deaths, and 4,62,825 injuries, roughly 55 crashes and 20 lives lost every hour. Viewed over time, fatalities have hovered above 1.5 lakh annually since 2018. These are not just public safety figures; they translate into daily operating risk for logistics networks that keep the economy moving. The human toll is immense, and the business fallout, ranging from insurance claims and operational downtime to unpredictable delivery performance, is just as significant.

Commercial fleets sit at the sharpest end of this exposure. Long routes, tight service windows and congested hubs compress decision time, raise fatigue and increase the chances of a momentary lapse turning into an incident. The traditional response to risk in fleet technology was centered around efficiency and security. Mainly, telematics were used for tracking, monitoring, and surveillance, which was a reactive and often punitive approach focused on the asset.

That is now shifting as AI and edge computing are moving safety from “after the fact” to “in the moment” and, equally important, transitioning from surveillance to support. The aim is clear and straightforward. It is to reduce incidents, enable better decisions and cultivate higher trust.

Policy is pushing in the same direction. The government issued a draft amendment on March 2025, to the Central Motor Vehicles Rules stating that, from April 1, 2026, for new models and October 1, 2026, for existing models, heavy passenger and goods vehicles should be equipped with advanced driver assistance, including Driver Drowsiness & Attention Warning, Lane Departure Warning, Advanced Emergency Braking and Vehicle Stability Function. This draft signals that proactive driver assistance will become the baseline on Indian Roads.

It also sits alongside earlier safety mandates, such as the 2021 notification that made the co-passenger airbag mandatory, cumulatively highlighting a “safety-first” posture in regulation.

The "Edge" Advantage: The Real-Time Enabler

The critical breakthrough enabling this new era is moving AI processing from the distant cloud to the device itself. This is edge computing. In the past, a risky event or a good one would have to be recorded, uploaded, and reviewed hours or days later. On the road, latency makes proactive intervention impossible. Edge computing changes the game by running deep-learning models directly on a multi-camera device; the system functions like a real-time "virtual co-pilot." It has "eyes" in the form of cameras and "brains" in an onboard AI processor. This allows it to analyze 100% of the driving time, and this "on-device" intelligence means alerts are instantaneous.

The moment the system detects a high-risk behavior, it provides an immediate in-cab audio cue. This isn't surveillance; it's intervention. It’s the digital equivalent of a co-passenger saying, "Watch out!" or "Put your phone down", an alert that can correct dangerous behavior, the very second it occurs. AI-based Advanced Driver Monitoring Systems use in-cab sensors that focus specifically on the driver's eyes. Using sleep science, these systems apply validated biometric measurements, like the Percentage of Eyelid Closure over the Pupil over Time (PERCLOS), to detect the earliest signs of fatigue, distraction, and over-speeding. The AI intervenes with a real-time alert before a lapse becomes a catastrophe.

Simultaneously, AI-powered outward-facing cameras continuously scan the environment and calculate the probability of a collision. This is crucial because even when a driver is driving well, other vehicles on the road may not be. The AI alerts the driver to these impending risks, giving them the precious seconds needed to react. What makes this tech powerful is that they are highly contextual. The AI doesn't just give blind alerts; it understands the driver's normal patterns and, critically, the surrounding situation. Drivers manage numerous complex situations, and a necessary action in one context, such as accelerating to avoid a collision, might appear to be a violation in another. The AI understands this distinction. Cutting alert noise while preserving sensitivity is what keeps the “ AI co-pilot” credible to the person who matters most: the driver.

Beyond Prevention: AI as a Catalyst for Cultural Change

Technology alone does not change culture, but it can make culture change possible. For years, safety programmes leaned on “gotcha” moments: catch the mistake, flag the driver, repeat. That model delivers compliance on paper and cynicism in the cab. The alternative is positive reinforcement, recognising smart decisions in real time, from creating space to avoid a hazard to maintaining buffers in heavy traffic, and reinforcing “safe streaks” over hours and days. Vision-based, edge-AI platforms that analyse full drive time and turn those moments into coaching and recognition have reframed the relationship between drivers and safety teams. Evidence from fleets shows that when drivers feel supported (and not surveilled), safety sticks and retention improve.

Netradyne’s own work with GreenZone® scoring, which is the industry's first driver score that publishes both safe and risky driving behaviors, shows that as driver scores rise, collision rates fall. The GreenZone Score is calculated by analyzing 100% of driving time using AI and edge computing to detect both positive and risky behaviors. Safe actions like smooth braking and attentive driving improve the score, while violations like speeding or distraction reduce it. The score updates in real time, offering a live, accurate view of driver performance. Internal analyses showing that a 50-point increase in GreenZone correlates with roughly a 13-15% reduction in collision frequency; crucially, the scoring arises from both safe and risky behaviours, so drivers see credit for what they do right.

It is also worth connecting safety to the business math because that is where scale happens. Every avoided incident reduces volatility in cost-per-kilometre: fewer claims, fewer unplanned repairs, steadier asset availability and more predictable delivery performance. This is why many leadership teams now view driver assistance and coaching not as a compliance overhead but as an operations lever that stabilises service levels and improves customer experience.

All of this only works if trust is a metric and not a slogan. Drivers must know that the system exists to keep them safe, protect them from false narratives and credit their skill. That is the difference between a technology you install and a technology people will use. The arc of policy is supportive, the technology is mature, and the Indian operating context (diverse traffic, improving highways, uneven connectivity) makes real-time, on-device assistance a “must,” not a “nice to have.” Put differently, we can now turn seconds into outcomes at scale.

The Road Ahead

The results from early adopters are already clear. Fleets leveraging this technology are reporting accident reductions of up to 50% or more. This is just the beginning. As more fleets come online, the collective data will feed the AI models, making them progressively smarter, more predictive, and more effective at preventing incidents before they happen. AI and edge computing might be the most significant leap in road safety since the seatbelt. By predicting risk, they provide an essential safety net. But their true legacy will be in changing behavior and building trust.

This technology creates a new ecosystem where fairness and quality are valued. It also protects the drivers from false claims, rewarding them for their skill, and ensuring a smoother, safer ride for passengers. Ultimately, this superior driver's performance translates directly into superior fleet performance: greater reliability, on-time deliveries, and a higher, more dependable level of service for end customers.

India is at an inflection point, and the coming years will be a watershed for safety technology in heavy vehicles. The numbers demand urgency, but the opportunity is bigger than compliance. AI at the edge has the potential to become the most meaningful leap in road safety since the seatbelt, less because of any single feature and more because it changes behaviour in the moment.

Durgadutt Nedungadi is Senior Vice President of EMEA & APAC Business. Views expressed are the author's personal.

Indian founders on Budget 2026: Powering the next EV growth wave

Autocar Professional Bureau — Sat, 29 Nov 2025 18:26:36

India’s electric vehicle (EV) market has experienced explosive growth, with sales surpassing over 2 million units in the last fiscal year and passenger EV sales nearly doubling within six months in 2025. This surge highlights a nation rapidly embracing electric mobility, driven by technological maturity, expanding infrastructure, and increasing policy support. The market now represents around 5% of total passenger vehicle sales, nearly doubling from the previous year, an important milestone on the journey to achieve a 30% EV market share by 2030.

This transformation is not just about numbers, but about the lived experiences of entrepreneurs and innovators who build and operate within this ecosystem daily. The opportunity presented by Budget 2026 is critical; it could serve as a springboard to propel India beyond early adoption phases and into robust ecosystem acceleration. India already has proven its ability to develop world-class EVs through frugal engineering and local innovation. Still, the challenge now is to create a supply chain that is resilient, localized, and ready to support sustained growth. Success will rely not only on technology but also on deep policy engagement and on-ground execution.

A glaring gap remains in India’s domestic EV supply chain. While assembly and software capabilities are progressing, key components like motors, controllers, battery management systems, and power electronics largely remain imported. This reliance raises costs and impacts reliability, which is especially detrimental for fleet operators who need dependable uptime to maintain livelihoods. Budget 2026 could be transformative by promoting localized manufacturing through tax incentives for MSMEs, GST reductions on raw materials, and encouragement of battery chemistries optimized for Indian climatic and usage patterns. Achieving self-reliance here is fundamental to the country’s “Atmanirbhar” vision.

Alongside supply chain localization, micro-factories offer a revolutionary manufacturing model well-aligned with India’s economic and social fabric. Traditional automotive manufacturing typically depends on large, centralized plants, which are less adaptable to regional needs. Micro-factories, being smaller, agile, and embedded within local communities, decrease logistics costs and foster local employment. They also make regional product customization a reality. Evidence from decentralized production models shows how micro-factories help accelerate vehicle deployment in Tier-2 and Tier-3 cities, while nurturing local vendor ecosystems. Budget incentives aimed at facilitating capital access, building regional manufacturing clusters, and shared testing infrastructure would greatly accelerate this paradigm shift, democratizing EV production beyond metro centers.

Energy accessibility represents another crucial pillar to support the growing EV fleet. The expansion of delivery fleets, gig economy riders, and commercial vehicles has put intense pressure on charging and battery swapping infrastructure. Clear policy guidelines for Battery-as-a-Service solutions covering interoperability, safety, data governance, and seamless digital payments would enable wider adoption. Aligning tax structures to reduce operational costs and fostering a network of charging hubs through viability-gap funding and urban-rural corridor strategies can build a dependable backbone for mobility services that depend on reliability and high vehicle uptime.

Financial inclusion is a powerful driver of EV adoption, especially given the socio-economic profile of many early EV users. Many gig workers, small fleet operators, and delivery personnel lack formal credit history or collateral, resulting in limited access to capital despite their demonstrated repayment ability. Budget 2026 could initiate dedicated credit guarantee programs, reducing lender risk and widening bank outreach to first-time EV buyers. Interest subvention on commercial EV loans would make monthly payments more affordable and adoption more widespread. Additionally, promoting data-driven, usage-based financing models that leverage real-time vehicle utilization could reshape lending models to align with the realities of modern mobility.

Innovation and sustained research deserve focused policy attention to help India leapfrog in the global EV race. Emerging technologies like solid-state batteries, advanced thermal management, lightweight materials, AI-driven predictive maintenance, and cloud-based telematics will define the next generation of EVs. Startups across India are pushing these boundaries, but early-stage research is capital-intensive and often risky. A dedicated National EV Innovation Fund to provide grants and seed capital can create a fertile environment for innovation beyond metropolitan hubs, tapping into engineering colleges and industrial clusters nationwide to cultivate tech leadership and global competitiveness.

Long-term sustainability also requires urgent action, particularly in battery lifecycle management. As EV adoption surges, managing end-of-life batteries becomes critical to avoid environmental harm and resource wastage. Budget 2026 is an opportunity to foster a circular battery economy by incentivizing recycling units, implementing clear Extended Producer Responsibility frameworks, and supporting the establishment of recycling hubs near industrial belts. Early investments in recycling infrastructure will not only mitigate environmental impacts but also create jobs and improve India’s energy security by recovering valuable materials.

This collective vision encapsulates what founders and stakeholders across India’s EV landscape aspire for: an ecosystem where technology, infrastructure, finance, policy, and entrepreneurship harmonize to create a globally competitive industry. Budget 2026 arrives at a pivotal time when the sector is primed for scaling, innovation, and impact. With targeted support from supply chain localization and financing reforms to micro-manufacturing, fuel infrastructure investment, innovation funding, and sustainability initiatives, India can set a new global benchmark for sustainable, decentralized electric mobility. The world is rapidly shifting toward electrification, and India has the talent, ambition, and potential to lead this transformation. What the country needs now is a catalytic budget that matches these aspirations and drives the electric mobility revolution forward at scale.

Bharath Rao is the Co-Founder and CEO of Emobi. Views expressed are the author's personal.

GST Cuts Have Given a Boost to Sales, but Is It Short-Lived Festive Happiness or a Sustainable Trend That Is Here to Stay?

Autocar Professional Bureau — Sun, 16 Nov 2025 20:16:49

This October saw a fascinating confluence of policy and culture that profoundly impacted the spending patterns of the Indian consumer. Consumer spending is typically directed by two simple things: the price you see on the sticker and the cash in your wallet. However, in India, this economic equation is layered with another powerful aspect: culture.

The auspicious festive period, encompassing Navratri, Dussehra, Dhanteras, and Diwali, is a time when Indian customers often look beyond the sticker price, driven by sentiment and tradition, significantly changing the landscape of spending patterns during these days.

This unique dynamic came together beautifully this year when the positive sentiments around these cultural norms collided with the recently implemented changes in the Goods and Services Tax (GST) structures in September 2025. For the Indian automotive market, which had been under considerable stress for the first three quarters of the year, this alignment brought a wave of much-needed relief.

However, the critical question that most analysts and industry stakeholders are asking, and one that merits a deep dive, is whether this surge in sales is a short-lived festive happiness or a sustainable trend that is here to stay.

Before we explore this question, let’s first understand the market and its changing landscape in the period leading up to these reforms. The Indian auto market witnessed a rare stumble in 2025, with most OEMs reporting flat to de-growing sales. The overall growth was muted, with passenger vehicles recording a 1.3% growth from January to June compared to the same period last year. This slowdown was not caused by a single factor but rather a combination of several underlying pressures.

There were some obvious factors contributing to this sudden change in dynamics.

1. High Base Effect- The auto industry had just come off three back-to-back years of double-digit growth post-COVID. This period was fuelled by pent-up demand and a "revenge buying" phenomenon, which was bound to normalize. A market correction or a period of stagnancy was, to some extent, expected.

2. High Cost of Vehicles- particularly in the entry-level segment, had become a major deterrent. Over the last six years, vehicle prices have increased by as much as 70% on account of new safety regulations like mandatory dual airbags and ABS, stringent BS6 Phase 2 emissions upgrades, and rising raw material and manufacturing costs. This consistent price inflation made these vehicles unaffordable for a large part of the population that forms the bedrock of the entry-level market. Furthermore, with fuel prices remaining at an all-time high, the total cost of ownership became a difficult financial commitment for many households to make.

3. Too Much Stock- In the last quarter of the previous fiscal year, carmakers pushed large shipments into the market to stay ahead of China’s new export rules on rare-earth magnets. In anticipation of continued strong demand, this practice continued, resulting in a problem of huge surplus-stocks at the dealership level. By the end of June, inventory numbers had swelled to as high as 67 days, the highest seen in the recent past. This created immense pressure on dealers, who faced high carrying costs, and while retail numbers showed some growth, they did not translate into equivalent wholesale dispatches from OEMs.

4. Rural Momentum Slowed for Two-Wheelers- This segment, often considered a barometer of the rural economy's health, was also impacted by higher upfront vehicle prices. This, combined with an intense summer heatwave and a cautious consumer outlook during the election period, dampened sales of the popular 100cc-125cc commuter motorcycles in rural areas. While scooter sales in urban markets held steady, they were not enough to fill the gap in the overall sales of two-wheelers.

Apart from these, some not-so-obvious factors also impacted the growth momentum this year.

1. Fewer Launches- of high-volume models in 2025. With most OEMs’ launch cycles clashing with a slow market period, there was a lack of new products to generate excitement, leading to a "wait and watch" period for many potential car buyers.

2. Simultaneously, the unabated growth of SUVs has reshaped the market. While this trend is undoubtedly good for the SUV segment, the overall passenger vehicle numbers were impacted due to lower sales of entry-level cars, which are a key driver of volume. Many buyers in this segment found themselves at the crossroads: they either couldn’t afford the high entry cost of new cars, OR were moving to the used vehicle market, OR simply delaying their purchase to save up for something they considered more "value for money," often an SUV.

3. Higher Debt v/s Savings- Household financial liabilities have surged, with annual liabilities growing by 102% between 2019 and 2025. Household debt rose to 6.2% of GDP in FY24. Data from the Reserve Bank of India (RBI) also shows that household financial savings as a percentage of GDP had seen a sharp decline, falling from 11.5% in 2020-21 to just 5.3% of GDP in 2023-24. This particularly impacts spending on big-ticket items like cars or two-wheelers. Higher existing debt and lower savings (lower comfort to spend on high ticket items) means a reduced ability to take on more loans, especially for vehicles, which are considered discretionary in most households and often attract higher interest rates.

Keeping this complex scenario in context, the announcement of GST relief brought a welcome change. The reduction of GST from 28% to 18% for cars under 1200cc and measuring less than 4 meters in length, and for two-wheelers with engines smaller than 350cc, gave a much-needed respite. Furthermore, the abolition of the compensation cess, an additional levy on cars, simplified pricing and further reduced the final cost for consumers.

This restructuring made mass-market vehicles significantly more affordable. For example, a small car priced at ₹5,00,000 before taxes would see its GST component drop from a potential ₹1,40,000 (at 28%) to just ₹90,000 (at 18%), a direct and substantial saving for the buyer.

Complementing the GST cuts, the Union Budget 2025 introduced substantial changes to the income tax slabs under the new tax regime, effective April 1, 2025. These reforms were designed to increase the disposable income in the hands of taxpayers, thereby boosting their spending capacity. These direct tax reforms left more money in the pockets of a large segment of the population, empowering them to consider significant purchases like a new car or two-wheeler.
Finally, the timing of the GST cuts, just before the festive season, meant that this policy-driven affordability boost coincided with a period when the positive cultural frame of mind was at its peak. This combination created a perfect storm for record automotive sales.

The results were immediate and spectacular, as reflected in the figures from the last quarter.

Navratri Surge saw a robust recovery in auto retail sales. The Federation of Automobile Dealers Associations (FADA) reported that overall retails during Navratri surged by a historic 34% year-over-year, with two-wheelers growing by 36% and passenger vehicles by 34.8%.
Record October Sales making it a landmark month for the industry. Wholesale dispatches of passenger vehicles were estimated at a record 470,000 units, a 17% increase over the previous October, while retail sales were estimated to be even higher, between 5.5 lakh and 5.7 lakh units. The auspicious **Dhanteras** period alone saw deliveries of over 100,000 passenger vehicles.

Company-specific performance underscored this boom.

Maruti Suzuki, the country's largest carmaker, reported a 20% growth in retail sales in October. This was driven by the compact segment – such as Baleno, Dzire, Swift and Wagon-R , Fronx.

Tata Motors also had an exceptional month with retail sales of 74,705 units.

Mahindra & Mahindra achieved its highest-ever monthly SUV sales.

The two-wheeler boom was equally impressive, with sales growing by around 35% year-on-year during Navratri.

After this bumper quarter, the question at hand is if this momentum is likely to stay.

Short Term

The GST reforms have indeed brought welcome relief, directly addressing the affordability challenges that were suppressing demand in the price-sensitive, mass-market segments. The impact could be more on the mid-hatch segment and the compact SUVs as already seen in the Oct sales numbers
However, the sustenance of entry segment cars in the Indian context still remains a question due to changing value perceptions linked to these models and the changing aspirations of the Indian customers

Medium Term

The enhanced affordability is likely to lead to a structural expansion of the automotive market, not just a temporary spike. It would accelerate vehicle penetration into Tier-2 and Tier-3 cities and rural India, creating a larger and more stable customer base. Industry analysts project that such a cut could boost sales volumes by 2-6% over the mid-to-long term.

Consistent high demand would incentivize manufacturers to increase production, leading to better capacity utilization and new investments. As a massive employer supporting over 37 million jobs and contributing about 7.1% to India's GDP, a healthier auto industry stimulates job creation and strengthens the economy.

Long Term

The industry is optimistic. However, sustainable growth depends on addressing systemic challenges, such as liquidity constraints within the supply chain. Broader market trends like the push for electrification and global trade shifts will also play a significant role.

We also cannot ignore changing consumer preferences towards larger vehicles. The key question is whether these short-term gains will impact the long-term planning of OEMs and bring about a renewed focus on compact cars. The long-term trajectory will be significantly impacted by the product line-ups that OEMs plan for the next 2-3 years and the investments made in this foundational segment.
Ultimately, the industry's long-term health is tied to broader economic growth, consumer sentiment, and financing costs. Continued supportive policies are necessary to fully realize the benefits of these changes, as a one-time policy shift may not be sufficient to permanently alter the complex economic situation of spending patterns and debt.

In conclusion, the reduction of GST on entry-level cars and two-wheelers has acted as a transformative policy. In the short term, it functioned as a powerful demand catalyst, giving a short-term relief to some struggling segments. In the long term, with continued support and systematized investment plans from the industry, it has the potential to structurally expand the market, boost domestic manufacturing, and reinforce the automotive sector's crucial role as a primary engine of India's economic growth.

Apeksha Jain is Director & head of Ipsos Automotive & Mobility Development. Views expressed are the author's personal.

Why India’s EV Battery Landscape Needs Home-Grown Manufacturers To Stay Competitive

Autocar Professional Bureau — Sun, 16 Nov 2025 20:15:31

India’s electric vehicle revolution is well underway, but to sustain it, establishing a robust domestic battery manufacturing ecosystem is essential. While the country has recorded more than 4.4 million electric vehicles on its roads by August 2024, including around 950,000 in the first eight months of the year and a market penetration reaching 6.6%, the lion’s share of the battery value chain remains imported. To truly turn this tide, India must build home-grown manufacturers that can drive down costs, boost resilience and sharpen global competitiveness.

The Urgency Of Localisation

Battery cells and critical components currently account for nearly half the cost of an EV. Globally, much of this production is dominated by China, which controls a large proportion of materials, manufacturing and component supply. According to recent studies, despite ambitious aims, only about 13% of India’s battery-cell demand is projected to be met domestically by 2030. This heavy dependence on imports exposes India’s EV ambitions to supply-chain disruptions, cost volatility and external strategic pressures.

Why Home-Grown Manufacturing Matters

1. Cost competitiveness: Local production avoids the added burdens of import duties, logistics and currency risk. With scale and innovation, domestic manufacturers can bring down the cost per kWh and make EVs more affordable for Indian buyers. Studies suggest that India has the potential to reach large-scale domestic capacity—one forecast sees demand rising to 139 GWh by 2035 if localisation gathers pace.

2. Supply-chain resilience: Import dependence leaves the industry vulnerable. Past disruptions (pandemic, geopolitical tensions) have shown how fragile global supply chains can be. Having local cell, module and pack manufacturers strengthens resilience and ensures continuity of EV roll-out.

3. Value-chain capture and jobs: By building local manufacturing, India captures more of the value within its economy rather than shipping raw parts abroad. That translates into domestic R&D, skilled jobs, and innovation clusters. A recent assessment noted that unless high-value segments (cells, raw materials, equipment) are indigenised, India risks remaining dependent and undervalued.

4. Global export potential: With the right scale, quality and cost-structure, Indian-built battery cells could serve not only domestic demand but export markets too. That elevates India from a consumption market to a manufacturing hub.

Key Challenges to Overcome

Yet, despite strong intent, localisation has not matured at the pace envisioned. A recent industry assessment identified six structural hurdles: shortage of skilled labour across the battery value chain; absence of accredited testing and validation centres; heavy reliance on imported critical minerals; lack of a robust recycling ecosystem; stringent ESG compliance requirements in global markets; and high import dependence for key manufacturing equipment. Moreover, a global oversupply, especially from China, has increased price pressures and elevated execution risks for large-scale Indian projects.

Material sourcing remains another critical challenge. While the discovery of lithium is promising, India still lacks large-scale refining and processing capacity to turn raw deposits into usable inputs. The constraint extends beyond lithium — rare earth elements such as neodymium, dysprosium, and praseodymium, essential for high-performance EV motors, are almost entirely imported. Unless India strengthens its ecosystem across skills, materials, and manufacturing scale, domestic producers will struggle to compete on both cost and technology with global incumbents.

Building the Future, Not Just Assembling It

With India’s EV market projected to reach USD 113.99 billion by 2029, the focus must now shift from assembling vehicles to owning the technology that powers them. As adoption accelerates, particularly in the two- and three-wheeler segments, the battery remains the linchpin of cost, performance, and competitiveness. Continued dependence on imported cells will expose manufacturers to cost volatility, supply bottlenecks, and weaker global positioning.

Conversely, a home-grown battery manufacturing base can redefine the landscape. It offers control over production costs, fosters innovation suited to Indian conditions, and creates the foundation for export-led growth. This is the moment for India to transition from “Make in India” to “Innovate in India,” ensuring that the energy propelling its mobility revolution is not just assembled locally but powered by technology born and built in India.

Pratik Kamdar is the Co-Founder and CEO of Neuron Energy. Views expressed are the author's personal.

Impact of Rare Earth Shortage on the EV Market and What is the Way Out for India

Autocar Professional Bureau — Sun, 16 Nov 2025 19:19:05

India's electric vehicle (EV) revolution faces an acute challenge: a global shortage of rare earth elements—and particularly rare earth magnets—which threatens to stall growth, disrupt supply chains, and weaken aspirations to become a clean mobility leader. There is an urgent need for alternative solutions, policy reforms, and technology innovation to ensure the sector remains resilient amid geopolitical shifts.

EV Industry Growth and Market Dynamics

India's EV market is expanding rapidly across all vehicle categories—from electric 2-wheelers (e-2Ws) and electric 3-wheelers (e-3Ws) to passenger vehicles and commercial EVs. In FY 25, 8.3% (~2 mn) of the Auto Retail sales were EV as compared to 6.6% in FY24. We anticipate this to reach 30–35% by FY30, adding 14 mn EV, a sevenfold increase.

The government's PM E-DRIVE scheme accelerates this adoption through targeted subsidies and demand incentives for e-2Ws and e-3Ws on a pan-India basis, including rural and semi-urban areas. The scheme allocates Rs. 2,000 crores for EV charging infrastructure installation across the country, addressing critical range anxiety concerns.

Understanding Rare Earths and Their Role in EVs

Rare earth elements such as neodymium and dysprosium are vital in manufacturing high-strength permanent magnets essential for electric motors, energy-efficient propulsion systems, battery packs, steering systems, and hybrid vehicle components.

Rare earth magnets are critical across all EV categories—from the compact motors in e-2Ws and e-3Ws to the powerful motors in passenger EVs and commercial vehicles. Each EV typically contains between 1 and 2 kilograms of rare earth magnets, making continuous supply critical to sustained production across the entire EV ecosystem.

India's current rare earth supply chain reveals a critical dependency on imports despite possessing significant domestic reserves. According to government data, India's rare earth imports have risen substantially from 1,848 tonnes in FY 20 to 2,270 tonnes in FY24, marking a 23% increase over five years. This increasing demand underscores the accelerating consumption driven by the EV and renewable energy sectors.

In FY24 China accounted for 65% of total imports, followed by Japan & Hong Kong accounting for 25%. Critically, China currently controls approximately 70% of the world's rare earth mine production and a staggering 85–90% of global refining capacity, with domestic output reaching 270,000 metric tons in 2024, up from 255,000 metric tons in 2023.

The dependency on China becomes even more acute for rare earth magnets, particularly Neodymium-Iron-Boron (NdFeB) magnets essential for EV motors. This near-total reliance on Chinese sources for finished magnet products poses a significant supply chain vulnerability.

Four Indian companies—DE Diamond, Hitachi, Continental India, and Jay Ushin—have recently received licenses to import rare earth magnets from China, signaling some relaxation in Beijing's restrictions. However, these import licenses come with stringent conditions, including bans on exporting Chinese-origin magnets to the US or for defence purposes, further constraining India's strategic flexibility.

The Global Shortage: Root Causes and Immediate Impact

The rare earth shortage, intensified by Chinese export restrictions and supply chain bottlenecks, began impacting the Indian automobile sector by early 2025, affecting manufacturers across all EV segments. China's tightening of export rules, including new licensing mandates introduced in 2024, has severely constrained global supply and raised serious concerns over supply security. For Indian EV manufacturers, this has led to:

Delays in launching new models across categories
Reduced production targets and scaled-down output
Price increases up to 8% on certain EV models across multiple segments.
Deferred sales and stock shortages, particularly affecting the electric two-wheeler and three-wheeler segments.
Increased vulnerability in hybrid and internal combustion vehicle segments due to the essential role of rare earth magnets in electric steering and auxiliary systems.

Long-Term Risks and Systemic Challenges

Although Indian automakers generally maintain 4 to 6 weeks of inventory for rare earth magnets, an extended supply squeeze could disrupt production beyond seasonal peaks, erode investor confidence, and slow domestic EV adoption across all vehicle categories. India's ambitious plan to reach 80 mn EV units by 2030 risks significant setbacks due to raw material constraints. The impact would be particularly severe in the affordable e-2W and e-3W segments, which are critical for mass EV adoption in rural and semi-urban markets.

India's production of rare earths remains modest at approximately 0.7 percent of global supply as of 2024, with mine output at just 2,900 tonnes per year. Despite possessing the world's third-largest, rare earth reserves totaling 6.9 million metric tonnes and approximately 35 percent of the world's beach sand mineral deposits—significant sources of rare earths—India lacks the refining and processing infrastructure needed to produce high-purity rare earth materials, forcing continued reliance on imports.

The Way Out: India's Multi-Pronged Approach

1. Strengthen Strategic Supply Diversification
To counter the supply crunch and reduce reliance on China, Indian policymakers and automakers are pursuing bilateral agreements with alternative suppliers. India has signed mineral-focused Memoranda of Understanding (MoUs) with Namibia, Chile, and Brazil, aiming to build long-term supply partnerships.

Through Khanij Bidesh India Ltd. (KABIL), a joint venture formed in 2019 to acquire overseas assets in critical minerals, India has made strategic investments such as a $24 million lithium exploration deal in Argentina. These diplomatic moves are reinforced by the EXIM Bank, which provides credit lines and infrastructure support to facilitate India's mineral access across Africa and South America.

2. Accelerate Domestic Mining and Processing Capabilities
While India holds significant rare earth reserves and 35 percent of the world's beach sand mineral deposits, current production of just 2,900 tonnes annually remains far below potential. The government's Geological Survey of India (GSI) is actively conducting mineral exploration across the country to augment resources.

The National Critical Mineral Mission (NCMM), launched in 2025 with Rs. 34,000 crore allocation, includes Rs. 500 crores aiming to incentivize the establishment of mineral processing parks. The government has also approved a Rs. 7,300 crore scheme aimed at boosting domestic rare earth magnet production, targeting about 6,000 metric tonnes annually within 7 years. IREL Limited, a public sector undertaking, has been mandated to produce high-purity rare earth oxides from the mineral Monazite in India.

3. Encourage Technology Substitution and R&D Innovation
Industry leaders worldwide, including Tesla and Nissan, are investing in rare-earth-free motor technologies such as induction motors and ferrite magnets applicable across vehicle categories. In India, startups and established OEMs are piloting magnet-free or rare-earth-efficient electric drivetrains for both passenger and commercial vehicles. Simple Energy's innovations in creating motors without neodymium or dysprosium exemplify opportunities to lower costs and reduce environmental impacts. The Ministry of Mines is providing funding for R&D projects related to rare earth elements, with 11 projects approved during 2023–24 and 2024–25 totaling Rs. 9.33 crore outlay.

4. Promote Battery and Magnet Recycling
India can take cues from mature markets where recycling of batteries and motors recovers rare earth elements, creating circular supply chains and reducing resource dependence. Investing in advanced recycling infrastructure will be crucial to sustainably meet future demands while minimizing environmental footprints across all EV categories.

5. Strengthen Policy Framework and Critical Mineral Security
Government initiatives including the National Critical Mineral Mission and the Rare Earth Theme Park Initiative aim to enhance indigenous production, innovation, and infrastructure. The PM E-DRIVE scheme represents a crucial policy lever, providing targeted subsidies for e-2Ws, e-3Ws, and commercial EVs with charging infrastructure investment.

The government is also planning to stockpile reserves of rare earth minerals to protect the domestic industry from supply chain disruptions. India has joined the Minerals Security Partnership (MSP) in mid-2023, a multi-nation group led by the United States focused on creating critical mineral supply chains. Streamlining regulatory frameworks and introducing single-window clearances for exploration and mining leases will accelerate project execution and attract private investment in rare earth development.

Key Challenges and Opportunities

Mining capacity must progress alongside development of advanced refining and magnet manufacturing to create full-spectrum domestic capabilities supporting all EV categories, transitioning from current 0.7% of global production.
India's approach mirrors global trends, aligning with efforts in the US, EU, and Japan to develop rare-earth-independent EV production and reduce dependency on China-dominated refining capacity.
Future EV resilience depends on vertical integration encompassing mining, processing, recycling, and motor innovation across passenger, commercial, two-wheeler, and three-wheeler segments.
Transitioning to rare-earth-free technologies and bolstering recycling will contribute to greener, more sustainable manufacturing across all EV categories.

Conclusion: The Road Ahead for India's EV Market
India's rare earth shortage is both a stark challenge and a call for transformative action. With 5.6 million EVs already registered and targets to reach 80 mn by 2030, India faces a critical inflection point in its clean energy transition. India must urgently diversify supply sources, accelerate domestic mining and refining capacity, and pursue technological alternatives.

By strategically pursuing supply diversification through KABIL and bilateral partnerships, investing in domestic processing capacity through the Rs. 7,300 crore magnet production scheme and the Rs. 500 crore National Critical Mineral Mission, and encouraging technological innovation in rare-earth-free motors, India can reduce its vulnerability and secure its EV future.

Successfully overcoming these hurdles will elevate India from a dependent importer to a resilient leader in global clean mobility. The world watches as India navigates this critical juncture, with the potential to redefine sustainable EV manufacturing for decades ahead.

Deepak H is Partner & Country Head at Ipsos Strategy3 India. Views expressed are the author's personal.

E20: The Future Biofuel of India

Autocar Professional Bureau — Sat, 08 Nov 2025 19:17:02

As India makes a steady push toward a cleaner and more self-reliant energy future, E20 fuel, a strategic blend of 20% ethanol and 80% petrol, has emerged as a cornerstone of the country’s biofuel policy. More than just an alternative fuel, E20 represents a strategic solution that reduces dependence on costly crude oil imports, accelerates the decarbonisation of transport, and brings tangible benefits to India’s farmers and rural economy.

This ambitious shift did not happen overnight. In 2018, the Government of India advanced the target of achieving 20% ethanol blending in petrol from 2030 to 2025, recognising the role biofuels can play in enhancing energy security and reducing emissions. Since then, blending levels have steadily increased, with E20 now seen as the stepping stone to an energy transition that is uniquely tailored to India’s strengths in agriculture and renewable resources.

Let’s take a closer look at the three major advantages of E20 over conventional crude oil: reducing foreign exchange outflow, driving decarbonisation, and fuelling rural development.

Reducing Foreign Exchange Outflow

India is among the world’s largest importers of crude oil, and this dependence puts immense pressure on foreign exchange reserves. Every year, billions of dollars flow out of the country to purchase oil from overseas markets, making India vulnerable to global price fluctuations and supply disruptions.

Ethanol blending offers a sustainable way out. Since 2014, blending programmes have already substituted over 245 lakh metric tonnes of crude oil, saving the country nearly ₹1.36 lakh crore in foreign exchange. With E20, these savings will only multiply—NITI Aayog estimates an additional ₹43,000 crore in savings by 2025.

The economic logic is simple: by producing ethanol domestically from crops such as sugarcane, maize, and surplus grains, India recycles its own resources into usable energy. This reduces exposure to volatile crude markets, keeps money circulating within the national economy, and allows the government to redirect savings toward infrastructure, healthcare, and renewable energy investments.

Globally too, ethanol has been leveraged to reduce oil dependency. Brazil, for example, has successfully integrated ethanol into its transport sector, saving billions in import bills while becoming a global leader in biofuels. India’s E20 programme borrows from these lessons while adapting them to its own agricultural and economic landscape.

Driving Decarbonisation

E20’s environmental promise is equally significant. Ethanol, being a renewable and cleaner-burning fuel, reduces greenhouse gas emissions by up to 65% compared to petrol, depending on the feedstock used. Already, blending programmes have helped India cut nearly 70 million tonnes of carbon dioxide emissions, a figure that will grow sharply with the adoption of E20.

But the benefits don’t stop at CO₂. Ethanol combustion produces fewer pollutants such as particulate matter, carbon monoxide, and nitrogen oxides (NOx), leading to better air quality. Cleaner air translates directly into public health benefits, especially in urban centres like Delhi, Mumbai, and Bengaluru where vehicular emissions are a leading contributor to smog.

On the performance side, ethanol has a much higher-octane rating (108.5 versus petrol’s 84.4), which allows engines to run more efficiently with less knocking. Its higher heat of vaporisation also cools the engine’s air-fuel mixture, improving efficiency and combustion. For drivers, this means smoother acceleration and improved ride quality.

Importantly, E20 complements rather than competes with other clean mobility strategies. While electric vehicles are gaining ground, ethanol-blended fuels provide an immediate, scalable solution for millions of existing vehicles, making them a critical bridge in India’s broader decarbonisation strategy.

Fuelling Rural Development

Perhaps the most transformative impact of E20 lies in the countryside. Ethanol is produced from agricultural feedstocks, and with the government diversifying beyond sugarcane molasses to crops like broken rice and corn, more farmers can participate in the value chain.

By 2025, ethanol blending is projected to generate nearly ₹40,000 crore in additional income for farmers. This not only stabilises rural livelihoods but also creates a new economic ecosystem around biofuel production—spanning distilleries, storage facilities, transport, and allied services.

For regions where surplus crops often go to waste or fetch low prices, ethanol production offers a dependable market. It reduces crop wastage, enhances income security, and promotes agricultural diversification. At a time when rural distress and farm incomes remain national concerns, E20 represents a solution that links energy security with rural prosperity.

Beyond income, ethanol production creates employment opportunities in rural areas. Establishing ethanol plants and associated infrastructure brings investment, jobs, and skill development to smaller towns and villages, ensuring that the energy transition is inclusive and equitable.

The Silver Lining

The adoption of E20 signals a decisive shift in India’s energy story. For vehicles manufactured after April 2023, automakers have already adapted materials and engines to handle ethanol-rich blends, ensuring smoother rides, better combustion efficiency, and reduced engine knocking.

Of course, some minor challenges remain, such as increasing blending rates and ensuring consistent feedstock supply. But with strong policy backing, industry alignment, and rising awareness among consumers, these barriers can be overcome.

In essence, E20 is not just a fuel blend. It is a vision where India cuts its import bills, breathes cleaner air, and strengthens its rural economy. As the nation accelerates toward its 2025 blending target, E20 stands as the biofuel of the future, powering both sustainability and self-reliance.

CK Jain is the President of GEMA (Grain Ethanol manufacturer’s Association). Views expressed are the author's personal.

Sustainable Transportation as a Corporate Imperative

Autocar Professional Bureau — Sat, 08 Nov 2025 19:16:43

Transport has long been a cornerstone to economic development - the ability to move people, goods, and ideas drives change. However, in the 21st century, transport has taken on the mantle of one of the greatest causes of climate change. The transport sector is globally responsible for almost a quarter of CO2 emissions related to energy use, with road transport contributing the greatest amount. In India, where urbanization is on the rise and mobility challenges multiply, sustainable transportation has evolved from a policy goal to a business imperative.

The Corporate Mobility Footprint

For many organizations, mobility contributes a further, pun intended, silent but damaging part of their environmental footprint. Employees move across town to the workplace in the morning and return home at night (commutes), logistics operations add to emissions, business travel increases GHG emissions as does the last mile of the goods - from the final hub to the consumer or end user. Collectively, these emissions can be significant. Emissions from transport will often reside in an organization’s Scope 3 as indirect emissions from the mobilities that the organization does not directly manage, but are critical to the business' sustainability.

As such, organizations cannot continue to ignore the emissions by which they move people and goods. As the calls for transparency and responsibility increase across the corporate landscape (increasingly from investors, customers, and regulators), sustainable transportation is no longer part of a corporate social responsibility program; it is a necessity for sustainability linked to ESG performance, the brand’s reputation, and the long-term viability of an organization.

Why Sustainability in Mobility Matters for Businesses

The benefits of sustainable transportation extend beyond climate. Companies adopting cleaner mobility can benefit in multiple ways:

Cost Efficiency: With fluctuating fuel prices, switching to lower emission or electric options can lessen long-term operational costs.
Talent Attraction: Younger employees are seeking out organizations that match their values, including climate considerations. Employers providing sustainable commute options could be an employer-of-choice differentiator.
Regulatory Preparedness: With India increasing climate policies and moving towards net-zero in 2070, adopting cleaner mobility will better position businesses to prepare for compliance.
Resilience and Innovation: Integrating sustainability typically leads to new or different ways of working, using technology, and forming partnerships that makes companies more competitive.

Pathways Toward Sustainable Corporate Transportation

Sustainable business-related transportation is not one-size-fits-all. Sustainable transportation will require multiple strategies for firms that are framed within the context of their operations and employee needs.

Fleet Electrification: The transition of company and contractor fleets to electric vehicles (EVs) can be one of the most direct ways to reduce emissions. Corporate fleets have predictable routes and centralized control and offer ideal sources for electrification.
Shared and Pooled Mobility: Employees' commutes can dramatically reduce the carbon intensity of their daily trips when riding together (i.e., carpools, shuttle services, and public transport).
Digitalization and Telematics: Using technology to improve route travel time, monitor how the use of energy, and track carbon savings will improve efficiency in all aspects of the travel process and allow for better transparency in progress reporting.
Green Infrastructure Partnerships: Working with mobility providers, charging infrastructure companies, and municipalities can improve the availability of sustainable transport options.
Policy Alignment: Making sure that patterns of mobility align the firm with national and state EV mandates, carbon credit programs, and urban planning projects can improve their successfulness in the long term.

The Role of Culture and Leadership

Sustainable transportation is not merely an operational decision, but rather, it is indicative of corporate culture and its leadership priorities. By proactively offering green commuting options, rewarding low-carbon commuting options, and leveraging sustainability in their travel policies, organizations often provide a compelling message to employees, customers, and stakeholders that climate action is part of their corporate mandate.

Sustainability work related to mobility will create a ripple effect. A corporation transitioning its fleets to low-carbon transit creates demand for responsible and cleaner vehicles, charging infrastructure and supporting technologies, which puts into motion demand across the broader clean mobility ecosystem which multiplies the impact.

Looking Ahead

Sustainable transportation is no longer an option for businesses, but is rather a necessity. As India grapples with the twin challenges of growth and decarbonisation, all corporations will need to treat themselves not only as customers of mobility, but also as enablers of cleaner transport systems.

In the emerging years ahead, we will more than likely see sustainable mobility move from being an ESG measure to being core to a business' performance measure. Businesses who move early, collaborate and build partnerships, and undertake sustainability as part of their mobility strategy, will not only lower emissions, but will future-proof themselves against the economic and regulatory uncertainty of tomorrow.

Conclusion

Sustainable transport is a business necessity and a fundamental facet of modern business around cost, talent, compliance, innovation, and reputation. If organizations can rethink the movement of people and goods, they can shift mobility from a carbon risk to a means of climate leadership. Ultimately, these organizations are not just creating a more resilient business, but they are contributing to a healthy, sustainable future for everyone.

Abhinav Kalia is the CEO and Co-founder of ARC Electric. Views expressed are the author's personal.

Beyond the Car: What Really Decides Your Motor Insurance Premium

Autocar Professional Bureau — Wed, 22 Oct 2025 21:45:17

When it comes to car insurance premiums, most of us think of it as a straightforward deal. You just buy a car, pay a premium, and get it insured. But in reality, what you pay for your motor insurance depends on far more than just the car itself. There are so many factors that actually shape your premium. These include, but are not limited to, the kind of vehicle you drive, where you live, how you use your car, how responsibly you drive and even how much you drive.

Most buyers usually focus on discounts on the car or dealer offers. That is just a one-time saving. On the other hand, understanding the underlying factors that shape your insurance premium can help you save money every year resulting in substantial long-term savings. So, let us look at some important facts that decide your motor insurance premium.

The Car Itself

Let’s start with the obvious. One of the most important factors that help shape your insurance premium is the kind of car you own. If it is an expensive car like a luxury SUV, then obviously it would be quite expensive for the insurer to cover the cost of the repair or replacement of your vehicle should it face an accident or gets stolen. Insurers assess risk based on these possibilities and hence a luxury SUV will naturally attract a higher premium than a hatchback.

Even within the same segment, certain variants can push up your cost. For example, a diesel or CNG car usually has a higher premium than a petrol one, as the engines are more expensive to repair and maintain. Similarly, insuring an Electric Vehicle is also more expensive because of higher vehicle acquisition cost, expensive components and specialised repairs.

Driving Habits and Claim History

Your driving record speaks volumes to an insurer. A clean driving history, with no traffic violations or accidents, signals low risk and may even get you a better deal. The same logic applies to your claim history. Every year you don’t raise a claim, you earn a No Claim Bonus. NCB is a discount that can go up to 50 per cent over time. But even one claim can reset it to zero.

This is why many car owners choose to pay for small repairs out of pocket rather than lose their NCB. Over time, the cumulative discount can significantly reduce your premium.

Another important feature that most people are unaware of is Usage-based insurance (UBI) or “Pay As You Drive” policies.

These motor insurance plans charge the premium according to how much you drive. So if your vehicle is not frequently used, you can go for this option to make substantial savings.

Insured Declared Value (IDV)

IDV is basically the current market value of your car and it is one of the biggest determinants of your premium. Simply put, it’s the maximum amount your insurer will pay if your car is stolen or completely damaged. As your car ages, its IDV depreciates, which means your premium will also go down each year. One can also voluntarily go for a lower IDV, which would reduce the premium. However, this also means a lower payout in case of a claim. So one should go for a balance between affordability and adequate coverage.

Location and Vehicle Usage

Where your car “lives” matters as much as how you drive it. Vehicles registered in metro cities might attract higher premiums than those in smaller towns because of greater exposure to traffic, theft, and accidents. Likewise, whether you use your car for personal use or commercial purposes also impacts your premium. Since commercial vehicles, which are used more frequently and face higher wear and tear, have higher premiums compared to private cars. With the rise of the gig economy, even cars used for app-based services or rentals may need specific commercial coverage.

Deductibles and Discounts

A lesser-known factor that impacts your premium is the deductible. It is the amount you agree to pay out of your pocket during a claim. Opting for a higher deductible can reduce your annual premium, but it also means more expense at the time of a claim.

Coverage Type

In India, every vehicle owner is mandatorily required to have at least a third-party insurance policy. Such a policy covers damage or injury caused to others. But that’s just the bare minimum. While it is cheaper, it does not protect you or your vehicle in case of a mishap. A comprehensive policy, which covers both third-party liabilities and own damages, gives much better protection.

In fact, you can also extend your cover with add-ons such as zero depreciation, engine protection, 24x7 roadside assistance, key replacement etc. Each add-on slightly increases your premium but can save you significantly during a claim. For example, zero-depreciation add-on ensures you get full value for replaced parts, instead of the depreciated amount.

Smart Ways to Save

Online comparison platforms make it easier than ever to compare multiple quotes and choose the most competitive premium. Buying online also eliminates dealer commissions, giving you direct savings.

Installing authorised anti-theft devices is another smart move. It reduces the likelihood of theft and can fetch you discounts on your own-damage premium.

So, the next time you’re comparing cars, remember that it’s not just the sticker price that matters, but also the recurring cost of insurance. Just like you compare cars and dealers, and hunt for good deals, you must also compare car insurance policies to save money on the long run. Doing it online hardly takes more than a few minutes but can result in huge savings. But remember that while saving money on insurance is not a bad idea, at the end of the day, the goal isn’t just to pay less; it is to get the best value for the protection your car truly deserves.

Paras Pasricha is the Head of Motor Insurance at Policybazaar. Views expressed are the author's personal.

Adaptive Computing Is Fueling Evolution of Automotive Automation & Safety

Autocar Professional Bureau — Wed, 22 Oct 2025 21:02:43

With the rise of electric vehicles and innovative Advanced Driver Assistance Systems (ADAS), safety, and infotainment systems — many driven by AI, the automotive industry is experiencing massive changes. In India, OEMs, Tier-1s, and startups are accelerating efforts to integrate technology and data-driven intelligence into automobiles, while managing challenges such as space, power efficiency, cost, and road diversity.

Moreover, as the number of sensors and processors on vehicles continues to increase, demand will grow for embedded technologies with adaptive and versatile architectures. Such solutions must be capable of powering high-reliability systems; processing and networking large amounts of data at low latency, operating at low power; supporting increasingly complex algorithms; meeting evolving automotive technology standards and functional safety requirements.

Taking a step backwards, the current possibilities of the connected car can be separated into three submarkets: Automated Driving, ADAS, and In-Vehicle Experience (IVX). There are six levels of driving automation, ranging from Level 0 (L0), which describes an entirely manually controlled vehicle, up to L5, a fully automated vehicle requiring no driver engagement.

The distinction point between comes when you move from L2, where automated driving features are present but the ultimate responsibility for controlling the vehicle is still on the driver, to L3 when the automated driving system becomes responsible for any faults when enabled.

Unlike the U.S., where robotaxis and long-haul autonomous trucks dominate conversations, India’s mobility landscape has unique challenges. Dense traffic, two-wheelers weaving between lanes, inconsistent road infrastructure, and varied weather conditions make it essential for ADAS to be tuned for local realities.

Due to the distinction between L2 and L3, a lot of innovation is taking place at L2 – with more advanced features now being described as L2++ or L2.99. These vehicles incorporate automated driving features that can control steering, acceleration, and braking, but require constant driver supervision and intervention.

Furthermore, they will include ADAS, a broad term describing features that support the driver by alerting them to certain scenarios, including advanced sensors, but also extends to features that assist the driver using temporary system control. These features include Adaptive Cruise Control (ACC), Lane Keep Assist (LKA), and Blind Spot Detection (BSD), which are increasingly being piloted by OEMs to improve safety on Indian roads.

More vehicles feature ADAS to increase the safety of drivers and other road users, using information collated by on-vehicle sensors to alert drivers to potential hazards or detect when they are distracted/fatigued using Driver Monitoring Systems and In-Cabin Monitoring Systems; assist in scenarios such as parking and traffic jams; and even override the driver to avoid collisions.

For Indian roads, this can mean recognizing pedestrians on poorly lit streets, handling unpredictable vehicle behavior, or alerting drivers distracted by mobile phone use. This is enabled by technologies including enhanced camera systems, radar-based imaging sensors, and LiDAR (Light Detection and Ranging) sensors.

The third ‘subset’ of the connected car is In-Vehicle Experience (IVX). Increased vehicle connectivity drives improvements in infotainment systems. As well as guarding against fatigue and assisting mental stimulation, intuitively and seamlessly sharing information such as navigation, vehicle maintenance, and live traffic updates can enhance driver experience as well as improve safety.

Electric vehicles offer a huge inflection point for the In-Cabin experience – increasing demand for more elaborate digital cockpits which can keep the driver productive or entertained whilst the car charges. In India, the demand for multilingual, voice-enabled systems is especially strong. Adaptive computing platforms, CPUs, and GPUs are enabling generative AI-driven interfaces that can handle regional languages and conversational interactions, moving beyond rigid command-based infotainment.

Safety Embedded

The most important aspect of automated driving and ADAS features is ensuring driver and passenger safety. All stakeholders – manufacturers, suppliers, road and commercial vehicle users – expect the highest level of safety and reliability in vehicles with autonomous systems.

However, Data Aggregation, Pre-Processing and Distribution (DAPD), the process of a vehicle collecting, transporting and processing sensor data to inform relevant actions, brings complex technical challenges around bandwidth availability, power efficiency, sensor performance and reliability.

Automated emergency braking, lane keeping, and driver monitoring must function reliably even with variable bandwidth, limited connectivity, or inconsistent road signage. An example of adaptive computing in action is the collaboration with Mercedes-Benz Research and Development India (MBRDI) on the MBUX Interior Assistant.

Safety testing and certification must be rigorous to ensure such systems never fail, have adequate connectivity and power supply at all times, and are secure against interference from malicious and non-malicious cyber threats. This means technology inside automotive systems must comply with quality testing (AEC-Q100) and safety specifications (ISO26262).

AEC-Q100 is an industry standard that outlines testing requirements for electronics products for automotive applications. The ISO26262 is an international functional safety stand for road vehicles defined by the International Organization for Standardization (ISO). There are four levels of ISO262262 ASIL certifications – with ASIL A representing the lowest degree and ASIL D the highest degree of automotive hazard. Embedded technologies as well as systems must meet these standards.

These technical and safety requirements make adaptive computing a critical component in maintaining the integrity of automated driving features as standards rapidly evolve and become increasingly complex. Adaptive computing hardware – based on programmable logic (PL) – can be programmed and reprogrammed repeatedly after deployment in the field to fulfill a diverse range of functions and evolve with their environment.

Their parallel processing capabilities mean they can compute multiple tasks and data streams quickly and efficiently. Therefore, PL-based devices are a good fit for vehicles with automated features, which require low-latency, low-power, and high-reliability adaptive silicon to aggregate, process, and distribute sensor data. Furthermore, adaptive SoCs and cost-optimized FPGA platforms are already being evaluated by Indian OEMs, and Tier-1s are designed to support these safety-critical requirements.

Automation and AI

As the market moves toward highly automated and fully autonomous driving, vehicles will become more reliant on advanced sensors and domain controllers equipped with Machine Learning. Furthermore, AI processing performance and heterogeneous computing architectures will be critical for AI-guided, real-time decision making and increased vehicle autonomy. PL devices like FPGAs will play a central role for enabling adaptive computing and onboard vehicle intelligence.

The overall demand for high-performance processing, graphics and adaptive computing to enable next-generation Automated Driving, ADAS and IVX capabilities is expected to skyrocket in the coming years. In the immediate future, forecasts anticipate a 2X increase in performance needs every two to three years for infotainment alone, across CPUs, GPUs, and graphics displays. Meeting these growing performance requirements will require expanding the available processing headroom to accommodate additional workloads deployed to the vehicle through its lifecycle.

Size, cost, and power constraints, along with the desire to embrace the era of Software Defined Vehicles, are driving automotive design to use more centralized computing architectures to consolidate Automated Driving, ADAS, and IVX functions and reduce complexity. Rather than having many intelligent subsystems, automotive OEMs are moving to designs where intelligence is split between the edge and domain/zonal controllers.

For example, rather than having a microcontroller unit (MCU) for each sensor, centralizing the compute in a domain, or zonal controller, can consolidate sensor processing. This shift can reduce wiring complexity, system cost, and power consumption, critical considerations for India’s cost-sensitive market. As the enabling technologies become more affordable over time, premium safety and advanced AI-enabled features, such as parking assist and automated highway driving, will eventually reach the mass market. For the AI-enabled cars of tomorrow, these will become standard features required in all vehicles.

When this happens, automobile manufacturers will face even more of a compute and power crunch, requiring high-performance, ultra-low latency, and low-power devices that meet advanced functional safety standards. Rather than deploying multiple computing solutions – compounding issues such as space and power usage – heterogeneous architectures can provide a single-chip solution to tackle all phases of an automated driving system – sense, perceive, plan, and act.

This is where the Adaptive SoC devices come to the forefront. Emerging adaptive SoCs that integrate AI engines with programmable logic are delivering the processing power and bandwidth needed for sensor fusion. Sensor inputs such as vision, radar, and LiDAR are ingested via programmable I/O blocks and fed directly to the programmable logic for low-latency sensor-specific processing.

This offers a flexible means of implementing innovative sensor fusion algorithms prior to perception/inference processing in the AI Engines and the scalability to support various L2/L2+ system requirements as well as L3 and L4 systems where redundancy is critical.

Looking beyond the role of adaptive computing, the future is bright for embedded automotive technologies in general, as the speed of innovation shows no sign of slowing. Whether it’s CPUs, GPUs, FPGAs, Adaptive SoCs, or Embedded APUs, automotive designers, carmakers require architectures offering dedicated scalar, graphics, AI, and programmable logic compute subsystems to enable flexible and adaptable system designs updating throughout the life of a vehicle.

Collaborations with R&D hubs like MBRDI, as well as engagements with Tier-1 suppliers and startups, show how adaptive technologies are already addressing India’s unique mobility challenges. As OEMs in India scale toward more automated and software-defined architectures, adaptive computing will ensure that vehicles remain resilient to local infrastructure conditions while staying aligned with global safety and performance standards.

Rohith Gopalakrishna is Country Sales Manager, Embedded Group in AMD India. Views expressed are the author's personal.

Pushing the Boundaries of Automotive Data with Agentic AI

Autocar Professional Bureau — Sat, 18 Oct 2025 17:30:00

The automotive industry has always been data-driven. From design and engineering to marketing and after-sales, data determines nearly every decision a manufacturer or dealership makes. But the kind of data that powers the industry is changing. Historically, automotive brands have relied on structured data such as CRM fields, form fills, and website analytics to understand buyers. While this data tells us what customers do, it rarely tells us why.

That gap between “what” and “why” is where Agentic AI is starting to make an impact.

Automotive engagement today is increasingly conversational. Customers ask questions across web chat, WhatsApp, and social media before ever setting foot in a showroom. These conversations hold rich insights about intent, mood, urgency, and objections, but this information is unstructured, scattered across channels, and rarely captured systematically. Agentic AI is changing that by turning every conversation into a usable data point.

Instead of merely responding to a query, Agentic AI agents interpret context, identify intent, and trigger the right next action. For example, when a customer inquiry about a hybrid model, the system doesn’t just send a brochure. It can gauge interest level, check local inventory, and even schedule a test drive automatically. Over time, this data builds a complete “conversation graph,” mapping every interaction and its outcome in a way that structured CRM data never could.

For automakers and dealerships, this means unprecedented visibility. It is not just about tracking leads but about understanding how sentiment, price sensitivity, and buying signals evolve throughout the journey. When brands can see that 40 percent of drop-offs happen after financing discussions or that customers in one city consistently express concern about delivery times, they can act with precision rather than assumption.

Agentic AI also creates a feedback loop for continuous optimization. Each interaction enriches the model, refining how the system predicts customer intent and automates workflows. The result is faster response times, more accurate targeting, and more human-like engagement at scale.

This is already happening. Automotive groups like GrupoUMA and Bajaj are embracing this approach to connect fragmented systems and unify engagement across markets. The impact extends beyond marketing and sales into post-purchase service, where understanding customer sentiment in real time can prevent churn and build loyalty.

That is exactly what Agentic AI is enabling: giving automotive enterprises the ability to merge structured and unstructured data into one layer that engages, automates, and learns with every customer touchpoint.

The next frontier of automotive data will not be about having more numbers but about interpreting meaning. Agentic AI ensures that the industry does not just collect data but understands it deeply enough to act on it.

Dikshant Dave is Founder & CEO of Zigment AI. Views expressed are the author's personal.

5 Reasons Motor Insurance in India is Entering a Hyper-Growth Phase

Autocar Professional Bureau — Sat, 18 Oct 2025 14:30:00

The motor insurance (including own damage and third party) GDPI market in India was valued at approximately US$11.7 billion in FY2025 and is projected to grow at a compound annual growth rate of 10–12% over the next five years, reaching US$19–21 billion by FY2030. This growth is expected to be supported by evolving regulations, increasing digital adoption, product innovation, and rising vehicle ownership, which together are driving greater accessibility and penetration across the market.

Here are the 5 main reasons motor insurance is entering a hyper-growth phase:

1. Mandatory Long-Term Insurance Policies

Following a Supreme Court ruling in 2018, IRDAI regulations mandate that every new car carry a Third-Party Liability insurance policy valid for three years, while new two-wheelers require a policy valid for five years. This regulatory framework ensures that new vehicles remain insured for extended periods, thereby attracting more customers to the insurance fold and increasing overall market penetration.

Vehicle owners can continue to purchase standalone Own Damage (OD) policies on an annual basis, independent of their third-party cover, further streamlining consumer choice and boosting insurer competition. This may be particularly beneficial for infrequent drivers, like those who work from home or rely on public transportation, as it tends to result in relatively lower costs under the "Own Damage" portion of their insurance.

2. Multi-Year Policies and Easier Renewals

Apart from the above mentioned mandatory Third-Party Liability insurance policy valid for three years, Insurance providers have introduced multi-year own damage policies for vehicles. Now, imagine not having to update your policy every year. There will be no hassle of comparing rates, filling out forms, and going through the annual trouble.

That is why there is an option of such multi-year coverage. It eliminates the annual hassle while ensuring continuous protection and even makes your motor insurance more affordable. Customers benefit from the convenience of longer-term coverage, which removes the hassle of yearly renewal reminders and worries about premium deposits. This shift appears to be contributing to improved retention rates and a growing base of policyholders, especially for vehicles outside the initial purchase window.

3. Legislative Push for Insurance Penetration

The Motor Vehicles (Amendment) Act of 2019 imposes stringent penalties on owners of uninsured vehicles, making insurance a legal requirement for all motor vehicles. By broadening the scope of mandatory insurance, this amendment in law has opened the market for insurers through innovative products and tailor made offerings i.e. Post add-on covers like zero depreciation, engine protection, loss of consumable, key loss, tyre cover, road side assistance features such as "Pay As You Drive" (PAYD), also referred to as Usage-Based Insurance (UBI), represent a new generation of coverage. Legal mandates, combined with add-ons, result in increased awareness and enforcement. These policies have created a robust foundation for industry expansion, subject to sustained regulatory support and market uptake.

4. Product Innovation: Tailored Add-ons and Usage-Based Policies

As mentioned in the previous point, add-ons amplify the significance of insurance; not only such adds-ons are designed to cater to the needs of a new customer, but they may also save time through multiple renewal processes. However, add-ons such as zero depreciation, engine protection, roadside assistance, and even coverage for loss of keys or tyres enhance the value for buyers. Usage-based insurance options, such as "Pay As You Drive" (PAYD), now allow customers to select an annual kilometer target, offering reduced premiums for infrequent drivers and those opting for alternative modes of transportation. This flexibility appears to resonate particularly with NRIs and urban professionals, who may not use their vehicles daily.

5. Digital Acceleration and Technology Integration

India's insurance sector is undergoing a major transformation, driven by digital innovation, broader distribution channels, and strategic partnerships across industries. These changes are helping insurers reach new customer segments, improve conversions, and fundamentally reshape how insurance products are marketed, sold, and serviced. AI-driven platforms, real-time claims management, telematics devices, smartphones, and online policy purchases are making the entire customer journey seamless and transparent.

The fast-growing adoption of digital solutions makes it easier for new and renewal customers alike to compare, buy, and manage insurance with just a few clicks, supporting competition and premium growth. As India's automotive sector booms in sales and technology, buying trends continue to reshape insurance distribution.

Customers have made decisions to buy insurance for more than its technical benefits, but as a layer of protection over their lives. It has now become a significant need as these five pillars have collectively pushed the motor insurance market into its current hyper-growth trajectory. Robust regulation, innovation, legislative enforcement, and digital enablement are ensuring continued growth for years to come.

Dhirendra Nalin Mahyavanshi is the Chairperson MD & CEO of Turtlemint. Views expressed are the author's personal.

The Rise of Software-Defined Vehicles: Why Advanced Storage is Driving the Future of Mobility

Autocar Professional Bureau — Sat, 18 Oct 2025 11:40:05

In the past, a car's value was primarily determined by parameters such as its horsepower, torque, or aesthetic appeal. While these still matter, consumers today seek greater comfort and convenience while driving. In addition, they expect regular enhancements in performance, functionality, and user experience delivered to their car via over-the-air (OTA) upgrades, just like their smartphones.

Software-defined vehicles (SDVs) are reshaping mobility, changing vehicles from static machines to platforms that become increasingly intelligent over time. The Indian software-defined vehicle market is projected to touch USD 9.16 billion in FY2033, up from USD 2.69 billion in FY2025, according to a study.

Millennials and Gen Z see automobiles more as digital companions than as machines. They want cars that promote sustainability, adjust to their tastes, and sync with their gadgets. Strong, scalable storage that can handle both customisation and energy-efficient systems is essential to meeting this demand.

As these functionalities evolve, they drive up the demand for storage. As per analysts, by 2030, cars may require anywhere between 2TB and 19TB of onboard storage to handle infotainment, autonomy, and ongoing improvements.

Safety Decisions in the Blink of an Eye

Each SDV is packed with sensors, including cameras, radar, and LiDAR, which collectively results in considerable data volumes. One autonomous test vehicle generates about 30 terabytes of data in a day.

This data is analysed in real time to identify road signs, detect pedestrians, and apply the brakes in an emergency. The error margins are in the order of milliseconds. Therefore, storage must deliver low latency, great durability, and unwavering dependability.

Cars as Rolling Digital Hubs

The modern automobile has turned into a digital extension of our lives. Automotive consumers seek voice assistants that respond swiftly, apps that launch quickly and entertainment systems that stream smoothly.

At the heart of these experiences is storage, which houses everything from user preferences to media libraries. Technologies such as automotive-grade Universal Flash Storage (UFS) help sustain these systems' functionality while offering customers the responsiveness they've come to expect from smartphones—but now on wheels.

In addition, automotive artificial intelligence (AI) systems such as Advanced Driver Assist Systems (ADAS), Autonomous Driving (AD) and eCockpit need to pull information from sensors, maps and AI databases to function safely. Embedded flash drives (EFD) ensure that data is available and reliable when it’s needed. They provide real-time in-vehicle storage to overcome latency and connectivity issues that arise when accessing the cloud.

The Always-Upgradeable Car

One of the most important changes brought about by SDVs is the fact that car functionalities can evolve over time by simply adding new features, addressing bugs, and improving performance.
New age EFDs enable software updates to happen faster, thus reducing downtime for customers and allowing SDVs to get on the road more quickly and reliably.

However, these updates must be stored securely, and reviewed and implemented without jeopardising any essential systems. To accomplish this, the industry follows rigorous standards on safety, including ISO/SAE 21434 on cybersecurity and ISO 26262.

Talking to the World Around Them

Vehicle-to-everything (V2X) communication, in which automobiles communicate with infrastructure, traffic systems, and each other, is the next frontier for SDVs. Imagine cars coordinating with traffic signals to prevent congestion or exchanging warnings about treacherous roads.

A huge amount of both permanent and transitory data is produced by these ongoing interactions. Longer-term archiving and quick edge processing must be matched in storage. A combination of centralised computing and zonal design can help handle this complexity As a result, automobiles are quickly evolving into moving data centres.

Built for the Road, Not the Server Room

Electronics and storage in a car must often withstand extreme conditions, unlike a server rack in a climate-controlled data centre. Everyday conditions include dust, humidity, vibration, and extremely high or low temperatures.

For this purpose, automakers use storage systems designed for durability and energy efficiency, such as integrated flash and toughened SD cards. These storage devices, made to withstand the road, guarantee that data continues to flow regardless of the circumstances.

Storage as the New Engine

While the previous century's advancements in automobiles were mostly around engines, this century's automobile innovations are about data. And storage is at the centre of this change.

Storage has emerged as the new, silent, secure, and vital mobility engine in the world of software-defined cars. It enables real-time safety, supports digital experiences, secures updates, and powers V2X communication.

As the industry rushes towards developing automobiles that are smarter, safer, and constantly upgradeable: the data that storage provides will power mobility in the future, not just energy or fuel.

Subind Kumar is Vice President of Content Solution Group at Sandisk. Views expressed are the author's personal.

How Tier 2 & 3 India Is Driving the Electric Two-Wheeler Revolution

Autocar Professional Bureau — Sat, 18 Oct 2025 11:33:07

The electric two-wheeler (E2W) revolution in India has spread and has penetrated beyond the country's major cities. The real transformation is now taking place in Tier 2 and Tier 3 cities of India, where expanding urbanisation, affordability, improving infrastructure, and supportive policies are combining to reshape mobility. These regions, which were once regarded as the backbone of India's economic growth, are now also emerging as major catalysts of electric mobility adoption.

Urbanisation and Market Evolution

India’s Tier 2 and Tier 3 cities present a unique opportunity for electric mobility as they have the scope. The growth trajectory thereby pushes northwards. Therefore, these urban centres are rapidly expanding both demographically and economically, with a rising middle class driving increased vehicle ownership and daily transport demand.

Unlike metros, where congestion and parking limits restrict adoption, smaller cities provide better home-charging access and shorter trip distances, which ideally complement the advantages of E2Ws. The results are visible in adoption rates. Tier 2 EV penetrations nearly doubled to 10.67% in FY2025, while Tier 3 cities saw 8.68%, indicating one of the fastest diffusion rates in India's automotive history.

Surat, Jaipur, and Lucknow lead among Tier 2 cities, while smaller hubs like Kota and Udaipur are showing strong momentum. Notably, Surat now contributes 25% of Gujarat’s total EV sales surpassing Ahmedabad. Similarly, Pune accounts for 16% of Maharashtra’s EV sales, outpacing Mumbai’s 7%. These shifts signal a broader decentralisation of India’s e-mobility growth story.

Affordability as a Catalyst

In a country like India, affordability remains an important aspect fuelling EV adoption in these markets. Operating costs for electric two-wheelers are approximately Rs 0.15 to Rs 0.20 per kilometer. It is significantly lower than petrol vehicle which costs around Rs 2 to Rs 2.50 per kilometer. This difference brings in an annual savings of Rs 25,000 to Rs 30,000, which is highly profitable for budget-conscious middle-class consumers. Apart from that, lower maintenance requirements enhance the cost-effectiveness of electric two-wheelers, making them not just an environmentally responsible choice but a financially rational one as well.

Role of Government Incentives

A critical factor towards boosting the electric two-wheeler market more than that of the metropolitan boundaries is the policies of the government. Programmes like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and Production Linked Incentive (PLI) programme have reduced the initial prices and stimulated the production capacity. Tax exemptions at the state level, scraps, and supportive regulations enhance the value proposition of buyers in the smaller cities even more. All these will help to decrease the obstacles to adoption and integrate EVs into more comprehensive clean energy policies, supporting a nationwide shift to sustainable mobility.

Infrastructure Expansion and Connectivity

The growth of charging infrastructure has been equally critical. India now has over 26,000 public charging stations, with many strategically located in non-metro clusters. However, what truly gives Tier 2 and 3 cities an edge is the ability to charge vehicles at home. Unlike metros with limited parking, these cities offer residential spaces with reliable electricity - making overnight home-charging a default practice rather than a challenge. This accessibility has also enabled local businesses and delivery fleets to integrate E2Ws seamlessly into operations, supporting last-mile connectivity and improving supply-chain efficiency.

Shifting Consumer Mindsets

It’s all about mindsets and thankfully, consumer perception is undergoing a significant change. In smaller cities, electric vehicles are no longer viewed as experimental - they represent modernity, responsibility, and progress. Younger buyers increasingly associate E2Ws with smart mobility and environmental awareness, turning them into both an economic choice and a lifestyle.

Conclusion: A Connected, Inclusive Future

India’s e-mobility story is moving from being metro-centric to truly inclusive. Tier 2 and Tier 3 cities are not merely following the transition - they are leading it. With cost advantages, improving infrastructure, and policy alignment, these cities are shaping a decentralised model of growth that is both scalable and sustainable. As electric two-wheelers continue to dominate the segment, the future of India’s mobility will be defined not by its largest metros but by the energy and aspirations of its emerging cities quietly powering the nation’s green transition, one electric ride at a time.

Nemin Vora is Chief Executive Officer of Odysse Electric. Views expressed are the author's personal.

The Strategic Role of EVs in Energy Security and Sustainability

Autocar Professional Bureau — Sat, 11 Oct 2025 11:41:26

The transition to a sustainable energy future has become an urgent priority for emerging economies striving to balance development, energy security, and environmental sustainability. While much attention is often placed on transforming power generation, the decarbonisation of the transport sector is just as essential.

In this context, electric mobility (e-mobility) is emerging not only as a cleaner mode of transport but also as a key enabler in achieving broader energy and sustainability goals.

Why Transport Emissions Matter? Transport contributes significantly to carbon emissions in developing nations. According to the IEA Global EV Outlook 2024, the transport sector is responsible for around one-fifth of global emissions, and road transport has taken responsibility for the largest amount.

In India, the sector's emissions have followed a steady upward trend, driven by rising urbanisation and vehicle ownership. Transitioning to electric mobility—particularly in public and commercial segments—offers a viable path to reducing emissions while improving air quality in cities.

Besides this, fossil fuel dependency is reduced by electric mobility, a key concern for economies that have crude oil import as an article of trade. As per the records of the Petroleum Planning & Analysis Cell (PPAC), Ministry of Petroleum and Natural Gas, India imported 233.4 million tonnes of crude oil in FY 2023–24 with the import bill crossing USD 158.3 billion.

Such a heavy dependency adversely impacts national finances and leaves economies susceptible to energy price volatility at the global level. EV adoption will gradually help reduce such exposure by shifting transport energy consumption towards electricity generated within the country out of higher shares of renewables.

The combined use of electric vehicles powered by clean power is a fundamental part of sustainable urbanisation. As of March 2024, India's renewable energy capacity had surpassed 180 GW, with a national goal of 500 GW of non-fossil fuel capacity by 2030 (Ministry of New and Renewable Energy).

When EVs are powered by this growing clean energy stream, they increase carbon savings, and if equipped with vehicle-to-grid technology and managed charging, contribute to grid stability.

In addition to emissions and energy independence, the electric mobility sector is ready to provide economic impetus. According to the NITI Aayog and RMI India 2024 update, India's EV transition could generate up to 12 million jobs by 2030 across manufacturing, infrastructure, services and research and development. This level of growth can be especially important in developing economies where generating employment is an explicit policy goal.

That said, unlocking the full potential of electric mobility requires systemic alignment across policy, infrastructure, and financing. India’s FAME-II scheme, extended into 2024 with additional incentives for electric buses and two-wheelers, is a positive example of government support.

Complementary initiatives like the Production Linked Incentive (PLI) schemes for Advanced Chemistry Cell (ACC) batteries and EV components further encourage domestic capability-building.

Public transportation remains a high-impact area for early electrification. Buses, in particular, offer economies of scale, high daily utilisation, and predictable routes — all of which make them ideal for electrification.

As of April 2024, over 13,000 electric buses have been sanctioned under FAME-II, with several cities rolling out large-scale deployments through PPP models. This trend needs to accelerate further through viable financing mechanisms and well-integrated charging infrastructure.

Charging has slightly more importance on enabling EV adoption. By Q1 2024, India had installed upward of 12,000 EV public charging stations, but they were unevenly distributed.

The focus must, therefore, now shift toward availability across intercity corridors, rural markets, and high-density urban zones. Integration with renewable energy and digital platforms can help optimise usage and reduce operational costs.

Emerging economies are in a talent position to jump into a clean mobility model. To develop electric transport ecosystems that include charging infrastructure, battery infrastructure, vehicle infrastructure, and digital infrastructure, and to do so while developing future-ready cities, is an opportunity for emerging economies and the emerging economy automotive industry to further reduce reliance on imports and contribute to the climate agenda on a global scale.

Devndra Chawla is MD & CEO GreenCell Mobility. Views expressed are the author's personal.

The Service Advantage: How Leading Luxury Brands Create Lasting Customer Loyalty

Autocar Professional Bureau — Sun, 05 Oct 2025 14:05:01

The luxury automotive sector faces an uncomfortable truth: traditional competitive advantages are evaporating. When 84% of luxury buyers consider personalisation essential and 80% demand seamless omnichannel experiences, the industry's response will determine which brands thrive and which merely survive over the next decade.

With luxury vehicles increasingly converging in quality and performance, customer service has emerged as the decisive battleground. Yet most brands remain trapped in transactional thinking at a time when experiential differentiation matters most.

The Disruption Nobody Saw Coming

The challenge extends beyond competition from major manufacturers, it now comes from luxury customers themselves. Research reveals that 46% will switch brands for superior service experiences. More alarming still, only 52.6% of buyers remain loyal to their previous brand when purchasing again. This represents a fundamental breakdown in traditional brand attachment.

Mercedes-Benz India demonstrates this approach through its Classic Car Rally (MBCCR). What started in 2014 as a heritage celebration has evolved into something far more valuable: a community-building platform that generates emotional attachment beyond any single transaction. The 2024 Mumbai event attracted 95 rare vintage vehicles and prominent collectors, demonstrating how shared passion creates deeper brand connections than conventional service delivery.

The commercial implications are stark. Bain & Company's research shows that emotionally engaged customers generate more than twice the value of satisfied ones. They recommend more frequently, repurchase consistently, and demonstrate loyalty that transcends product cycles.

Most luxury brands still operate service departments as cost centres rather than relationship engines. They optimise for efficiency metrics—appointment duration, problem resolution times, and throughput volumes. Meanwhile, customers increasingly judge brands on completely different criteria: anticipation of needs, depth of personalisation, and emotional resonance.

Consider how technology is reshaping expectations. Advanced CRM systems now enable service teams to access comprehensive customer profiles, preference histories, and predictive maintenance schedules. Yet the real competitive advantage lies not in data sophistication but in the human application of those insights.

Take the experience of Rajesh Kumar, a Mumbai-based executive whose German luxury sedan required urgent maintenance during a crucial business week. Instead of standard repair protocols, his service advisor recognised the timing sensitivity, arranged immediate vehicle collection, provided a comparable replacement within hours, and personally coordinated return delivery to his office. The advisor remembered Kumar's preference for minimal disruption and acted accordingly.

This wasn't just exceptional service; it was intelligent service. Kumar has since purchased two additional vehicles from the brand and influenced several colleagues' buying decisions. The lifetime value impact extends far beyond a single repair margin.

The Winners Are Already Moving

Forward-thinking luxury brands are reimagining customer touchpoints as engagement opportunities. They're investing in emotional intelligence training for service teams, developing community platforms that transcend sales cycles, and creating exclusive experiences that reinforce brand identity.

The transformation requires fundamental mindset shifts. Instead of viewing customers as sources of transactions, leading brands see them as community members. Rather than optimising individual interactions, they orchestrate relationship journeys. Where traditional approaches focus on problem-solving, experiential models emphasise anticipation and delight.

Technology plays a crucial enabling role. AI can predict service needs, digital platforms facilitate seamless booking, and mobile applications provide transparent communication.

However, technology without human insight fails to create an emotional connection. Successful implementations combine predictive capabilities with empathetic execution. Customers want efficiency, but they value recognition, understanding, and care.

The shift from transactional to experiential service demands operational changes. Success metrics must evolve beyond satisfaction scores to include Net Promoter Scores, referral rates, and community engagement levels. Staff training requires emotional intelligence development alongside technical competence.

Most critically, leadership must recognise service as a strategic differentiator rather than an operational necessity. In markets where product features increasingly converge, customer experience becomes the primary source of sustainable competitive advantage.

The luxury automotive sector stands at an inflection point. Consumer expectations have shifted permanently toward personalised, emotionally resonant interactions. Brands that continue to optimise for transactional efficiency while competitors build experiential relationships will find themselves fighting an increasingly difficult battle for relevance.

The Path Forward

The evidence is clear: luxury automotive success increasingly depends on emotional engagement rather than product superiority. Brands must choose between defending traditional service models or embracing relationship-centric approaches that create lasting customer advocacy.

Those that make the transformation successfully will discover something remarkable: customers who don't simply purchase vehicles but become brand ambassadors, community builders, and referral sources who drive sustainable growth.

The opportunity window remains open, but it's narrowing rapidly. In this evolving landscape, the fundamental truth remains unchanged while sales may close the first deal, it's the quality of ongoing relationships that determines lifetime customer value and competitive positioning.

Shekhar Bhide is the Vice President of Customer Services at Mercedes-Benz India. Views expressed are the author's personal.

Race Tech Meets Green Tech: How Sustainable Engineering Is Shaping Motorsports

Autocar Professional Bureau — Sat, 20 Sep 2025 19:00:12

Motorsports has long been a platform for testing the limits of speed and performance. Now, it is becoming a proving ground for sustainable engineering, blending race technology with environmentally conscious practices. From advanced electric drivetrains to lightweight materials, the sport is aligning itself with the future of mobility.

One area leading this shift is motorsports engineering, where the lessons from the track directly influence cleaner and smarter transportation. In India, the growth of this field is being supported by training programs that prepare engineers for both competitive racing and green mobility sectors. Among these, the best motorsports training academies are integrating sustainability into their curriculum from the start.

Engineering Meets Environmental Goals

Modern motorsports engineering has moved far beyond the singular pursuit of perfecting combustion engines. Today, engineers are deeply involved in developing electric powertrains, regenerative braking systems, and advanced battery thermal management.

These technologies are not just theoretical; they are already shaping competitive electric racing formats, such as Formula E and eKarting. For instance, regenerative braking, which captures and stores energy during deceleration, is now a common feature in many electric cars on the road.

Similarly, innovations in battery cooling, tested under the high-stress conditions of a race track, directly improve the efficiency and lifespan of consumer EVs. Tracks function as real-world laboratories, where extreme speeds, quick decision-making, and varied environmental conditions push technology to its limits. Lessons learned here refine designs for safer, more efficient, and environmentally responsible vehicles, showing how the high-pressure demands of racing can accelerate progress in everyday mobility.

Why This Appeals to the New Generation

For Gen Z and younger aspiring engineers, motorsport offers a unique mix of technical challenge, sustainability, and career relevance. This generation has grown up during a time when climate change, renewable energy, and clean mobility dominate global conversations.

They are naturally drawn to fields where their work can make a tangible environmental difference. Motorsport fits this interest by providing hands-on experience in optimising energy efficiency, reducing emissions, and applying advanced simulations for performance testing skills that directly align with the shift towards electric and autonomous vehicles.

The competitive and fast-paced nature of racing also appeals to Gen Z’s appetite for instant feedback and visible results, similar to the gratification they find in gaming or esports. For instance, sim racing platforms allow them to experiment with vehicle setups and energy strategies in real time, blending digital familiarity with real-world engineering impact. This keeps the field both exciting and socially meaningful.

From Training to Real-World Impact

Motorsports engineering programs in India are creating a strong link between academic learning and hands-on race track experience. Students go beyond textbooks to work directly on vehicle dynamics, aerodynamics, telemetry, and simulation software, often in high-pressure, live racing environments. This combination of theory and practice equips them with problem-solving skills that are directly transferable to industries such as electric vehicle manufacturing, renewable energy storage, and high-efficiency transport systems.

For example, a student who learns to optimise a race car’s aerodynamics for speed and energy efficiency can apply the same principles to improving airflow in electric buses, resulting in better range and lower operational costs. Similarly, working with telemetry data during a race, where split-second adjustments can change outcomes, prepares them to manage real-time monitoring systems in EV fleets or smart public transport networks. This practical exposure ensures graduates can step into real-world roles with both technical expertise and applied experience.

Global Connections and Local Talent

International collaboration is playing a significant role in shaping motorsports engineering, and Indian talent is increasingly part of that story. Local engineers are now working with global race teams, including those in advanced electric racing series, where they gain exposure to the latest vehicle technologies, simulation tools, and race strategies.

This experience is not confined to overseas projects; many bring their skills back to India, applying global best practices to local racing events, electric vehicle development, and sustainable mobility initiatives.

The demand for Indian motorsport engineers is growing because of their strong STEM foundation, adaptability, and cost-effective expertise. Global teams value professionals who can work across multiple technical domains, such as aerodynamics, data analytics, and powertrain design, while delivering under pressure.

By participating in joint training programs, international competitions, and research collaborations, local talent builds networks that open career pathways worldwide. In turn, India benefits by strengthening its reputation as a hub for motorsports engineering and innovation.

A Future Where Speed and Sustainability Coexist

The move towards sustainable motorsport engineering proves that high performance and environmental responsibility don’t have to be on opposite sides of the track. As more of the best motorsports training academies adopt this mindset, they’re creating engineers who can design faster, cleaner, and smarter machines for the roads and tracks of tomorrow.

For Gen Z, driven by a mix of purpose and passion, this is the perfect combination. It lets them chase speed, push limits, and still stand for something bigger than themselves. The thrill of racing stays alive, but now it’s backed by a cause they care about: shaping a transport future that’s as exciting as it is sustainable.

Omkar Rane is the Founder of United Motorsports Academy. Views expressed are the author's personal.