• Thu. Aug 11th, 2022

Dimancherouge

Technology

KPIT Tech Picks Trends That Will Define Auto Industry’s Future

Electrification, software-defined vehicles, and reduction in personal vehicle ownership are some of the key trends that will be defining the auto industry in the future, according to KPIT Technologies Ltd.’s Ravi Pandit.

“We’re seeing a reduction in carbon consumption”, Pandit, chairman at the mobility software provider, told BloombergQuint’s Niraj Shah in an interview. “Almost all major automakers have committed to an all-electric line-up by 2030.”

According to Pandit, the percentage of personal ownership of vehicles is going down over the years. “Most of these vehicles are becoming commercial, whether it is cars, SUVs or pick-up trucks.”

A commercial car will now have to run an additional number of kilometers, and that, in turn, will require the auto industry to churn out more vehicles. “The auto industry has to work very fast, and the change in pace is visible too.”

Apart from secular trends, certain short-term trends such as the impact of Covid-19 where shared mobility took a hit, or chip shortages are also shaping the auto industry, Pandit said.

At a company level, original equipment manufacturers are investing in battery making and charging infrastructure, he said.

“Autonomous vehicles are also coming through, be it commercial or personal.” This is giving rise to the trend of software-defined vehicles. “Earlier, there used to be cars with computers. Now, there are computers with cars.”

KPIT Tech’s revenue rose 5.2% sequentially in the three months ended March in constant currency terms, led by autonomous and connected domains. The company also won a large deal with an European OEM, with a total contract value of 70-million euros.