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102
MOTORINDIA
l
July 2012
How innovative ICT promotes
auto industry growth
Information and Communication Technology
(ICT) can very well help the automotive in-
dustry to meet the current challenges and
provide a superior product and services to
consumers. Today ICT is not only playing a
supportive role but has become an integral
part of the product and virtually the back-
bone of the industry. The recent launch of
the Google car is a clear testimony to this.
Google took the initiative to design and
launch the driverless car and even got it
certified by the Department of Motor Vehi-
cles (DMV) in the US.
The focus of many companies in both ICT and auto
industries is on the 3Es factors – emerging markets,
emerging technology and environmental concerns
which are guiding investments and growth in both the
industries.
Despite the global economic uncertainties, the auto
industry remains optimistic. Global auto sales in 2012
are expected to reach 77.7 million, up 6.7 per cent from
2011. The market is seen climbing to 90-91 million ve-
hicle sales in 2013 and cross 100 million in 2015. Most
of this growth is expected from the BRIC countries.
Sales in China are expected to grow at 16 per cent, while
sales in India are projected to overtake that of Germany
in 2014.
Europe and the US are expected to be flat or mar-
ginally positive. No wonder then that almost all auto
majors are focusing on the emerging markets. For ex-
ample, Nissan aims to make countries such as India,
Brazil, China and Russia account for 60 per cent of its
global sales in FY 2016 while targeting a global share
of eight per cent. Ford has its focus on the emerging
markets and the Asia-Pacific region to drive its growth
over the next 10 years.
Emerging technologies
Innovation in the ICT industry is far more rapid. Auto
makers are investing heavily in R&D projects leverag-
ing these emerging technologies. Today, the ICT content
in an automotive is over 14 per cent, which is expected
to go up to 21 per cent in 2015. There are about 10 mil-
lion lines of code which drives a luxury automobile. In
1970 it was just 100 lines. Over the 80 per cent of in-
technology
By Mr. Subu D. Subramanian, CEO, Defiance Technologies Ltd.*
* A summary of the speech delivered at the CII conference on ICT Innovation for Automotive Industry.
Mr. Subu D. Subramanian