MINI PROJECT REPORT-2

ON
“AN APPLICATION OF EMERGING TECHNOLOGY
IN AUTOMOTIVE INDUSTRY”

Submitted by
SHUBHAM KUSHWAHA
Under the guidance of
Dr. KRISHNA KANT BHARTIY
(Assistant Professor)
in partial fulfilment of the requirements
for the award of the Degree of

MASTERS OF BUSINESS ADMINISTRATION

2021-2023

Of
Dr.A.P.J. Abdul Kalam Technological University

STEP-HBTI
HBTU EAST CAMPUS
NAWABGANJ, KANPUR, UTTAR PRADESH
 DECLARATION

I undersigned, hereby that the project titled “AN APPLICATION

OF EMERGING TECHNOLOGY IN AUTOMOTIVE
INDUSTRY” submitted in partial fulfilment for the award of Degree
of Master Administration of A P J Abdul Kalam Technological
University is a bonafide record of work done by me under the
guidance of , Mr. KRISHNA KANT BHARTIY, Assistant
professor STEP HBTI KANPUR. This report has not previously
formed the basis for the award of any award, diploma, or similar title
of any University.

Date- --------------------------------
SHUBHAM KUSHWAHA
 STEP HBTI KANPUR

CERTIFICATE
This is to certify that the report titled “AN APPLICATION OF
EMERGING TECHNOLOGY IN AUTOMOTIVE INDUSTRY”
being submitted by Shubham Kushwaha in partial fulfilment of the
requirements for the award of the Degree of Master of Business
Administration is a bonafide record of the project work done by
Shubham Kushwaha of STEP HBTI KANPUR .

------------------------------------------
Mr. KRISHNA KANT BHARTIY
(assistant professor)
 ACKNOWLEDGEMENT

Through this acknowledgement I express my sincere gratitude towards all

those people who helped me in this project, which has been a learning
experience.

This space wouldn’t be enough to extend my warm gratitude towards my

project guide Mr.KRISHNA KANT BHARTIY for his efforts in
coordinating with my work and guiding in right direction.

I escalate a heartfelt regards to our Institution Director Prof. CK Tiwari

for giving me the essential hand in concluding this work

It would be injustice to proceed without acknowledging those vital

supports I received from my beloved classmates and friends, without
whom I would have been half done.

I also use this space to offer my sincere love to my parents and all others
who had been there, helping me walk through this work.

SHUBHAM KUSHWAHA
 TABLE OF CONTENTS
 ABSTRACT
 INTRODUCTION
 OBJECTIVE OF THE STUDY
 REVIEW OF LITERATURE
 INDUSTRY OVERVIEW
 KEY PLAYERS IN INDIA
 CHALLENGES IN AUTOMOTIVE INDUSTRY
 EMERGING TECHNOLOGY IN AUTOMOTIVE
INDUSTRY
 ORGANISATION AND WORFORCE OF THE FUTURE
 SWOT ANALYSIS
 METHODOLOGY
 CONCLUSION
 BIBLIOGRAPHY
 ABSTRACT

This study lays out the emerging technological opportunities that

stand in front of the Indian auto industry, with focus on the passenger
vehicles, limited to cars. It attempts to understand the levers that will
influence adoption of emerging new technologies and aims to explain
the choices that will be pursued by the Indian auto players. The
opportunities include connectivity, electrified powertrains,
autonomous vehicles, and industry 4.0
A comprehensive survey of automotive industry trends to look
forward to reveals information-centric technologies playing a central
role in the future of the industry.
The industry is adopting new technologies in its operations at an
unprecedented scale. In addition to technologies such as artificial
intelligence (AI) and big data & analytics that have been around for
while, newer technologies such as the internet of things (IoT) and
blockchain also find numerous applications in automotive.
The result of this research is data-driven innovation intelligence that
improves strategic decision-making by giving you an overview of
emerging technologies & startups in the automotive industry.
 INTRODUCTION

Emerging technologies are technologies whose development, practical

applications, or both are still largely unrealized, such that they are
figuratively emerging into prominence from a background of
nonexistence or obscurity. These technologies are generally new but
also include older technologies that are still relatively undeveloped in
potential
Emerging technologies are those technical innovations which
represent progressive developments within a field for competitive
advantage
As innovation drives economic growth, and large economic rewards
come from new inventions, a great deal of resources (funding and
effort) go into the development of emerging technologies
Since the introduction of automobiles to the mainstream markets of
the world, technological innovations have always been a part of the
industry. The automobile industry is witness to several incredible
technological advances over the last century. Right from the arrival
of engines that used fossil fuels to power transportation, the impact
of technology in shaping the automobiles over the course has been
enormous. Just like every other industry, the automobile industry is
also rapidly advancing in contemporary times.
The integration of technological advances makes cars safer, user-
friendly and has introduced several features that improve their value
and usefulness for automobile owners. Modern automobiles can offer
much more than driving you from one point to another, just like
modern cell phones are capable of performing more than just a call.
 OBJECTIVE OF THE STUDY
To identify the challenges in automotive industry.

Globalization, individualizations, digitalization and increasing

competition are pressing the face of the industry.
In addition, increasing safety requirements and voluntary
environmental commitments by the automotive industry have also
contributed to the changes ahead.
To identify the application of emerging technology in automotive
industry.
The biggest change that has already occurred in the automotive
industry as a result of technology
 REVIEW OF LITERATURE
Every industry transitions through the phases of evolution, growth
and progress. In order to study the growth of an industry it is very
important to know how the industry evolved over the period of time,
what were its phases of growth, what were the difficulties
encountered, and how did it survive. The auto industry has a long
history of evolution, it is thus important and necessary for the
researcher to understand the conceptual background and facts about
this industry
A Number of relevant articles, books, research papers, doctoral
theses have been referred for this purpose. This review has helped
the research to gain an insight into the past, present and future status
of the auto industry in general and auto component industry in
particular.
This paper provides a summary of the findings that emerged from a
detailed exploration of recent literature describing innovative
technology-based projects. The exploration sought to investigate the
forms of technology-based learning being reported in the literature
with the view to discovering patterns and themes in the forms of
learning strategies being employed, the enhanced learning outcomes
being reported and the nature of the evaluation methodologies
employed.
Innovations are rapidly transforming every industry, and the
automotive industry is no exception. Innovations and adoptions are
setting new trends in the century-old automotive ecosystem, which
has undergone a drastic change.
 INDUSTRY OVERVIEW
While the story of India’s economic growth over the last twenty years
is well known, it is often explained as a services-driven phenomenon.
However, some manufacturing sectors have played an important role
in this economic growth, and the automotive sector is prominent
among them.
The automotive sector’s contribution is not only in terms of
revenues, profits, taxes and employment, but more importantly in
quality processes, efficiency improvements, and product innovation.
This dynamism has been seen across the sector – in the commercial
vehicles, utility vehicles, cars, two-wheelers and automobile
component industries.
The Indian automotive industry is seeing significant transformation
with respect to its sustainable growth and profitability. The
fundamentals for growth drivers in the automotive industry remain
intact and the sector is likely to see an increased upward trend in
demand in the coming years as the economic environment improves
and investments increase. The Government’s ‘Make in India’
initiative has played an important role in elevating the country’s
position and it has improved on nine out of ten parameters for ease of
doing business in the last three to four years. Today, India is looked
upon as a favourable destination for low cost manufacturing. The
World Economic Forum has ranked it 30th on the Global
Manufacturing Index3 , which assesses the manufacturing
capabilities of countries.
The automobile industry in India is the world’s fifth largest. India was
the world's fifth largest manufacturer of cars and seventh largest
manufacturer of commercial vehicles in 2019. Indian automotive
industry (including component manufacturing) is expected to reach
Rs. 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026.
Overall, automobile export reached 4.77 million vehicles in FY20,
growing at a CAGR of 6.94% during FY16-FY20. Two wheelers
made up 73.9% of the vehicles exported, followed by passenger
vehicles at 14.2%, three wheelers at 10.5% and commercial vehicles
at 1.3%.
The electric vehicle (EV) market is estimated to be a Rs. 50,000 crore
(US$ 7.09 billion) opportunity in India by 2025. Several technology
and automotive companies have expressed interest and/or made
investments into the India EV space.

The Government of India expects automobile sector to attract US$ 8-

10 billion in local and foreign investment by 2023.
 KEY PLAYERS IN INDIA

The market is characterized by the presence of dominant players

capturing a large market share of individual segments. Maruti Suzuki
India Limited and Hyundai Motor India account for more than half of
the country's passenger vehicles market. Maruti Suzuki India Limited
has been the market leader for a long time and continues to dominate
the market by offering multiple vehicles in each passenger vehicle
sub-segment at competitive prices. Other prominent players in the
passenger vehicle segment include Mahindra & Mahindra Ltd., Tata
Motors, Honda India, and Ford Motor Company.
The three wheelers market is dominated by two companies, Bajaj
Auto Ltd. and Piaggio & C. SpA, accounting for almost three-
quarters of the market demand in 2019. However, with the advent of
electric rickshaws, companies such as Mahindra Electric Mobility are
expected to intensify the country's market competition. Apart from
the three-wheelers market, the electrification trend is expected to
change the competitive scenario of the country's overall automotive
industry. Companies have launched or announced the launch of
electric cars, busses, and trucks to sustain the growing competition.
Some prominent players in the India automotive market include:

 Tata Motors Ltd.

 Mahindra & Mahindra Ltd.
 Maruti Suzuki India Ltd.
 Hero MotoCorp Ltd.
 Bajaj Auto Ltd.
 Ashok Leyland Ltd.
 Sundaram Clayton Ltd.
 TVS Motor Company Ltd.
 Eicher Motors Ltd.
  Honda Motor Co., Ltd.

…
 CHALLENGES IN AUTOMOTIVE
INDUSTRY

Despite the ongoing challenge of COVID-19, the Indian automotive

industry seems to be overcoming most of its challenges, and many
are now in the review mirror. The sector is also benefiting from new
tailwinds, such as global supply-chain rebalancing, government
incentives to increase exports, and technology disruptions that create
white spaces. These developments will help create opportunities at
all levels of the automotive value chain.
Trying to overcome the unprecedented challenge, the auto industry
stakeholders went for digitisation to adapt to the new normal and
serve clients while learning to be nimble-footed to keep factories
operating under COVID-19 restrictions and concentrating on financial
health by reducing costs and generating free cash flows.
These challenges include a shortage of steel and micro-processors
(semiconductors) impacting electronic components and systems.
Incidentally, the biggest challenge is to sustain business operations
and securing the financial health of the organisation. Performance of
the automotive industry is also linked to each stakeholder in the value
chain starting from vendors to the dealerships.
Let’s take a look at some of the challenges facing the automotive
industry in 2021 :-

New Regulations :-
China is now the world’s biggest market for automobiles if we go by
unit number. The challenge for automakers here will be
whether they should consider entering the market and trying to
compete.
More Demand for Independent Traders :-
We can also expect to see demand increase for independent motor traders.
While 2020 saw a bigger demand than expected for new vehicles, we
should see some contraction in the market this year.
This would also be a perfect time to start a business as an
independent car retailer.
Alternative Fuel Vehicles : -
Carmakers cannot afford to ignore alternative fuels anymore and will
need to make concrete efforts to meet the demand not only for fuel-
efficient vehicles, but vehicles that aren’t using fuel at all. There is a
torrent of information being released every day both on new
automotive technology and the impact of fossil fuels on the planet.
This debate is not going away anytime soon and will keep increasing
in the next decade.
 EMERGING TECHNOLOGY IN
AUTOMOTIVE INDUSTRY

Today’s economies are dramatically changing, triggered by

development in emerging markets, the accelerated rise of new
technologies, sustainability policies, and changing consumer
preferences around ownership. Digitization, increasing automation,
and new business models have revolutionized other industries, and
automotive will be no exception. These forces are giving rise to four
disruptive technology-driven trends in the automotive sector: diverse
mobility, autonomous driving, electrification, and connectivity.
At the rate that smart technology is advancing, companies have to
work hard to avoid being left behind. We’ve already seen huge
advancements such as in-car Bluetooth systems, dash-cams, and key
finders. But what’s next for the world of automotive tech?
The smart technology predictions over the next few years are set to
totally revolutionise the way people drive.
These new ideas will focus on safer driving, easier driving, and
adding more fun enhancements to your driving experience.
The technologies which will hasten the transition of automotive are
many and fast-changing. These are elements that will impact the
autonomous vehicle, connected vehicle, ADAS(advanced driver
assistance system), and vehicle telematics.
Some of the emerging technologies which we think would change the
automobile in coming decade are:

Electric Vehicle Battery

The electric vehicle is going to be the way forward for the automotive and
battery will play a key role here. The automotive industry bets its future on
batteries. Government agencies, Investors and carmakers are pouring money
into research of batteries in a worldwide race to profit from emission free
electric vehicles. According to Indian Brand Equity Foundation, EV sales,
excluding E-rickshaws, in India witnessed a growth of 20% and reached 1.56
lakh units in FY20 driven by two wheelers. The increasing rate of reliance on
fossil fuels and the harm to the environment caused by using them has changed
the outlook of automotive sector. Moreover, it has given emphasis to electric
vehicles (EVs). Electric vehicle makers should come up with solutions on poor
battery, high price, inadequate charging infrastructure, renewable energy-based
charging, and fleet electrification.

Battery infused body panel / Energy Storing Body Panels

The carbon fiber composite panels were infused with flexible super-capacitors
capable of harnessing the energy generated through regenerative braking, and
discharge back into the electric motor when needed. The composite material
also reduced the weight by 60% compared to existing components. While the
technical outcome was encouraging commercialisation will be subject to the
cost of carbon fibre, including recycled carbon fibre also which is too
expensive, compared to steel or aluminium.

Smart Tyres
The tyres’ outer surface is made of elastic polymer(bionic skin), giving it the
flexibility much alike human skin, allowing it to expand and contract as per the
road surface condition. In case of puncture, the sensor in the tread can locate it
and the tyre rotates to change the contact patch. This reduces pressure on the
puncture and allows the self-healing process to start. The self-healing works
thanks to materials which are specifically designed to be able to flow towards
the puncture. They react physically and chemically with each other to form new
molecular bonds, closing the puncture.

Artificial Intelligence & Machine Learning

AI-based autonomous vehicle are the pacesetter in the auto industry. AI is
enabling smart travel methods through self-driving cars. These vehicles do not
need drivers and work on sensors and software.For control and navigation.
Autonomous vehicles are meant to reduce the requirement of human drivers to
make day-to-day transport easy. Big industry players like Uber,
Tesla, Google are strongly supporting working towards autonomous cars,
making them more reliable. With the current pace, it is estimated that further
application will also be explored, and investments will pour in in the coming
years.

Inflatable Solar Panel Car Cover

A roof-mounted device that, with a flip of a switch, covers the entire parked
vehicle in a shield of solar panels. It’s been more than six years since
Ford introduced its C-Max Solar Energy Concept. The rooftop solar system that
tracks the sun’s movement and uses a Fresnel lens to concentrate its energy to
charge the C-Max plug and the system could produce 8 kilowatts of power.
Big Data & Analytics

Big Data Analytics has the potential to deliver a competitive advantage to the
automotive industry by creating new revenue generation opportunities.
Nowadays, companies build abilities to leverage big data analytics by quickly
generating new insights based on an analysis of structured and unstructured
data. Companies are using these insights to design new and innovative
products and services that are driven by data to fulfill the business priorities
and customer needs through data analytics to glean valuable insights through
its data sets derived through vibrations, temperature, and pressure sensors in
their cars.
Blockchain

Blockchain has enabled the information more secure and safe to change, hack
or cheat the system. It transforms the organization’s processes. It enables to
share the vehicle data over a secure network for connectivity and shared
mobility solutions such as urban transportation, ride-hailing and deliveries. It is
also used in the verification process to improve efficiency across back-office
works and supply chain. The disruption of blockchain in auto sector is
anticipated to increase in the future.

Human- Machine Interface

As self-driving cars and connected cars transform the automotive landscape, it

will fundamentally change how drivers interact with vehicles. Human-machine
interfaces (HMI) use voice-based or haptic feedback to operate vehicles. These
expand the scope of how and what aspects of a car that users control.
Consequently, such interfaces make the driving experience safer and more
enjoyable. Another form of HMI includes smart virtual assistants who help
drivers and riders interact with the vehicles and other service providers.
Micromobility

Micromobility is emerging as an alternative travel solution for short distances

which involves lightweight, low-speed vehicles that can be shared or privately-
owned, and are pushed, pedaled or electrically powered. It offers innovative
and quick solutions to resolve issues such as parking and traffic congestion.
Many cities are creating cycle lanes and car-free zones to help ease
overcrowding on shared and public transport for encouraging the use of private
micro-mobility vehicles.
Internet of Things (IoT)
In the automotive industry, IoT enables secure communication between
vehicles as well as vehicles and infrastructure components. The technology
improves road safety, solves traffic congestion, and reduces pollution and
energy expenditure with better fleet management. Startups and emerging
companies develop advanced sensing technologies to gather more data about the
vehicle as well as allow the vehicle to understand its surroundings. The
technology also automates payments for fuel and tolls.

3D printing, a new generation manufacturing

With the increasing demands witnessed by auto sector for new vehicles and
spare products, the industrialists and end users always aspire for newer, better
performing vehicles and need to optimize production and streamline supply
chains and logistics. 3D technology is helping to meet all these requirements
and challenges. It has been explored across all the areas of automotive
production. Apart from its usage for rapid prototyping, it is also being used to
produce tooling and end parts.
Organisation and workforce of the future in the automotive industry

Usage of Information Technology (IT) and integration of technological research on manufacturing products and
processes is not a new phenomenon in the automotive industry. However, what is new is the level of
sophistication and speed of application of new age technologies such as IoT, AI, machine learning and robotics
as part of the Industry 4.0 evolution. The speed of change is leading to a paradigm shift in the way the
manufacturing sector operates. In the area of megatrends, disruptions and new ways of working are expected to
result in irreversible changes in the automotive industry, which are likely to generate significant opportunities in
the sector.
As per the Automotive Mission Plan 2016-26 (AMP 2016-26), the Indian automotive industry is poised to
become one of the largest job-creating engines in the country, with the creation of approximately 65 million
jobs in the next decade. This should contribute significantly to the country’s growth, provided the sector is able
to address and resolve the twin challenges of low employer attractiveness and the gap in supply of a skilled
workforce to meet the requirements of future jobs. Moreover, what needs to be borne in mind is that there are
many changes that are unforeseen and unknown today. Going forward, automotive organisations will need to
successfully manage the following seven key shifts to thrive in the new world order in the automotive industry.
Automobile Industry SWOT Analysis
STRENGTH: Automobile Industry has some solid strengths like:-
Growing Industry: Automobiles have been increasing the quality of life for
the past century by giving mobility, comfort, and safety.This industry is also
contributing to job creation and skill development. It brings both direct and
indirect employment which directly connects with economic development.
Innovation and advancement: R&D investment by automakers is driven by
consumer demands. It’s increasing with the advancement of technology,
alternative fuels such as shell gas, CNG, etc.
Luxury commercial vehicles: As many Asian countries’ economic conditions
are being stable, their lifestyle is also changing. Which is also making new
increasing demand for luxury public transportation systems.

WEAKNESS: Automobile Industries additionally have a few shortcomings

and imperfections, and they prevent the company’s development to some extent.

Recalled cars: Because of many domestic reasons such as technical

disfunctionality or non-abidance to government-led rules many vehicles are
being recalled. This comes in between the developing market.

Power of bargaining: With the increasing market, competition between

companies is increasing rapidly. This is giving the consumers the opportunity to
bargain their way as the companies have more stiff competitions to win among
themselves.

OPPORTUNITIES :- Automobile Industry swot analysis offers the brightest

part of the opportunities offered by the Automobile Industry. Let’s look at
them:-

Efficiency: with the development of technology people are becoming more

careful about efficiency levels. That’s why vehicles with cost and fuel
efficiency facilities will be on rising for the next decade. Using renewable
sources could also bring much more success to the market.
Alliances: With emerging competition among companies this could bring out a
better solution to grow mutually. By combining different specialized strategic
capabilities companies could bring a variety of offers to the consumer which
could bring good sales for partnering companies. This could bring out benefits
from the difficult competitive market.
Changing lifestyle & customer groups: As the whole world is going through
huge economic development, change in lifestyle is becoming more prominent.
For many reasons such as comfort and safety and others, many developing
families are interested in private vehicles.
Expansion of market: Entering and expanding Asian and BRIC countries will
bring upward demand in vehicles. And this expansion may continue to other
countries. As more countries are open to the automobile industry the market
will keep on expanding and developing.

THREATS :- There are specific threats for Automobile Industries, but proper
planning can help them to survive through the situation. Some of the threats are
listed below:
Intense Competition in the market: The more players resulting in more shares
of the fortune the market has to offer resulting in difficulties to get a big scoop
of fortune.
Volatility in the fuel Prices: Mainly for developing countries where vehicles
are mostly used for daily transportation, it plays a big part in the market. Also,
different regulations of the government regarding alternative fuels can also
affect inventories.
Slow Economy: Many economic situations such as sudden unemployment,
pandemic (recent covid-19 situation), etc. are some factors that can break down
the automobile industry. The industry is already going through such difficulties
as covid-19 bringing vehicles to minimize its mobility.
High fixed cost and investment in R&D: Because of an overly competitive
market, companies are trying to invest more in R & D centres. ROI needs to be
capitalized. But with the uncertain world and future, it can be thought of as a
potential threat.
 METHODOLOGY

Once the problem is identified, the next step is the research design.
Research design is the basic framework of rest of the study. A
research design specifies the methods and procedures for conducting
particular study.
We adopted a secondary research. We started with secondary research
to predominantly shortlist the set of technology/opportunities that the
Indian auto industry is confronting at present. This list was prepared
from news articles, company financial statements and strategy plans
etc.
 CONCLUSION
Today’s tough challenges in the automotive industry require to find
new ways to create value if they are to prosper. To successfully adapt
these levers companies will be able to respond to changes with focus,
responsiveness, variability and resilience.

The automotive sector is moving towards the surge in the demand for
newer technologies every year. To meet those demands, industrialists
and researchers are coming up with latest manufacturing
technologies. To cater the end users with the best and most
innovative technology, car makers across the world are implementing
various techniques. Coming years are welcoming the auto sector with
various upcoming innovations in the technology, which will reshape
the landscape of the automotive sector across the globe!
 BIBLIOGRAPHY

The content for this project report has been taken from the following
sources :-
 www.google.com
 Name of book –Marketing Management of MBA
 Name of book- Management concept of MBA
 Name of book – Information technology