PwC India Automotive & Mobility

Startup Platform

February 2024
India – the fastest growing
major economy

th Largest Economy
5 in the world 3rd Largest Passenger Largest Two-

(2023)
Vehicle market in the
world
2nd wheeler market
in the world

Rapid GDP Young skills

Growth and talent
Growth rate of 7.2% in FY 2023, 6-7% 522 Mn working population with
YoY growth for next 3 years (projected) median age of 28 years – with 1.5 Mn
graduating engineers (annually)
3rd Largest
3rd Largest Startup
Economy by 2030
Ecosystem
Expected to reach USD 37 Tn by 2047
111 unicorns with combined evaluation
from USD 3.75 Tn (2023)
of ~USD 350 Bn (2023)

Rising Per Capita Towards Net

Income Zero
Expected to reach USD 12,400 by 2047 India’s long-term goal to be Net Zero by
from USD 2,500 (2023) 2070

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India – A global automotive and mobility hub

1st Largest three-wheeler

manufacturer in the world

Annual Production (Metric

1st Largest tractor

manufacturer in the world
5 Mn ton) target by 2030 for the
Fuel of Future – Green
Indian Hydrogen
automotive
industry is
nd Largest two-wheeler
2 manufacturer in the world USD State-of-the-Art Multi-Modal
Largest heavy 151+ Bn 35 Logistics Parks planned for

3rd truck (commercial vehicle)

manufacturer in the world
in size
efficient logistics connected
via digital platforms

3rd Largest passenger vehicle

manufacturer in the world

PwC *The above Estimates and Figures are for FY23

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Automotive megatrends demand a faster pace of innovation from automotive
players like OEMs and Tier-1s

Key areas of disruption

Changing Customer New Business New Genre of • Need for Rapid Innovation
Needs Models Competition
• Engagement with startups
Ownership to Usership ACES impact Tech. players
seen as one of the key levers
of innovation

Automation Evolving Dynamic

and Digital Marketplace Regulations “The traditional model of R&D is obsolete and
collaboration with startups by creating an
Industry 4.0, RPA Product to Service Safe, Clean & Green ecosystem to search for new technologies is
more useful” – VP and Product Planning Head
of a leading Indian Tier-1

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 While startup collaboration is key to innovation, our survey of Indian Tier-1s shows
that established corporates still adopt a conservative approach to collaboration

53% 47%

Wait & Watch Engaged Start ups

Not engaged with start-ups 64% Conducted select POC/ Pilot Projects 29%
Invested through Promoter Family Office 9% Invested through Promoter Family Office 24%
Invested through Corporate VC funds 9%
Invested through Corporate VC funds 12%
Acquired Minority/ Majority Stake 9%
Acquired Minority/ Majority Stake 12%
Publicly run Incubator/Accelerator… 9%
Own Start-up Engagement Program 12%
Conducted select POC/ Pilot Projects 0%
Own Start-up Engagement Program 0% Joint Venture(JV) or Specific Agreement 6%

Joint Venture(JV) or Specific Agreement 0% Publicly run Incubator/Accelerator… 6%

Data Source – PwC Survey of Automotive Tier-1 companies, n=17

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 Corporates perceive working with startups as challenging but have not developed
sufficient ability to overcome them on their own

Top Challenges faced when engaging with startups

Differences in beliefs about

Commercial misalignment (e.g., valuation of the start-up) 27% valuations and project milestones
considered a key challenge
Commitment mismatch (e.g, promised vis-a-vis delivered) 25%

Trust an important factor that

Lack of trust (e.g, not forthcoming with information) 18% determines engagement outcomes;
gets built over the course of
Lack of alignment on vision/objective of collaboration 14% engagement

Lack of compatibility (e.g., differences in ways of working) 10%

“There needs to be a proper structure to engage
and work with startups” – Chief Commercial Officer
Competitive overlap (e.g, agreement on NDA, exclusivity) 6%
of a major Indian Auto OEM

Data Source – PwC Survey of Automotive Tier-1 companies, n=17

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The Automotive & Mobility Startup Platform aims to drive innovation in the
automotive industry by facilitating corporate-startup collaboration

Mission statement:
• Leverage the startup ecosystem to drive innovation in automotive sector, both in India and abroad
• Build a platform for interaction, best practice sharing and collaboration between established automotive players and startups

Key goal:

Drive innovation in the automotive industry by promoting collaboration between high-potential startups and
established automotive industry players through 2 dedicated tracks:

1 2
Equity Investment Business Partnership

Proof-of-Concepts (PoCs), Pilots, JVs,

Minority/majority strategic investments
Technology Licensing…

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 About the Automotive & Mobility Startup Platform

Platform Overview Key Offerings

Startups Onboarded to Corporate-Startup Collab. completed/

Startups Evaluated
Platform Connections Made advanced stage
• Innovation Strategy & Program
Design Advisory

• Technology Scouting/ Partner Led

Count

Growth
1100+
200+ • Open Innovation Ecosystem
90+ 15+ Creation (PMO)

• Innovation Ecosystem Execution

(PMO)
Core Geographies

India | Israel | Germany | UK | Taiwan | Spain

• Startup Engagement and Alliance
Themes Program
E-mobility | Connected | Autonomous | Hydrogen
Smart Manufacturing | Emission Control | Material Technology

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Benefits to participating corporates and startups

Corporates Startups

• Introduction to promoters/ CXOs of

• Time Efficient (Curated and pre-
established automotive industry
evaluated startups introduced in line
players
with target themes/areas of interest)
• Time Efficient (option of online or 1-
• Facilitated startup interactions
day in-person interaction)
• Access to proprietary frameworks,
• Cost Efficient (no participation costs
startup evaluation tools
other than travel costs)
• Knowledge sharing workshops
• Knowledge sharing workshops
with industry and PwC subject
with industry and PwC subject
matter experts
matter experts

PwC India can also provide deal advisory services to startups and corporates

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Snapshot of startups part of our platform (Indian)
Non-exhaustive

E-Mobility Connected and Autonomous Smart Manufacturing

Developing level-5
EV Powertrain Solutions Went on to win MG Developer
autonomous driving for
(51% stake acquired by Program 3.0 and partnered with
Indian roads
Ramakrishna Forgings) MG for AI based vehicle
assessment
EV Powertrain Solutions
(51% stake acquired by Shriram
Hardware + Software ADAS
Pistons & Rings) Went on to win MG Developer
solutions
Program and partnered with MG
Fast charging EV batteries for error proofing glass seal
(15% stake acquired by Amara application process
Raja Batteries)

Material Technology Hydrogen

Single-walled carbon Printed/ flexible electronics, Green hydrogen and

nanotubes for e-mobility conductive inks hydrogen fuel cell and
applications

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Snapshot of startups part of our platform (Global)
Non-exhaustive

E-Mobility
Tractions inverters, BMS Field Programmable Electric Hub Wheel Motors
and DCDC (Spain) Control Units (France) (Germany)

Connected and Autonomous

Edge learning AI for HMI Sensor Fusion Software for Virtual sensors created by Develops metal oxide
and ADAS applications Automated Driving AI and ML (Israel) semiconductor image
(Taiwan) (Germany) sensors (Israel)

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PwC has deep-rooted expertise in Innovation Management

1 2

1000+ Innovation excellence engagements 5000+ startup connects in PwC Ecosystem

delivered globally
Established Innovation Management practice; Dedicated
PwC’s wide experience in designing and implementing Consulting, Tax & Regulatory and Innovation teams
innovation management solutions across the globe

Government of Telangana Government of Karnataka

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Proven to set-up Open Innovation Ecosystems Chosen Automotive Industry Innovation Partner
• Set up an innovation hub to mentor startups at the catalyst
Completed and live engagements with Automotive startups and
facility in T-hub
Industry – Bus segment, Tyres, Aftersales etc.
• Signed as a Booster Kit partner providing consulting
services and mentorship

India Market Access Program

T-Scale
PwC
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We bring global best practices in Innovation management by leveraging PwC’ global
network
FRANKFURT

PwC EU
PwC Scale up Digital and emerging
tech lab PwC India
PwC Luxembourg • Dedicated Consulting, Tax &
European FS Innovation Regulatory and Innovation
MIAMI Hub teams
• Partnership with T-Hub
• Connected with 5000+ startups
PwC US
• FS Innovation Centre • Connected with all major
• X-Sector Tech Innovation incubators and accelerators pan
Hub India
• PwC Digital Incubator
• Social Media Listening Hub BENGALURU
and Innovation Centre
• Emerging technologies lab
• FS Innovation Hub
• PwC Digital Incubator
• Media/Entertainment
incubator PwC Singapore
• Cloud Innovation Lab Eastern cluster
innovation hub
PwC
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 We have successfully delivered Innovation Management engagements for diverse
stakeholders, both in India and globally
1 2
Startup innovation
platform
India Case Studies
PwC helped a community of
strategic investors (combined
revenues > Rs 30,000 Cr.) in
building an automotive & mobility
startup innovation platform
Click here for
more details
5 6
Innovation Program for
a Japanese financial
Global Case Studies
services major
Enable client to engage with
upcoming FinTechs and use
their technology capabilities to
transform its businesses.
Click here for
more details
PwC
Selected ones
3 4
Innovation Hub in
collaboration with the
govt. of Telangana
Support the government of
Telangana in setting up an
innovation hub (T Hub) in the state
to become the one stop solution of
entrepreneurship in the state as
well as the country
Click here for
more details
7 8
Innovation Fund for a
leading beverage brand
Support client to identify startups
working in domains that overlap
with their CSR focus areas –
agriculture, water conservation,
livelihoods, education, waste
management and healthcare
Click here for
more details
Innovation center for Identifying new
global tyre manufacturer technologies for vehicle
level adoption
Designed the Innovation Center
Operating Model through Strategic Supported a PV OEM to identify
capabilities, Roles and and evaluate new product
responsibilities, Governance technologies across all vehicle
structure, Innovation process and subsystems. PwC was
RACI matrix. Activated, and responsible for identifying,
opened ecosystem with 70+ digital evaluating, and liaising with
& tech players technology providers
Click here for Click here for
more details more details
CVC fund for a leading Innovation portal for
German automobile Open Innovation
manufacturer
PwC helped the client design the Open Innovation Platform in
Operating Model to develop new Australia that connects large
products, services, and features, corporates, government,
and to identify new business researchers and startups at
models and opportunities for scale, around market
themselves and their partners opportunities.
Click here for Click here for
more details more details
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 Client Situation
Case Study • A community of strategic investors (combined revenues > Rs 30,000 Cr.) wanted help building an
automotive & mobility startup innovation platform
#1 • PwC helped create and run the startup innovation platform
Challenges
specified by
Our Solution clients
PwC supported in the creation of the startup innovation platform via:

• Devised, planned and implemented a program - automotive & mobility platform – to continually
engage and co-innovate with startups
Startup
• Conducted coaching workshops, brainstorming sessions to assess the priority and interest areas
Innovation (CASE disruption, IoT, Light weighting etc.)

• Profiled leading startups, assessed capabilities, created methodologies /criteria and screened Aggregation
Platform them for introductions of areas for
innovation
• Connected leading startups with investor community with the goal of facilitating innovation through
pilot projects, implementation and/or investments

The Results
• ~70 high-potential Indian & international start-ups introduced across themes from the pool of
~600+ startups

• Themes: e-mobility, smart manufacturing, connected technologies, automated technologies, Startup

emission control engagement
• 10+ collaborations in the form of PoCs/pilots and tech licensing finalized or at advanced stages of
discussion

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 Client Situation
Case Study • To support the government of Telangana in setting up an innovation hub (T Hub) in
#2 the state
• To help T Hub become the one stop solution of entrepreneurship in the state as well
as the country Setting
up of an
Our Solution IT Hub

The program was divided into the following phases:

Setting up an • PwC worked together with T hub to help them to structure their various engagements
with startups, including but not limited to – workshops, accelerators, incubators etc.
Innovation Hub in Organizing
• Providing mentorship, strategy consulting and access to PwC’s vast network of various
Collaboration with clients engagements
with startups
• PwC helped T Hub to connect multiple startups to different clients from across India
the Govt. of
The Results
Telangana • T Hub has become a pivotal agency in promoting and taking forward
entrepreneurship in India
• It has attracted attention of international startups as well, especially those that wish Sourcing,
to set up shop in India valuation,
progress
• T Hub was central in the Global Entrepreneurship Summit that was conducted in monitoring
India in 2017

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 Client situation
Case Study The client is a leading international tyre manufacturer and needed to design an
Innovation Center concept and operating model (roles, structure, governance, etc.)
#3 and to integrate an ongoing innovative/ digital project (Technological Sprint) into the
newly designed structure Project
identification

Our Solution
• Identified the digital projects currently forecasted to be in scope for the
Innovation Center
Running an Governance
• Assessed the type and maturity of the capabilities required to implement those
structures
Innovation projects
• Defined an ideal sizing for the Innovation Center, defining the required roles and
Program for a responsibilities

Multinational Tyre
T h e results
Investment
Manufacturer • Designed the Innovation Center Operating Model, including: processes
• Strategic capabilities, Team sizing, Roles and responsibilities, Governance
structure, Innovation process and RACI matrix
• Defined the Innovation Center budget
• Activated open ecosystem with 70+ digital & tech players
Implementation
• Defined an implementation plan for the next 6 months planning
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 Client Situation
• Ensure strong market sensing (scouting) for new technologies across automotive and cross-
Case Study industries
• Work with client’s R&D team to ensure shortlisting of these technologies and deep-tech evaluations /
#4 conversations with the technology holders
Technology
• Converge the highly relevant technologies for a physical/virtual show-and-tell quarterly workshops Study
for Client

Our Solution
• Scouting of technologies across Tier N Suppliers, Start-up Ecosystem, Academia & Independent
research agencies – India and Global

Identifying New • Streamlining technology study and collaboration with Tech Holders through fulfilment of NDAs, IRLs,
Tech showcase, engineering brainstorming sessions..

Technologies for • Prioritization of scouting by developing technology evolution roadmap across vehicle sub-systems
Aggregation
• Focus across value propositions such as cost, sustainability, Lightweighting, localization, safety,
of areas for
Vehicle Level performance and comfort & convenience
innovation
The Results
Adoption • Scouted 300+ Technologies both global and domestic with key focus in academia, startups and Tier-
N Ecosystem
• 100+ technologies shortlisted by R&D / PP Team for advanced engineering feasibility and evaluation
study
• Successfully conducted multiple Technology Showcasing events with 30+ participants both physical
and virtual Startup
• Facilitated 10+ technology partnership between various tech holders and the client engagement
• Presented comprehensive industry and competitor technology tie-up and collaboration synthesis –
POV on strategic partnerships for the client
• Formulated Technology trends & road-map across vehicle sub-systems (Chassis, E/E, Active
Passive Safety, Powertrain & Transmissions, Digi & Connected Vehicle space ..)
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 Client Situation

Case Study • To enable the client to innovate internally and externally and to transform its
operating model by embedding new-age solutions based on technologies like artificial
#5 intelligence and machine learning. Artificial
• To help the client to engage with upcoming FinTechs and use their technology Intelligence/
capabilities to transform its businesses. Machine
Learning
Our Solution
The program was divided into the following phases:
Running an • PwC worked with the leadership at the client and identified a long list of innovation
ideas/opportunities through a series of workshops with each division. These ideas
Innovation were aggregated to form innovation themes.
Aggregation
• Based on technology capabilities that were mapped to the innovation themes PwC of areas for
Program for a designed and launched an external website inviting applications from FinTechs for innovation
the program.
Japanese
• These applications will be reviewed and filtered to come up with a shortlist of top
Financial Services FinTechs that the client can engage with to conduct PoCs and then embed final
solutions into its BAU.
Major The Results
Startup
• The first phase of the program involved 80+ innovation workshops with the senior
engagement
management that resulted in 180+ ideas which were then aggregated into 10
innovation themes
• Over 150 domestic and international applications
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 Case Study Client Situation

#6 • To support the client to identify startups working in domains that overlap with their
CSR focus areas – agriculture, water conservation, livelihoods, education, waste
management and healthcare
• To help the client set up a fund and effectively engage with the final cohort of startups Social
innovation

Our Solution
Program
The program was divided into the following phases:
managing the • PwC worked to identify social enterprises relevant to the client Setting up of
Innovation Fund • PwC supported the client to set up a fund in collaboration with the IIIT Hyderabad
joint
investment
Foundation
for a Leading fund
• PwC helped the client to design the fund disbursement timeline and is also supporting
Beverage Brand them to create a pipeline of social enterprises for future cohorts

The Results Fund

disbursement
• The program received 150+ applications in its first edition
• The client is looking forward to incubate 100 social enterprises in the next 3 years

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 Client Situation

Case Study • The Digital team of an OEM seeks to enhance the digital experiences, to develop new
products, services, and features, and to identify new business models and
#7 opportunities for themselves and their partners.
• As the interface between the OEM and innovators around the world, the digital unit CVC
wanted to start a CVC structure to invest corporate funds and assets directly in Operating
external startups. To get approval from its Board, the company needed advice in Model
assessing, reviewing, and developing selected elements of the CVC Operating Model.
• PwC had been working with the client on the CVC Operational Model, which also
Setting up a CVC included the alignment with existing investment vehicles and innovation initiatives.
Our Solution
Fund for a leading Accelerated
• In an accelerated project design, PwC and the client worked jointly at an off-site project design
German location to design the Operating Model in a single, accelerated, project phase of about
3 to 4 weeks.
Automobile
• Within the described project design, PwC provided initial examples of the Deliverables
Manufacturer based on PwC’s experience, current automotive specific market dynamics and key
strategic areas of focus for the CVC unit. The sample Deliverables were discussed
with the client, and afterwards revised by PwC in order to prepare next steps Investment
thresholds and
The Results authorization

• CVC operating model, which was ready to be presented to the board and ready to get
implemented

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 Client situation
Case Study PwC Australia has built an ‘Open Innovation Platform’ connecting companies with
individuals, institutions, academics etc. to crowdsource ideas, solutions and models
#8 to deal with complex problems.
Solution
The platform allows firms to list down their specific challenges, and invites solutions management
and answers from respondents.

Our Solution
Challenge Owners submit market opportunities (‘challenges’) to the platform. The
Open Innovation platform invites the innovation community to apply to provide a solution. Challenges
can be publicly marketed through a probity compliant process, and/or targeted to the
Platform: PwC best talent in our existing community of innovators. Shortlisted participants engage
with the Challenge Owners prior to submitting their proposed solution for the final Crowdsourcing
Australia selection process. Challenge Owners then select the team and they work together to
develop and execute innovative solutions.

T h e results
So far, we’ve engaged 100s of startups and STEM entrepreneurial groups in more
than 30 Corporate and Government challenges. We've helped launch innovation like:
Challenges
• Gruntify - The ultimate map app suite for location data mining specified by
• App Hot House - Six real time public transport information apps clients

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For ways we can collaborate, please reach out to:

Kavan Mukhtyar Faisal Khan

Partner, Automotive Sector Senior Consultant,
Leader, PwC India Automotive Sector, PwC India

kavan.mukhtyar@pwc.com faisal.k.khan@pwc.com

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