๐๐ก๐ฒ ๐ญ๐๐๐ก ๐ข๐ง๐ง๐จ๐ฏ๐๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐๐ฎ๐ญ๐จ๐ฆ๐จ๐๐ข๐ฅ๐ ๐ฌ๐๐๐ญ๐จ๐ซ ๐ฐ๐ข๐ฅ๐ฅ ๐ก๐๐ฏ๐ ๐ฌ๐ญ๐ซ๐จ๐ง๐ ๐ญ๐๐ข๐ฅ๐ฐ๐ข๐ง๐๐ฌ
Two articles today reiterate why tech is going to be a significant disruptor in the automobiles sector, as legacy companies transition to smart mobility.
1) ๐๐ก๐จ๐ซ๐ญ๐๐ซ ๐ฉ๐ซ๐จ๐๐ฎ๐๐ญ ๐ฅ๐ข๐๐ ๐๐ฒ๐๐ฅ๐๐ฌ
Traditionally, auto companies had long product lifecycles. Interesting to read in the article about โโTeslaโs aging vehicle lineup is already facing considerable demand weakness and price pressure so far, and our sense is that Tesla has now moved into cash preservation mode,โ.
As companies refresh their products more frequently, they will need significantly optimised supply chain efficiencies.
2) Transitioning legacy auto players to a smart mobility
As auto majors scramble to move into the smart mobility space, they will have to engage with specialists tech innovators to get their game up. No wonder that now automotive clients comprise of more than 10% of the global ER&D (Engineering Research & Development) spends. Share of automotive companies in the revenue split of IT majors is up to 25โ25% from the 15โ20% just 4 years ago.
However, automobile majors also need to engage with startups and emerging companies to get early-access to cutting edge technologies. Especially those that are disruptive.
โIt is difficult for most large organisations to drive disruptive innovations. Historically, most large organisations have not been able to do it well, while on the other hand, startups and new-age entrepreneurs start off with the idea of disrupting the status quo.
Hence, automotive giants will need to engage with new-age entrepreneurs and their disruptive innovations to not just get a competitive advantage, but to stay relevant in the changed market environment.โ
Karan Mittal โ Managing Partner โ Caret Capital
Most large companies need external assistance to meaningfully engage with the startup world. Thatโs why, at Caret360, we have created a platform for corporatins to discover, pilot and adopt startup-led innovations. Check www.caret360.com.
Caret Capital is a sustainability fund investing in startups across mobility, distribution and employment โ the three interconnected aspects that are critical to Indiaโs growth story.
Prajakt Raut โ Managing Partner โ Caret Capital.
