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Connected technology to drive a new wave of  mobility in the automotive sector

  • Two out of three Indians willing to spend INR ~50,000 for connected technologies 
  • Data insights and monetization to bring business value to OEMs

National, 21 July 2020:

Deloitte India’s report on Connected cars and OEM outlook in India highlights automotive sector’s next evolution is likely to be hinged on digitalisation in the wake of restricted public transport and growing demand for personal mobility.

With increased dependency on smart-phone connectivity and technology usage, the industry is poised to witness a new stream of mobility trends that provide convenience, tech-efficiency, environmental friendliness and safety to consumers at one end.

However at the other end, the power of data explosion with an increased matrix of connected devices and longer commutes could open up a plethora of possibilities for OEMs to create value for themselves and their customers.

Talking of spending for advanced technologies, India is amongst the few countries where the willingness to spend is fairly promising. *Deloitte’s Global Automotive Customer Research for 2020 shows that two out of three Indians are likely to be willing to pay up to INR ~50,000 for connected technologies.

Commenting on the launch of the report, Rajeev Singh, Partner and Leader Automotive, Deloitte India said, “With over 520 million internet subscribers, India is one of the largest and fastest growing markets for digital customers. Restricted travel due to safety, compounded with growing importance of seamless online and offline experiences, brings a huge opportunity for connected vehicles to grow in the country.

There is a growing interest amongst the consumer in India for connected vehicles as it aids in providing a customized experience as well as generating efficiency vs new operational cost. This report explores the value that OEMs can create through connectivity and the implications for all stakeholders in the vehicle and driver ecosystem.”

5 Key trends emerging from the concept of #Connected Technology
  1. Connectivity will help bridge the gap between consumer expectation and OEM product manufacturing plan. Traditionally, cars used to largely dictate their production based on the vehicle features but with this change, personalization and focus on the consumer is expected to lead the game of product manufacturing.
  2. WFH amplifying the demand for connected vehicles: COVID-19 pandemic has made work from home the new normal. In a situation where people may not return to work soon, a person’s home essentially could be their physical house, a hotel, a restaurant as well. However, general travel for leisure or personal purchases may pick up in the next two to three months, and the car is expected to become a personal space for people with important digital requirements.
    For instance, in the interest of staying connected digitally all the time, Indian consumers are expecting more digital services, both inside and outside the car. Even diagnostic test of a vehicle including air filter/fuel filter change etc. can now be reported via smartphones with no discrepancy for consumers.
  3. Convenience and technology will become an important component of product purchase where consumers are unlikely to hesitate to pay a bit more if required.
    Almost 65 percent of survey respondents said they would pay up to INR 50,000 for ability to connect to the internet to facilitate infotainment and personal communication activities.
  4. Increasing collaboration of OEMS with technology start-ups, insurance companies and OTT platforms: Today, driven by the thought of keeping the customers happy, OEMs are seen forging partnerships across sectors in a bid to combine infotainment and tech led convenience with mobility. Partnerships between OEMs and insurance companies (who may want to use the data from the car to design personalised insurance products) are likely to increase significantly.
  5. Data utilisation, monetisation will need OEMs to embrace data security

- While forging the right partnerships, OEMs need to especially focus on protecting the data by addressing issues of – how to monetise data without compromising it and who owns and manages data.
- OEMs also need to secure data and apply cyber security strategy to mitigate risks: As per Deloitte Global Automotive Survey, 80 percent respondents did not mind sharing personal information with OEMs or third parties if significant value could be received. However, several cyber risks, including personal information loss, vehicle theft, critical safety feature manipulation, and vulnerable mobile application security arise from increased connectivity.

Media contact

Mou Chakravorty
Deloitte India
Tel: +8454042392

About *Deloitte Global Automotive Consumer Study
Deloitte, from September through October 2019, surveyed more than 35,000 consumers in 20 countries to explore opinions regarding various critical issues affecting the automotive sector, including the development of advanced technologies. The overall goal of this annual study is to answer important questions that can help companies prioritise and better position their business strategies and investments.

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Notes to the editor for reference purposes only:

This press release has been issued by Deloitte Touche Tohmatsu India LLP.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms.

Deloitte India herein refers to Deloitte Touche Tohmatsu India LLP.

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