Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry? 

I have over 32 years of experience in the Automotive/Electrical mobility domain, advising clients on product development/validation, strategic sourcing, component localization, vehicle regulatory certifications, product cost optimization, operations, quality functions, government policies, and frameworks. 

I am actively involved in conducting due diligence for the investor fraternity in areas like the latest innovative technologies (Software-Defined Vehicles, Hybrid/Electric, ADAS, Connected Infotainment, ADAS, Cyber Security/ Functional Safety, etc.), identifying Key Moats/ Differentiators, Supply Chain, Leveraging Operation Efficiency, etc. 

Q2. What are the long-term implications of the shift towards electrification and autonomous driving on the automotive industry's structure and economics? 

The long-term implications of electrification and autonomous driving are that:

• They will enrich the overall Customer User Experience with enhanced safety features built into the system
• Electrification will lead to a Cleaner Environment
• Software-defined Vehicles with Artificial Intelligence and Machine Learning will play a major role in Vehicle Control Algorithms

Q3. How are sustainability initiatives affecting the automotive supply chain from raw materials to finished products? 

ICE Powertrain component suppliers whose relevance will be affected by innovation need to adapt to technological trends. Suppliers with in-house technology capabilities offering system solutions would be the preferred vendors. 

Suppliers with Backward Integration, such as battery cells, would leverage operational efficiency and be cost-effective when mass volume kicks in. 

Q4. How is digitalization enhancing the ability of automakers to offer customized options to their customers? 

Digitalization enhances customization with reduced development time. The use of AI and ML Technologies captures the needs of the customer and enriches their overall User Experience. 

Q5. How are collaborations between automakers and tech companies influencing the pace and direction of SDV innovation? Give examples 

KPIT Technologies is working as a Strategic partner with many of the Global Auto OEM majors in defining the SDV and accelerating the pace of technology deployment to bring about differentiation. 

Similarly, semiconductor suppliers like Qualcomm, Renesas, and Infineon are strategically partnering with OEMs to develop System-On-Chip solutions (SOC) and high-power Computing Vehicle System architectures. 

Q6. How might global economic conditions, technological disruptions, or changes in trade policies affect the e-mobility sector? 

In the Indian context, since gasoline prices are high and because of proactive Government policies in EVs, penetration would increase substantially. 

Segment-wise, 2wh and 3wh are already seeing substantial acceptance. For Commercial Vehicles and PV, even though TCO is very attractive, issues related to higher upfront costs, charging infrastructure challenges, vehicle financing difficulties, etc., would be the challenges. 

In terms of global supply chain, raw materials for battery cells, Traction Motor Rare Earth Magnets (NdFeb), etc. would be sensitive. 

Also, semiconductor dependence on the global supply chain is a critical factor in the near term. In terms of technology innovations and software development capabilities, India is in a sweet spot because of the large number of startups. 

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management? 

• Does the company have technological innovations, being disruptors, with many Moat & Entry Barriers? 
• How will the company leverage its capabilities to become profitable & sustain it?
• In a highly disruptive world, what is the roadmap for the company to be ahead of its competitors?  
• How will the company scale up and still deliver cutting-edge technology products with consistent quality?