Consumer Discretionary

<h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?</span></h2><p class="MsoNormal" style="text-align: justify;">With over two decades of experience in senior automotive roles at Tata Motors and Volvo Eicher, I founded Rajesh Joshi Engineering in 2017. Our Indore and Pune-based firm bridges the gap between automakers, suppliers, and investors. We offer comprehensive engineering services, from concept to launch, under our research2design vertical. This includes market research, CAD/CAE outsourcing, project execution, and testing. Our raiseUrlevel vertical focuses on consulting, advisory, and training services for the automotive, construction, and investment banking sectors. Our network of experienced teams and state-of-the-art facilities enable clients to develop and validate their vehicles seamlessly.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q2. Who are the main players in the automotive industry, and what market share or position does each represent?</span></h2><p class="MsoNormal" style="text-align: justify;">Global Automotive Industry: Key Players and Market Share. Here are some of the leading global automotive manufacturers and their approximate market shares in 2023:</p><p class="MsoNormal" style="text-align: justify;"><span style="mso-no-proof: yes;"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Rajeshimg1.jpg" width="340" height="300"><br><!--[endif]--></span></p><p class="MsoNormal" style="text-align: justify;"><strong>Note: </strong>These figures are approximate and may vary slightly due to changes in production, sales, and market conditions.</p><p class="MsoNormal" style="text-align: justify;"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Rajeshimg2.jpg" width="343" height="167"></p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;"><strong>Indian Automotive Industry: Key Players and Market Share</strong></p><p class="MsoNormal" style="text-align: justify;"><strong>Note: </strong>These figures are approximate and may vary slightly due to changes in production, sales, and market conditions.</p><p class="MsoNormal" style="text-align: justify;">Other notable players in the Indian market include Renault, Toyota, and Volkswagen. The market share of these players can fluctuate based on factors like new product launches, economic conditions, and consumer preferences.</p><p class="MsoNormal" style="text-align: justify;">Details of Indian indicative Sales data for August 2024 and 2023 are enclosed herewith</p><p class="MsoNormal" style="text-align: justify;"><span style="mso-no-proof: yes;"><img style="display: block; margin-left: auto; margin-right: auto;" src="https://kradminasset.s3.ap-south-1.amazonaws.com/ExpertViews/Rajeshimg3.jpg" width="382" height="246"><br><!--[endif]--></span></p><p class="MsoNormal" style="text-align: justify;"><strong>Note: </strong>These figures are approximate and may vary slightly due to production, sales, and market conditions changes.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q3. What emerging technologies or features are consumers most interested in the recently developed automobiles?</span></h2><p class="MsoNormal" style="text-align: justify;">Consumers are increasingly drawn to emerging technologies and features in recently developed automobiles. Here are some of the most sought-after advancements:</p><p class="MsoNormal" style="text-align: justify;"><strong>Electric Vehicles (EVs)</strong></p><p class="MsoNormal" style="text-align: justify;">EVs are gaining popularity due to their environmental benefits and potential cost savings. Consumers are interested in models with long-range capabilities, fast charging times, and attractive designs.</p><p class="MsoNormal" style="text-align: justify;"><strong>Advanced Driver Assistance Systems (ADAS)</strong></p><p class="MsoNormal" style="text-align: justify;">Features like adaptive cruise control, lane departure warning, automatic emergency braking, and blind-spot monitoring are becoming essential for many drivers, enhancing safety and convenience.</p><p class="MsoNormal" style="text-align: justify;"><strong>Connectivity</strong></p><p class="MsoNormal" style="text-align: justify;">Connected cars offer features like smartphone integration, over-the-air updates, and in-vehicle entertainment systems, providing a more personalized and immersive driving experience.</p><p class="MsoNormal" style="text-align: justify;"><strong>Autonomous Driving</strong></p><p class="MsoNormal" style="text-align: justify;">While fully autonomous vehicles may still be a few years away, features like semi-autonomous driving assistance and parking aids are becoming more common and appealing to consumers.</p><p class="MsoNormal" style="text-align: justify;"><strong>Sustainability</strong></p><p class="MsoNormal" style="text-align: justify;">Consumers are increasingly conscious of environmental impact and are interested in vehicles with eco-friendly materials, efficient engines, and reduced emissions.</p><p class="MsoNormal" style="text-align: justify;"><strong>Safety Features</strong></p><p class="MsoNormal" style="text-align: justify;">Beyond ADAS, features like airbags, anti-lock brakes, and stability control are essential safety features consumers prioritize.</p><p class="MsoNormal" style="text-align: justify;"><strong>Design and Comfort</strong></p><p class="MsoNormal" style="text-align: justify;">Modern vehicles are designed with aesthetics and comfort in mind, featuring sleek exteriors, spacious interiors, and advanced infotainment systems.</p><p class="MsoNormal" style="text-align: justify;"><strong>Personalization</strong></p><p class="MsoNormal" style="text-align: justify;">Customization options, such as personalized seating, lighting, and sound systems, are becoming more popular as consumers seek vehicles that reflect their individual preferences.</p><p class="MsoNormal" style="text-align: justify;"><strong>Technology Integration</strong></p><p class="MsoNormal" style="text-align: justify;">Seamless integration of smartphones, smartwatches, and other vehicle devices is a key trend, enhancing connectivity and convenience.</p><p class="MsoNormal" style="text-align: justify;"><strong>Affordability</strong></p><p class="MsoNormal" style="text-align: justify;">While many of these features can add to the cost of a vehicle, consumers are seeking affordable options that offer a balance of technology, safety, and value.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q4. What are the most promising developments in electric vehicle battery technology and artificial intelligence in new vehicle designs?</span></h2><p class="MsoNormal" style="text-align: justify;"><strong>Promising Developments in Electric Vehicle Battery Technology:</strong></p><p class="MsoNormal" style="text-align: justify;"><strong>Solid-State Batteries</strong></p><p class="MsoNormal" style="text-align: justify;">These batteries offer higher energy density, faster charging times, and improved safety compared to traditional lithium-ion batteries.</p><p class="MsoNormal" style="text-align: justify;"><strong>Sodium-Ion Batteries</strong></p><p class="MsoNormal" style="text-align: justify;">A potential alternative to lithium-ion batteries is sodium-ion batteries, which are less expensive and have a longer lifespan.</p><p class="MsoNormal" style="text-align: justify;"><strong>Advanced Materials</strong></p><p class="MsoNormal" style="text-align: justify;">Research is ongoing to develop new materials for cathodes, anodes, and electrolytes, which can improve battery performance and reduce costs.</p><p class="MsoNormal" style="text-align: justify;"><strong>Battery Management Systems (BMS)</strong></p><p class="MsoNormal" style="text-align: justify;">Improved BMS technology can optimize battery life, safety, and performance.</p><p class="MsoNormal" style="text-align: justify;"><strong>Promising Developments in Artificial Intelligence in New Vehicle Designs:</strong></p><p class="MsoNormal" style="text-align: justify;"><strong>Autonomous Driving</strong></p><p class="MsoNormal" style="text-align: justify;">AI is playing a crucial role in developing autonomous vehicles, with features like object detection, path planning, and decision-making.</p><p class="MsoNormal" style="text-align: justify;"><strong>Natural Language Processing (NLP)</strong></p><p class="MsoNormal" style="text-align: justify;">AI-powered NLP enables vehicles to understand and respond to voice commands, making interactions more intuitive.</p><p class="MsoNormal" style="text-align: justify;"><strong>Predictive Maintenance</strong></p><p class="MsoNormal" style="text-align: justify;">AI can analyze vehicle data to predict maintenance needs, reducing downtime and costs.</p><p class="MsoNormal" style="text-align: justify;"><strong>Personalized Experiences</strong></p><p class="MsoNormal" style="text-align: justify;">AI can be used to personalize vehicle settings and preferences based on individual driver behavior.</p><p class="MsoNormal" style="text-align: justify;"><strong>Advanced Safety Systems</strong></p><p class="MsoNormal" style="text-align: justify;">AI-powered safety features like pedestrian detection, collision avoidance, and adaptive cruise control can enhance road safety.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q5. What challenges exist in sourcing new materials or components for advanced technologies?</span></h2><p class="MsoNormal" style="text-align: justify;"><strong>Challenges in sourcing new materials or components for advanced technologies:</strong></p><p class="MsoNormal" style="text-align: justify;"><strong>Supply Chain Disruptions</strong></p><p class="MsoNormal" style="text-align: justify;">Global supply chains can be vulnerable to disruptions due to various factors, including geopolitical tensions, natural disasters, and economic fluctuations. These disruptions can lead to shortages, delays, and increased costs.</p><p class="MsoNormal" style="text-align: justify;"><strong>Limited Availability</strong></p><p class="MsoNormal" style="text-align: justify;">Some new materials or components may be limited in availability, especially if they are rare or require complex manufacturing processes. This can restrict their use in commercial applications.</p><p class="MsoNormal" style="text-align: justify;"><strong>High Costs</strong></p><p class="MsoNormal" style="text-align: justify;">New materials and components often have higher initial costs compared to traditional materials. This can make it challenging for manufacturers to justify the investment, especially in competitive markets.</p><p class="MsoNormal" style="text-align: justify;"><strong>Quality and Reliability</strong></p><p class="MsoNormal" style="text-align: justify;">Ensuring the quality and reliability of new materials and components can be a significant challenge. Testing and validation processes may be complex and time-consuming.</p><p class="MsoNormal" style="text-align: justify;"><strong>Intellectual Property</strong></p><p class="MsoNormal" style="text-align: justify;">Protecting intellectual property rights related to new materials and components can be difficult, especially in a global market. This can discourage innovation and investment.</p><p class="MsoNormal" style="text-align: justify;"><strong>Environmental Impact</strong></p><p class="MsoNormal" style="text-align: justify;">The extraction, processing, and disposal of new materials can have environmental implications. Ensuring sustainability and minimizing negative impacts is crucial.</p><p class="MsoNormal" style="text-align: justify;"><strong>Regulatory Compliance</strong></p><p class="MsoNormal" style="text-align: justify;">Adhering to various regulatory requirements, including safety, environmental, and trade regulations, can be complex and costly.</p><p class="MsoNormal" style="text-align: justify;"><strong>Technological Barriers</strong></p><p class="MsoNormal" style="text-align: justify;">Developing and scaling up the production of new materials and components may require overcoming technological challenges, such as material synthesis, processing techniques, and manufacturing equipment.</p><p class="MsoNormal" style="text-align: justify;"><strong>Market Acceptance</strong></p><p class="MsoNormal" style="text-align: justify;">Gaining market acceptance for new materials and components can be challenging, especially if they require changes in manufacturing processes or consumer habits.</p><p class="MsoNormal" style="text-align: justify;"><strong>Competition</strong></p><p class="MsoNormal" style="text-align: justify;">Intense competition among manufacturers can make it difficult to differentiate products based on new materials or components. This can limit pricing power and profitability.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q6. What is the current demand/volume in the market? How are key players adapting?</span></h2><p class="MsoNormal" style="text-align: justify;"><strong>The current demand for cars depends on many things, such as:</strong></p><p class="MsoNormal" style="text-align: justify;"><strong>The economy: </strong>If the economy is doing well, people are more likely to buy cars.</p><p class="MsoNormal" style="text-align: justify;"><strong>Government policies: </strong>It<strong> </strong>can encourage or discourage car purchases through taxes, incentives, or regulations.</p><p class="MsoNormal" style="text-align: justify;"><strong>Consumer preferences: </strong>People's tastes change over time. For example, more people are now interested in electric cars.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;"><strong>Key players in the car industry are adapting to these changes by:</strong></p><p class="MsoNormal" style="text-align: justify;"><strong>Making electric cars: </strong>Many companies are investing in electric vehicles to meet growing demand.</p><p class="MsoNormal" style="text-align: justify;"><strong>Adding new features: </strong>Cars now have features like self-driving, better technology, and more comfortable interiors.</p><p class="MsoNormal" style="text-align: justify;"><strong>Focusing on sustainability: </strong>Companies are trying to make cars more environmentally friendly by using less fuel and reducing emissions.</p><p class="MsoNormal" style="text-align: justify;"><strong>Reducing costs: </strong>To make cars more affordable, companies are looking for ways to cut costs in production and manufacturing.</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><h2 class="MsoNormal" style="text-align: justify;"><span style="font-size: 12pt;">Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?</span></h2><p class="MsoNormal" style="text-align: justify;">As an investor, I would ask the following critical questions to the senior management of companies in the automotive industry:</p><p class="MsoNormal" style="text-align: justify;"><strong>Electric Vehicle Strategy</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l9 level1 lfo1; tab-stops: list 36.0pt;">Given the growing trend towards electric vehicles, how is your company positioning itself in this market?</li><li class="MsoNormal" style="mso-list: l9 level1 lfo1; tab-stops: list 36.0pt;">What is your timeline for developing and launching electric vehicle models?</li><li class="MsoNormal" style="mso-list: l9 level1 lfo1; tab-stops: list 36.0pt;">What are your plans for battery technology, charging infrastructure, and partnerships?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Autonomous Driving</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l1 level1 lfo2; tab-stops: list 36.0pt;">What is your company's approach to autonomous driving?</li><li class="MsoNormal" style="mso-list: l1 level1 lfo2; tab-stops: list 36.0pt;">Do you have a roadmap for developing self-driving vehicles?</li><li class="MsoNormal" style="mso-list: l1 level1 lfo2; tab-stops: list 36.0pt;">What are the key challenges and opportunities you foresee in this area?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Technology Integration</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l2 level1 lfo3; tab-stops: list 36.0pt;">How are you integrating new technologies like artificial intelligence, connectivity, and advanced driver assistance systems into your vehicles? What is your strategy for ensuring a seamless user experience?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Sustainability</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l0 level1 lfo4; tab-stops: list 36.0pt;">What steps are you taking to reduce your company's environmental impact?</li><li class="MsoNormal" style="mso-list: l0 level1 lfo4; tab-stops: list 36.0pt;">How are you addressing concerns related to emissions, resource consumption, and waste management?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Supply Chain Resilience</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l5 level1 lfo5; tab-stops: list 36.0pt;">Given the potential for supply chain disruptions, how is your company mitigating risks and ensuring a stable supply of components?</li><li class="MsoNormal" style="mso-list: l5 level1 lfo5; tab-stops: list 36.0pt;">What are your plans for diversifying your supply chain and reducing dependence on any single supplier?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Market Dynamics</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l4 level1 lfo6; tab-stops: list 36.0pt;">How are you responding to changing consumer preferences, competitive pressures, and regulatory changes in the automotive industry?</li><li class="MsoNormal" style="mso-list: l4 level1 lfo6; tab-stops: list 36.0pt;">What are your strategies for maintaining market share and profitability?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Financial Performance</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l6 level1 lfo7; tab-stops: list 36.0pt;">Can you provide a detailed overview of your company's financial performance, including revenue growth, profitability, and cash flow?</li><li class="MsoNormal" style="mso-list: l6 level1 lfo7; tab-stops: list 36.0pt;">What are your expectations for future growth and profitability?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Risk Management</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l7 level1 lfo8; tab-stops: list 36.0pt;">What are the key risks and challenges facing your company, and how are you addressing them?</li><li class="MsoNormal" style="mso-list: l7 level1 lfo8; tab-stops: list 36.0pt;">What are your contingency plans for dealing with unexpected events?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Talent Acquisition and Retention</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l8 level1 lfo9; tab-stops: list 36.0pt;">How are you attracting and retaining top talent in the automotive industry?</li><li class="MsoNormal" style="mso-list: l8 level1 lfo9; tab-stops: list 36.0pt;">What are your strategies for developing and nurturing talent within your organization?</li></ul><p class="MsoNormal" style="text-align: justify;"><strong>Corporate Social Responsibility</strong></p><ul style="margin-top: 0cm; text-align: justify;" type="disc"><li class="MsoNormal" style="mso-list: l3 level1 lfo10; tab-stops: list 36.0pt;">What is your company's commitment to corporate social responsibility? How are you contributing to the communities where you operate?</li></ul><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p><p class="MsoNormal" style="text-align: justify;">&nbsp;</p>