Pranshu Gupta is the Founder & CEO, of Trak N Tell, India’s largest car Telematics solutions start-up. His responsibility as CEO is to steer the strategy for all departments and manage product operations with his engineering team. He also takes charge of managing customer experience and improving service network. Pranshu Gupta is an accomplished software engineer and has a B.E. in Computer Engineering from the University of Florida, USA. As an entrepreneur, Pranshu has 15+ years’ experience of converting groundbreaking ideas into customer-centric products with a vision to provide best-in-class embedded intelligence solutions to OEMS.
It’s quite challenging to transform a purportedly ground-breaking idea into a business with a top product or service. The country has been witnessing advancements in technology at a large scale making an ecosystem of IoT. There is an emerging market of Autotech which is a part of the IoT ecosystem. The development of the automotive sector has seen a notable number of startups emerging in the industry. However, there are some challenges that all automotive companies face as raw players in the game. The new entrants are likely to encounter all these barriers. Problems are majorly due to a lack of experience in the industry as well as the implementation of technology to get the best user experience. This article is all about addressing technological as well as business challenges.
Autonomous vehicle
Fully autonomous vehicles are still a far-fetched dream for all automotive manufacturers. However, some startups claim that completely autonomous vehicles will make an entry into the market by the end of the decade. The best technology that has come up so far is the electrification of vehicles, which influences the complete idea of automotive.
Implementing Automotive security standards
Vehicles are becoming more software-driven, with features like smartphone control of locks and windows, infotainment systems, and sensors like cruise control or GPS-driven geofencing. Internet connectivity also welcomes the related threats to the vehicles. This brings out the gap between the development of the product and the improvement in the security system. This threat makes all the vehicles on the road vulnerable to road accidents. These problems can be solved with the help of artificial intelligence and machine learning but the incorporation of AI in this software is developing at a very slow pace making it a matter of dispute.
Questions about ECUs
The electronic control unit (ECU), which serves as the “brain” of your car’s whole electrical system as well as systems that are connected to it, such as the ignition, fueling, and braking, is susceptible to errors and depreciation. Due to the interconnectedness of today’s technologies, these defects negatively affect the operation of the entire vehicle.
Production Value
The number of automobiles that will be manufactured annually is difficult to predict, as this figure is less certain than one may think. New competitors in the car market, can not rely on the previous data to assess the market potential for their brand due to the abruptly changing customer behaviour and demand. As a result, projections for manufacturing volumes are likely to differ from the vehicle’s actual demand.
Clarity of Concept
While some vehicle parts can be modified quite readily, it is crucial to choose the vehicle’s general structure. Once the basic structure is finalised the question arises of which providers to choose. It is nearly impossible to gather essential supplies in a small chunk. Most suppliers back out if the orders of spare parts are not in big proportions. This results in project delays, making it crucial for newcomers to maintain flexibility and be willing to make concessions when developing their supply base.
Funding
There is no set limit when it comes to financing and investment. This is dependent on the industry, business, and use of the good or service. But according to many startups funding is limited. CEOs have to have a constant eye for money to advance their businesses. Meeting with potential investors is crucial to maintain and stick to the company’s aim because there is a lot of background work required to generate any profit over the long run. There is no set amount of investment that is reasonable or enough to establish the company, leaving alone the idea of expanding the business. This is dependent on the industry, business, and use of the good or service. Since the startups are still only testing the waters, it is difficult to convince any potential investors.
Post covid intense competition among the startups
At the time of the pandemic, people became more aware of the effects of emissions of hazardous gases produced by fuel-consuming vehicles. This raised the demand for EVs in the market. People now want to buy emission-free vehicles and save the environment. The other major reason behind this change of heart is the increasing price of petrol and diesel. The rise in demand for EVs automatically led to competition among automotive startups. And at the current manufacturing rate it is impossible to fulfill the market demand.
Conclusion
Even though the government is all set to invest in the automotive industry to increase exports and prevent any technological disruptions, the production rate of the EVs is exceptionally low compared to the demand. Major challenges can include miscalculating manufacturing volume, a weak supplier base, platform changes, and a lack of commitment. It is important to remember that planning is the key to tackling the problems most efficiently.