Denver Public Works issued licenses for "dock-less scooter and bike services" in the city with permits issued to Lyft, Jump and Zanster. Thi... View More
Denver Public Works issued licenses for "dock-less scooter and bike services" in the city with permits issued to Lyft, Jump and Zanster. This is going to be a growing trend in tier-1 cities to reduce traffic congestion, travel costs and time. On one hand, consumers are considering two-wheeler options for cheaper and faster mobility and on the other hand, cities want to reduce traffic, pollution and commute time to make cities smarter. However, for some cities like San Francisco, it is already a headache for urban planners with proliferation of two-wheelers, where dedicated bike lanes are still unplanned from driver and pedestrian safety perspective. Nevertheless, as we have highlighted in our research, this is a fast growing mobility segment, especially the adoption of electric two-wheelers or LSEVs - Neil Shah
(Source: Tech Crunch)
The additional $250 million investment is on the top of $700 million under the ‘Grab 4 Indonesia’ 2020 Master Plan, started in 2017. The investment ... View More
The additional $250 million investment is on the top of $700 million under the ‘Grab 4 Indonesia’ 2020 Master Plan, started in 2017. The investment comes after Grab’s main rival Go-Jek invested $500 million in 2018, to expand its business in the country.
With the exit of Uber, the competition in the Indonesian ride-hailing market is mainly restricted to Grab and Go-Jek. Go-Jek has seen a significant growth in recent years, processing more than 100 million transactions from around 20-25 million users with the inclusion of services such as e-payment and food-delivery.
Grab is following Go-Jek to include related mobile dependant businesses – such as food-delivery and courier services in its platform – to serve as a “super-app” for its users fulfilling any service they can think of – from massages to ride-hailing to home cleaning. Including other services (apart from ride-hailing) will help both the companies to optimise vehicle usage and serve as additional revenue streams in the long term. - Aman Madhok
(Source: US News)
Car sharing market in India is at a nascent stage, however, as per industry participants this market is expected to witness a boom over the next decade, with ca... View More
Car sharing market in India is at a nascent stage, however, as per industry participants this market is expected to witness a boom over the next decade, with car sharing vehicle pool increasing from 15,000 in 2017 to 150,000 by 2022. Automakers are increasingly getting interested to tap the potential of this market considering the young population in the country. In 2018, Mahindra Electric partnered with Zoomcar to offer its EV for car sharing.
Retail sales will continue to be dominant in India, due to low passenger car penetration, rising income levels, and status symbol associated with owning a car in the country. However, Hyundai does not want to lose an opportunity in the long term to develop an alternate sales channel for its cars.
Both Korea and India are the most important markets for Hyundai, together accounting for considerable share in its revenues. By investing in Revv, Hyundai wants to benefit from the early mover advantage in India to fight future competition. In 2017, Hyundai also partnered with Korean ride sharing start-up, Luxi. - Aman Madhok
(Source: Times of India)
With the entry in the US, Chinese OEM Kandi wants to target the cost-sensitive US customer segment looking for entry-level EVs. Kandi has studied the US market ... View More
With the entry in the US, Chinese OEM Kandi wants to target the cost-sensitive US customer segment looking for entry-level EVs. Kandi has studied the US market for several months to adapt its vehicle to US customers’ preferences.
The company will introduce the K22 subcompact and the EX3 compact SUV pure electric cars.K22 will be priced below $20,000 and with subsidy would cost less than $12,500 making it a good value of money. The EX3 SUV is available in China for less than $20,000, after subsidy.
Chinese automakers have faced difficulties in the past to comply with the US safety and trade regulations. The company acquired Sportsman Country LLC, a distributor based in Texas, to facilitate its entry in the US market.
EV sales in China have been affected by changing regulations and companies such as Kandi and BYD are expanding their operations overseas to compensate for lower than expected domestic sales. The challenge for Kandi would be to build to a strong brand (considering the perception about Chinese brands) in the minds of its target customers in the US. Further, the escalating US-China trade war could also put brakes on this ramp up in the US market. - Aman Madhok
(Source: Markets Insider)
Toyota has lapped its peer automotive companies in the race towards autonomous and electric vehicles. The company launched PHEV Toyota Prius in late 2000s and f... View More
Toyota has lapped its peer automotive companies in the race towards autonomous and electric vehicles. The company launched PHEV Toyota Prius in late 2000s and focused more on fuel cell vehicles since then, with no BEVs in its portfolio. However, from 2017 the company has increased its focus on BEV technology. Unlike other automakers, such as General Motors and Tesla, which are developing in-house autonomous technology, Toyota will be majorly using Uber’s self-driving technology in its Sienna Minivan. Going forward, Toyota should focus on developing in-house self-driving technology, just like General Motors and Tesla. - Aman Madhok
(Source: BBC News)
Volkswagen, one of the world’s largest automakers, is converting itself from a manufacturer of passenger cars to a “device and a software” com... View More
Volkswagen, one of the world’s largest automakers, is converting itself from a manufacturer of passenger cars to a “device and a software” company. US$4 billion, to be invested in “We” banner of digital services, which will include a host of apps – We Share, We Park and other connected services for users of Volkswagen branded vehicles. For instance, by 2020, a Volkswagen user can transfer the digital key of his vehicle to another user to enable car sharing.
Volkswagen is competing with automotive rivals – Daimler and BMW in ride hailing/sharing services. Moreover, with Daimler and BMW combining their services, and other new start-ups venturing into the digital services space, Volkswagen is concerned with losing its leadership position in the new automotive “digital ecosystem” – which consists of electric vehicles, connected cars and mobility providers. With ride-hailing services, Volkswagen will push its electric car sales in key cities.
Volkswagen has been partnering with technology companies such as Nvidia and Didi, and with this investment, it could further try to dominate the “digital ecosystem” with partnerships, investments and acquisition. The next logical step for Volkswagen should be standardize its software in its sub-brands such as Audi and Skoda to increase user base and attain economies of scale. - Aman Madhok
China has become a much better prospective market than the US for many automakers, including Nissan. In 2017, many automakers saw declining sales in the US. Dur... View More
China has become a much better prospective market than the US for many automakers, including Nissan. In 2017, many automakers saw declining sales in the US. During this period, Nissan sales increased by 1.9% (compared to 2016) in the US, and more than 12% in China.
In 2010, Nissan planned to corner 10% market share in the US. The company achieved its target but suffered eroded profit margins due to hefty discounts coupled with increased capex for new model launches. The company now has plans to improve its profitability in the US and increase sales in China to drive overall revenues.
To grow in China, Nissan plans to focus on the budget segment – which accounts for the majority of passenger car sales in the country. It will also focus on electric vehicles – which is still a nascent market in China with significant growth opportunities. The conventional vehicle market is fairly consolidated, having clear leaders in the form of General Motors and Volkswagen so presents a more challenging prospect for growth.- Aman Madhok
When Uber expands in a new country, it unintentionally invites other companies to the same market. Uber entered Nigeria in 2015 and witnessed a fast-paced growt... View More
When Uber expands in a new country, it unintentionally invites other companies to the same market. Uber entered Nigeria in 2015 and witnessed a fast-paced growth due to strong market drivers such as affordable data services and increasing smartphone penetration. Existing companies such as Afro, Easy Taxi, OgaTaxi and Smartcab made no dent in its market share, and some of these companies died a natural death or exited the market.
A typical Nigerian rider is not brand loyal and can easily shift to a lower cost ride hailing service. Low switching costs also aids in making the market cost sensitive. In 2016, Taxify entered Nigeria and captured considerable share from Uber by lowering its commission to 15% (compared to Uber’s 25%).
The entry of Taxigo, which is a ride aggregator app, will further intensify the competition as the company is claiming a lower 10-14% commission. Moreover, using this app, users will be able to compare charges from different ride hailing companies and private drivers, further intensifying the competition. - Aman Madhok
(Source: This Day)
Earlier this week, Qualcomm announced the first successful multi-chipset vendor interoperability of C-V2X (3GPP Rel 14), also referred as LTE-V2X. The test was ... View More
Earlier this week, Qualcomm announced the first successful multi-chipset vendor interoperability of C-V2X (3GPP Rel 14), also referred as LTE-V2X. The test was performed using Qualcomm’s 9150 chipset and Datang’s LTE-V2X module – DMD31. The announcement is expected to boost confidence among major automotive OEMs looking forward to early adoption of the technology. It will further accelerate the commercial readiness of C-V2X technology. However, cities need significant infrastructure upgrades to reap the full benefits of C-V2X technology. This will require a strong policy push from the respective local governments. - Hanish Bhatia
Auto related share prices across the globe dipped significantly this week, after US President’s recent comments on the imposition of 25% tariffs on import... View More
Auto related share prices across the globe dipped significantly this week, after US President’s recent comments on the imposition of 25% tariffs on imported cars to the United States from the EU. Higher tariffs are likely to put OEMs under pressure as automotive sales growth has remained flat across North America and Europe. Further, Tier I automotive OEMs have cut their revenue outlook citing weak car sales, higher raw material costs, warranty claims and anticipated tariffs. Germany-based automotive supplier Continental was worst hit, as its stock plunged nearly 13% in a single day taking it 28% below its value at the start of the year. Shares of other European auto parts suppliers such as Valeo, Michelin and Faurecia also declined nearly 4% midweek. Higher tariffs on automotive and automotive raw material (such as steel & aluminum) has been a major cause of scuffles with EU and China, as the Trump administration looks to bring more manufacturing jobs back to the US. - Hanish Bhatia
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