How can the Indian Automotive industry differentiate to win?

I often think that there is so much in common between cars and cellular phones. There was a time when phones were simply used for making calls. Next came the age of SMS and MMS, which led to the integration of cameras into phones. Consumers demanded music on the go and so cell phones became music players too. As consumers continued to demand utility and convenience, add-ons to mobile phones kept increasing to the point that, today, a ‘smart’ phone functions as a laptop, music player, camera, scanner – often even a torch light. I believe that cars are on the verge of undergoing a similar fast paced technological development where each car will allow its owners to stay ‘connected’ with their friends, colleagues and other car owners.

A recent Automotive Industry report by Wipro pretty much sums up what changes can be expected to current generation of cars and why these changes will be implemented. While the changes may be many, the reason is only one – product differentiation. If I take a look at the design of a car, I will probably be torn between two to three models. However, after that, my final choice will be based on the quality of the features being offered for the price. While most high end cars today have capitalized on technological advances to include features such as link up with your cell phone, mid-tier cars that are generally bought by the large Indian middle class do have such features.

I think what the common man looks for is not the ability to access Facebook when driving, but how far the car will go on a litre of fuel, how much will its spare parts costs, how many years of free service can be availed, is it easy to locate and access service centres, does the car rate high on reliability and economy in maintenance, and other such aspects. As Wipro’s report highlights, the growth of using embedded software among cars in India has grown in step with demand for utility based on pricing, unlike the US, where cars simply evolved with every new technology launched. While the inclusion of such high-end technology makes sense to differentiate luxury cars, differentiation of lower end cars would be better directed towards servicing, dealerships, promotions, bundle packages and pricing.

Indian OEMs should keep these factors in mind when planning on how to differentiate their cars from competitors. I do not believe the mass market is ready to purchase expensive cars with hi-tech features unless they provide value for money.

What are the other ways through which Indian automotive players can differentiate?

About the Author

Durga Prasad is the Vice President & Business Head of the India and Middle East business of Wipro.

In his current role he is responsible for business and customer engagement across all verticals in India and the Middle East.

Prior to this, Durga was the head of Wipro?s business in Kingdom of Saudi Arabia. Under his leadership the business has grown at a CAGR of 37% in past 5 years. He played a pivotal role in many key wins in the region like the total outsourcing contract from Saudi Airlines, King Abdullah University of Science and Technology (KAUST) where Wipro has implemented a first of its kind turnkey ERP-Student Life Cycle Management solution and a win from Princess Nora Bint Abdulrahman University, among others.

Having led a team of 1000 people, Durga was actively involved in developing local talent and driving localization in the region.

Durga joined Wipro in 1992 and has more than a decade of experience in the IT industry. He has undertaken various roles in the company. He was heading operations and C-Sat (customer satisfaction) for Wipro Infotech and prior to that he was the head of the Enterprise Services Business. He has also been the Sales and Practice Head for the Managed IT business of Wipro.

Durga holds a bachelor's degree in engineering with specialization in electronics from Nagpur University.

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