The impact of autonomous vehicles – part 2

The impact of L3 AVs on auto OEMs, suppliers, and dealers

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In an Autonomous vehicle, the driver need not engage in active driving tasks but must always be able to resume control.

In the previous section, we established that the advent of L3 AVs will bring about a paradigm shift in autonomous vehicles. The vehicle will be able to fully monitor the driving environment and “eyes-off” AVs will enable drivers to cede all safety-critical functions under certain conditions. Drivers can rely on the vehicle to monitor when conditions require transitioning the control back to the driver. In summary, the driver need not engage in active driving tasks but must always be able to resume control.

Now we will explore how this affects OEMs, component suppliers, and dealers.

Industry Impact Opportunities for IT service providers

Automotive component suppliers

  • More components in the form of sensors, cameras, radar systems, and strong computer programs to control the vehicles
  • Sensors to integrate with engine control unit cards to monitor the state of vehicle in real time
  • Semiconductor industry will benefit from the digitalization of vehicles and driving

 

  • Development of AI, complex algorithm to support automation
  • Integration of automation modules in car, connectivity with DoT system, connectivity with OEM system, connectivity with dealer system, etc.
  • Support services on continuous monitoring of systems, continuous improvements, enhancements, etc.
  • IT provider as a part of component supplier ecosystem – to provide computer power and AI for navigating the countless number of real-world driving scenarios in real time
  • Chipmakers will integrate auto-vision, IoT connectivity, and AI processing, among other key features

Automotive original equipment manufacturers

  • Sharper focus will be needed on tracking patch versions (for each AV) through proactive patch updates
  • Changes manufacturing and assembly operations to assemble sensors, electronics components/modules, cameras, etc.
  • More automation in assembly lines to handle electronics components/modules
  • Addition of more test cases to test automation components
  • Initially OEM may provide automation kit as a retrofit solution (on top of L2 level vehicles) which could be installed at dealer location or as per MTO strategies at OEM’s end (e-commerce)
  • KPIs, such as average miles driven, average miles driven before driver takes control, average time/miles driven between accidents, average miles driven between system failure, will be KPIs that will influence customer’s decisions to purchase the AV.
  • Developing and continuously refining software programs that comprise advance machine learning algorithms
  • Integration and testing of various components and modules with AVs
  • Integration of systems provided by DoT, service providers, OEMs, and government agencies for effective monitoring and governance of AVs
  • Development of effective analytics systems, mobile apps, etc. for users, government, DoT, OEMs, service providers, etc.
  • Support services on IT systems.

Automotive dealers

  • “Eyes-off” automation kit as add-on installation as per customer needs
  • Launch of “eyes-off” AVs may start changing dealers’ business models. Dealer may provide car-as-a-service for the routes where “eyes-off” level AVs perform well – i.e. routes where there would be very little control required from the driver (but a driver would still be required inside the AV).
  • To integrate the modules with the centralized system (required for “eyes-off” level automation)
  • Installation and testing of software programs (self-learning algorithms)
  • Testing the vehicle before delivery to the final customer.

Read the subsequent sections, where we will explore the impact of L3 AVs on the extended ecosystem.

To know more about Capgemini’s study on Autonomous cars click here.

Neeraj Mathur is Automotive and Manufacturing domain expert and works on delivering business solutions to Automotive & Manufacturing customers of Capgemini through innovations and business process assessments. You can reach him at neeraj.mathur@capgemini.com

This article is co-authored by Satishchandra Nayak, he is a Business Process expert who works on delivering practical Innovation to Automotive and Manufacturing customers of Capgemini.  You can contact him at satishchandra.nayak@capgemini.com.

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