The automotive industry is in the midst of a transformation, driven by advancements in electric vehicles , autonomous driving , and global competition . As countries like China make significant strides in EV technology and autonomous systems, Western automakers are working hard to catch up. In a recent interaction with Kishor Patil, Co-Founder, CEO & MD of KPIT Technologies , we discussed the competitive landscape, the growing influence of China, and how KPIT is helping global automakers remain competitive. Here are the edited excerpts from our conversation:
How many years ahead is China in terms of automotive innovation?
China’s automotive rise in 2024 is the result of two decades of reforms and investments in innovation, supply chains, and early adoption of EV and battery technologies and incentives. By securing lithium supplies and building significant battery production, red carpet welcome to Tesla China gained a first-mover advantage.
Today, China’s EV ecosystem, with its strong infrastructure and competitive OEMs, has intensified global competition. Chinese automakers have shortened production times and reduced costs, challenging global brands.
In autonomous driving, China’s access to data and targeted policies have advanced L2/L3+ capabilities. Chinese automakers are expanding internationally, but the localisation of these solutions based on geo-specific data and compliance remains to be seen.
What are European & US automakers doing to catch up with Chinese competitors? What are their current focus areas, strategies, and investments?
Western automakers are adapting to the competitive landscape by focusing on innovation, particularly in electric and autonomous vehicle technologies. They are investing in advanced battery tech and AI-driven autonomy to differentiate themselves from Chinese competitors. Many have also formed partnerships/JVs with Chinese OEMs to quickly catch up on tech and access the China market.
In response to China's cost and speed advantages, they are streamlining production through platform-sharing to cut costs while maintaining product uniqueness. Additionally, they are localizing supply chains, reducing reliance on Chinese components, particularly for EV batteries, to ensure resilience. By prioritizing innovation, efficiency, and supply chain diversification, Western automakers are positioning themselves to compete globally.
How is KPIT helping OEMs worldwide, including those in Europe, China, Japan, the US, and India, navigate these changes and remain competitive?
Recently we’ve been assisting European, US, and Japanese automakers in developing software strategies to gain competitive advantages and enhance customer experiences.
Our strategic outlook helps OEMs navigate disruptions and remain competitive. We understand well the China playbook and its global impact, addressing key OEM priorities like cost pressures, time-to-market, and software-driven innovation.
With deep market knowledge and innovative solutions, we tailor solutions to regional needs, ensuring compliance and alignment with local preferences. Focused on electrification and autonomous driving, we drive innovation, helping OEMs stay ahead in a rapidly evolving industry.
How do you see the competitive landscape in the global automotive industry evolving in the next 5-10 years? What specific areas of innovation will be critical for success? How will KPIT’s role evolve?
The automotive industry is going through major disruption, driven by shifting supply chains, market expansion, cost competitiveness, and evolving consumer preferences. Technology and engineering will fuel this transformation, with vehicles transitioning to electrification, hybrid power, and re-architected software platforms. Autonomous adoption will rise as more testing data becomes available.
Auto OEMs will form stronger partnerships with Tech companies like Google, AWS and software integration partners like KPIT, other OEMs, Tier 1s, semiconductor firms. These collaborations will help OEMs stay competitive and maximize value.
How many years ahead is China in terms of automotive innovation?
China’s automotive rise in 2024 is the result of two decades of reforms and investments in innovation, supply chains, and early adoption of EV and battery technologies and incentives. By securing lithium supplies and building significant battery production, red carpet welcome to Tesla China gained a first-mover advantage.
Today, China’s EV ecosystem, with its strong infrastructure and competitive OEMs, has intensified global competition. Chinese automakers have shortened production times and reduced costs, challenging global brands.
In autonomous driving, China’s access to data and targeted policies have advanced L2/L3+ capabilities. Chinese automakers are expanding internationally, but the localisation of these solutions based on geo-specific data and compliance remains to be seen.
What are European & US automakers doing to catch up with Chinese competitors? What are their current focus areas, strategies, and investments?
Western automakers are adapting to the competitive landscape by focusing on innovation, particularly in electric and autonomous vehicle technologies. They are investing in advanced battery tech and AI-driven autonomy to differentiate themselves from Chinese competitors. Many have also formed partnerships/JVs with Chinese OEMs to quickly catch up on tech and access the China market.
In response to China's cost and speed advantages, they are streamlining production through platform-sharing to cut costs while maintaining product uniqueness. Additionally, they are localizing supply chains, reducing reliance on Chinese components, particularly for EV batteries, to ensure resilience. By prioritizing innovation, efficiency, and supply chain diversification, Western automakers are positioning themselves to compete globally.
How is KPIT helping OEMs worldwide, including those in Europe, China, Japan, the US, and India, navigate these changes and remain competitive?
Recently we’ve been assisting European, US, and Japanese automakers in developing software strategies to gain competitive advantages and enhance customer experiences.
Our strategic outlook helps OEMs navigate disruptions and remain competitive. We understand well the China playbook and its global impact, addressing key OEM priorities like cost pressures, time-to-market, and software-driven innovation.
With deep market knowledge and innovative solutions, we tailor solutions to regional needs, ensuring compliance and alignment with local preferences. Focused on electrification and autonomous driving, we drive innovation, helping OEMs stay ahead in a rapidly evolving industry.
How do you see the competitive landscape in the global automotive industry evolving in the next 5-10 years? What specific areas of innovation will be critical for success? How will KPIT’s role evolve?
The automotive industry is going through major disruption, driven by shifting supply chains, market expansion, cost competitiveness, and evolving consumer preferences. Technology and engineering will fuel this transformation, with vehicles transitioning to electrification, hybrid power, and re-architected software platforms. Autonomous adoption will rise as more testing data becomes available.
Auto OEMs will form stronger partnerships with Tech companies like Google, AWS and software integration partners like KPIT, other OEMs, Tier 1s, semiconductor firms. These collaborations will help OEMs stay competitive and maximize value.
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