Can connected cars change your life on the roads? What if you can use your phone as the key fob, make hands-free voice calls, use an autopilot mode, or reschedule your meetings from the comfort of your car? A connected car can help do all these and more, assist in mobility and ownership needs, and ensure exceptional driving experience and safety.
Connected car – the umbrella term comprises a vast amount of cutting-edge technologies, applications, and business models to improve your in-car experience. Global sale of connected cars is expected to touch a whopping 61 million by 2020, generating $141 billion in revenue. A million connected vehicles will ply on our roads by 2020, says a Gartner report.
Connected car features are no longer an illusion or a luxury for the elite and tech-savvy. The app-powered accessory is available even in the most economical cars and can be retrofitted to provide entertainment, information, and seamless connection with the outside world. Connected to the cloud by wireless technologies, chips, onboard computers, and advanced smartphone-based applications, connected cars represent a new era in the automotive world. However, automakers are yet to capitalise on the $155 billion worth connected services market.
Many industry wonks have invested and continue to spend millions of dollars to develop advanced connected car features and technologies. However, their investments haven’t paid off yet, says a recent global study. Four out of ten (39%) survey respondents (connected car owners) were unaware that they own connected cars. They were oblivious to the benefits of connected car technologies and failed to see how the digital transformation can enhance their day-to-day lives. The ratio will undoubtedly be higher in the Indian scenario.
Lack of product exposure and the inability to create awareness are the reasons behind the failure to monetise this innovative in-car technology. If customers remain in the dark and miss out on the advantages of connected cars, auto brands should take a step back and reevaluate how they market the benefits of car connectivity. If they fail to do so, new entrants and tech giants such as Google, Uber, and Apple will soon gain the market monopoly, and OEMs will risk losing the ground. The findings from a Capgemini survey validate this probability - About 57% of the survey respondents indicated that they would buy a car from a technology company (such as Apple or Google) if that were an option. The number hops to a whopping 78% in emerging markets.
Bridging the gap between car connectivity and cost efficiency, protection, and better in-car experience is the best way forward to improve sign-up and subscription of connected car features. It will open new revenue streams, diversify core services, boost profitability, and help stay ahead of competitors who own the larger pie of market share. Initiating the continual usage of connected features will enhance subscription renewals and lessen the prevalent scepticism and unawareness.
Real-world relevance is the key to unlock the market potential and growth of every product or service. Connected car features are no different. From safety to driver assistance, hands-free support, maintenance alert, anti-theft features, and in-car-payment, they have to cater to the day-to-day needs of every car owner. In the futuristic versus relevant battle, relevant will always stand out. Hence, pertinent, simple, intuitive, and impactful features and technologies are indispensable to gain competitive advantage.
On-boarding customers during testing and trials will also enhance the uptake and usage of connected car features. Time-bound and comprehensive training for dealership staff can significantly improve customer adoption and ROI. Regular updations too are integral to stay competitive and relevant. OEMs must enable over-the-air (OTA) updates to fix bugs and roll out updates globally. Cars equipped with Wi-Fi connections can leverage OTA and receive bug fixes and updates in no time.
Furthermore, from hardly palatable jargons and complex elucidations, the real-world benefits of connected cars and related technologies should be made available in chewable morsels of information that every car owner can get enough of. Can't cars be equipped with pre-loaded tutorials and digital handbooks on connectivity features?
