RE-ACT — A model for the evolution of the ‘Car of the Future’

  1. Ride Sharing: Increasing traffic, changing life style, and Uber effect has made ride sharing a cool thing to do. With rapid urbanization, this will advance with more and more people relying on another form of transport to travel from one point to the other. This increase in volume will lead to ‘Economies of Scale’ bringing more riders to the platforms.
  2. Electrification: While a few years ago it was unthinkable to have a transportation system that could run without gasoline, Tesla and now NIO have proved the viability of the model. While, it can be argued that it will take many years for battery technology to be perfect and to completely replace conventional cars, the question is less of ‘If’ and more of ‘When’. No wonder other car manufacturers are jumping to join the bandwagon.
  3. Autonomous: Development of self driving vehicles that will navigate the complex territory on their own. The autonomous driving level is graded on a scale of 0 to 5 by SAE (Society of Automation. L0-Dumb car; L1-Lane assistance, Radar based cruise control; L2-Steering and handling acceleration, Nudge the car to left or right, Self park feature, Driver always ready to intervene; L3-Can drive along a pre punched path, Limited fail safe, Human driver to instantaneously take over; L4-Drive almost on its own except on busy highway merger, In tricky situations abort the drive by parking; L5-Complete Autonomy -No steering wheel. We currently stand at a level of L2 -L2.5. While Tesla X is capable of L3, regulations do not permit that as of today. Tesla will have to wait for a few more years before it can push the SW update. NIO on the other hand has promised an L4 Car (NIO EVE) by 2020.
  4. Connected : As more car manufacturers adopt autonomous technology, the need for cars to connect with environment will increase. The below infographic from Qorvo captures the idea of connectivity (V2X). Connected Cars will support V2P — Vehicle to Pedestrian (Sensing the Pedestrian, Sending or Receiving signals), V2H — Vehicle to Home (Cars will interact with smart homes to unlock the door as you arrive etc.), V2N — Vehicle to network (Connecting Vehicle to the cellular infrastructure and the cloud), V2V — Vehicle to Vehicle (Sending signals to the car around ), V2I — Vehicle to Infrastructure (Ability to communicate with traffic lights — Covered in next part) among the most prominent features.
  1. Smart Vehicle Chip Manufacturers — NXP, Nvidia, Intel, And Qualcomm — The car of the future will require intense computational power.
  2. Electric vehicle companies — Tesla, NIO, Byton (Yet to prove), and Rivian
  3. Ride Sharing players — Uber, Lyft, Didi
  4. Autonomous driving technology manufacturers — Waymo (Google), NIO, Uber, Nvidia, Cruise Automation,, Aurora. These will be the real winners. As more and more data will be generated by smart vehicles, these companies will have huge advantage over other players in the sector.



-- — Chief Product Officer @ Vista Global | MBA, UC Berkeley

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Vinay Roy

Vinay Roy — Chief Product Officer @ Vista Global | MBA, UC Berkeley

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