Secret sauce that’s proven Automotive companies to be Timeless and Enduring by Kishor Patil KPIT Co-Founder, MD & CEO

Here’s from Kishor Patil KPIT Co-Founder, MD & CEO on the centuries that’s passed by Automotive Industry.

A study states that the Biggest 10 companies at the beginning of the 19th century and the 20th century had only one name in common and that was GE, founded by great Edison.

However the automotive industry worldwide, has a very different story to tell over the last century:

  • Ford and Rolls Royce were the first real car manufacturers and changed the initial trend of only sourcing and assembling parts.
  • Post the Great depression of 1921, Big Three of Automobile emerged after much consolidation: Ford, GM and Chrysler.
  • Through WW2, post heavy consolidation – the above 3 Big Autos remained leaders with the addition of AMC as a big player.

It’s interesting to note that in the last 100 years, despite economic, technological and social disruptions, the names that sit on top of an industry are the same few.

  •  The German auto industry that revived itself post WW2 with Volkswagen and then brought in luxury car segment with Audi and BMW leading the pack.

All these companies continue to dominate after a century as well.

  • Towards the 1970s Korean brands like Hyundai, KIA and Daewoo emerged and controlled a large chunk of the market and are a global brand.

There have been few regional players in Russia and of course in China.

There are also a few scale players that have emerged in China.

If we look at companies selling more than few million vehicles there is consistency in brands.

The future of the auto world is already starting to make an appearance with makers like Tesla introducing the first new generation electric car, CyberTruck with next level tech and design. While they are selling only 125000 cars a year, they have a clear space carved out for themselves.

What is for us to watch now is:

Whether specialized and segmented is the way to go and grow?

OR

Will history repeat itself with consolidation by the big names; who have the power of muscle, brand and widespread manufacturing capabilities?

What is your guess?

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