Wipro Report Reveals the Top Three Automotive Transformation Priorities

Rhea-AI Summary

Wipro surveyed over 100 North American automotive CXOs to assess the industry's readiness for the transition to electric vehicles (EVs) and software-defined vehicles (SDVs). Key findings revealed that 70% of executives are prepared for these shifts, with 63% ready for a digital customer experience. Additionally, 81% anticipate decreasing battery technology costs by 2025, while 53% of OEMs are considering vertical integration to address supply chain challenges. The survey highlights a trend towards new business models, emphasizing the importance of collaboration among traditional auto companies and tech firms.

Positive

• Over 70% of automotive CXOs are prepared for EV transition and SDVs.
• 81% expect battery tech costs to decrease by 2025, indicating price parity growth between ICE and EVs.
• 53% of OEMs are exploring vertical integration to resolve supply chain issues.

Negative

• 53% cite regulatory issues as a major challenge in developing future vehicles.

Electric vehicle transition, software-defined vehicles, and digital customer experience top the priority list

NEW YORK & BANGALORE, India--(BUSINESS WIRE)-- The North American auto industry is undergoing a paradigm shift. The electric vehicle (EV) transition is ongoing, but far from complete. Software-defined vehicles are challenging original equipment manufacturers (OEMs) to think like tech companies, and customers expect both a smart digital-first retail experience and an instantly updatable vehicle that feels like a new car every day.

Seeking to understand automotive executives’ readiness for this shift, Wipro (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, surveyed 100+ North American automotive CXOs to measure the industry’s plans and predictions for EVs and internal combustion engine (ICE) vehicles.

The survey found that:

• Auto CXOs are prepared to execute the three identified components of the automotive future, with more than 70% prepared for EV transition and software-defined vehicles (SDVs), and 63% feeling prepared to execute the digital customer experience.
• Price parity between ICE and EV vehicles is expected to continue growing closer, with 81% expecting battery tech costs to decrease between now and 2025.
• To prepare for this industry shift, 53% of OEMs are exploring vertical integration to solve supply chain issues, and nearly 70% of industry CXOs are enthusiastic about new business models such as battery-as-a-service, swapping, and data monetization from battery health monitoring systems.

“The automotive industry and vehicles of the future are undergoing an unprecedented transformation. The industry is adopting to new ways of innovation and new business model creation, that is helping automakers steer towards development of software-defined vehicles for digital native customers . Between now and the end of this decade, we expect the automotive industry to converge into a technology-led ecosystem built on sustainable business models, enabled by cross-sector coopetition, and designed to deliver intelligent and customer-centric mobility solutions,” said Ashish Saxena, Senior Vice President & Sector Head, Manufacturing and Hi-Tech, Wipro Limited.

Changes that may lie ahead

About 45% of respondents predict that tech giants will take the lead in future auto retail. For traditional auto companies to succeed in this new environment, balancing ecosystem collaboration and competition between manufacturer, supplier, and technology companies will be imperative.

While EV stakeholders agree on the need for collaboration, they differ in their approaches, citing joint ventures, mergers and acquisitions, and joint R&D as their key strategies. Further, 53% cite regulatory issues as a prime challenge when it comes to developing future vehicles.

“Our study found multiple coopetition-driven opportunities in the EV ecosystem,” said Jaydip Mukhopadhyay, Vice President, Automotive North America, Wipro Limited. “Whether it’s gigafactories of the future, cloud-enabled battery management systems, vehicle-to-grid integrations, or wireless charging and commercial EV fleet solutions, a collaborative approach by OEMs and technology partners will ultimately deliver the greatest value to all parties.”

To learn more, please find the full report here.

About Wipro Limited

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realize their boldest ambitions and build future-ready, sustainable businesses. With over 250,000 employees and business partners across 66 countries, we deliver on the promise of helping our customers, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at www.wipro.com.

Forward-Looking Statements

The forward-looking statements contained herein represent Wipro’s beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro’s control. Such statements include, but are not limited to, statements regarding Wipro’s growth prospects, its future financial operating results, and its plans, expectations and intentions. Wipro cautions readers that the forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, complete proposed corporate actions, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our business and industry.

Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission, including, but not limited to, Annual Reports on Form 20-F. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005576/en/

Media Contact:

Sanuber Grohe

Wipro Limited

sanuber.grohe@wipro.com

Source: Wipro Limited

FAQ

What are the key findings of Wipro's survey on the automotive industry?

Wipro's survey found that over 70% of automotive CXOs are prepared for the transition to EVs and SDVs, with 81% expecting reduced battery costs by 2025.

How many executives participated in Wipro's automotive survey?

The survey included over 100 North American automotive CXOs.

What challenges do OEMs face according to Wipro's survey?

53% of OEMs identified regulatory issues as a significant challenge in developing future vehicles.

What is the expected trend for battery technology costs by 2025?

81% of respondents expect battery technology costs to decrease, improving price parity between ICE and EVs.

How is Wipro addressing the automotive industry's digital transformation?

Wipro focuses on innovative solutions to enhance the digital customer experience and support the transition to software-defined vehicles.