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- FMG, Beijing Automotive Group, China Motor, and Daimler has a joint venture called Fujian Benz.
- With 19.3 million units manufactured in 2012, China almost doubled the U.S. production of 10.3 million units, while Japan was in third place with 9.9 million units.
- Samsung’s ADAS solutions are designed to enhance safety and convenience as drivers navigate a wide range of road conditions.
- It is also expected that this trend will continue, especially as the younger generations of people no longer want to own a car anymore, and prefer other modes of transport.
The Indonesian government also has high hopes for the country’s car exports , particularly since the implementation of the ASEAN Economic Community , which turns the ASEAN region into one single market and production area. The AEC should unlock more opportunities for exporters as it intensifies regional trade. Once technological and regulatory issues have been resolved, up to 15 percent of new cars sold in 2030 could be fully autonomous. Electric starter, a significant innovation in promoting the acceptability of the gasoline-powered automobile.
Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262, is considered one of the best practice frameworks for achieving automotive functional safety. Strategic Transformation, Growth And Restructuring Suppliers need to constantly re-think and transform their business design in order to stay competitive.
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Automotive Standards Effort
PSA and Toyota have a 50-50% joint venture called Toyota Peugeot Citroën Automobile Czech. Isuzu and General Motors has a 50-50% joint venture called Isuzu Truck South Africa. Dongfeng Motor and PSA Group have a 50-50% joint venture called Dongfeng Peugeot-Citroën. Dongfeng Motor and Nissan have a 50-50% joint venture called Dongfeng Motor Company.
The government set several terms and conditions for the manufacturing of LCGCs. For example, fuel consumption is required to be set at least 20 kilometers per liter while the car must consist – for 85 percent – of locally manufactured components . In exchange, the LCGCs are exempted from luxury goods tax, which allows manufacturers and retailers to set cheaper prices. On the long-term, the government wants to turn Indonesia into an independent car manufacturing country that delivers completely built units of which all components are locally-manufactured in Indonesia. Indonesia is the second-largest car manufacturing nation in Southeast Asia and the ASEAN region . However, due to robust growth in recent years, Indonesia is expected to somewhat limit the gap with Thailand’s dominant position over the next decade.
Digital Vision: Digital Insurance
Jongkie Sugiarto, Chairman of the Indonesian Automotive Industry Association , said the region east of Jakarta is selected by many car manufacturers for their production base since a decade ago as the area’s infrastructure is good . He added that it has now become difficult to find large-sized land for new factories due to the influx of many businesses over the past years. Currently, this electric motorcycle is in the massive production to produce 50 thousand units and will be in the marketplace in 2018.
The perfect storm for the Automotive Industry
Others, such as General Motors have come back to Indonesia to tap this lucrative market. However, Japanese car manufacturers remain the dominant players in Indonesia’s car manufacturing industry, particularly the Toyota brand. It is a very difficult challenge for western brands to compete with their Japanese counterparts in Indonesia, known as the backyard of Japanese car manufacturers. Car manufacturers must further differentiate their products/services and change their value proposition from traditional car sales and maintenance to integrated mobility services. We create intelligent sensing and power solutions to boost the race to a more sustainable future.
I have been working in automotive consulting for 14 years, with experience in Europe and China. Currently based in Munich, I am responsible for the global automotive consulting business and part of the global leadership team at Capgemini Invent. Jean-Marie Lapeyre works with automotive clients to develop and launch actionable technology strategies to help them succeed in a data- and software-driven world. The latest automotive SoCs also incorporate our NNA IP, augmenting GPU Compute with higher machine learning performance for everything from voice recognition to gesture control.