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COVID-19 has hastened the shift towards connected and autonomous vehicles

Lockdowns and policy restrictions have strained transportation, global supply chains, and more. Smart, highly connected vehicles enable a new way to be mobile, offering increased autonomy. COVID-19 has made such connected and autonomous vehicles (CAV) much sought-after. The pandemic has impacted the automotive sector globally as follows:

  • AVs in geo-fenced areas: Use of contactless delivery will lead to faster adoption of AVs in constrained environments like airports, hospitals, etc.

  • Fall in oil prices: This will increase long distance journeys in personal vehicles and will impact electrification programs.

  • Shared mobility: Social distancing and hygiene concerns will see a drop in these services.

  • R&D spend: To balance budgets, firms will turn to ecosystem partnerships.

  • E-commerce and supply chain: AVs will be used for deliveries and can augment a connected supply chain.

  • Investments in CASE: Despite falling demand in automotive products, strategic projects like CAVs remain a priority.

Laksh Parthasarathy

Managing Partner and Global Business Head, Connected and Autonomous Vehicle Development and Validation Services, Manufacturing, TCS

Vignesh Amur

Automotive Domain Consultant, Connected and Autonomous Vehicle Business Group, Manufacturing, TCS

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