🚠Autowist Report 92

Windscreen displays, Indian automotive sector resilience, CATL Q3, Autoliv Q3, Route guiding system patent

Author

Harikrishnan Radhakrishnan
October 21, 2024

IN TODAY’S REPORT

💼BRIEFING

Top insights and analysis that is moving the needle in the automotive industry

The dominance of touchscreens in cars has raised safety concerns as they can distract drivers. Automakers are now exploring new ways to integrate displays and controls, with Hyundai Mobis and German optics company Zeiss teaming up to develop a "Holographic Windshield Display." This technology aims to turn the entire windshield into a screen, offering a broader heads-up display (HUD) experience that could include navigation, entertainment, and communication features, eliminating traditional in-car display screens.

The system would project holograms onto a transparent film on the windshield, allowing drivers to see essential information while passengers could watch videos or play games on the same screen without obstructing the driver’s view. Voice and gesture controls are expected to operate the system, aligning with trends toward hands-free interaction.

Hyundai plans to launch this technology by 2027, potentially offering a safer, less distracting alternative to touchscreens by focusing on streamlined information projection and improved control mechanisms. The success of the system, however, will depend on how well it reduces distractions while driving.

  1. Choosing windscreen based solutions citing the safety concerns of using displays is a step backwards. The primary problem being that windscreens need to let light in. Which means it is incredibly hard to ensure contrast of visual elements. Imagine a truck that is having it’s long distance beam ON and is driving towards you, seeing' the cluster in that situation could be really a hit or miss.

  2. Another problem I see with this approach is Hyundai’s bet on Voice to be the primary modality of control in this solution. Let’s face it, voice is not as good as OEMs or suppliers have claimed it to be.

  3. Using such a solution together with existing cluster and infotainment systems is a better trade-off.

Resilience of Indian Automotive Sector (Link)

While global markets faced disruptions due to COVID-19 and semiconductor shortages, Indian OEMs displayed resilience by securing semiconductor supplies, despite lower purchasing power and fewer vehicle features.

  1. Market Potential: India is the 3rd largest in light vehicle sales and 4th in production, with only 38 vehicles per 1,000 people, presenting a massive growth opportunity.

  2. Production Expansion: Light vehicle production is forecasted to increase from 6.8 million units in 2023 to 10 million by 2031, supported by strong demand and export growth.

  3. Global Opportunities: India is well-positioned to fill gaps left by US and EU tariffs on Chinese EVs, with steady production growth expected at 4% annually through 2031.

  4. Infrastructure Gaps: Limited charging stations and a developing EV ecosystem are key challenges to faster EV adoption, along with high costs for early-stage EV models.

Source: Bloomberg

Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest EV battery maker, reported lower-than-expected net income for Q3 2024, reflecting a slowdown in global EV sales. Net income rose 26% year-on-year to 13.1 billion yuan ($1.8 billion), but missed analysts' projections of 14.7 billion yuan. Revenue also fell sharply by 12.5% to 92.3 billion yuan, below the expected 118.4 billion yuan. The decline is attributed to automakers like GM and Ford scaling back EV production amid slowing demand, particularly in markets like Japan and Germany.

Despite these challenges, CATL maintains a strong position with a global market share of 37.1%, up 1.6 percentage points from last year, and dominates the Chinese market with a 44% share. The company is also benefiting from greater supply chain control, which helps reduce costs, and the growing adoption of lithium-iron-phosphate (LFP) batteries. CATL is diversifying its business, with its energy-storage segment becoming a new growth driver and developments in fast-charging and high-powered batteries, including a potential battery for electric aircraft. The company’s shares have risen 55% this year.

TSMC Update: Automotive

  • The automotive platform is about accounts for 5% of the revenue in this quarter

  • The automotive platform has had a 6% growth rate

Autoliv Q3 Earnings Call Summary

1. Financial Performance: Autoliv reported EPS of $1.84, missing estimates by $0.15, but revenue of $2.56 billion beat expectations by $17.68 million. Despite weak light vehicle production globally, Autoliv managed to outperform the market by focusing on cost reductions, improved labor productivity, and strategic compensations.

2. Cost Management: The company effectively reduced its direct workforce by 6% and is progressing on its plan to reduce its indirect workforce by up to 2,000 people, targeting savings of $50 million for the year. Continued efforts to negotiate inflation compensation have helped stabilize earnings.

3. Market Challenges and Regional Variances: Global light vehicle production declined by 5% in the quarter, with significant regional differences. Production reductions were seen in North America and Europe, while China saw growth due to incentives and subsidies for domestic OEMs. Autoliv’s sales growth was hindered by an unfavorable production mix.

4. China Focus: Autoliv’s growing partnerships with Chinese OEMs were emphasized, as it secured new contracts and increased its market share with Chinese carmakers, particularly in the new energy vehicle (NEV) market. The company expects continued strong performance from this sector into 2025.

5. Shareholder Returns: Autoliv continued strong shareholder returns by repurchasing 1.3 million shares in the quarter, and it remains committed to a high level of returns, supported by a strong balance sheet and solid cash flow performance.

6. Outlook: The company reiterated its adjusted operating margin guidance of 9.5% to 10% for 2024 but expects to land at the lower end due to market conditions. It anticipates an improvement in profitability in Q4, driven by seasonal factors, cost-saving initiatives, and better light vehicle production volumes.

Overall, Autoliv demonstrated resilience in challenging market conditions through strategic cost management and a growing focus on China’s NEV market, while maintaining a strong commitment to shareholder value.

⚡ROUNDUP

Key headlines shaping the auto industry this week

  • GM will start making money on EVs this year, says CEO (Link)

  • Tesla's Cybercab Wireless Charging Video May Tell Us A Lot (Link)

  • GM invests $625M in lithium production capacity (Link)

  • Porsche 911 GT3 made "more exhilarating" for 25th birthday (Link)

  • Ford Asks EV Customers To Stop Using Tesla NACS Adapters (Updated) (Link)

  • Tesla releases closer look at its upcoming wireless EV charger (Link)

  • Tesla’s FSD regulatory approval is delayed again in China (Link)

  • Rivian, Bosch point fingers in lawsuits over production woes (Link)

  • CATL reports big miss in quarterly income as EV demand cools (Link)

  • Autoliv's profits meet expectations as supplier outperforms global light vehicle market (Link)

  • How GM is using AI to catch quality problems (Link)

  • Brand loyalty evaporating as new car makers arrive en masse (Link)

  • Lucid leans on Saudi Arabia ahead of SUV launch (Link)

  • Forget Screens. Hyundai Wants To Bring Controls To Your Windshield (Link)

  • What to do when you see a check engine light in your 2024 Mercedes-Benz (Link)

  • Tesla releases new mobile app update with more offline commands, power meter, more (Link)

🔬PATENTS

Fresh Innovations from global automotive OEMs

Route Guiding System based on Augmented Reality by LG Electronics

The invention is a route-guiding device that helps drivers navigate using augmented and mixed reality (MR). It connects to a cloud server to access real-time maps and information. The device uses vehicle-mounted cameras and sensors to capture road images and monitor driving conditions. Based on this data, it overlays virtual objects onto the camera's live view to provide navigation cues on the car’s display. Additionally, it can replay past driving routes under certain conditions, enhancing the navigation experience. Powered by AI, the system offers dynamic and interactive guidance for drivers.

Key features include:

  1. Core Components: The device communicates with a cloud server, receives road images and driving data from vehicle sensors, and renders MR-based navigation cues on the vehicle's display. It can also replay a past MR view image when certain conditions are met.

  2. Point of Interest (POI): MR view images may display a POI, and the replay function can be triggered when the vehicle passes a POI.

  3. Replay Card: A replay card, containing a thumbnail or other POI-related information, can be overlaid on the MR view image and selected by the user to trigger the replay.

  4. Trigger Conditions: The replay function can be activated when the vehicle stops, nears a destination or intersection, or interacts with a POI on the MR display.

  5. Digital Twin: The MR view uses a real-time digital twin map and can adjust the perspective to focus on specific objects like POIs.

  6. POI Centralization: The system can zoom in on a POI, centering it as the vehicle approaches.

  7. Thumbnail Generation: The device captures a thumbnail image when the vehicle approaches a POI and generates it as a replay card.

  8. Replay Card Content: The replay card includes details like the POI’s name or address.

  9. Sequential Replay Cards: The device generates multiple replay cards as the vehicle passes different POIs.

  10. Replay Function: When selected, a replay card triggers an MR view of the vehicle’s past travel near the corresponding POI.

  11. Display Options: The replay can appear overlaid on the MR view or as a pop-up window.

  12. Additional Information: The replay image can include service information about the POI and route-setting options for traveling to the POI.

This system enhances navigation by combining real-time MR guidance with interactive replay functionality, centered around POIs.

🐦AUTO BUZZ

Top posts, tweets, and videos from the automotive industry

📈MARKET SNAPSHOT

This week’s key movers in the automotive stock market

📆CALENDAR

Upcoming auto industry events and and earnings calls