AutoKnowMus

01-Oct-2022

According to published reports, around 80 percent of all Electric Vehicles (EVs) are leased rather than purchased outright. After lease customers will need to return the vehicle, at which time they can either lease a new vehicle or simply return the car. However, many automakers are stopping buy-back option for customers after end of lease due to:

1. Keep battery of used EVs within the network

As automakers continue to move toward a future where EV sales are the mainstream, battery production has remained a thorn in the side of many manufacturers. Increasing costs of batteries in an EV, making automakers think increasingly to keep batteries within their own network. This will help them to plan to make their new EVs more affordable and to maintain control over battery recycling and materials.

2. Generate profit on sales of used cars

Used car prices have skyrocketed since 2020, and EVs make no exception.

EVs are at the top of the pyramid when it comes to used car values seeing as they are in limited supply. It's not uncommon to see a used EV offered up for sale at a higher price than a brand-new equivalent. So, automakers use lease returned EVs to offer as Certified Pre-Owned cars to create more customers for their brand.

3. Utilize used EVs in ride hailing services

Many automakers are developing their own or partnering with other renowned start-ups specialized in ride hailing services. With new EVs in short supply, used EVs provide more viable option for utilizing it as taxi. Some automakers who have ambitious plan for developing Full Self Driving capabilities for next gen cars can utilize used EVs as a testing car.

However, such kind of practices can sway customers away from the brand who love the vehicle and have no option to buy after lease.

So which other reason do you think will impact customers? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

28-Aug-2022

Safety recalls are just about universal these days; as vehicles get ever more complex little things are bound to come up. It doesn’t say anything about the manufacturer or the model. They are performed at the manufacturer’s expense. And some “safety recalls” are only about a technical violation of some obscure requirement that never affected the actual safety or drivability of the vehicle.

In the United States, it turns out 1-in-5 cars on the road nationwide has an open recall. There are more than 50-million vehicles on the road nationwide with open recalls and North Carolina ranks 8th among states for cars with unrepaired recall defects. Although laws prohibit the sale of new cars with outstanding recalls, it doesn’t prevent a used car from being sold with a recall in effect.

Impact on resale value:

1. No impact if recall is documented, repaired at authorized workshop and the fix made the car in a better condition.

If the problem has a legitimate fix, that can be done, and can be documented that it in fact has been done, it probably would not drop the value at all. An example might be a defective exhaust bracket and the replacement was stronger and solved the problem completely. Dealers have to provide service history with the proof of the repair done, to clarify any customer doubts & suspicion.

However, if the problem cannot be fixed at all and the only resolve was continual replacement like a defective engine design or transmission that is required to be replaced continually, it could be devastating to the value of the vehicle and make if almost worthless.

2. May impact resale value if there is a serious issue and lot of negative publicity around it.

If it's a widespread or a serious problem that instigated the recall, hits the news like the wildfire, it can kill the car model and/ or the brand. If there is enough bad publicity through the news media it can have a tremendous effect on resale value.

So which other factor do you think will impact the resale value of car if it has safety recall in the past? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

21-Aug-2022

What is Lithium

Lithium is a chemical element with the symbol Li. Lithium and its compounds have several industrial applications, including heat-resistant glass and ceramics, lithium grease lubricants, flux additives for iron, steel and aluminum production and lithium-ion batteries. These uses consume more than three-quarters of lithium production.

Most plug-in hybrids and all-electric vehicles use lithium-ion batteries. Energy storage systems, usually batteries, are essential for all-electric vehicles, plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs).

Chile has the world's largest known lithium reserves with 8 million tons. This puts the South American country ahead of Australia (2.7 million tons), Argentina (2 million tons) and China (1 million tons).

However, Australia is the world leader in terms of lithium mine production, with an estimated output of 55,000 metric tons. Chile and China ranked second and third, with lithium production totaling 26,000 and 14,000 metric tons, respectively.

Lithium is called “white gold” because of its market value and its silver hue. In English it is known as “white oil,” a subtle but telling difference. For Latin Americans, Lithium is a precious mineral like gold and silver, both of which have been exploited in their region since colonial times.

Why Lithium is commonly used in batteries

Lithium is the lightest metal and the least dense solid element and, in the latter part of the 20th century, became important as an anode material in Lithium batteries. The element's high electrochemical potential makes it a valuable component of high energy-density rechargeable Lithium-ion (Li-ion) batteries.

Compared to the other high-quality rechargeable battery technologies (nickel-cadmium or nickel-metal-hydride), Li-ion batteries have a number of advantages. They have one of the highest energy densities of any battery technology today.

In addition, Li-ion battery cells can deliver up to 3.6 Volts, 3 times higher than technologies such as Ni-Cd or Ni-MH.

This means that they can deliver large amounts of current for high-power applications, which has Li-ion batteries are also comparatively low maintenance, and do not require scheduled cycling to maintain their battery life.

Li-ion batteries have no memory effect, a detrimental process where repeated partial discharge/charge cycles can cause a battery to ‘remember’ a lower capacity. This is an advantage over both Ni-Cd and Ni-MH, which display this effect. Li-ion batteries also have low self-discharge rate of around 1.5-2% per month. They do not contain toxic cadmium, which makes them easier to dispose of than Ni-Cd batteries.

What are the limitations of Lithium?

Global Lithium reserves are estimated at over 14 million tons, and the amount of Lithium needed to meet current goals is somewhere between 0.5 and 1.3 million tons. In 2021 Lithium extraction peaked at an industry record of 100,000 metric tons.

However, Lithium extraction is bad for the environment (any type of resource extraction is harmful to the planet). This is because removing these raw materials can result in soil degradation, water shortages, biodiversity loss, damage to ecosystem functions and an increase in global warming.

Not like CO2 comes out of the Lithium, but it does take energy to mine things — today many of those systems involve emitting CO2. Lithium-ion battery mining and production were determined to be worse for the climate than the production of fossil fuel vehicle batteries.

Last year saw Lithium prices climb on the back of strong demand from the Electric Vehicle (EV) industry, and as mentioned analysts are optimistic about the market going forward. So far in 2022, prices have increased more than 126 percent, according to Benchmark Mineral Intelligence data.

The price spike is due to the booming EV market, which is putting demand pressure on battery producers, which in turn puts demand pressure on the minerals suppliers. While the Earth has plenty of Lithium to go around, the supply needs to be extracted from brine pools and underground reserves, and current mining operations aren’t sufficient to keep up with the auto industry’s growing needs.

Indeed, hard-rock mines require three-to-five years to get up and running, while brine projects can take seven years. The time it takes from discovery to production is more than twice as long as the time it takes to set up other parts of the supply chain, like battery plants.

What EV makers can do to counter this challenge?

1. Use alternative of Lithium

While the lithium supply crunch may be the most pressing concern for the EV makers, other rare earth metals essential to EV manufacturing have also been in short supply this year. Nickel, a critical component of most Lithium-ion batteries, has seen a huge price surge in the first few months of 2022.

While it might be worth investing in now, new kinds of batteries are already being developed, which will be a better option in the future.

For about a decade, scientists and engineers have been developing sodium batteries, which replace both Lithium and cobalt used in current Li-ion batteries with cheaper, more environmentally friendly sodium.

Following new battery technologies that might replace Lithium in the future

Zinc-manganese oxide batteries.

Organosilicon electrolyte batteries.

Gold nanowire gel electrolyte batteries.

TankTwo String Cell™ batteries.

2. Mine their own Lithium

Tesla is planning to mine its own Lithium. In 2020, Tesla secured its own rights to mine Lithium in Nevada after a deal to buy a Lithium mining company fell through.

3. Develop solid state batteries

4. Recycle strategy

Retention of batteries in own ecosystem, that’s why many companies are stopping buy back of leased cars, so that batteries can be reused. All the components of a Li-ion battery have value and can be recovered and reused. Recycling Lithium car batteries is the best way to minimize the mining of new raw materials, however, they are not as easily recycled as more conventional lead-acid batteries usually found in cars.

5. Invest now in Lithium supply chain for long term

Considering the huge lead time involved for developing the supply chain, it makes sense to invest now.

In addition to these ways which one do you think will be the most feasible solution to counter the challenge of unavailability of Lithium? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

17-Jul-2022

Electric vehicles (EVs) are far quieter than their diesel and gasoline cousins. Unlike traditional combustion engines, electric motors don't require mechanical valves, gears, or fans. Only “rolling noise” from tires and wind are their main source of sound.

EVs are good in reducing air & noise pollution especially in cities where 55% of the world's population lives.

Additionally, noise pollution is one of the greatest threats to wildlife. Traffic noise suppresses frogs' immune systems. It decreases the ability of birds to communicate with each other and to detect predator threats. And it reduces terrestrial wildlife's ability to hunt, care for their young, and reproduce.

During coronavirus lockdowns in 2020, noise levels in urban environments dropped 35% to 68%. This contributed to a temporary wildlife rebound. With EVs, those reductions could be permanent.

As new technologies are coming up in new range of battery models, drivers increasingly going for silent models.

At low speeds (under 30 KMs per hour) sound levels from EVs are much lower and in the pursuit of energy efficiency to increase driving range, many EV manufacturers emphasize aerodynamics to reduce the drag coefficient. This reduces wind noise too, so that even at higher speeds, EVs can be quieter than gas-powered cars.

However, this also throws up a potential challenge, like:

1. Pedestrians safety

The inattentive sighted walkers texting in crosswalks may fail to look up from their phones without noticeable vehicle noise. While data is limited, studies suggest a link between pedestrians being distracted by mobile phone use while crossing streets and a rise in pedestrian-vehicle collisions.

2. People with sight problems

Engine sound from EVs are much lower which most humans cannot detect. One study says pedestrians with sight loss are 40% more likely to be hit by a quiet EV than one with a petrol or diesel engine.

3. Dangerous for cyclists

EVs might be the new enemy of the road cyclist, EVs are more dangerous when they approach the cyclist from behind and begins the process of overtaking.

However, many automakers are handling this challenge by implementing following measures:

1. Developing artificial sounds in a bid to make their EVs more exciting, but it would appear the muscle car will have a more dramatic soundtrack. BMW, on the other hand, says it wants to use sound to make drivers feel more connected to their electric vehicle and enhance the motoring experience.

Creating artificial noises to conform to AVAS requirements leaves car manufacturers with the opportunity to create brand sound signatures. BMW, for example, is working with a Hollywood composer to create a specific sound for its EVs. Volvo, by contrast, has opted to merely increase the expected road noise of a vehicle rather than create its own custom sound. While the sounds need to be within volume standards set by the governing regulations, what could emerge is a medley of different sounds from different vehicle makes on the road.

Cameras, which are becoming a common feature on vehicles, could allow sounds to be changed depending on the external environment.

2. Automakers are also developing warning sounds to alert pedestrians to the presence of EVs travelling at low speeds.

Some carmakers also experimented with a system that would direct sound at people in front of the car.

3. Governments such as Japan issued guidelines for such warning devices in January 2010 and the U.S. approved legislation in December 2010. The U.S. National Highway Traffic Safety Administration issued its final ruling in February 2018 and requires the EVs to emit warning sounds when travelling at speeds less than 18.6 mph (30 km/h) with compliance by September 2020, but 50% of "quiet" vehicles must have the warning sounds by September 2019. This is “to ensure that blind, visually impaired, and other pedestrians are able to detect and recognize nearby EVs.

In 2014, the European Parliament approved legislation that requires the mandatory use of acoustic vehicle alerting systems (AVAS). Manufacturers must install an AVAS system in four-wheeled EVs. Such requirement is mandatory in Australia too. The AVAS noise in some EVs is external only, so those inside the car may not even hear it.

Out of these measures which one do you think will be a most appropriate way to handle the challenge of low engine sound for EVs? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

03-Jul-2022

One of the most evident change in automotive industry is shortening of product lifecycle over past couple of decades. The average vehicle platform life cycle was about 8.6 years in the ‘80s, and since then it has contracted to a mere 6.7 years. Automakers have to generate new products more quickly, and they have less time in which to sell them to consumers, meaning that their windows for recouping development investments are shorter than ever.

The cause of this change can be attributed to 5 main factors:

1. Rapid change in technology

Today’s cars have more electronics, sensors & touchscreens compared to earlier cars with mechanical components. These features are rapidly evolving to match digital savvy customer’s preference, who like mobile type experience everywhere including cars.

Many automakers are coming up with the body material, instead of making car with traditional materials like steel, to reduce weight & increase aerodynamics for making cars more efficient. Carbon fiber is one such material which provides up to 5-10 times strength compared to steel and is much lighter.

Due to increase in advanced battery technology, Automakers, who are now turning to become Electric Vehicle (EV) makers, are launching cars with more range with shorter charging time.

These days cars are coming up with latest Advanced Driver Assistance Systems (ADAS) which are becoming standard feature even in mainstream vehicles, such as Adaptive Cruise Control, Blind Spot Monitors to name a few.

So, with growing customer need and advances in technology, the latest product launch by automakers have high chance of becoming obsolete sooner than before.

2. Global competition

Almost all the automakers have same product line-up across various geographies. As per the market demand, automakers have to launch or change their product offering to stay in the competition. This impacts other markets where the same product is used. Since many of the components from suppliers used in assembly are same across countries. Hence it is not viable for manufacturers to keep two different generations running. This results in faster product change.

3. Change in government regulations

Automakers have to adopt their product offerings with change in government regulations, which are changing sooner than before. These days, globally the focus is on controlling tailpipe emissions to meet climate control targets. So, the policymakers are incentivizing automotive companies who are offering greener technologies such as Hybrid & EVs. At the same time penalizing gas guzzlers.

Previously, authorities were concerned due to growing population of cars & declining parking spaces in cities, hence they began levying taxes on bigger size cars. This kind of tax structure keeps coming back based on their priorities.

So, automakers must follow regulatory requirements to stay in business by making product changes in time.

4. Customer awareness

Today’s customers are more digitally savvy than any other era. With the wealth of information available on fingertips, they always aspire to own anything with the best & latest technology.

Shorter mobile phone product lifecycle (1-2 years) have also played big role in their mindset. This impatient nature also has made customers question if they can change mobile within 2 years then why they can’t upgrade cars earlier (if not 2 years).

Customers are also influenced because of Social Media, where they see their friends, relatives & colleagues buying latest ride. Community living, where hundreds of families stay near each other, has also played role in building social pressure.

5. Subscription model

These days car subscription is making things easier for customers to upgrade to latest model at end of subscription period. The entire subscription model is based on today’s generation of prioritizing experience of using car than owning it by removing the hassle of car maintenance and resale at the end of usership.

Naturally customers who experience subscription model would always prefer using the upgraded model as their next preference.

Out of these factors which one do you think is the main reason for changing automotive product lifecycle? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

15-May-2022

1. Faster charging time

Solid-state batteries offer the convenience of quick recharge from 10% to 80% power in just 15 mins. In fact some companies claiming even shorter recharge time of 10 mins or less.

2. Compact size

A solid-state battery has higher energy density than a Li-ion battery that uses liquid electrolyte solution, since it doesn’t require more components for safety, thus saving more space. Hence Electric Vehicle (EV) batteries can be made smaller packing the same amount of power or same size with more power.

3. Safety

Solid-state batteries offer higher thermal stability over Lithium-ion (Li-ion) batteries because of non combustible solid electrolyte, hence they are safer & less prone to self-ignition.

It’s clear from above solid-state batteries are future of EVs and that’s the reason why many automakers have already partnered and invested in solid-state battery companies. From 2025 onwards we can expect to see many newer models of EVs come with this technology.

Out of these reasons which one do you think is the gamechanger for mass adoption of EVs? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

08-May-2022

1. Increasing Buyer Expectations:

Buyers increasingly expect basic comfort and convenience features should be a standard in a car they have paid already. Especially when these features are already offered by many auto makers as standard to differentiate their products from competition. Sometimes Dealer sales staff fails to provide certain information to Buyers at the time of purchase. Later when Buyer realize that certain features are paid after free subscription is over, its too late already, leading to their disappointment.

2. Budget Limitations:

For many buyers, cars remain as second biggest purchase after home. Many buyers often take loan to finance their new purchase (after setting aside the minimum down payment/ deposit requirement). The main source of deposit is available liquidity in their bank accounts, which often found lesser when buyers stretch their budget in the last moment. Hence they pay as one-time expecting features to be already built-in. Asking for monthly/ yearly subscriptions for extra features is a sure way to repel buyers.

3. No Impact in Resale Value:

Buyers who pay monthly/ yearly for these extra features in their cars, are not building any equity over time. Next buyer of the used car is not going to get these features as standard (unless they subscribe).

There are multiple reasons why automotive companies are implementing subscription services. The main reason among those are sure shot way of future revenue stream to compensate for their massive R&D expenses to build these features. Having multiple variants (with basic and advanced features) in the product line-up brings complexity in demand & supply forecasting & parts ordering. Various automotive brands are still figuring out what are the features which should be offered as basic and which one should be subscription based. The strategy of subscription found to work well in software services, however for big ticket items such as cars, implementing add-on subscription service remains a big challenge for now.

In such case following could be the approach of automotive companies.

1. Offer Extra Features as Free In Return of Customer Feedback

Automakers spend a fortune to collect customer feedback, conducting satisfaction surveys, updating latest customer contact details etc. For eg. extra features can be offered to Customers as free after their response to their feedback on recent Dealer visit for service, updating their latest contact information. There are endless list of data which can be collected from Buyer in return of offering free option.

2. Utilize as Retention Mechanism

Automakers can use this as way of retaining cars in their network. For e.g. next buyer would not get extra features as standard unless the second Buyer buy from their Dealer network or pay additionally as subscription. This will help to discourage private sales and sales of used cars by non-franchise Dealers. Also, it would boost Dealer’s pre-owned inventory.

3. Offer Warranty Along with Subscribed Feature

It makes no sense to ask Buyer to pay for subscription and not covering the related option under warranty. For e.g. Subscribing heated seats should also come with some protection of repair costs if it breaks down.

Out of these options which one do you think is the right approach for automakers related to subscription services? Do you think asking Buyers to subscribe is the right method. Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

01-May-2022

1. Increasing Gas Prices:

The gas prices are increasing every now & then with no uncertainty. Electric Vehicle (EV) saves huge expenses associated with filling-up fuel tanks & provides hedge against future gas price fluctuations. Many companies are encouraging their employees to use EVs during their business trips to save on fuel expenses.

2. Low Maintenance Expenses:

EVs have fewer consumable parts compared to conventional Internal Combustion Engine (ICE) cars. For example, there would be no requirement for an air filter/ fuel filter/ oil filter change, no frequent engine oil top-ups, in most cases replacement of brake pads, tire rotation & wheel alignment would suffice. Hence periodical visit for EV to service workshops for regular maintenance will be less frequent compared to ICE cars. Which means less downtime for companies who have EVs in their fleet. Companies can optimize keeping back-up cars in order to keep business running during this downtime.

3. Higher Resale Value:

EVs will offer higher resale value compared to ICE due to lesser engine related concerns of next buyer. To discourage users to use ICE and meet clean climate goals, Governments or authorities expected to increase tax, levy additional fees on existing ICE users. This will further reduce demand of used ICE cars, which would reduce their resale value.

4. Higher Replacement Period:

Many EV makers are offering 10-year warranty. However traditional ICE cars still come with maximum warranty of 5 years. In order to avoid high maintenance costs post warranty period, companies often replace their fleet with new before 5 years. With EVs replacement period can be extended, which will further drive down costs for companies.

5. Attractive Deals from EV makers:

New EV makers (especially non-traditional automakers) who wants to reach to wider audience prefer to sell to rental companies in bulk so that they can get more users to try their cars before they buy (like giving prospective buyers an extended test drive). Rental companies can negotiate to buy these cars at a good deal, which can help to reduce their acquisition costs.

Out of these reasons which one do you think is a significant contributor in decision making of rental companies for their preference towards EVs? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

24-Apr-2022

With increasing gas prices, customers are tempting towards buying Electrical Vehicle (EV) as their next purchase. However, range anxiety is a key deterrent. So prospective EV buyers believe EV with highest range is the way to go. The issue is higher the range, higher the price of an EV. Often customers face the dilemma of what should be the optimum combination of range to price which they are willing to pay.

Price of an EV is directly proportional to the battery capacity (expressed in kWh, the amount of energy that can be stored), since battery contributes around one-third the cost of EV. However, for customer, range matters & not the battery capacity. Many believes range available to the driver is higher if the battery capacity is high, which is not always correct.

There are multiple factors affecting EV range such as high-speed driving (higher battery depletion rate), external whether conditions (range drops at very low outside temperatures & vehicle’s heater is in use and higher temperatures with combination of air conditioning) and heavy weight (higher battery depletion rate when operating with a full load of passengers and cargo. All else being equal, a heavier vehicle will consume more energy to reach and maintain a given speed than will a lighter one). Hence range available to EV user and claimed range by EV makers (based on testing in ideal environment) will vary most of the time.

If EV users know that they will find fast charging station within few minutes, then excessive range would become less important to them. However, if all EV makers work with Governments (instead of competing against each other) to increase charging infrastructure, then EV makers don’t have to make high investments in R&D to increase EV range, since every mile of all-electric range adds about $500 to the initial cost of EVs. So instead of prioritizing improving range, focus should be on increasing charging infrastructure (while working collaboratively with various Governments). For faster adoption of EVs, low initial cost & availability of charging facility is essential.

The heavy competition among EV makers to increase EV range, do you feel the approach is justified? Or development of supercharging network should be the priority? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

17=Apr-2022

1. High cost of building Battery Swap Stations. It will require acquisition of land in densely populated, expensive city centers. Additional resources would be required to park cars in perfect positions unless all EV makers planning to develop automatic/sensor-based parking system. Maintenance would also be a challenge due to frequent usage by all type of cars & storage of batteries in swap stations. Nearly 10 Superchargers can be installed at the cost of one swap station (10 Superchargers can charge 20 cars in 1 hour assuming 30 mins of charging required per car instead of 1 Battery Swap Station which can charge up to 12 cars assuming 5 mins of battery swap time taken for each car).

2. Battery Swap Station would require all Electric Vehicle (EV) makers to standardize specifications and size of a battery. Currently all EV makers are doing Research & Design (R&D) separately to improve battery technology. Hence standardizing battery design will make every EV maker to start their R&D from scratch. If their battery specifications are different then every EV maker must come out with their own branded swapping stations (for e.g. Volkswagen Battery Swapping Station, Hyundai Battery Swapping Station etc.), which no customer will like. Some EV makers like Tesla planning to make battery as structural part of car, which will make batteries non-removable. This is also one of the reasons why mobile phones these days come with non-removable batteries.

3. Many customers would have apprehensions regarding quality of replacement battery, which will deter them to swap their lightly used / carefully used battery with unknown battery quality. In case of fire due to battery quality who would be held responsible – Driver, EV maker or Battery Swap Operator?

4. Many customers would not mind 20-30 mins of charging time through Superchargers, which should be enough for taking toilet & coffee break unless they are rushing to catch-up important appointment.

5. Evolving battery technology every now & then would make the old Battery Swap Station obsolete. NIO has launched Version 2.0 Power Swap Station within a year of launching 1^st version. Advanced solid-state battery technology is expected to further reduce the charging time to 15 mins, this will make charging a battery more convenient for customers.

In spite of all these deterrents, there are few arguments which are in favor of Battery Swap Station, such as:

1. Battery swapping is faster & convenient, it takes only 3-5 mins. Frequently used vehicles (e.g. Commercial vehicles, Taxis, Delivery vans etc.), where charging hinders revenue opportunities & faster deliveries would find it beneficial.

2. Reduction of initial cost is necessary for faster adoption of EVs to meet the goals of net zero emissions set by various Governments. In this regard, EV makers coming up with “Battery-as-a-Service” (BaaS) model, where initial price of EV will be without battery and customer can take monthly 6 battery replacement at fixed monthly cost. This will reduce the initial buying price of EV (since battery comprises significant portion of EV costs).

3. Some experts believe that fast charging reduce battery life over time, hence Battery Swap Station would be an ideal way where batteries can be charged at their normal speed.

4. Battery Swap Station can help in recycling depleted batteries in socially responsible methods with Governments complied policies.

5. Many EV users stay in apartments, which do not have charging units installed for overnight charging. This is probably the reason why Battery Swap Stations are gaining traction in markets with high population density and large distances where installation of charging network is cumbersome.

With the above justification do you still feel battery swapping is the way to go? Or Supercharging EVs is far better option? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

06-Aug-2022

A dashboard camera or simply dashcam, also known as car digital video recorder (car DVR), or event data recorder (EDR), is an onboard camera that continuously records the view through a vehicle's front windscreen and sometimes rear or other windows.

Many car dealerships provide dashcam as additional accessory when buying new car. Dashcam offers several benefits to the customers, such as:

1. Recording of accident for insurance claim

Dashcams document driving and enable to record anything that happens on the road. Many dashcams can also record audio to compliment the video recordings, featuring built-in microphones and speakers. These recordings can be used to support evidence in the result of an incident and also protects insurance companies against fraudulent claims.

2. Act as GPS tracker

If a car ever break-down, a dashcam can act as a GPS tracker which can help the emergency services to find location.

3. Lower car insurance premium

Few insurance companies offer discount in premiums if dashcam is installed. This is done to incentivize their customers for using dashcam.

4. Monitor theft in parked car

Some dashcam start recording mode in parked car as soon as any motion is detected. This feature can help the car owner to report the incident to police with clear evidence.

5. Discourage bad behavior of other drivers

The presence of any dash cam – front or rear – also help discourage bad behavior from other drivers who don't want to be caught on video. This can make a rear-end accident less likely.

6. Records surroundings of parked car

Many a times insurance claims are registered for accident on a parked car. A dashcam is great at recording car's surroundings, which can help the car owner to give evidence during insurance claims.

7. Document road trips, scenic views

Having a dash cam can help to document road trips and scenic drives, helping to capture memories in a new way.

8. Act as driver assistance system

The highest variant of best dashcams often include night vision technology, blind-spot viewing, lane-departure warning. These features are often available as standard in many new cars. Installing dashcam with these features can upgrade car with old technology.

9. Support as parking aid

Some advanced version of dashcams provide 360 degree view of surroundings to the driver which assists in parking in tight spots.

10. Monitor the behavior of teen drivers

Having dashcam can help parents to monitor the driving behavior of their young drivers. Which can also be used to correct their driving style before they become habits.

However, dashcam can also be helpful for insurance companies to encourage drivers to drive cautiously and reduce false claim. In order to increase acceptance of dashcam, insurance companies can promote it through several ways, such as:

1. Offer discount on dashcam during new car purchase.

2. Offer discount on insurance premium if customer has dashcam installed.

3. Offer higher No Claim Bonus (NCB) every year for using dashcam.

In addition to these methods which one do you think will be the most feasible ways to increase the penetration of dashcam among drivers? Please share your comments and feedback on autoknowmus@gmail.com. Thank you!

11-Sep-2022

Majority of cars bought today are through loans as buyers feel more comfortable in paying monthly installments which is more convenient than arranging entire amount by cash. However, few borrowers default in loan payments, due to:

1. Willful negligence

2. Lack of willingness to repay

3. Diversion of funds to other functions

4. Improper credit appraisal by finance provider

The default is loan payments is called delinquency. But what happens when delinquency occurs:

1. When the loan borrower is delinquent, generally they have 30 days from the due date before serious actions occur and are charged a late payment fee and are required to make the missed payment plus the fee.

2. Two or three consecutive missed payments can lead to repossession, which damages the borrower’s credit score. And some lenders have adopted technology to remotely disable cars after even one missed payment.

Through tracking 90-day delinquency rate, lenders can take serious measures for loan recovery. It captures borrowers that have missed three or more payments. This rate measures more severe economic distress.

One of the last measures which lender take is repossessing the borrower’s car. Partial payments may extend how long the lender can wait before sending out the tow trucks, but in the end if the pending payment is still not made, borrower cannot keep the vehicle.

If the total loan payment is done more than a third of the agreement, or if the goods are stored on private land or inside home, lender will need a court order before they can repossess them. Laws of car repossession varies in different markets.

Lenders sell repossessed cars at auction, and if it doesn't recoup the remaining balance of the loan financing it, borrowers owe what's called a "deficiency balance." Ultimately, the lender could sue borrower for the money they owe. A lien could be put on borrower’s home.