Automotive industry regulations have become ever more stringent across the globe this decade, making compliance increasingly challenging. Going forward, current regulatory policies will become even more rigorous as both governments and consumers move towards more environment-friendly vehicles, and regulatory bodies impose higher penalties on OEMs for not producing vehicles that help reduce our global carbon footprint. Cybersecurity- and software-related certifications have become equally critical.
As ARC Advisory Group recently learned, TCS is addressing the next generation of automotive and mobility regulations with its Global Regulatory Solution Framework. This is designed to enable automotive manufacturers to achieve global compliance effectively and with the transparency now demanded by regulatory authorities. The TCS Global Regulatory Solution Framework can help automotive industry OEMs achieve the goal of safe, secure, and environment-friendly vehicles.
Resilient, adaptive, and intelligent enterprises drive many of the current global megatrends in the mobility industry. TCS’s Neural Manufacturing approach recognizes that many of these enterprises function as an intensely networked set of partners aligned to a common purpose. The value chain and ecosystem are responsive, adaptive, and personalized, with intelligence built on the edge of the networks. In line with the TCS Neural Manufacturing Thought Leadership Framework, the Automotive Global Regulatory Solutions framework focuses on working with partners to align to the common purpose and goals of compliance in a responsive and agile fashion.
Automotive Industry Faces Rapid Change and Complexity
The automotive and mobility industry is at a point of significant change due to several factors. These include a highly competitive business environment; changing and evolving markets; and more complex design and manufacturing due to systems integration of software, electronics, and autonomous systems. The automotive industry is dealing with emerging mobility-centric business models, pressures to reduce costs, ongoing merger and acquisition activities, and global trade issues.
Consumers are demanding superior products in terms of design, performance, and safety, and global business and industry recognize the urgency to deal with global warming and greenhouse gas (GHG) reductions. Car makers will have to deal with this business environment and a very complex regulatory landscape across the globe.
Regulatory Compliance Is Strategic for Automotive Companies
Most countries and governing bodies have set very aggressive environmental goals, ultimately targeting zero emissions starting in a few years. The EU for example, established a fleet-wide average emission target of 95g CO2/km for new cars. The curve is set in such a way that the targets for the EU fleet-wide average emissions are achieved. In 2020, the emission targets applied for each manufacturer’s 95 percent least-emitting new cars. From 2021 onward, the average emissions of all newly registered cars of a manufacturer will have to be below the target. If the average CO2 emissions of an auto manufacturer exceeds the target in a given year, that manufacturer must pay a penalty of €95 for each exceeding CO2 gram/kilometer for each of its cars registered since 2019. Clearly, the manufacturers have a great incentive to avoid these penalties.
The growing dominance of software has helped modern vehicles become “computers on wheels” and cybersecurity has gained strategic importance in view of car security and safety and the user data protection. This is also now governed by cybersecurity regulations.
The increasing count and stringency of automotive regulations increases the complexity. This is because:
- Each market has specific regulatory requirements with respect to emissions and these are constantly evolving and changing.
- As automotive companies transform their product mix from internal combustion engines to hybrid and all-electric vehicles, emissions strategies and its roadmap will change significantly.
- Test requirements for the new product mix brings additional complexity in terms of calibration, performance, efficiency, and drivability.
TCS Automotive Global Regulatory Solution Framework
To help address the regulatory compliance challenges facing the automotive industry as well as the changing form factor of vehicles from internal combustion engines to all-electric vehicles, TCS has developed a scalable, lightweight solution framework. This can be deployed in a greenfield or brownfield environment using COTS products or bespoke development via agile delivery. The TCS Automotive Global Regulatory Solution Framework has several features that address planning, testing, and final approval. These include:
- A resilient, lightweight modularized solution framework for the automotive sector that can be tailored to fit customer requirements
- An adaptive, market-specific “worst-case” matrix formulation
- A customizable master feature configurator to uniquely identify vehicle derivatives
- The solution framework can be deployed in multiple scenarios via agile-based development to address:
- Emission certifications
- Whole vehicle type approvals (WVTA)
- COP certificates (compliance)
- Supplier certificates
- Regulatory approvals of vehicle sub-assemblies (body, chassis)
- Cybersecurity and software updated
- Configuration based on market-specific regulatory requirements (EU6, China 6, Bh-6, CARB, EPA etc.)
This comprehensive framework offers the potential to deliver significant business benefits, not only in terms of transparency and efficiency but also in reducing the time to product launch, an important measure for the automotive manufacturers.
TCS is offering its Automotive Regulatory Solution Framework at a critical time of transitional change across the global automotive industry and markets. Manufacturers are dealing with industry-altering changes like the transition to electric vehicles, autonomous vehicles, battery lifecycle, GHG reduction, and safety. All require a new set of standards and regulatory requirements. ARC believes this framework is both timely and needed by the automotive industry.
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Keywords: Regulation and Compliance, GHG Emissions, Autonomous Vehicles, Safety, Regional Standards, Cybersecurity, Neural Manufacturing, ARC Advisory Group.