In association with DSK Toyota, KPIT Cummins has developed CLICKSERVICESMILE.com, an internet-based information system that will make car ownership easier for Indian consumers. 

The service aims to provide consumers with:

• Accurate information for fault detection.

• Locations of the nearest dealers for servicing.

• Ability to specify the time and date for servicing.

• Accurate estimates of servicing costs include retail prices for spare parts.

• Accurate information on vehicle data and service history, assisting the sales of used cars.

• Convenient methods of payment and accurate billing information.

The dealer pays a Rs 50,000-150,000 (US$1,100-3,200) fee a year, or in monthly instalments, but the consumer pays nothing.  The system is being trialled in Pune, India, but essentially this system could operate anywhere in the world and is later going to be rolled out to motorcycle owners as well.

This development is significant for the company as it is its first consumer-based product.

The reasons why are: 

• While its embedded software business to global players is guaranteed to grow (mainly in safety systems, efficient low-emission powertrains and infotainment), its business in the burgeoning Indian automotive industry has yet made much headway.  KPIT Cummins may receive more domestic business from vendors wanting to enter the CLICKSERVICESMILE.com market place.  In 2007, KPIT Cummins sales by region were US 61.9 percent, UK 29.2 percent and Rest of the World 8.9 percent. 

• The Indian car market is set to grow further with the recent arrival of the Tata Nano and other low-cost models, and thus expand the used car market as well - this will require a more convenient, safer and cost effective means of purchasing and servicing vehicles for consumers who are likely to be new to owning a car.  JD Power has forecasted an increase in Indian car production from 2.4m units in 2009 to 4.0m units in 2016. 

• For the OEM customer and for the dealer, CLICKSERVICESMILE.com gives it an advantage over rivals.  As electronic content grows in emerging market vehicles, so more specialised help is required from dealers.  KPIT Cummins' strength in automotive embedded software will enable it to offer dealers the expertise in dealing with this.

KPIT Cummins' industry-based approach and new vertical focus strategy have led to a consumer-based product as a means to tap into domestic demand for automotive embedded software. At present, around a third of KPIT Cummins' business covers automotive and over 90 percent comes from sales in the mature markets.  As a result of this approach, it is attempting to diversify its business geographically and to expand its automotive business further.

Strategy Analytics has published an earlier report on the Indian automotive market: http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=3251 and on the low-cost car market: http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=4038.  Also its recent System Demand Forecast highlights demand levels for specific electronic systems in India and elsewhere: http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=5073.