Optimize business models for economic viability Sustainable business models are vital for encouraging the long-term success of autonomous vehicles. For personal vehicles, the strategies for achieving this will depend on the level of automation. L0 to L2 capabilities are becoming increasingly commoditized, requiring automakers to integrate these costs into standard vehicle pricing. L2+ is expected to provide the highest potential for differentiation over the coming years. For the levels beyond this, high costs and other limiting factors will restrict the market to the premium segment only until at least 2035. In commercial applications, autonomous trucks and robotaxis are expected to provide strong long-term returns on investment, but substantial initial capital expenditure remains a barrier. Moreover, the companies developing the technology are not necessarily the ones reaping the rewards, making investment decisions more complex. Investors must be prepared to take a long-term perspective, recognizing that their returns will depend on selecting the right business models and establishing efficient operations. Co-create regulation to enable deployments Regulatory alignment is essential for ensuring safety and reliability while accelerating the deployment of autonomous vehicles. Active collaboration between regulators and industry is essential, especially given the fast pace and technological complexity of the sector’s innovation. Autonomous vehicle deployments will also benefit from comprehensive policy packages. Important industrial policies might incorporate factors such as incentives or encouragement for urban planning integration. Table 3 summarizes current policy and regulatory efforts in China, the US and the EU across seven different domains. While progress is being made across all areas, the rate of change varies.Scalable, OEM-agnostic solutions will be a cornerstone to speed up autonomous mobility developments. Anup Sable, Chief Technology Officer, KPIT Autonomous Vehicles: Timeline and Roadmap Ahead 19

Autonomous Vehicles 2025