The car is connected now! But are we safe? Cyber securing the connected car The car is connected now! But are we safe? The car is connected now! But are we safe? 1 Table of contents 01 05 Indian landscape: connected consumer and connected car How can EY help? 02 What is in it for all stakeholders? ► Connected car to help reduce range anxiety ► Connect dash camera ► Telematics help to bring down insurance claims 04 03 Scenarios of cyberattack: ► In-vehicle infotainment system ► Facial recognition failure ► WiFi hotspot Architecture of connected cars and the risks ► Tampering with ► Mobile application OBD device ► 4G SIM 2 The car is connected now! But are we safe? The car is connected now! But are we safe? 3 Foreword Foreword Modern automobiles have completely changed, they are A connected car and in-car connectivity have moved from connected, available on demand and mobility is pervasive. being mere buzzwords to becoming an ubiquitous ask by This revolution of automotive connectivity with the Indian consumer. The industry is already focused on Neville M Dumasia humans and infrastructure presents the big challenge – Vinay Raghunath multiple aspects of this transformation which include cybersecurity! Auto manufacturers and hackers have both making connectivity a standard feature (as opposed to India Leader demonstrated the value and perils of this connectivity and Auto Sector Leader being an optional add-on), creating new business and pricing thus it necessitates a sharp focus from all stakeholders in [email protected] models for connectivity solutions and working with regulatory Advanced Manufacturing, the ecosystem – OEMs, regulators, component suppliers, bodies to establish standards to enable a faster roll out. Mobility & Infrastructure insurance companies and even consumers to make the [email protected] connected world safe. We believe that the end consumer’s continuous demand for seamless in-car technology will continue to fuel innovation The EY team is pleased to bring forward thought provoking and collaboration between organizations spanning multiple scenarios and questions we all have to collectively sectors like telecom, internet service providers, automakers answer. We live in a connected world today and in the and component manufacturers. foreseeable future, this trend is likely to increase. Historically, our experience in the industry has largely been around the Most OEMs are gradually expanding their internal use of information technology, which is now supplemented organizational teams to work with these new competency with operational technology. This combined flood of data is areas while also solving challenges related to integrating voluminous, instant and can be open to the outside world. vehicle platform development cycle time with the speed of This evolution opens all of us to the threats of cybersecurity, development in the entertainment, communication and if not managed carefully. information technology space. As responsible corporate citizens we believe it is the duty Alignment and collaboration across stakeholders in this of all stakeholders in this ecosystem to not only appreciate connected ecosystem will be critical to ensuring that the threats of cyber but to also effectively take steps to consumers continue to experience innovation in connected prevent and mitigate risks. We at EY realize the enormity of vehicles while also trusting the safety, seamlessness, the task at hand, the significant costs involved in terms of relevance and durability of these solutions. training of our people, the broader ecosystem, systems and checks and balances to be incorporated to safeguard our business. 4 The car is connected now! But are we safe? The car is connected now! But are we safe? 5 Section 01 Indian landscape: connected consumer and connected car 6 The car is connected now! But are we safe? The car is connected now! But are we safe? 7 The changing Mobile and Indian consumer technology- enabled At confluence of aspiration and technology… 1 2 Fast and trouble Smart Smart free solutions office transport Changing 5 More patterns of sophisticated in their financial s services needs e A consumers ic I v Smart e Smart health D energy 3 D a s c More demanding: expect ta i t more customization, bo 4 Ro personalization, Smart Smart flexibility and metricity home manufacturing Increasingly looking towards other people Smart for real-time recommendations cities Paradigm shift in usage patterns “India to grow faster than China in MBB subscriptions and data traffic” During 2019, it was estimated that Active mobile-broadband In 2019, average time spend subscriptions have increased from 57.16 % 144 hours “Focus on content for enhancing customer experience” of the global population, or 268 million per day on social networking 4.3 in 2007 to billion people, will be using 6.3 billion “5G to account for 5% of total connections by 2025” the internet in 2019 Nearly three-quarters of the world will use just their smartphones to access the internet by 2025. 8 The car is connected now! But are we safe? The car is connected now! But are we safe? 9 Transforming the lives of Digital opportunities to drive the 2 billion people next wave of growth in India India’s digital and social media outlook Digital opportunities to drive the next wave of growth in India Growing digital media consumption, in the form of multi-play offerings, is increasing the India to grow faster than China in MBB subscriptions and data traffic data subscriber base for Indian telcos Video streaming contributes Mobile broadband Smartphone subscription Mobile data traffic/month 70%-80% 79% 93% subscription in India to witness strong growth to grow faster than China of mobile data traffic in India digital media and content of time spent on videos in Hindi and consumption is on mobile devices other regional languages 2018 : 0.5b 2018 : 0.6b 2018 : 3 EB An average user spends up to 2024 : 1.2b 2024 : 1.0b 2024 : 12 EB 3.2 times 500 million 80% more time on mobile content, people viewed videos online of the content consumed was less CAGR 15% - India CAGR 10% - India CAGR 26% - India than on web in 2019, a growth of 80% over than a year old 2% - China 3% - China 22% - China 2018 India has the largest number of Facebook users in the world Operators have showcased a number of 5G use cases Million, Oct’19 Connected cars RJio and Ericsson demonstrated 5G Airtel demonstrates how connected car and VR-enabled driving IoT can empower drivers through using 5G auto telemetry 183 USA VR based 360 Airtel and Nokia demonstrated VR based 360-degree content that can be streamed degree content in a 5G live environment. India 269 123 Indonesia Connected Airtel showcased replica of modern connected home with intelligent devices homes and appliances 120 Brazil Mexico 82 BVLOS Airtel and Ericsson showcased cased Beyond Visual Line of Sight (BVLOS) autonomous autonomous drones over 5G networks Daily active users drones on Facebook reached 1.52 billion, up 9% compared to 2019 Source: News articles, Statista 2019 Data, DMR Source: EY knowledge 10 The car is connected now! But are we safe? The car is connected now! But are we safe? 11 Connected features for connected What’s driving the connected car? consumers Intelligent mobility paves new roads for marketers New car technologies are transforming the automotive sector, with major implications for industry players and Focus areas: stakeholder’s watch consumers alike Financial services Infotainment delivery ► Application and subscriber ► Personalized content delivery ► Over-the-air software updates ► Driver CRM via email and SMS Asia Pacific and Europe Service management web portal ► Asia Pacific & Europe are the major regions where ► Driver smartphone app and portal ► Customer service helpdesk demand for connected cars solutions and ► Customer service helpdesk services is the highest due to various government regulations on vehicle safety. Electric vehicles Safety and security features ► Battery health and charge status ► Charging location POI reservation ► Automatic crash notification ► Eco-trip planning and navigation ► Crash recording ► Battery charge time scheduling ► Remote alerts and theft tracking ► Remote vehicle immobilization ► Roadside assistance Intelligent vehicle ► Vehicle health reports and notification 5G and AI OTA software management ► Dealer location and service scheduling The enhanced user experience for all connected ► Policy-driven dependency, cars depends on wireless connectivity. Many telecom ► Driver reports and coaching rollback and recovery industry players are developing 5G to increase the ► Driver monitor, limits and alerts safety and efficiency of connected cars. According to ► Standards-based certification, International 5G automotive associations, 68% of authentication and encryption accidents can be avoided with the upcoming 5G ► Dynamic data collection and technology. upgradable analytics Connected ► Customized consumer notifications vehicle features prompts, and consent ► Connected car programs are ► Leading automakers need to create ► Automakers are increasingly developing becoming increasingly important for connected car experiences that are electric, hybrid and plug-in hybrid differentiating brands and vehicles intuitive, personalized and updatable. vehicles to meet consumer demand from the competition while contributing and comply with current and future to consumer engagement, satisfaction government fuel efficiency mandates. Continued on next page and loyalty for the next purchase. Source: