Pricol limited - OEM automotive

  1. They haven’t mentioned it clearly, they are saying that they are offering “solutions” but they are not breaking it down further. One can easily say that by looking at their margins. Even if they are, it doesn’t matter much when it comes to Driver display units as you build base SW (which is hard built)/Firm ware leave a plug to the unit and a calibration file give them to the OEM and OEM flashes the API (soft built) on top it and connect it to the vehicle Newtwork. Your work is pretty much done here unless any recalls! Let’s say after a year an OEM wants to offer a different outlook to the display or add an extra attribute to the DIS for one-time fixed pay or monthly subscription Pricol doesn’t get a penny.
    you can confirm that from their concall

  2. it doesn’t matter if it’s EV or not. But the trend is EV’s are getting bigger display units compared to ICE so that increases the cost and material so Pricol will be the beneficiary purely because of size of the display unit.
    3.Pricol is primarily providing the assembled display unit (DIS) a hardware and base software embedded in and remember for DIS units you need less powered processor compared to Infotainment processor so get a processor from a chip seller and place it on PCB and assemble rest of all electronic junk and place a LED display unit on face of it. It doesn’t have the pricing power which is completely fine all Auto Tier1’s or suppliers shall never have any pricing power over OEM’s (forget auto ancillaries, OEM’s themselves doesn’t have pricing power :rofl: Only exception used to be TESLA with recent reduction in prices they also joined the line :upside_down_face: ) (proof can be found above concall picture) usually OEM make two or three auto suppliers BID against each other to get a cheaper deal. In management words "Yes Pricol is coevolved the product. We arrive at what would be the right pricing for that product and in that what should be the value of the driver information system and what features can be offered on that. So it is coevolved as a solution with the customer. I do not think we are really building a product, but rather we are moving towards building a solution for the end customer based on market research of the OEMs and then they work closely with us .They are saying that they are offering the “solutions” what sort of Dontknow :smiley:.

  3. not a big deal if you just provide a display unit assembly to an OEM. Better question is are you developing the infotainment display as well? which clearly is not.

  4. Until now Tier1’s and Chip makers used to have good relationship and Tier1 takes the lead provide complete unit according to the OEM requirements. Now OEM are making exclusive partnership with Chipmakers and asking them to design the chip according to their requirements and pass it on to the Tier1’s for integration and packaging send it to the OEM’s. (this is true for High end systems like ADAS and AV systems) but in case of driver display units it’s mostly TIER1’s call.

  5. Good question, management hasn’t talked about it anywhere so far.

Disclaimer : Invested and biased.

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