Motus Operandi Intro
Our track record so far, we are based in Shanghai, we are just one year old. So far we have dealt with Faurecia, but our biggest name is General Motors in Shanghai. We just started a pilot program with them and so far so good. Our revenue model is with consultancy. They give us their data and we optimize it and we give it back so they can install it on their robots. They basically download a new program on the robot and put it in the factory, run it, and experience the benefits. However what we would like to be doing is to allow the customer to do all the optimization by themselves through our SaaS platform. It will directly integrate with their software they are already using. This is the future of robotics in Asia. In the long run what we want to do is a robot that has our solution implemented inherently.
Robotics in Asia
There will be over 3.1 million robots by the year 2020. 40% of these robots you will find in China because China has employed government policies that enable their companies to enable automation and put robots to work. The robots in the automotive industry are growing a lot. South Korea is number one in one specific aspect and that is the robot density. Nowhere else in the world do you have such highly automated factories than you have in South Korea. That means that you have two robots for every ten workers in a factory. This is by far exceeding every other nation. So in Korea, you have more than two thousand robots compared to China which has only 500 robots.
Robotics in the Automotive Industry
The big players in the robotics market need to start with the car brands and their factories. But they are not actually building their own factories. They rather employ their suppliers which are the system integrators. They actually build together the automotive process, the factories and so on and they are supplied by robot companies. All of these players profit from our technology in different ways. Factories and car brands can profit in terms of engineering time because they have to respond to market demand and as quick as possible, so shortening the engineering time definitely helps them tremendously. Increasing the speed of their production, decreasing the energy consumption, and also the lifetime of their machines is a concern they are having. All these problems we can alleviate to some extent for the car factories. But also system integrators, they are judged by their customers, how fast they can integrate and if they can integrate highly productive processes.
In many countries not only in China, the government is involved because they supply electricity and give subsidies to factories that actually do something about their electricity consumption in their factories. So if they can reduce it the government is willing to give subsidies to those factories. So the government, in this case, is playing in our favor.