BWI: Legislation to Compel Vehicle Manufacturers to Launch New Models and Features in India, Finds Frost & Sullivan

Press release from Business Wire India
Source: Frost & Sullivan
Wednesday, March 13, 2013 05:01 PM IST (11:31 AM GMT)
Editors: General: Consumer interest; Business: Automotives, Business services; Automotive
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Legislation to Compel Vehicle Manufacturers to Launch New Models and Features in India, Finds Frost & Sullivan
Vehicle manufacturers have to walk the fine line between reducing the vehicle's weight and still offering new functionalities

Mumbai, Maharashtra, India, Wednesday, March 13, 2013 -- (Business Wire India) -- Social and legislative factors such as better urban infrastructure, and safety and emission norms play a vital role in the evolution of automotive technologies. India's large population and a low car penetration rate of approximately eight cars per 1,000 people translate to significant untapped potential for the automotive industry.

New analysis from Frost & Sullivan (http://www.automotive.frost.com), Indian Vehicle Technologies Evolution Roadmap, finds that airbags and anti-lock braking system (ABS) are likely to become mandatory in Indian passenger vehicles by FY'14. Keyless entry, engine immobilizer and seat-belt warning are expected to have high penetration rates.

Government's continued reduction of import tariffs coupled with investor-friendly laws are expected to go a long way in enhancing the prospects of the automotive industry. Further, the rising middle class is moving away from motorcycles to entry-level cars, giving vehicle manufacturers opportunities to strategize and innovate.

Original equipment manufacturers (OEMs) tend to gravitate toward entry-level sedans under 4 meters for the domestic market to avail duty benefits and meet emission norms. Using superior technologies such as variable valve timing (VVT) and double overhead cam (DOHC), vehicle manufacturers have been able to extract more horse power and thereby, higher efficiency and torque, from a low-capacity engine. "OEMs are focusing their R&D initiatives on developing alternative fuel vehicles, which run on compressed natural gas/liquefied petroleum gas," said Frost & Sullivan Analyst. "Penetration levels for automatic transmission, currently at 4 percent, are expected to increase in the near future."

The 58.2 per cent penetration rate for electric power steering in passenger vehicles is projected to grow by 20-22 per cent by FY'17. Multilink suspension systems will continue to be used over the next five years, as these systems are economical. Vehicle manufacturers offer vehicle stability features only in the high-end variants of compact segment models. However, by 2014, ABS and electronic brake distribution (EBD) is expected to become mandatory in all models at all trim levels. Tire pressure monitoring systems and electronic stability programs (ESPs) are likely to witness 100 per cent penetration by FY'16 in the utility vehicle segment. Comfort and conveyance features such as power windows, remote locking, fog lamp, and rear AC vents will witness more than 80 per cent penetration over the next five years.

"In the infotainment technology segment, Bluetooth connectivity and USB port are expected to witness higher uptake," noted the analyst. "AUX In-Port and Bluetooth user interface are also generally offered in high-end vehicles due to the price factor, but with time, the penetration rate of AUX In-Port is anticipated to increase in the mid-size car and hatchback segments."

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Ravinder Kaur/Priya George, Corporate Communications, at ravinder.kaur@frost.com / priyag@frost.com with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

Indian Vehicle Technologies Evolution Roadmap is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: Features in the Indian Passenger Vehicles, Feature-Price Analysis of Passenger Vehicles (PV) in India, Small and Light Commercial Vehicles Market in India, North American Class 1 to 8 Starters and Alternators Aftermarket, North American Class 4-8 Commercial Vehicle Brake Pads and Shoes Aftermarket, and Electric Motor Technologies for Electric and Hybrid Vehicles in China. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Indian Vehicle Technologies Evolution Roadmap
P62C-18


CONTACT DETAILS
Ravinder Kaur, Corporate Communications - South Asia, Frost & Sullivan, +91 9940141714/ +91 (44) 66814080, ravinder.kaur@frost.com
Priya George, Corporate Communications - South Asia, Frost & Sullivan, +91 9840355432/ +91 (44) 66814456, priyag@frost.com
Nimisha Iyer, Corporate Communications - South Asia, Middle East and North Africa, Frost & Sullivan, +91 9820050519/ +91 (22) 66072004, niyer@frost.com

KEYWORDS
CONSUMER, AUTOMOTIVE, BUSINESS SERVICES, AUTOMOTIVE

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