India’s automotive electronics market is expected to cross $18 billion by 2027 with a compound annual growth rate (CAGR) of 17 percent, driven by rising income levels and increasing customer preference for in-vehicle digital experience, a report by Counterpoint said on Tuesday. The automotive electronics sales are expected to triple during the period (from $6 billion in 2020), it said.
Counterpoint Research Analyst Soumen Mandal said, “Passenger vehicles are expected to capture nearly two-thirds of the Indian automotive electronics market driven by the rising usage of telematics control unit (TCU), infotainment and other electronic components such as on-board diagnostics (OBD), electronic control unit (ECU) and anti-lock braking systems (ABS).”
Telematics penetration in India remains low compared to global standards. “However, rising awareness among people about advanced safety and communication services, coupled with more embedded connectivity service offerings by automakers, will drive this market in the future,” Mandal said.
Head-up display (HUD), blind-spot monitoring system, auto-dimming mirror, advanced driver assistance systems (ADAS) and automatic transmission features remain mainstream features for premium segment cars (cars with an ex-showroom price of more than Rs 11 lakh), he added. The average electronic component cost per passenger vehicle is projected to reach nearly Rs 2 lakh ($2,685) by 2027, as per the report.
Stringent regulations like Corporate Average Fuel Efficiency II (CAFE II) and Bharat Stage-VI (BS-VI) are also among the key drivers for rising electronic content in a car. India’s two-wheeler market will also see growing adoption of automotive electronics. “In the three-wheeler category, electronics penetration is slower compared to passenger vehicles and two-wheelers. Embedded telematics and infotainment offerings are rare in three-wheelers considering this segment has the highest EV penetration among all vehicle categories.
“E-commerce will drive the telematics market, transporting specific products like groceries and home appliances during the forecast period,” Mandal said. The electronics market in the commercial vehicle segment is projected to cross $530 million by 2027 due to the rising adoption of telematics and other new technologies like exhaust gas recirculation (EGR), selective catalytic reduction (SCR) and on-board diagnostics II (OBD II).
(Source: PTI)
