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Indian Automotive Electronics Market

The Indian automotive electronic market is one of the fastest emerging sectors of the automotive industry. The current size of the electronic market is estimated at approximately $2 billion and is expected to grow approximately $3 to 4.5 billion by the end of 2011.

IMS Research recently published a report titled “The Indian Market for OEM Automotive Electronics”. According to the report, the electronic components of the automotive industry are expected to increase and become more advanced with every new generation of cars and other vehicles introduced in the industry.
Factors, Advancement, and Manufacturers

bullet Factors for Auto-Electronic Market Growth

1. Job Opportunities and High Income: One of the key factors contributing to the growth of advanced electronic car components is the growing level of income class people. Job opportunities and employee’s income have dramatically grown in the past couple of years which in turn are defining the status of successful individuals. With such high income earning opportunities, demand of comfort and convenience have increased along with availability of easy finance and disposable income.

2. Strict Emission Norms: Stricter regulation for car emission in the growing Indian car market has also forced the Indian car manufacturers to update their respective car models with advanced electronics. This measure is taken with respect to the increasing environmental pollution. The Indian Government is forcing the car manufacturers to make their cars comply with the Euro Emission norms.

3. Demand for Safety: Indian car buyers are now laying more focus on the superior safety system. Indian Government has also imposed some regulations on car safety to ensure the safety of people residing in this huge country. The demand for automotive security system is likely to grow at about 10% per annum over the next couple of years.  Safety features like airbags, crumple zones, four wheel drive, power steering and power brakes are likely to become standardized in Indian cars.

4. Vehicle Export: With the growing Indian economy, vehicle export from India has also increased. Many domestic car manufacturers like the Maruti Suzuki and Tata Motors are exporting many of their car models to international countries with a view to spread their wings over the entire globe. The desire to establish a strong platform on the global car industry has eventually increased the demand of advanced car electronics in order to meet the specifications and needs of overseas countries.

bullet Advancement in Indian Auto Electronics

The Indian market is ruled by competitive and dynamic consumer market. In order to achieve the competitive advantage, Indian car manufacturers are continuously making investments to update technology in their car models and enhance customer satisfaction.

Innovations in engine technology have hit the car electronic market in India. Apart from various advancements in engine and transmission, the market has also witnessed growth and advancement in the car entertainment technology. This technology includes an assortment of electronics including CD, MP3 players, DVD players, iPods, and Bluetooth. Major changes are yet to enter the entertainment sector of the auto electronic market.

Currently, Indian car electronic components penetration is high in automatic transmission, audio-visual systems, electronic engine management systems, safety systems, and immobilizer systems.

bullet Major Indian Auto Component Players

Major players in India for advanced safety systems include the Sona Koyo Steering Systems and Sundaram Clayton, whereas the entertainment segments of the car industry are dominated by Sony and Pioneer.

Some of the most renowned Indian suppliers of car electronic equipments are Textek Electronics, CG-CG Smith Software, TACO Sasken Automotive Electronics, Veeyessar Industrial Products, and Mico-Bosch.

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