India’s automotive electronics market likely to cross $18 bn by 2027

23 Jul 2021 CW Team

The automotive electronics market in India is likely to cross $ 18 billion by 2027 with a compound annual growth rate (CAGR) of 17%, driven by increasing customer preference for in-vehicle digital experience and increasing income levels, according to a report by Counterpoint.

According to the report, automotive electronics sales are anticipated to triple during the period.

Passenger vehicles are assumed to capture almost two-thirds of the Indian automotive electronics market driven by the increasing usage of infotainment, telematics control unit (TCU), and other electronic components, said Soumen Mandal, Counterpoint Research Analyst.

In India, telematics penetration remains low compared to global standards.

Mandal further added that the growing awareness among people about advanced safety and communication services, coupled with more embedded connectivity service offerings by automakers, will push this market in the future.

Head-up display (HUD), auto-dimming mirror, advanced driver assistance systems (ADAS), blind-spot monitoring system, and automatic transmission features remain mainstream features for premium segment cars, he added.

As per the report, the average electronic component price per passenger vehicle is predicted to move almost Rs 2 lakh by 2027. The key drivers for rising electronic content in a car are stringent regulations such as Corporate Average Fuel Efficiency II (CAFE II) and Bharat Stage-VI (BS-VI).

Electronics penetration is slower compared to passenger vehicles and two-wheelers, in the three-wheeler category, said Mandal.

The electronics market in the commercial vehicle segment is projected to cross $530 million by 2027 due to the increasing adoption of telematics and other new technologies such as exhaust gas recirculation (EGR), on-board diagnostics II (OBD II), and selective catalytic reduction (SCR).

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