Introduction Of New Safety Features In Entry-level Passenger Vehicles Signals Changing Perceptions I

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21st November 2008, 12:51am - Views: 674

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Introduction of New Safety Features in Entry-level Passenger Vehicles Signals

Changing Perceptions in the Indian Passenger Vehicle Safety Systems Market

MUMBAI, Nov. 20 /PRNewswire-AsiaNet/ --

    The Indian passenger vehicle safety systems market holds great potential

despite the low penetration and modest growth pace it is currently exhibiting.

The spurt in growth is primarily due to regulations imposed by the government

concerning the mandatory use of seatbelts. Further, as awareness on safety

increases among users, vehicle manufacturers (VMs) are using safety features as

differentiators to market their low-end vehicles. For the near future, the active

safety systems segment is expected to grow at a faster pace when compared to

passive safety systems.



    New analysis from Frost & Sullivan (, Indian

Passenger Vehicle Safety Systems Markets, finds that the market size 

was approximately 10.8 million units in 2006 and estimates this to reach 30.2 

million units in 2012. 

    If you are interested in a virtual brochure, which provides manufacturers, 

end users, and other industry participants with an overview of the Indian

passenger vehicle safety systems markets, then send an e-mail to Ravinder Kaur/

Nimisha Iyer, Corporate Communications, at, 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, an overview will be sent to you by e-mail. 

    In 2006, the active and passive safety systems constituted 6.2 percent and 

93.8 percent of the total safety systems market in India, respectively. By 2012,

the trend is expected to change with increase in the share of active safety

systems to approximately 10.6 percent. 

    "Among active safety systems, anti-lock braking system (ABS), which was

present only in high-end vehicles, is penetrating at a higher rate into the 

low-end segment due to increased competition," says Frost & Sullivan Industry 

Analyst Sanjay Vasudevan. "Among passive safety systems, only seatbelts have 

100 percent penetration since installation is mandatory in India, while 

airbags are expected to be made mandatory by 2010, and will see the next 

highest penetration." 

    Advanced safety features remain confined to the luxury vehicle segment and,

apart from ABS, electronic brakeforce distribution (EBD) and brake assist 

system (BAS) are seeing widespread adoption. However, features such as 

traction control system (TCS) and electronic stability control (ESC) are 

limited to high-end vehicles at present. 

    Cost implications play a critical role in the choice of a particular 

model, particularly in the market for entry-level cars and utility vehicles. 

Customers have indicated a distinct unwillingness to pay a premium for all these

features, impeding the penetration of safety systems. This is obvious 

from the fact that the sale of variants with these features is less as against 

the sale of other variants. Hence, VMs are offering them as optional add-ons 

in a few models, rather than standard fitments. 

    "Strict enforcement of safety regulations by the government and promoting 

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customer awareness on the advantages of using safety systems will go a long way

in overcoming these challenges," suggests Vasudevan. 

    Manufacturers have to resort to sourcing safety systems from other 

countries, as joint ventures or tie ups are required to facilitate the 

transfer of technological know how. In the past, demand for safety systems was 

negligible, and economies of scale in production were a matter of concern for 

safety system suppliers. Efforts to develop the local vendor base for 

procuring the safety systems will bring down costs and the benefits can 

percolate to all members along the supply chain. 

    "Liberalization of the Indian economy has led to many demographic changes 

in Indian consumers and exposure to developed markets' characteristics has

increased the expectation level of Indian customers, making them highly 

discerning," explains Vasudevan. "To cope up with this, VMs are trying various 

means to make their products more attractive." 

    This is particularly important as India emerges as a major hub for small 

car exports to Europe, Asia, and Africa. The need for strict compliance to the 

safety requirements in these countries may eventually encourage the use of

advanced safety features in domestic models as well. 

    At present, the market comprises a small number of suppliers that have met 

international compliance requirements. The number of suppliers accomplishing 

quality standards is on the rise and eventually, procurement of safety systems 

from domestic suppliers will increase. 

    Indian Passenger Vehicle Safety Systems Markets is part of the Automotive 

and Transportation Growth Partnership Service program, which also includes

research in the following markets: strategic analysis of the automotive 

batteries aftermarket in India and passenger vehicles infotainment systems market

in India. All research services included in subscriptions provide detailed market

opportunities and industry trends that have been evaluated following extensive

interviews with market participants. Interviews with the 

press are available. 


    Frost & Sullivan, the Growth Partnership Company, partners with clients to 

accelerate their growth. The company's TEAM Research, Growth Consulting and

Growth Team Membership(TM) empower clients to create a growth-focused culture 

that generates, evaluates and implements effective growth strategies. Frost & 

Sullivan employs over 45 years of experience in partnering with Global 1000

companies, emerging businesses and the investment community from more than 30 

offices on six continents. For more information about Frost & Sullivan's 

Growth Partnership Services, visit


               Indian Passenger Vehicle Safety Systems Markets 




     Ravinder Kaur 

     Corporate Communications - South Asia 

     P: +91 44 42044760 

     F: +91 44 24314264 



     Tanu Chopra 

     Corporate Communications - Middle East 

     P: +91 22 4001 3437 

     F: +91 22 2832 4713 



     Nimisha Iyer 

     Corporate Communications - South Asia & Middle East 

     P: +91 22 4001 3404 

     F: +91 22 2832 4713 



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SOURCE  Frost & Sullivan 


    /CONTACT:  Ravinder Kaur, Corporate Communications - South Asia,  

+91 44 42044760, Fax, +91 44 24314264,, or Tanu 

Chopra, Corporate Communications - Middle East, +91 22 4001 3437, Fax,  

+91 22 2832 4713,, or Nimisha Iyer, Corporate Communications - 

South Asia & Middle East, +91 22 4001 3404, Fax, +91 22 2832 4713,, all of Frost & Sullivan/ 

    /Photo:  NewsCom:          

       PRN Photo Desk, 


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