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.
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 ravinder.kaur@frost.com/
niyer@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, 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
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.
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offices on six continents. For more information about Frost & Sullivan's
Indian Passenger Vehicle Safety Systems Markets
P161
Contact:
Ravinder Kaur
Corporate Communications - South Asia
P: +91 44 42044760
F: +91 44 24314264
E: ravinder.kaur@frost.com
Tanu Chopra
Corporate Communications - Middle East
P: +91 22 4001 3437
F: +91 22 2832 4713
E: tanuc@frost.com
Nimisha Iyer
Corporate Communications - South Asia & Middle East
P: +91 22 4001 3404
F: +91 22 2832 4713
E: niyer@frost.com
SOURCE Frost & Sullivan
/CONTACT: Ravinder Kaur, Corporate Communications - South Asia,
+91 44 42044760, Fax, +91 44 24314264, ravinder.kaur@frost.com, or Tanu
Chopra, Corporate Communications - Middle East, +91 22 4001 3437, Fax,
+91 22 2832 4713, tanuc@frost.com, or Nimisha Iyer, Corporate Communications -
South Asia & Middle East, +91 22 4001 3404, Fax, +91 22 2832 4713,
niyer@frost.com, all of Frost & Sullivan/
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