The average electronic component cost per passenger vehicle is projected to reach nearly Rs 2 lakh (USD 2,685) by 2027
International research firm Counterpoint in its new report has now stated that the automotive electronics market in India is speculated to reach USD 18 billion by the end of 2027 coupled with a compound annual growth rate (CAGR) of 17 percent. The possibility of this high market value is due to escalating people’s preference for in-vehicle digital experience and augmenting income levels.
Apart from that, sales of automotive electronics could triple during the period (from USD 6 billion in 2020). According to the exclusive report, telematics penetration in India remains low compared to global standards.
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)."
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 (USD 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, Manadal further added.