Changing legislations are forcing vehicle manufacturers in the country to launch models with advance features. Manufacturers are trying to walk the fine line between reducing the vehicle?s weight and still offering new functionalities.
Airbags and anti-lock braking system (ABS) are likely to become mandatory in Indian passenger vehicles by FY14.
Social and legislative factors such as better urban infrastructure and safety and emission norms play a vital role in the evolution of automotive technologies. India?s large population and a low car penetration rate of approximately eight cars per 1,000 people translate to significant untapped potential for the automotive industry, says Frost & Sullivan.
The government?s continued reduction of import tariffs coupled with investor-friendly laws are expected to go a long way in enhancing the prospects of the industry. Further, the rising middle class is moving away from motorcycles to entry-level cars, giving manufacturers ample opportunity to strategise and innovate.
Original equipment manufacturers (OEMs) tend to gravitate towards entry-level sedans under 4 metres for the domestic market to avail duty benefits and meet emission norms.
Using superior technologies such as variable valve timing (VVT) and double overhead cam (DOHC), manufacturers have been able to extract more horse power and thereby higher efficiency and torque, from a low-capacity engine.
?OEMs are focusing their R&D initiatives on developing alternative fuel vehicles, which run on compressed natural gas/liquefied petroleum gas,? said an analyst with Frost & Sullivan. ?Penetration levels for automatic transmission, currently at 4%, are expected to increase sharply in the near future,? the analyst added.
The 58.2% penetration rate for electric power steering in passenger vehicles is projected to grow by 20-22% by FY17. Multilink suspension systems will continue to be used over the next five years, as these systems are economical.
Vehicle manufacturers offer vehicle stability features only in the high-end variants of compact segment models.
However, by 2014, ABS and electronic brake distribution (EBD) are expected to become mandatory in all models at all trim levels.
?In the infotainment technology segment, bluetooth connectivity and USB port are expected to witness higher uptake,? the analyst said. ?AUX in-iort and bluetooth user interface are also generally offered in high-end vehicles due to the price factor, but with time, the penetration rate of AUX in-iort is anticipated to increase in the mid-size car and hatchback segments,? the analyst added.