The Indian Automotive Industry is defined by a number of factors; the rapid electric vehicle mainstreaming being a main part of it. It is a fast-growing sector, one that is being constantly shaped by technological advancements. It is currently the fourth-largest automotive industry in the world by production and valuation, and is experiencing a 6-8% growth per annum. It is worth more than $100 billion and it accounts for more than 7.1% of India’s GDP.
While it is still playing catch-up with the other large automotive sectors around the world, it is still expected to grow from $109 billion in 2023 to $214 billion in 2032. That is almost double the market size in only 9 years.
To achieve that, India’s automotive sector has to adapt and adopt several modern trends. Here are some of the trends that are currently shaping the Indian Automotive Industry, and will continue to do so in the future:
1. Electric Vehicles
One of the biggest trends in the Indian Automotive Sector is expected to be the EVs. They are easily moving beyond niche markets and into the more commercial one. They are driven by new model launches such as Maruti Suzuki’s e-VITARA (up to 543 km range).
2. Short-Haul Changes
While India still has a long way to go with millions of investments needed to make long-haul changes, the automotive sector can make short-haul changes and make it more consumer-friendly. One example would be battery-driven vehicles and building the infrastructure around them. Things like charging stations could be built to support it.
3. Infrastructure Growth
Electric Vehicles would also demand additional, and more advanced, infrastructure, for which there needs to be substantial investment. The charging infrastructure and battery technology addresses range anxiety, which sadly, was a regular part of every electric vehicle owners’ life.
4. Supply Chain Optimization
With the rise of technologies such as real-time data analysis, the Indian Automotive Industry need not rely on warehouses to manually register anymore. It also easily helps identity problems and delays, and optimize production, delivery times, and lower costs to meet the rising demands. There is also an ongoing global supply chain constraint. To overcome that, people need to focus more on localizing semiconductor sourcing.
5. Premiumization & Advanced Features
Indian consumers are starting to demand such luxurious features like ‘Sunroofs’ and ‘ADAS’ (Advanced Driver Assistance Systems) even in entry-level cars. Whether this is due to the increased penchant for Luxury items or just a factor of easy affordability, is unknown. This also accelerates technology adoption.
6. Fighting Pollution
Due to India’s largest population, and its extremely diverse demographics between the urban and rural areas, the Indian Automotive Industry will have to worry about solving imminent problems like fighting pollution. The aforementioned battery-driven vehicles and charging stations around it might be one of them to reduce the CO2 footprint. It could very well start in urban cities.
7. Last Mile Connectivity
It is one of the most happening trends in the Indian Automotive Industry. Last Mile connectivity is the final segment of a network that connects end users to the broader services or infrastructure. Given the numerous remote locations in India that often require services, this is a trend that India needs to harp upon.
8. SUV Domination
The market continues to favor SUVs. They are driven by demand for better road presence and higher ground clearance.
9. Truck Crash Test Norms
India currently doesn’t have a crash test norm for trucks due to its millions of older trucks that don’t undergo scrappage. However, just like Euro NCAP’s stages of safety, the Indian Automotive Industry also needs to jump on it. It might improve the safety level of trucks and other older vehicles significantly.
10. Made in India Focus
Indian consumers do want the brilliance of global technology in their cars. But they also seek local manufacturing credibility. This makes them unique in a way, where they move away from simple, low-cost stripped down imports.
11. Multifuel Pathways
Alternate fuels such as ethanol and hybrid are being constantly developed and constructed throughout pathways alongside electric mobility.
12. Safety Measures
New regulatory standards mandate 6 airbags in passenger cars and upgraded crash test protocols. One technology would be the Distance Warning Radar Sensor or Adaptive Cruise Control – This detects the distance between a vehicle and other vehicles around it. Then the Adaptive Cruise Control uses the Radar Sensor to maintain a safe distance and adjust its speed accordingly. Some cars in India like Renault Kiger, Hyundai Exter, Tata Altroz, Maruti Suzuki Fronx, MG Astor, Mahindra Thar, and Honda City are utilizing this technology.
There are other trends like Automatic Brakes, etc. that are part of the discussion. Other than that, the Advanced Driver Assistance System (ADAS) is also a safety feature that Automakers are collaborating to develop. It includes lane departure warning, automatic emergency braking, and Adaptive Cruise Control as explained above.
13. Robotics
Robotics and Automation will likely boost the manufacturing of commercial vehicles in the Indian Automotive Industry by 30%.
India has previously been a bit hesitant to adopt new technological advancements in its automobiles. This is because the Indian Automotive Industry is a very price-sensitive market and most technologies are entirely profit-driven.
