India Switches on to the Connected Car

Paul Myles

TU-Editor

---

15th February 2022

Motorists in India are switching on to the connected car paving the way to an explosion of revenue opportunities before the end of the decade.

That’s the view of Frost & Sullivan’s recent analysis of the Indian human machine interface (HMI) industry where it finds consumer now demand more comfort, safety and security in their cars. The surge in demand for advanced connected features in vehicles from the country’s growing tech-savvy population will further drive growth for larger and feature-loaded HMI systems. As a result, the Indian HMI market is estimated to reach $1.67Bn by 2027 from $980M in 2020.

The report predicts navigation units will increase their market share to approximately 50% by 2027 from 40% in 2020 because of the launch of new vehicles offering navigation on their top variants. Similarly, with 46% penetration by 2027 compared to 44% in 2020, display audio units will still be relevant because automakers will provide navigation through smartphone integration on their low variants or mid-range models.

The surging demand for HMI systems in India presents growth prospects for market participants, including:

• Customer interest in connected services for reach and compatibility with advanced in-car infotainment systems: Automakers must use this opportunity to transition from vehicle seller to technology supplier;
• New revenue opportunities for car manufacturers from in-cabin added features and technologies: They should evenly distribute the pricing of upgraded HMI systems for a longer term, rather than generating high revenue for a short period;
• Advanced infotainment systems and connected technology will initiate M&As and joint ventures: Automakers’ awareness of technological advancements in HMI systems is critical to their implementation before their rivals.

Gautham Hegde, senior research analyst, mobility practice,  at Frost & Sullivan, said: “In India, vehicles with advanced, feature-rich HMIs have sold in high numbers during the past two years, forcing OEMs to produce better HMI systems for their new cars. Further, customer knowledge and interest in the HMIs offered by various vehicles have increased drastically, intensifying the competition among OEMs to provide advanced HMI units.

The demand for connected cars has doubled because of consumer dependency on smartphones, gadgets, and technology. Moving forward, the cars that are equipped with advanced connected features, such as navigation, digital assistants, voice recognition, and smartphone integration will ultimately drive growth for larger and feature-loaded HMI systems.”

— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_