BriefCASE: More twists than a Bollywood plot - India’s road to ADAS adoption
The Indian market has long been seen as the industry's last great growth opportunity. Although it has been a rocky road, with many original equipment manufacturers — such as Ford and GM — suffering blowouts in the pursuit of the opportunity. That volume potential now looks set to be realized. Between 2020 and 2025 it is set to grow at a pace only bettered by the much smaller Indonesian market among those selling over 1 million light vehicles a year and on its way from the 4.5 million-plus level now to an 8 million-plus market by the mid-2030s. That is the first part of the good-news story. The second part is that as India gets richer, so too does the market mix — no surprises there. But it is quite a shift from the market being viewed as a bastion of stripped-out A- and B-segment buzz boxes. Therefore, features long held as being reserved just for the premium segment are flowing into other areas of the market. OEMs are offering advanced driver assistance systems (ADAS) features such as adaptive cruise control, lane keep assist, forward collision avoidance and driver monitoring systems. Effectively, India is beginning to look a lot like other markets in the world and is bringing a significant uptick in ADAS adoption — a win-win for vehicle planners and consumers alike. However, amid this promise, challenges loom. Regulatory delays emerge as a significant hurdle. Customizing ADAS solutions for the unique characteristics of Indian roads is also imperative to ensure their effectiveness and widespread adoption. Meanwhile, those roads are rapidly developing. Highway construction is now moving at a fivefold pace versus ten years ago, further supporting the rollout of ADAS features such as highway assist. New regulation on the horizon The landscape is poised for a transformative shift with the Ministry of Road Transport and Highways (MoRTH) proposing a draft that could make ADAS safety features, including blind spot monitoring, standard across various segments of both four-wheelers and commercial vehicles. While ADAS has become commonplace in premium vehicles, this marks a crucial step toward large-scale adoption, particularly in mass-market models and commercial vehicles. The proposal includes the specification of collision warning systems under the industry standard, with a particular emphasis on installing a "Moving Off Information System," or MOIS, to alert drivers to the proximity of pedestrians or cyclists, thus averting potential collisions. However, the trajectory of how this proposal will evolve into law or regulation remains unclear. Moreover, Bharat New Car Assessment Program is evolving beyond its initial scope by incorporating ADAS in its criteria. This positions ADAS as an integral aspect of vehicular safety standards, reflecting the industry's acknowledgment of the pivotal role these technologies play in reducing accidents and their severity. Consumer preferences and cost of ADAS features According to S&P Global Mobility, the average ADAS content in the Indian market will double during the 2025-30 period. This is underpinned by the unique advantages presented by electric vehicle-specific platforms. These provide a "clean sheet" and create an optimal environment for the integration of advanced technologies. The advent of new electrical/electronic, or E/E, architectures further supports the incorporation of more automated features, creating a harmonious blend of cutting-edge technology and sustainable mobility. OEMs including Kia, MG, Honda, Hyundai, Mahindra & Mahindra, Tata, BYD and Toyota are at the forefront of integrating Level 2 autonomy and advanced ADAS features in their vehicles. This strategic move not only reflects an alignment with the global trend of prioritizing automotive safety but also demonstrates a concerted effort to make such technologies more accessible to a wider range of Indian consumers. Suppliers and OEMs envision a reduction in vehicle costs as production volumes scale up. The two factors that will contribute to this growth are regulation and the heightened awareness and demand from consumers. S&P Global Mobility expects that by 2035, one in four passenger vehicles sold in India will be equipped with ADAS features. |
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.