Cars to get safety-packed by FY’14: F&S study

Vehicle manufacturers have to walk the fine line between reducing the vehicle’s weight and still offering new functionalities, as the new analysis from Frost & Sullivan on ‘Indian Vehicle Technologies Evolution’ states that safety features like airbags, Electronic Brake Distribution (EBD) and Anti-lock Braking System (ABS) are likely to become mandatory in Indian passenger vehicles by FY’14. The report also states that features like keyless entry, engine immobilizer and seat-belt warning are expected to have high penetration rates. Vehicle manufacturers offer vehicle stability features only in the high-end variants of compact segment models. However, by FY 2014, ABS and is expected to become mandatory in all models at all trim levels. Tire pressure monitoring systems and electronic stability programs (ESPs) are likely to witness 100pc penetration by FY’16 in the utility vehicle segment. Comfort and convenience features such as power windows, remote locking, fog lamp, and rear AC vents will witness more than 80pc penetration over the next five years. The 58.2pc penetration rate for electric power steering in passenger vehicles is projected to grow by 20-22 pc by FY’17. Multilink suspension systems will continue to be used over the next five years, as these systems are economical. Original equipment manufacturers (OEMs) tend to gravitate toward entry-level sedans under 4 meters 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), vehicle 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 Frost & Sullivan Analyst. “Penetration levels for automatic transmission, currently at 4pc, are expected to increase in the near future. In the infotainment technology segment, Bluetooth connectivity and USB port are expected to witness higher uptake,” noted the analyst. “AUX In-Port 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-Port is anticipated to increase in the mid-size car and hatchback segments.” 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. 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 automotive industry. Further, the rising middle class is moving away from motorcycles to entry-level cars, giving vehicle manufacturers opportunities to strategise and innovate.