CRISIL’s recent report highlights the evolution and impact of ADAS technology in India, providing insights into its potential to revolutionize the automotive industry.
The ADAS component market, valued at approximately USD169 million in fiscal 2023, is projected to reach around USD 1 billion by fiscal 2028, marking a six-fold increase from fiscal 2023. This growth was highlighted in a global analytics firm CRISIL report. CRISIL released an extensive report detailing the status and potential of ADAS in India. This report provides insights into the adoption, influence, and potential transformation ADAS offers to the car industry.
Promotion AI has quickly emerged as a central technology in various sectors. Within the automotive industry, AI has played a significant role, notably in the development and advancement of ADAS.
ADAS consists of various technologies to improve vehicle safety and aid drivers in multiple driving functions. Through a combination of sensors, cameras, and algorithms, ADAS includes features such as steering help, braking support, parking aids, navigation, and potential hazard detection.
ADAS automation is segmented into:
- Level 0: Human control for all tasks, with basic warning systems.
- Level 1: A single automated feature like steering or acceleration but with the driver still in control.
- Level 2: Both steering and acceleration are automated, requiring driver oversight.
- Level 3: Semi-autonomous driving under specific conditions.
- Level 4: Mostly autonomous but may need human input occasionally.
- Level 5: Completely autonomous, no human input required.
One of ADAS’s primary advantages is its ability to detect and prevent accidents, for instance, through features like auto-emergency braking that mitigates rear-end crash possibilities. Similarly, systems like lane departure alerts and lane assistance help drivers maintain their lane position.
ADAS Uptake in India
In India, companies like Mahindra & Mahindra and Morris Garages (MG) are pioneering the adoption of ADAS. While ADAS is common in regions like the US, China, and Europe, only about 2% of passenger vehicle sales in India for fiscal year 2023 have ADAS features.
CRISIL’s data suggests that Mahindra’s XUV 7OO dominates with a 40-50% market share, followed by Morris Garages’ models like Astor, Hector, ZS EV, and Gloster, accounting for 20-30%. Honda’s City model stands third with a 10-20% share. Other manufacturers like Tata Motors, Hyundai, and Toyota are also venturing into the ADAS domain, albeit with smaller market shares in 2023.
The Indian automotive industry is gradually embracing passenger vehicles with ADAS, with major companies like Mahindra, Tata, MG, Honda, and Toyota at the forefront. In the current scenario, most ADAS-equipped vehicles in India lie within the L1 and L2 automation levels, predominantly in the luxury SUV and sedan categories. Hatchback adoption is minimal and is primarily at L0.
Significant contributors to ADAS sales are premium SUVs like the Mahindra XUV700, MG Hector, Tata Harrier, and Tata Safari. Entry-level SUVs and mid-size sedans also have a share in the market.
ADAS Component Pricing
The main ADAS components can be divided into mechanical, optical, and sensors. The distribution of costs among these components is about 45% for sensors, 30% for mechanical parts, and 25% for optical parts.
By fiscal 2028, mid-sized vehicles and UV segments are predicted to have an increased ADAS adoption rate. Compact UV and hatchback/small car segments will also witness growth in ADAS adoption. Improved road facilities, especially the transformation of highways into expressways, aid the integration of ADAS in vehicles. Expressways present a more standardized environment, making ADAS functions more efficient.
While the future holds promise with the increasing demand for autonomous and safety features, certain challenges still need to be tackled.
The Indian automotive industry is booming with the rising demand for safety features, but hurdles remain. The Ministry of Road, Transport, and Highways is working on enhancing road safety. As electric vehicles gain momentum, safety-oriented ADAS features might become a norm. Both regulations and consumer demand are expected to boost ADAS adoption, making it pivotal for the evolution of autonomous driving.
ADAS is reshaping the automotive landscape, leading us towards a safer and more autonomous future. Notwithstanding the challenges, the prospect of fully autonomous cars is becoming more achievable every year.