- LATL is targeting this opportunity by foraying into telematics products
- ACMA plans to create dedicated clusters to localise automotive electronics
The market opportunity for automotive electronics in the aftermarket is expected to reach at US$ 8-10 billion, says a report by the Automotive Component Manufacturers Association of India (ACMA). The industry body estimates that the automotive electronics market is set to grow by 10x to about US$ 80 billion over the next decade.
The latest trend in the technology and electronics sector has changed the consumer’s preferences towards more modern technologies in their vehicles.
Lumax Auto Technologies (LATL) is targeting this growth opportunity by foraying into telematics products for the aftermarket. The company sees a huge market opportunity for millions of existing commercial vehicles, ready to be equipped with telematics devices, to meet the AIS-140 norms implemented in April 2019.
“The aftermarket is one of the fastest growing segments of the industry and also offers better margins to suppliers. Automotive electronics is a valuable opportunity for component manufacturers to tap into future growth,” said Vinnie Mehta, Director General, ACMA.
“We have identified 30 automotive-electronics products that are low-hanging fruits and can be quickly localised. We must create dedicated clusters to localise automotive electronics, and these clusters could also cater to not just automotive, but to a larger section of the industry as well. Many states in India are vying to attract investments into automotive electronics,” Mehta added.
The evolving regulatory framework in India, particularly in terms of emissions and safety standards, is indeed creating new opportunities for Indian component manufacturers. These changes are driven by various factors, including reducing pollution, enhancing vehicle safety, and aligning with global standards.
ACMA is helping Indian automotive component manufacturers to explore and leverage global aftermarket opportunities. Such initiatives benefit individual companies and contribute to the growth and competitiveness of the Indian automotive component manufacturing sector as a whole.
“The favourable changes in emissions and safety regulatory requirements have made Indian products at par with global standards. ACMA is actively involved in the promotion of aftermarket exports and is helping its member companies to map newer markets to tap,” Mehta concluded.