New Cars, Bikes, Latest News, Reviews, Photos

India to account for 11 percent of global component market and produce over 30k hybrid CVs by 2020

0

Research analysts have signaled a changing scene in the Indian auto industry. High fuel prices coupled with uncertainties in diesel regulations and projection of better and greener initiatives by the Government are making companies channel their avenues to bringing out medium to heavy hybrids and more commercial electric vehicles into being. Local auto companies are also tying up with their foreign counterparts in a bid to develop more hybrid and electric powertrains for the Indian market.

Due to these efforts it is expected that the markets will see a burst of 32,000 medium to heavy duty hybrids and electric vehicles by 2020. Customer’s perception towards cleaner and greener modes of transport is undergoing a sea change. This coupled with Government subsidies and OEM encouragements to develop innovative technologies are being seen as potential for such vehicles in the future. India and China have embraced the current situation as an opportunity to turn greenhouse gas reduction into a business venture and to implement technological leadership and focus on development of electric vehicles and hybrids.

Analysts Frost and Sullivan conducted a study of Strategic Analysis of Medium to heavy duty Hybrids and electric commercial vehicle sin markets of India and China and came up with the estimates that India component revenues from India will reach $212 million by 2020. While growth in this segment is assured, the biggest challenge facing this market will be the high cost of technology involved and the lack of infrastructure which will be required.

Read the press release below for more information.

Auto News Release

Frost & Sullivan: Relative Market Nascence and Strong Growth Potential Offers Lucrative Opportunity to Powertrain Module Suppliers

Indian market expected to produce 32,000 medium-heavy-duty hybrid and electric commercial vehicles in 2020

Mumbai, Maharashtra, India, Thursday, July 05, 2012 — (Business Wire India) — India is emerging as one of the world’s key markets for hybrid and electric medium-heavy-duty trucks and buses. Changing market dynamics and customer perceptions towards green technologies have made the price sensitive Indian customers migrate towards new vehicle technologies. Global original equipment manufacturers (OEMs) and suppliers are hence encouraged to develop strong and sustainable partnerships with Indian OEMs in order to penetrate and grow within this market. Thus, the necessity to develop innovative products, technologies and supply chains that enable reduction of both upfront and lifecycle costs associated with these vehicles is crucial, although currently these are perceived by many potential customers as prohibitive.

New analysis from Frost & Sullivan ( http://www.transportation.frost.com), Strategic Analysis of Medium- to Heavy-duty Hybrid and Electric Commercial Vehicle Market in China and India, finds that component revenues from India will reach $212 million by 2020, accounting for 11 percent of the global component market. Driven by energy price volatility and rising consumer awareness, the market for hybrid and electric commercial vehicles (CVs) is experiencing considerable momentum. Of all of the alternative powertrain technologies, hybrid technology poses the least pressure on existing infrastructure.

“High fuel prices, uncertain diesel regulation policies and green initiatives by Government owned State Transport Units for clean technologies, coupled with OEM’s willingness to partner with foreign module suppliers developing hybrid and electric powertrain systems, are creating a foundation for the hybrid and electric CV market in India,” said Frost & Sullivan Research Analyst.

Currently, the biggest challenge in the market is the high upfront cost of technology and the lack of charging infrastructure to support growth. The Government’s inclination towards liquefied petroleum gas and compressed natural gas (LPG/CNG) technology are impeding faster market penetration of hybrid and electric CVs. Lack of in-house research for local OEMs and suppliers is expected to prevent price reduction of key components due to the dependency on expensive imports.

“Along with factors such as high upfront cost barrier and lack of charging infrastructure, the battery replacement cost burden and battery life cycle concerns are acting as key market restraints for hybrid and electric powertrain adoption in CVs,” noted the Analyst. “The price sensitivity of Indian customers implies that strategies aimed at reducing the upfront cost – either of the base vehicle, the hybrid/electric drivetrain or both – must be implemented on a priority basis to establish market leadership.”

If you are interested in more information on this research, please send an email with your contact details to Ravinder Kaur or Priya George, Corporate Communications, at ravinder.kaur@frost.com or priyag@frost.com.

Strategic Analysis of Medium- to Heavy-duty Hybrid and Electric Commercial Vehicle Market in China and India is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following markets: North American Medium-Heavy Commercial Vehicle Market, Brazilian Commercial Vehicle Market and the Global Low-cost Truck Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

— The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

— The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Image