Connected Vehicle Technology in India is currently at nascent stage and the market is poised to become one of the largest markets for connected vehicle solutions in Asia. Indian connected vehicle market is driven by automotive OEMs including Tata Motors, Maruti Suzuki, Nissan and Honda. Also, the market is likely to witness a high number of technology entrants to fill the gap between vehicle owners and OEMs.
- In 2017, over 25% of the newly sold passenger vehicles have at least basic level of connectivity solutions including location tracking, and remote monitoring
- Over 16% of passenger and commercial vehicles sold in 2017 are connected, however it is just below 2% of the total vehicle stock
- The growing e-commerce logistics industry is pushing the market for connected vehicles. Leading Indian e-commerce companies including, Amazon, and Flipkart are pushing the market for vehicle telematics solutions including predictive analytics, asset tracking, trips history, temperature monitoring, and route optimization among others.
- The ride sharing services including Ola and Uber; and logistics companies including DHL and FedEx are focusing on fleet optimization, vehicle diagnostics, driver behavior monitoring and predictive maintenance among others
- The two-wheeler and three-wheeler vehicle connectivity market is largely driven by e-commerce and courier services companies including, Swiggy, Zomato, DHL and DTDC among others.
- Companies including Mahindra & Mahindra, DHL, Eicher Motors, and Tata Motors are focusing on building smart trucks along with sustainable transportation solutions for India
- Automotive OEMs are offering cost-effective connected vehicle solutions which inform vehicle owners about vehicle diagnostics including driving behavior analysis, geo-fencing, live vehicle tracking, emergency alert and service due remainder among others through a mobile app
The connected vehicle’s market in India is yet to witness competitiveness between the OEMs and technology companies. Also, the cloud service providers including Microsoft and Google are focusing on Indian market for connected vehicles with built-in analytics APIs.
Connected vehicles will solve a majority of challenges in the automotive industry including real-time vehicle diagnostics, driving behavior, fuel economy, and parking assistance among others. The market for connected vehicles is expected to witness higher adoption mainly in the personal vehicles segment owing to the wide range of benefits a user would receive.