Market Trends of India Connected Car Industry
Embedded Segment Leading the Market
The embedded segment is the leading connectivity type in India's connected car market, primarily due to several factors. Embedded connectivity solutions offer a more seamless and integrated experience for users. Unlike tethered or brought-in solutions, embedded connectivity is built into the vehicle's architecture from the ground up. This integration ensures a smoother and more reliable connection, as well as better compatibility with the vehicle's systems and interfaces.
In addition, embedded connectivity solutions offer enhanced data security and privacy. With data transmission occurring directly between the vehicle and the cloud, there is less risk of data breaches or unauthorized access compared to tethered solutions that rely on personal devices. This heightened security is crucial in the Indian market, where concerns over data privacy are growing, and regulations around data protection are becoming more stringent.
Moreover, the embedded segment aligns well with the Indian government's push for localized manufacturing and self-reliance. By integrating connectivity solutions into their vehicles during the manufacturing process, automakers can reduce their reliance on imported technologies and components, thereby supporting the government's 'Make in India' initiative.
- In September 2023, Taisys India launched the iConnect platform by collaborating with Lumax Ituran Telematics Pvt. Ltd, a global automotive telematics solution provider for OEMs. The platform is a combination of advanced IoT technology, seamless connectivity, and alignment of the connected device supply chain.
Passenger Cars Segment Driving Growth
The increasing adoption of smartphones and mobile internet has created a demand for seamless connectivity and digital experiences within vehicles. Passengers, especially in urban areas, expect their cars to provide the same level of connectivity and access to digital services as their personal devices. Car manufacturers have responded by integrating advanced infotainment systems, smartphone mirroring technologies, and internet connectivity in their passenger car models.
The passenger car segment caters to a more affluent and tech-savvy customer base in India. These customers are willing to pay a premium for advanced features and services, including connected car technologies. Automakers have recognized this demand and are offering a range of connected car services, such as remote vehicle monitoring, real-time diagnostics, and over-the-air software updates, as value-added offerings in their premium passenger car models.
Furthermore, the growth of ride-sharing and mobility services in India has also contributed to the demand for connected passenger cars. These services often require real-time data exchange between vehicles and central platforms, making connectivity a crucial component. As a result, ride-sharing companies and fleet operators are increasingly seeking connected car solutions, further fueling the growth of the connected passenger car market in India.
