The average car price in India has increased rapidly in the last 5-6 years due to new emission regulations and demand for more spacious and comfortable cars loaded with advanced technology.
Customers today ask for feature-loaded cars and the auto industry's challenge is to develop new-age technologies at affordable prices in India, Maruti Suzuki India (MSIL) Managing Director and CEO Hisashi Takeuchi said on Monday.
The average car price in India has increased rapidly in the last 5-6 years due to new emission regulations and demand for more spacious and comfortable cars loaded with advanced technology.
This has resulted in a decline in demand for small cars such as hatchbacks and sedans, while the SUV demand has seen an uptick.
"The automotive industry is undergoing a transformative shift driven by an increasing demand for comfort, convenience, safety, and adherence to evolving regulations.
"Customers are seeking feature-loaded, technology-driven experiences," Takeuchi said at the annual session of the Automotive Component Manufacturers Association of India (ACMA).
"This shift is leading to a significant increase in the penetration of electronics within our vehicles.
"Our challenge is to develop and offer these new-age technologies at prices that are affordable for the Indian market.
"The key lies in innovation. Finding ways to integrate advanced features without compromising on cost-effectiveness," he said in his speech.
The auto industry must invest in research and development, leverage its understanding of local market dynamics, and collaborate across the value chain to achieve this balance, he said.
"It is imperative that we develop a robust local ecosystem for the electronics industry to become truly self-reliant.
"This means more than just manufacturing; it involves a holistic approach that includes local testing facilities, enhancing design and development capabilities, and most importantly, investing in our people," he said.
India is emerging as a global hub for auto component sourcing and the industry exports over 25 per cent of its production annually.
"Last year, the auto component industry exported components worth $20 billion.
"However, this is less than two per cent of global auto industry trade, giving us a huge opportunity to further increase exports," Takeuchi said.
Feature Presentation: Ashish Narsale/Rediff.com
