Government Regulations on Emission and Safety Standards Boost the Automotive Electronic Control Units Market in India

MUMBAI, India - Egged on by factors such as strong consumer demand for enhanced safety
features, the need for compliance with emission regulations, and original
equipment manufacturers’ (OEMs) commitment to introduce novel products, the
automotive electronic control units (ECUs) market in India is witnessing
steady growth. Comfort and convenience top the agenda for customers,
triggering growth especially in the body control and steering systems
segment. Emission norms and safety regulations will further drive the uptake
of ECUs.

New analysis from Frost & Sullivan
(www.automotive.frost.com), Automotive Electronic Control Units Market
in India, finds that the OEM market in India, which stood at 2.5 million
units in 2007, is expected to see a rise of 23.8 percent annually.

If you are interested in a virtual brochure, which provides a
brief synopsis of the research and a table of contents, then send an e-mail
to Ravinder Kaur/ Nimisha Iyer, Corporate Communications, at
ravinder.kaur@frost.com/ niyer@frost.com , with your full name, company name,
title, telephone number, company e-mail address, company website, city, state
and country. Upon receipt of the above information, a brochure will be sent
to you by e-mail.

“Government regulations aimed at making the vehicle fleet
safer and more environment friendly will increase the number of ECUs
installed on mid-level to economy level vehicles in India,” says Frost &
Sullivan Research Analyst. “Introduction of BS IV in passenger and utility
vehicles and BS III in commercial vehicles is also likely to boost demand for
ECUs after 2010.”

The availability of better highways and intra-city roads has
facilitated quick access to destinations and customers are more inclined to
owning fast yet safe cars. Fierce competition characterizes the market and
manufacturers are focused on product differentiation to gain one-upmanship.

With regard to the passenger cars and utility vehicles, the
market will grow threefold in the near future; newer models will be launched,
offering higher technology content, thereby driving the demand for ECUs.
Increased safety awareness among consumers is fueling the demand for
anti-lock breaking systems (ABS) and airbags, while demand for convenience
features are driving uptake of body control systems. The engine management
system holds a major share in the ECU market, making huge inroads in the
passenger vehicle segment. Automatic transmission and climate control are
still in the fledgling stage and indications point to a market growth of 30.0
percent more by 2012.

“In light of the sheer number of new electronic systems
incorporated into vehicles, continuous restructuring of the R&D of supplier
companies is necessitated,” explains the Analyst. “Electronic systems
suppliers are required to keep pace with the technological advancements and
roll out smaller, lighter, and more intelligent systems to stay on top of the
competition.”

However, trends indicate that automakers prefer to limit the
number of key suppliers, opting for suppliers that offer unparalleled
products and services. Sourcing electronic components from a supplier that
can offer a wider range of expertise and products is far easier and less
costly.

As electronics contracts are worth millions of dollars,
suppliers cannot afford to underestimate these criteria. ECU volumes supplied
to OEMs tend to be large. By employing cost-cutting strategies, suppliers are
targeting contracts on smaller margins as OEMs continually demand lower
prices. Along with price, quality, delivery, and service are prerequisites
for manufacturers to successfully garner contracts.

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Automotive Electronic Control Units Market in India
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Contact:
Ravinder Kaur
Corporate Communications - South Asia
P: +91-44-4204-4760
F: +91-44-2431-4264
E: ravinder.kaur@frost.com

Tanu Chopra
Corporate Communications - Middle East
P: +91-22-4001-3437
F: +91-22-2832-4713
E: tanuc@frost.com

Nimisha Iyer
Corporate Communications - South Asia & Middle East
P: +91-22-4001-3404
F: +91-22-2832-4713
E: niyer@frost.com
www.frost.com

Source: Frost & Sullivan (India) Pvt. Ltd.

Contact: Ravinder Kaur, Corporate Communications - South Asia, P: +91-44-4204-4760, F: +91-44-2431-4264, E: ravinder.kaur at frost.com; Tanu Chopra, Corporate Communications - Middle East, P: +91-22-4001-3437, F: +91-22-2832-4713, E: tanuc at frost.com; Nimisha Iyer, Corporate Communications - South Asia & Middle East, P: +91-22-4001-3404, F: +91-22-2832-4713, E: niyer at frost.com