India Connected Car Market Size, Share, Trends and Forecasts 2031

INTRODUCTION

Connected cars are all set to become a common phenomenon in the Indian Market. The Consumers are willingly  to pay more for advanced and connected technologies, and this will boost the Connected Cars market in India. Since the arrival of Hyundai Venue and MG Hector the first set of Connected Cars in India, these segment cars have sold in sizeable volumes- the auto slowdown notwithstanding.

INDIA CONNECTED CAR MARKET SIZE  AND FORECAST

There has been a mandate by Government of India where it says the commercial vehicles must feature latest vehicle telematics. This would push the automakers to equip the vehicle with latest safety and security features which increases the demand for the Connected Cars.

Hyundai is all set to launch its 2^nd generation of its best selling SUV, Creta. Hyundai Creta 2020 will be the 2^nd car from Hyundai to sport BlueLink connectivity making it an Internet Connected Car.

In Trucks, Daimler India Commercial Vehicles (DICV) recently showcased the new range of BharatBenz Vehicles. These vehicles comes with “TruckConnect” and “BusConnect” Connectivity features, these tools helps the operators to track the vehicles in real time. “BusConnect” feature is helpful for passengers also as it helps them to select routes, access on-board entertainment.

India connected car market is estimated at ~$20 Million in 2023, growing at >20% CAGR till 2030

TECHNOLOGY

The Connected Cars are being launched with built-in telematics boxes containing a SIM card module. It helps the owner to stay connected with car and also control it through app on the phone. The presence of sim card helps to get OTA [Over the Air] updates, thus software can be updated regularly. Most of these SIM cards are 5G ready.

The table below shows the technology being used in these cars:

INDIA CONNECTED CAR MARKET DYNAMICS

The primary factor driving the growth of the market is the connected features attached to the vehicles. Majority of Indians who have been using the smartphone over period of time prefer buying a Connected Vehicle. There has been significant increase in the sales of the Connected Cars over the past 10-12 months. Here are the sales figures of the Connected Vehicles released in India

Although there are numerous benefits to the drivers, there are certain challenges that the Connected Car Market is facing. The more the car is connected to internet, it becomes more exposed.

Hackability is the major issue concerning the auto makers. If the system is compromised, owner’s privacy is at stake and the intruders can get access to the location, daily route and others. One can also gain access and control the vehicle. Major Percentage of people hinder to buy connected cars as they want to maintain the privacy.

RECENT PARTNERSHIPS IN CONNECTED CAR MARKET

• Reliance Jio has partnered with U.S based Airwire Technologies to offer the device manufactured by the latter in India. The IOT device is said to be incorporated in the Connected Cars with Jio 4g/LTE network.
• Tata Elxsi global technology services company collaborated with Tata Motors to develop unified Connected Vehicle Platform which is supposed to power EV cars from the Tata Motors.
• MG Motor India has teamed up with IT giant Cognizant to deliver a smooth experience for its Hector SUV customers. Cognizant’s customer experience and enterprise management solution is a part of MG Motor’s integrated marketing and engagement program.
• BSNL has tied up with Tata Motors to make their range of vehicles Internet Connected. BSNL has already started providing embedded SIM cards.

NEW LAUNCHES IN THE MARKET

• Tata Motors have launched the ZConnect app for the Nexon EV offering 35 different features.
• Ford India has introduced the FordPass connectivity feature for the upcoming BS-VI Ford Models. A cloud connected device will be factory fitted that provide real time updates of the vehicle to its owner.
• Toyota Connected India Pvt Ltd., has launched its new office in Chennai which will work closely with the existing Toyota Connected office in Bangalore.