6. TECHNOLOGY STATUS IN INDIA
In the Indian context, acceptance of electronics has been driven by legislative provisions as well as customer pull. The present business scenario can be classified based on driving force as follows:
| CUSTOMER PULL | LEGISLATIVE PROVISIONS | |
| ON-BOARD | Music systems Control of AC. Window lift motors Safety locks regulators |
Electronic ignition Flashers. |
| OFF BOARD | Displays at fuel Dispensing stations Diagnostic computer-wheel balancing |
Traffic control signals, Exhaust gas analysers Engine analysers. |
The manufacturers have remained shy for adding electronics due to increase in cost and its effect on market pull of vehicle.
Almost all two wheelers have Electronic flashers, regulators and Electronic Ignition.
This scenario in India is now poised to change with the introduction of new models, foreign tie-ups and selective imports. The Indian industry will have to become globally competitive in quality and price to improve domestic market share and have export opportunity.
The introduction may come only if efforts are made to achieve 2001 emission standards and make export worthy automobiles
The other features of electronics like Antilock Barking System (ABS), Controlled Area Network (CAN), instrumentation, Surveillance have less priority at this stage.
The technology development and competence building is in progress at institutions like ARAI, VRDE. The Indian scenario is different compared to developed countries on following key parameters.
Petrol: Diesel consumption ratio is 1:7 as against 1:2 in developed countries.
Unleaded petrol is not available.
Cars continue to be luxury and privilege of a few.
Indian electronics industry has capabilities to assemble systems by importing critical hardware items.
7. MARKET SIZES & POTENTIAL
India accounts for almost 17% of global population. The sale of Indian passenger cars is 0.5% of world sales, which is also the share of Indian trade to global trade.
The annual sale of two wheelers in India is 17% of global sales which is concomitant to our share of population. India’s exports of automobiles is 5% of the total sales and that of electronics industry is 6%.
The present import content by value in automobile industry is about 7%. The automotive electronics related products are expected to have import content of 50% initially. The current market size estimated in automotive electronics is around Rs. 100 crore. The market is expected to be around Rs. 3500 crore by the year 2000. unleaded petrol availability and simultaneous fiscal & infrastructure support are essential for this sector. The total market will be shared in the ratio of 2/3 original equipment (OE) and 1/3 for retrofit and replacements. This includes mainly on-board electronics.
The manufacturing base for automotive electronics systems may be created through the technology transfer by existing global players to their Indian subsidiaries. this will facilitate growth of small & medium enterprises for sub-assemblies. Indian can play a positive role in exporting Automotive Electronic assemblies by year 2001 onwards due to following distinct advantages:
• Electronic assembly is cheaper in India.
• Proper skills and technology can be made easily available.
• Automobile application has variety and small volumes in each category may not be attractive for mass production. Each of the car models having CAN needs specific algorithm and software development. At present, there are about 300 car models in the world. Back
