BriefCASE: More twists than a Bollywood plot – India’s road to ADAS adoption

The Indian market has long been seen as the industry's last
great growth opportunity. Although it has been a rocky road, with
many original equipment manufacturers — such as Ford and GM
— suffering blowouts in the pursuit of the opportunity. That
volume potential now looks set to be realized.

Between 2020 and 2025 it is set to grow at a pace only bettered
by the much smaller Indonesian market among those selling over 1
million light vehicles a year and on its way from the 4.5
million-plus level now to an 8 million-plus market by the
mid-2030s. That is the first part of the good-news story.

The second part is that as India gets richer, so too does the
market mix — no surprises there. But it is quite a shift from
the market being viewed as a bastion of stripped-out A- and
B-segment buzz boxes.

Therefore, features long held as being reserved just for the
premium segment are flowing into other areas of the market. OEMs
are offering advanced driver assistance systems (ADAS) features
such as adaptive cruise control, lane keep assist, forward
collision avoidance and driver monitoring systems.

Effectively, India is beginning to look a lot like other markets
in the world and is bringing a significant uptick in ADAS adoption
— a win-win for vehicle planners and consumers alike.

However, amid this promise, challenges loom. Regulatory delays
emerge as a significant hurdle. Customizing ADAS solutions for the
unique characteristics of Indian roads is also imperative to ensure
their effectiveness and widespread adoption. Meanwhile, those roads
are rapidly developing. Highway construction is now moving at a
fivefold pace versus ten years ago, further supporting the rollout
of ADAS features such as highway assist.

New regulation on the horizon

The landscape is poised for a transformative shift with the
Ministry of Road Transport and Highways (MoRTH) proposing a draft
that could make ADAS safety features, including blind spot
monitoring, standard across various segments of both four-wheelers
and commercial vehicles.

While ADAS has become commonplace in premium vehicles, this
marks a crucial step toward large-scale adoption, particularly in
mass-market models and commercial vehicles. The proposal includes
the specification of collision warning systems under the industry
standard, with a particular emphasis on installing a “Moving Off
Information System,” or MOIS, to alert drivers to the proximity of
pedestrians or cyclists, thus averting potential collisions.
However, the trajectory of how this proposal will evolve into law
or regulation remains unclear.

Moreover, Bharat New Car Assessment Program is evolving beyond
its initial scope by incorporating ADAS in its criteria. This
positions ADAS as an integral aspect of vehicular safety standards,
reflecting the industry's acknowledgment of the pivotal role these
technologies play in reducing accidents and their severity.

Consumer preferences and cost of ADAS
features

According to S&P Global Mobility, the average ADAS content
in the Indian market will double during the 2025-30 period. This is
underpinned by the unique advantages presented by electric
vehicle-specific platforms. These provide a “clean sheet” and
create an optimal environment for the integration of advanced
technologies. The advent of new electrical/electronic, or E/E,
architectures further supports the incorporation of more automated
features, creating a harmonious blend of cutting-edge technology
and sustainable mobility.

OEMs including Kia, MG, Honda, Hyundai, Mahindra & Mahindra,
Tata, BYD and Toyota are at the forefront of integrating Level 2
autonomy and advanced ADAS features in their vehicles. This
strategic move not only reflects an alignment with the global trend
of prioritizing automotive safety but also demonstrates a concerted
effort to make such technologies more accessible to a wider range
of Indian consumers.

Suppliers and OEMs envision a reduction in vehicle costs as
production volumes scale up. The two factors that will contribute
to this growth are regulation and the heightened awareness and
demand from consumers. S&P Global Mobility expects that by
2035, one in four passenger vehicles sold in India will be equipped
with ADAS features.

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