Connected vehicles market grew 60% in quarter ended March: CMR

The market for EVs in India grew 48% during the period

On the back of the launch of new connected vehicles (CVs) and electric vehicles (EVs), the market of CVs in India grew by over 60 per cent in the quarter ended March 31, as compared to the same period last year, a report on Monday showed.

According to "Auto Market Report Review for Q1 2023" released by intelligence and consultancy firm CyberMedia Research and Services, the market for EVs grew 48 per cent during the period.

"There is growing consumer awareness around connected vehicle technologies. For instance, connected vehicle tech has consistently increased its footprint in the industry. With safety becoming a top consumer priority, ADAS feature tech has witnessed gradual adoption, with over 70 per cent YoY 2023 growth market share of vehicles featuring Level 2 autonomy," said John Martin, senior analyst of Smart Mobility Practice at CMR.

Connected Vehicles are vehicles having advanced embedded technology in them, namely, the Telematics System, that makes many advanced features such as navigation, vehicle-geo fencing, tracking, and more possible.

Advanced Driver Assistance Systems (ADAS) comprises of several technologies like adaptive cruise control and automatic emergency braking and assists the driver. It also plays a key role in enhancing the road safety of a vehicle.

The report said that ADAS is increasingly being adopted in the passenger vehicles (PV) segment. Of the cars launched in the quarter, 83 per cent had connected tech features and 58 per cent came with ADAS safety tech features.

Moreover, the electric passenger vehicle (EPV) segment grew over 114 per cent year-on-year (YoY) in the quarter. Tata Motor's Nexon, Tigor, and Tiago; MG Motor's ZS EV, and BYD's ATTO 3 and E6, hold the major EPV segment market share, it added.

Electric commercial vehicles (ECV) market grew around 50 per cent YoY in the quarter, while connected commercial vehicles (CCV) market grew over 12 per cent YoY.

The connected two-wheeler (C2W) vehicles grew around 92 per cent YoY and their market share rose to nearly 60 per cent. The electric two-wheeler (E2W) market grew 44 per cent YoY.

Ola Electric's S1 Pro, TVS's iQube, and Ather Energy's 450X lead the E2W segment, the report highlighted.

It added that by March 2025, one in every four vehicles in India is expected to be an EV.

"By 2025-26, connected and software-driven vehicles will be key revenue drivers for the automotive industries," Martin added.