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Infotainment Systems Aftermarket Offers Tremendous Potential for Organized Sector Participants


Mumbai, India - The escalation in passenger vehicle production and sales coupled with increased penetration of original equipment (OE) fitment has resulted in a growth spurt for the passenger vehicles infotainment systems market in India. High replacement rates too have augmented growth levels. The market stood at 1.2 million units in 2007 and trends indicate that it will proceed on an upward trajectory. The entry of global participants and the availability of contemporary products are fuelling both the original equipment manufacturer (OEM) and aftermarket segments.

New analysis from Frost & Sullivan (, Passenger Vehicles Infotainment Systems Market in India, finds that market generated unit shipment of approximately 1.2 million in 2007 and estimates this to reach 2.9 million in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the passenger vehicles infotainment systems market in India, then send an e-mail to Ravinder Kaur/ Nimisha Iyer, Corporate Communications, at, 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, an overview will be sent to you by e-mail.

“Reduction in excise duty on small cars is likely to accelerate India’s position in developing as a competitive small car market and production hub for global vehicle manufacturers,” says Frost & Sullivan Industry Analyst Sanjay Vasudevan. “Overall addition to capacity by most passenger vehicle manufacturers, coupled with increasing domestic demand car audio and in-car entertainment is a major factor driving the total market growth.”

Further, a slew of new products and evolving technology trends, particularly in the car audio systems, are tempting consumers to purchase these products. This includes systems with Bluetooth interface.

Notably, there is a distinct transition from the grey market to organized offerings. Though the grey market still holds a major share of the overall market due to the availability of products at a considerably cheaper price, the segment has intrinsic drawbacks such as the lack of trained personnel for installation, limited knowledge of the customer, and the absence of warranty. Increasing customer awareness and availability of contemporary products with warranty is slowly restraining the grey market.

At the same time, the OEM segment offers enormous potential for the organized sector since most OEMs depend on organized sector vendors to supply infotainment systems for new vehicle platforms. The OEM segment is noted for high levels of customer involvement in the aftermarket.

Being highly price and quality driven, this segment can make a breakthrough in the market with increased localization levels and conceptualization, satisfying OEM design integration and specification requirements. While price will remain the crucial determinant for business expansion for OEMs, after-sales service support, wide range, and price points will remain the deciding factors in the aftermarket.

“With innumerable infotainment systems brand choices available to customers, it is imperative that organized sector participants focus on wide geographic presence and customer awareness initiatives to get an edge over the competition,” explains Vasudevan. “Aggressive marketing and package offers will yield benefits to industry participants.”

In the competitive marketplace, high stakes are placed on product positioning with strict adherence to core brand values. As navigation systems grow in prominence, integration with infotainment systems must be undertaken to exploit the full potential that the market offers.

Passenger Vehicles Infotainment Systems Market in India is part of the Automotive and Transportation Growth Partnership Service program, which also includes research in the following markets: strategic analysis of the automotive batteries aftermarket in India and Indian passenger vehicle safety systems markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEO’s Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit


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