INR Billion
July 2017 India Automotive Fuel Injection Systems Market Outlook to 2022
WHAT ARE THE GROWTH PROSPECTS OF THE AUTOMOBILE FUEL INJECTION SYSTEMS MARKET IN INDIA?
The market for fuel injection systems in India is expected to be driven majorly by the rise in production and sale of automobiles including two wheelers, four wheelers, light and heavy commercial vehicles coupled with replacement demand of carburetors and fuel injection systems to comply with stricter regulatory norms in the next five years. Replacement of Carburetors: Till now major mass segment bikes were working with the conventional carburetor system. However, now days with the introduction of electronic fuel injection system, which is one of the most favorable and promising technologies, has attracted the attention of many. Electronic fuel injection( EFI) systems have been proven to be 15-20 % more fuel-efficient than carburetors and companies such as Bosch claims to have developed them at a similar price range of that of carburetors. As a result, EFI systems are deemed to gain popularity amongst motorcycle enthusiasts and are likely to witness rapid adoption going forward. Stringent Emission Norms: The recent ambitious move by the central government of India to by BS-V and straightaway leap into BS-VI emission norms by 1st April, 2020 has presented a huge market opportunity for fuel injection system manufacturers. Since automakers are destined to comply by the emission norms, manufacturers are required to step up their investments and quickly develop fuel injection systems for the Indian market that meet the emission standards. Although this will most probably result in incline in prices of fuel injection systems, this move by the government has opened up huge market opportunities for the organized manufacturers.
Auto OEMs in the country would have preferred a more phased shift to BS-VI norms over a period of 6-7 years. OEMs will have to work with the suppliers to customize the solution for the Indian market. There is a tremendous opportunity for domestic suppliers engaged in fuel injection systems to continuously innovate and develop proprietary technologies suitable for complying with BS-VI norms. The real challenge will be in providing BS-VI compliant vehicles to the end consumers at affordable prices. Rising vehicle sales and replacement of old injection systems once BS-VI is implemented will further aid in the market growth of fuel injection systems in the country. In the short term, increasing sales of twowheelers coupled with high replacement demand of carburetors is expected to augment the growth of fuel injection systems market in the country. Automotive fuel injection systems market in India is expected to grow from INR ~ billion in FY’ 2017 to INR ~ billion in FY’ 2022. Overall, the market is anticipated to grow at a healthy CAGR of ~% during the period FY’ 2017-FY’ 2022. Figure: India Automotive Fuel Injection Systems Market Future Outlook on the Basis of Revenue in INR Billion, FY’ 2018-FY’ 2022 82.00 80.00 78.00 76.00 74.00 72.00 70.00 68.00 66.00
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