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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