MUMBAI, India, February 4 /PRNewswire/ --     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 (http://www.automotive.frost.com), 
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
ravinder.kaur@frost.com/ niyer@frost.com, 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.

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Passenger Vehicles Infotainment Systems Market in India

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    Contact:

    Ravinder Kaur
    Corporate Communications - South Asia
    P: +91-44-42044760
    F: +91-44-24314264
    E: ravinder.kaur@frost.com

    Tanu Chopra
    Corporate Communications - Middle East
    P: +91-22-4001-3437
    F: +91-22-2832-4713
    E: tanuc@frost.com

    Nimisha Iyer
    Corporate Communications - South Asia & Middle East
    P: +91-22-4001-3404
    F: +91-22-2832-4713
    E: niyer@frost.com

    http://www.frost.com