Home ECONOMY Conventional choices to govern car market in coming years: Study

Conventional choices to govern car market in coming years: Study

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Kolkata, Jan 9:

While an increased use of modern technology and fuel economy have been playing a major role in the decision to purchase cars, consumers are also prioritising the vehicles’ lifespan, a study of the automotive industry has revealed.

rp_rastrapati-nkn-odisha-agamana-paripekhire-tankara-surakshya-pain-commissionrate-police-pakhyaru-carket-reharsal-5.jpg“Concerns over vehicle quality have risen, following several high-profile product recalls, with more and more customers now seeking vehicles with longer lifespans.

“Original Equipment Manufacturers (OEMs) have to maintain a careful balance between product quality and cost optimisation”, the study said.

According to research firm KPMG, in next five years consumers will fixate on traditional product issues including safety innovation and ergonomics which will govern their purchasing decisions.

“Despite the many new technology-based corporations looking to win a slice of the competitive automotive sector because of the newly emerging mobility culture, the established premium and mass market Original Equipment Manufacturers (OEMs) may continue to dominate the landscape over the next decade”, the study said.

On the manufacturer’s front, the study said Indian companies will be investing in two powertrain technologies over the next five years — 33 percent in downsizing and optimisation of internal combustion engines and 27 percent in fuel cell electrical vehicles.

“Brazil, Russia and India each are expected to export more than one million vehicles to other markets in next three to five years,” the research said.

Interestingly, the study revealed that despite the emergence of new cleaner technologies, automotive executives believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term and when considering alternatives, fuel-cells have moved ahead of battery electric systems to become the number two priority for investments until 2020.”

The excitement over the potential of fuel-cell electric cars is also likely to be overhyped – by 2020 a mere 0.01 percent of cars are likely to be equipped with this type of propulsion, which equates to approximately 16,000 fuel-cell drive units per annum,” the study said.

It also said that huge investment in the automotive sector in India is expected in the coming years and there will be a phenomenal growth in the second hand car market. IANS