New Delhi: Valeo SA, the $3.4 billion French automotive systems company, expects regulatory changes in India to play a crucial role in boosting demand for advanced driver assistance systems (ADAS) by 2026-27 and significantly help expand the $150-million market, as adoption reaches mass scale.
Jayakumar G., president and managing director of Valeo India, said by 2026-27, at least two essential features—driver monitoring system and autonomous braking—are expected to come under regulation. He expects these regulations to accelerate widespread adoption of additional ADAS technologies, which are currently limited to high-end vehicles.
“Focusing on the commercial vehicle segment especially those with extended hours of operation, driver monitoring systems are crucial. Besides, we are keen to develop ADAS systems for two-wheelers and three-wheelers, adapting the technologies for Indian market” said Jayakumar.
In collaboration with Qualcomm, it is developing display systems and connectivity solutions tailored for fleet vehicles, and aims to cater to the unique requirements of firms having large fleets, such as bigbasket and Amazon.
ADAS components include a range of sensors—ultrasonic, radar, LiDAR, and cameras—and algorithms. Features like reverse park assist are level-0 for ADAS, assessed on a scale of 0 to 5, where level 5 denotes fully autonomous driving.
Valeo operates four verticals in India—powertrain systems, driving assistance systems, visibility (lighting) and thermal systems. While its powertrain and thermal systems currently cater to the internal combustion engine market, comprising clutches, HVAC, compressors and starter units, it has set its sight on driving a majority of business from electric powertrain systems. The $1 billion deal with Mahindra’s Born EV platform is a case in point.
The company offers a combination of DC-DC converters, power distribution units, and on-board units to Tata Motors’ EVs. It also supplies electric powertrain and combo unit for Mahindra’s XUV400. Valeo expects two-thirds of its powertrain business will derive its business from EVs within five years. To support growth, it is planning to set up a 200,000-unit electric powertrain plant in Pune.
“We are shifting our focus to electric worldwide. As we are growing in the legacy business in India, it will take some time for ICE technology to lower—it will not be a sudden dip, but a gradual decline over 10 years or so. At the same time, we are getting ready for electric. We are working with all the OEMs in India on their electrification plans,” Jayakumar said.
Currently, the Indian ADAS market is small, featuring rear park assist with ultrasonic sensors a common feature. While luxury and mid-segment cars have the features, entry-level segments lack adoption. “20% of the market will be addressed by consumers seeking these technologies over the next five years and then it can be at 40% with basic ADAS features over 10 years. If regulation comes it could be a mass-scale technology quickly, as it will be implemented in every car.”
The cost of integrating ADAS systems in a car in India can range from $200 to $1500-$2000 per vehicle depending on the complexity of the system. However, an average of $200 upgrade per new car can account for a front camera and ultrasonic systems in the vehicle, he said.
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Published: 11 Dec 2023, 11:23 PM IST