Indian Automotive Tic (Testing, Inspection, Certification) Market - 2023-2030

Indian Automotive Tic (Testing, Inspection, Certification) Market - 2023-2030

The Indian automotive TIC (testing, inspection, certification) market reached US$ 845.17 million in 2022 and is projected to witness lucrative growth by reaching up to US$ US$ 3,638.78 million by 2030. The market is growing at a CAGR of 23.6% during the forecast period (2023-2030).

The Indian automotive TIC market is a rapidly growing industry that provides testing, inspection, and certification services for automobiles in India. With the Indian government implementing strict regulations for the automotive industry, there has been an increasing need for TIC services to ensure compliance with these regulations. The TIC services help in ensuring the safety, quality, and performance of vehicles, and are necessary for gaining customer trust and loyalty.

The Indian automotive TIC market is highly competitive, with both domestic and international players offering a wide range of services such as vehicle inspection, emission testing, and certification. The automotive TIC (testing, inspection, certification) market shares in India is expected to witness significant growth in the coming years, driven by the increasing demand for automobiles in India and the need for compliance with regulations.

Market Dynamics

Introduction of new laws on vehicle safety

Road accidents in India are a serious issue and account for one of the largest road accident fatalities globally. According to the latest available data from the Ministry of Road Transport and Highways (MoRTH), more than 4.5 lakh road accidents occurred in 2019, causing more than 1.5 lakh fatalities. Although there are numerous causes are behind the accidents, attention has been drawn to the poor quality of vehicles sold in India.

The Global NCAP (New Car Assessment Program), an independent vehicle safety charity, conducted crash tests of popular models sold in India and rated them below average due to lack of safety features and poor build quality. The Government of India unveiled new vehicle safety laws that make using safety features such as ABS and ESP mandatory in all new vehicles sold in the country from April 2019.

Further supplementary laws mandate regular crash testing of vehicles at par with UN standards. The government-mandated the use of dual airbags from 1st April 2021 and a minimum of six airbags will be made mandatory starting from 1st October 2022. Many other such laws are under consideration. Introducing these laws gives an impetus to wide-ranging and exhaustive vehicle testing to ensure regulatory compliance. Therefore the introduction of new laws on vehicle safety is a key driver that boosts the Indian automotive TIC market opportunity and share.

Lack of awareness about the importance of TIC services

One of the most important factors that hampers the growth of the Indian automotive TIC market is the lack of awareness about the importance of TIC services. Despite the growing importance of these services in ensuring the safety, reliability, and performance of vehicles, many customers and industry players in India are not aware of their significance.

The lack of awareness can be attributed to several factors, such as inadequate marketing efforts by service providers, limited understanding among customers about the technical aspects of TIC services, and the general perception that such services are optional and not essential. The lack of awareness has a direct impact on the demand for TIC services, as customers may not see the value in paying for these services. The respective fact can lead to a lower adoption rate of TIC services, which can in turn hinder the growth of the market.

To address this issue, it is important for service providers to educate customers about the importance of TIC services and the benefits they provide. The above fact can be done through targeted marketing efforts, such as advertising campaigns and social media outreach. Service providers can also collaborate with industry associations and regulatory bodies to raise awareness about TIC services. In addition, the government can play a role in promoting the importance of TIC services by incorporating them into the regulatory framework. By making TIC services mandatory for vehicle registration and renewals, the government can help create a culture of compliance and raise awareness about the importance of these services.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The Indian automotive TIC (testing, inspection, certification) market is segmented based on type, product and vertical.

Increasing safety concerns and governmental regulations

Engine and gears in India automotive testing market reached US$ 243.45 million in 2022 and are expected to reach US$ 1.01 billion by 2030, growing with a CAGR of 24.5% from 2022 to 2030. In 2023, market share for engine and gears was 29.25% in the type segment. iCAT provides an automotive transmission engine test cell established to perform noise, vibration and harshness tests on 'Front and Rear Wheel Drive vehicles. The lab will also be able to test all driveline components and various transmission units for Noise, Vibration and Mechanical Performance. SGS SA offers a wide range of cutting-edge services to meet the most current engine performance testing requirements.

The automated test stand system is designed to meet the demands of the most difficult testing and development tasks and it can be expanded as needed to meet the needs of customers. The six-engine test stands can test power up to 480 kW, torque up to 1,800 Nm and engine speed up to 20,000 1/min. Current measurement, conditioning of the test bench and the media, engine tests for gasoline, diesel and compressed natural gas and cold start tests up to -20°c.

The ARAI Kothrud emission laboratory offers Type Approval (TA), Conformity of Production (COP) and Development evaluation for Heavy Commercial Vehicle (HCV) engines and evaluation of alternative fuel vehicles/engines. The HCV emission test facility is a one-of-a-kind facility for developing tests for vehicle evaluation, mass emission, fuel consumption and oil & lubricant performance on trucks & buses.

Competitive Landscape

The major Indian players in the market include SGS SA, Automotive Test Systems, The Automotive Research Association of India (ARAI), URS Products and Testing Pvt. Limited, iCAT, TÜV Rheinland, Embitel, Sigma Test & Research Centre, AVL List GmbH and DEKRA.

Why Purchase the Report?
• To visualize the Indian automotive TIC (testing, inspection, certification) market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of automotive TIC (testing, inspection, certification) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Indian automotive TIC (testing, inspection, certification) market report would provide approximately 39 tables, 43 figures and 154 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies