For new-age car buyers, connected features become a driving factor

Connected cars are increasingly gaining popularity among new-age buyers, who are demanding continuous connectivity while travelling and enhanced safety features in their wheels of choice.

The share of connected cars in passenger vehicles sold in the Indian market doubled to 28.73% in the first nine months of 2024 from 14.47% in 2021, show data available with automobile consultancy firm Jato Dynamics. In models where connected features are available as an option, as much as 45% of the buyers went for such variants.

Given the robust demand, carmakers have started offering these features not only in premium SUVs, but even in compact models like the Hyundai Venue, micro-SUVs such as the Tata Punch and even in hatchbacks like the Tata Altroz.

Even as the average age of the car buyer in India is falling, aspiration levels among these customers are on the rise, said Hyundai Motor India chief operating officer Tarun Garg. “Customers here not only want more SUVs, they want high-end design and advanced features in their vehicles,” he said. “We (Hyundai)are seeing the penetration of top trims (in sales) continuously going up, moving up to 23% now from 14% in 2019. Features like ADAS (advanced driver assistance systems), sunroofs and connectivity are continuously gaining prominence.”

As much as 29% of the vehicles sold by the local unit of the Korean auto major are equipped with ADAS, enabling connectivity and safe operation of vehicles.

The company offers the technology in eight of the 13 models sold in the country, and plans are on cards to introduce it in more vehicles. “With the network of highways in the country increasing, the average speed has gone up. These technologies offer both safety and convenience to users and car buyers today are willing to pay more for them,” Garg said.Connected vehicles, which have embedded chips allowing internet access, enable drivers to transmit, store and receive information collected via sensors. This information is sent to devices within and outside the car, enabling a host of features monitoring the vehicle’s speed, sudden braking, etc., which help guard against reckless driver behaviour. Some vehicles come with the technology to scan retina movement of drivers to alert against accidents due to distraction.Satinder Singh Bajwa, chief commercial officer at JSW MG Motor India, said connected cars have become significantly popular and customers expect their vehicles to connect to their existing digital world, making their driving experience safer, more comfortable and even more entertaining.

“A connected vehicle can also provide real-time monitoring and alerts for issues like vehicle diagnostics, maintenance requirements and potential breakdowns. It can also offer emergency services like automatic crash notifications, roadside assistance and stolen vehicle tracking, enhancing the overall safety of the driver and passengers,” Bajwa said.

In the midsize SUV market, top-selling models like Hyundai Creta, Toyota Urban Cruiser Hyryder, Maruti Suzuki Grand Vitara and Kia Seltos offer hi-tech features such as anti-collision systems and assistance to maintain lanes while driving and geofencing that creates a virtual boundary of a car using GPS technology and alerts the owner if the vehicle enters or exits the set perimeter.

“More car users are likely becoming familiar with remote service features (which allow vehicle owners to interact with their cars via smartphones, browser-based apps and even personal virtual assistants), driven by technology trends and the ease of accessing remote services such as software updates, maintenance alerts, or remote unlocking,” said Ravi Bhatia, president of Jato Dynamics. “As vehicles become more integrated with digital ecosystems, remote services are likely to play an increasingly crucial role in differentiating products and enhancing customer experience in the competitive automotive market.”

Vehicle makers are already rolling out new car models equipped with enhanced remote service capabilities, increasing the uptake rate of connected cars in India and overseas, Bhatia said.

Several car manufacturers have begun offering subscription-based models for accessing remote services. As more consumers become comfortable with subscription services and as vehicles become increasingly connected, penetration rates are likely to increase, Bhatia said.