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Indian Steering Systems market on high gear

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CIOL Bureau
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MUMBAI: The increasing demand for Indian passenger and commercial vehicles is revving up the Indian steering systems markets. The steering market, which includes manual steering (MS), hydraulic power steering (HPS), and electric power steering (EPS) systems, is fully mobilizing itself to capture growth opportunities in domestic and exports markets.

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New analysis from Frost & Sullivan on Indian Steering Systems Market, reveals that the market earned revenues $6.88 billion in 2005 and it is estimated to reach $16.96 billion in 2012.

"The increase in the production volume of mid-size and compact passenger vehicle segments and utility vehicle is expected to make the production of power steering systems in Indian a financially viable option," says Frost & Sullivan, Research Associate, Satish Kumar Sampath. "This is possible because of benefits of economy of scale."

Other significant driver of the Indian power steering systems market is the increasing end-user awareness of the need for better driving comforts. The compact passenger vehicle segment, which accounts for more than half of the total production of passenger vehicles, is stimulating the growth of EPS systems market in India.

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The conventional MS systems segment is similarly poised for a strong growth. The decreasing price of MS system is attracting customers of entry-level model cars and light commercial vehicles. Manufacturers are also optimally penetrating the vast utility vehicle segment, which holds enormous revenue potential for HPS systems.

The recent entry of several global automotive majors in the Indian market has further spurred growth, making the market more competitive and dynamic for all market participants.

To take advantage of these growth opportunities, Indian steering manufacturers need to rework their pricing strategy. This will not only enable them to cater to the price-sensitive market but also counter rising cost of raw materials and competition from low-priced Chinese steering systems.

"Restructuring costs and reducing wastages at every stage of manufacturing process, while retaining quality, can help manufacturers overcome market challenges," notes Kumar. "This can to a great extent insulate the manufacturers from price fluctuations of raw materials."

CIOL Bureau