Vehicle accessories are important equipment or automotive components that help enhance vehicle performance, assure safety, security, and reduce maintenance costs. These accessories majorly depend on personal preferences, and specific need of customers. Specific accessories can improve the vehicle’s performance on road or enable it to use a technology that the vehicle has not incorporated in conventional or older models. For instance, Rollr provides vehicle accessory for tracking driving behavior for conventional vehicle models.
Vehicle accessories include various products such as seat covers, chrome accessories alloy wheels, window films, dash kits, and central locking systems. Expansion of the vehicle accessories market is attributed to an increase in the demand for vehicle customization, need for comfort, and need for change in esthetics for a trendy appearance.
Key drivers of global vehicle accessories market
The cost of premium vehicles is significantly higher than conventional vehicles. Luxury vehicles are pre-equipped with some accessories primarily to attract customers and boost vehicle performance. For instance, on March 28, 2019, Pioneer Corporation introduced a connected dual camera drive recorder. This product is powered by AI to detect drowsiness of the vehicle driver and initiate appropriate measures to offer safer driving. Conventional vehicles, though cheaper, do not come with pre-equipped accessories. Improving vehicle esthetics using chrome accessories, seat covers, and alloy wheels lend a trendy appearance and can serve as a status symbol. Certain accessories such as central locking system and frontal collision system improve vehicle safety and can be installed on vehicles that are not pre-equipped with these accessories. Demand for comfort and luxury vehicles is particularly fueled by improved life standards and rise in disposable income of people. Thus, all these factors, cumulatively, drive the demand for vehicle accessories.
The automotive industry has witnessed numerous changes in the last few decades. Post 1990, Clean Air Act Amendment in California, US and 1992 Energy Policy Act, General Motors developed and launched EV1, which was the first ever mass-produced electric vehicle. Electric vehicles (EVs) do not emit common pollutants such as hydrocarbons, carbon monoxide, nitrogen oxides, and particle emissions. Developments in batteries are boosting the miles driven per charge of EVs. EVs offer high acceleration, attracting speed fanatics. Stringent rules and regulations on emission, such as Euro 6 and Bharat Stage VI, in order to curb air pollution further restrain the development of conventional vehicles that have higher levels of emissions as compared to electric vehicles. All the factors mentioned above point toward a promising future for electric cars. The vehicle accessories for electric vehicles must be comply with energy consumption standards enacted by manufacturers for high efficiency, requiring parallel development with advances in EV technology. These factors drive the vehicle accessories market.
Availability of inexpensive, low quality accessories as a substitute restrains Original Equipment Manufacturers (OEMs)
Demand for customization of vehicles is high, especially among the younger generation. Inclination of customers toward enhanced vehicle performance experience and increased comfort while driving is fueling the demand for vehicle accessories, which offer a solution to these needs. New players in the industry offer inexpensive, low quality accessories in order to attract more number of customers. For instance, rear parking assist camera costs about US$ 10, while parking assist system in premium vehicles costs about US$ 100. This difference in pricing is anticipated to acts a challenge for OEMs.
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Sakshi Mishra Joined: July 22nd, 2019 Articles Posted: 530
