9DECEMBER 2024ELECTRICAL INFRASTRUCTURE OVERHAUL DRIVING INNOVATION IN ELECTRICAL TAPESAUTOMOTIVE SALES DROUGHT EASES SLIGHTLY WITH BOOST IN RURAL REGIONThe electrical tapes market has demonstrated robust growth in recent years, with the market size reaching $12.96 billion in 2023 and expected to grow to $13.65 billion in 2024. Several factors have driven this growth, including the increasing demand for electrical insulation, the rise in construction activities, investments in overhauling electrical grids and infrastructure, and the need for high-A revival in the rural market has played a key role in halting the decline in sales of entry-level small cars, which saw a 10 percent growth in retail sales in October, according to top officials of Maruti Suzuki India (MSI). The company, which recently launched the all-new version of its compact sedan Dzire, priced between Rs 6.79 lakh and Rs 10.14 lakh (ex-showroom Delhi), remains optimistic about increasing its share in the sedans category quality insulation materials. Additionally, the automotive production surge has further contributed to the expansion of the market.Looking ahead, the electrical tapes market is projected to continue its upward trajectory, reaching $16.85 billion by 2028, with a CAGR of 5.4%. Key drivers for this growth include the increasing adoption of electric vehicles (EVs), growing demand for renewable energy systems, the rise of smart home systems, rapid urbanization, and the expansion of infrastructure. Furthermore, the market is expected to witness innovations in flame-retardant and heat-resistant electrical tapes, advancements in material science, and improvements in electrical tape technology.The automotive industry is a major factor propelling the growth of the electrical tapes market. Electrical tapes are essential in the automotive sector for insulating, protecting, and bundling electrical wiring, ensuring safe and efficient electrical systems in vehicles. The global automotive industry is experiencing significant growth, driven by increasing demand for electric vehicles, technological advancements, and supportive government policies. In 2022, the European Automobile Manufacturers' Association (ACEA) reported the production of 85.4 million motor vehicles, a 5.7% increase from the previous year. This expansion in the automotive industry continues to drive the demand for electrical tapes, further boosting market growth. despite the rapid growth of SUVs. Maruti Suzuki asserts that it will continue to cater to all vehicle segments to maintain its high market share in the domestic market.While the SUV segment has been growing at a fast pace, other segments, including compact sedans, remain crucial for MSI to maintain its market dominance. Hisashi Takeuchi, MSI MD and CEO, emphasized, "The compact sedan segment is very reliable... from a business point of view, it is very good. To retain a decent market share, we need to have a presence in each customer segment."Currently, Maruti Suzuki holds over 40 percent market share in the overall domestic passenger vehicle segment, with more than 50 percent in the sedan segment. In the entry compact-sedan segment--which includes competitors like Honda Amaze and Hyundai Aura--MSI holds a commanding market share of over 61 percent for the April-September period of the fiscal year.The sedan segment currently represents 8 percent of the overall passenger vehicle volumes, while sedans account for 10 percent of MSI's total sales volumes. Partho Banerjee, MSI Senior Executive Officer for Marketing and Sales, stated that the company's strategy is to serve all customer segments, with rural markets performing better than urban areas.
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