Advances in the Indian automotive sector, especially in engine technologies, are key drivers to the Indian automotive electronics market, potentially pushing growth over 21 percent in the next five years a new report indicates.

Technological developments in engine management and the incorporation of safety systems in cars currently represents only 1 percent and 6 percent of India’s overall automotive electronics market, respectively, research firm iSuppli said on Friday. However new government initiatives towards safety, and an overall shift towards technologically superior vehicles, poises the automotive electronics market to witness the 21.8 percent growth in five years.

The Indian automotive electronics industry is expected to achieve such robust growth, despite challenges such as a cost-sensitive Indian market, poor infrastructure and corrupt bureaucracy, said Jagdish Rebello, Ph. D., director and principal analyst for iSuppli Corp.

One of the emerging trends in the Indian automobile industry is the development of a mushrooming automotive electronics market inside the motor vehicle segment, Rebello added.