India gears up for new ADAS mandates

India is set for transformation in the automotive industry with the recent notification drafted by the Ministry of Road Transport and Highways (MoRTH) mandating the inclusion of Advanced Driver Assistance Systems (ADAS) in all new vehicles designed to carry more than eight passengers, effective from April 2026. Some commercial vehicles for transporting goods are included as well. Existing models falling under this category, including SUVs, MPVs, trucks and buses, must comply by October 2026. The features initially mandated encompass the Advanced Emergency Braking (AEB), the Driver Drowsiness and Attention Warning (DDAW), and the Lane Departure Warning (LDW) systems. This mandate comes as India faces over 480,000 road accidents and 180,000 fatalities annually, reinforcing the government’s goal to halve road deaths by 2030.

Regulatory background is driving the change

Several key milestones have marked India’s journey toward enhanced vehicle safety. Starting with mandatory ABS for commercial vehicles in 2015 and passenger cars in 2019, driver-side airbags became compulsory in 2019, followed by dual front airbags in 2022. The Bharat NCAP was launched in 2023 to raise crash safety standards. The ADAS mandate, focusing on proactive safety, is the next step. This relatively short timeframe for implementation, especially for existing models, suggests a significant period of activity and adaptation for the automotive industry in India.

Mapping India’s automotive industry progress

The mandate creates a ripple effect across the automotive industry, bringing both hurdles and opportunities. India’s infrastructure is paramount, with varying road conditions, traffic congestion and mixed traffic, for the effective functioning of certain ADAS features like Lane Keep Assist (LKA), which rely on clear lane markings, often inconsistent in India. Therefore, continued infrastructure development is needed for these systems. On the validation framework, the Automotive Research Association of India (ARAI) is developing a dedicated 18-acre ADAS testing facility near Pune, signaling a commitment to robust validation processes. The upcoming Bharat NCAP 2.0 will incorporate ADAS features into its assessment criteria, further emphasizing the need for standardized testing protocols.

OEMs and Tier-1 suppliers must prioritize sensor integration supported by robust testing processes and facilities. Additionally, software development requires platform redesigns and component localization to balance safety features with affordability in the price-sensitive Indian market. Hyundai Mobis’s recent establishment of an R&D center in Hyderabad aims to develop a global software hub. This emphasizes workforce training and strict testing protocols to ensure ADAS technologies meet regulations and deliver tangible benefits. Component suppliers stand to benefit, especially in sensors, software and ECUs, but must localize, upgrade technology, and maintain quality to stay competitive. Government incentives could help ease costs and accelerate adoption.

Bridging automotive safety and semiconductor manufacturing

The global automotive industry is witnessing a strong regulatory push toward ADAS adoption, with markets like Europe, the US, Japan and China implementing comprehensive safety mandates, including ISA (Intelligent Speed Assist), DDAW and more. India’s proposed ADAS mandate aligns with the global push for increased adoption but is narrower in scope, targeting specific vehicle types and three key safety features, unlike other countries’ broader mandates. However, India will likely expand its ADAS mandate significantly post-2026. A phased expansion of these mandates to include additional vehicle categories and safety features will likely follow a strategic approach that begins with premium vehicles before extending to mass-market segments by 2027 and continues to evolve toward higher autonomous driving levels.

With the ADAS components market projected to grow, the demand for SoCs with high-performance chips that support real-time processing, sensor fusion and AI-based safety features will rise. Key players like HL Klemove (partnered with Mahindra), Novus Hi-Tech, Starkenn and KPIT (partnered with Mercedes-Benz) are already active in the Indian market, while global Tier-1s such as Bosch, Continental, Veoneer are expanding their local R&D. India through its “Semicon India Programme” with financial outlay of ₹76,000 crores (~US$9 billion), is preparing to manufacture its first domestic semiconductor chips in 2025 through Tata Electronics and Powerchip Semiconductor Manufacturing Corporation (PSMC) collaboration, focusing on 28nm process technology, suitable for automotive and ADAS applications. India's initial mandate, centred on Level 1 and Level 2 ADAS features, marks the first step toward autonomous mobility solutions.

Charting the road ahead

The ADAS mandate will reshape product development strategies for OEMs targeting the Indian market. It introduces a new competitive layer where differentiation will depend on system integration efficiency, supplier partnerships and localization capabilities. The immediate challenges lie in cost absorption, especially for mass-market segments and scaling Tier-1 readiness for advanced electronics and sensor technologies. However, for players who can align early with the evolving regulatory framework, there is a clear first-mover advantage in establishing ADAS-ready platforms and supply chains. Synchronized efforts between policy, industry and academia will be critical to avoid fragmented implementation and develop sustainable higher (L2+) autonomy and smart mobility systems in India.