TPMS On the Up as of 2005

The National Highway Traffic Safety Association (NHTSA) has proposed that tyre monitoring systems should be installed on 50 per cent of new vehicles sold after 1 September 2005, according to DB Global Equities New York.

The new proposal requires car manufacturers to install a direct tyre monitoring system to indicate when a tyre is more than 25 per cent under inflated and will eventually include 100 per cent of new cars by 1 September 2007. NHTSA estimates the cost of each device at between £26-40.

Industry representatives believe that by 2007 TPMS could grow to a $1 billion (£55 million) per year revenue opportunity. Currently there are at least five major auto parts suppliers competing in this segment of the market: Lear, Delphi, TRW, JCI and Continental. The announcement could also mean good news for Beru, a leading producer of direct measuring systems that provides software to Lear through a licensing fee agreement.