Roadzen Set to Benefit from India's New Road Safety Regulations

Rhea-AI Summary

Roadzen Inc. (NASDAQ: RDZN) is positioned to capitalize on India's new draft regulations requiring Driver Drowsiness and Attention Warning Systems (DDAWS) under AIS 184 standard. The company's DrivebuddyAI is currently the only system validated to meet these requirements.

The regulations, expected to be adopted within 30 days, will mandate safety features for commercial vehicles starting April 1, 2026 for new models and October 1, 2026 for existing ones. This covers 500,000+ new vehicles annually and 500,000 retrofits, representing a $200 million annual revenue opportunity.

DrivebuddyAI has demonstrated strong performance with 1 billion kilometers of driving data and up to 70% accident reduction. The system recently received a patent for CARD (Cognitive Assessment of Risk for Drivers), linking driver scores to insurance premiums.

Positive

• Only certified provider for mandatory DDAWS technology in India
• Access to $200M annual revenue opportunity
• Proven 70% accident reduction rate
• New patent for insurance premium calculation technology
• Mandatory implementation ensures guaranteed market demand

Negative

• Revenue opportunity dependent on timely regulation adoption
• Potential competition once other providers get certified
• Implementation timeline extends to late 2026

New draft regulations mandating AIS-184 and other road safety technologies for commercial vehicles, combined with Roadzen’s status as the only certified player, open up large market opportunity

NEW YORK, April 01, 2025 (GLOBE NEWSWIRE) -- Roadzen Inc. (Nasdaq: RDZN) (“Roadzen” or the “Company”), a global leader in AI at the intersection of insurance and mobility, announced today that it is positioned to benefit from the recent draft regulations issued by India’s Ministry of Road Transport and Highways (MoRTH) on March 20, 2025. The regulations, expected to be adopted within the next 30 days, mandate the installation of Driver Drowsiness and Attention Warning Systems (DDAWS) under AIS 184, along with other critical road safety features. Roadzen’s DrivebuddyAI is the first and only system validated by the testing authority to meet the AIS 184 standard.

The new regulations require Driver Drowsiness and Attention Warning Systems, Blind Spot Information Systems, and Moving Off Information Systems for both passenger and goods-carrying commercial vehicles in the country. These rules apply to new vehicle models under categories N2, N3, M2, and M3 starting April 1, 2026, and existing models beginning October 1, 2026, covering an estimated 500,000+ new vehicles produced annually and 500,000 vehicles to be retrofitted—a market estimated at $200 million in annual revenues, with Roadzen’s DrivebuddyAI as the sole compliant solution at this stage.

Roadzen's proprietary AI-powered DrivebuddyAI remains the first and only platform validated by the Automotive Research Association of India (ARAI) under AIS 184. Its advanced computer vision capabilities enable real-time driver behavior monitoring, drowsiness detection, and road safety compliance, uniquely positioning Roadzen to capture substantial revenue and market share as vehicle manufacturers and Tier-1 suppliers urgently seek compliant solutions.

Recent DrivebuddyAI Highlights:

• Surpassed 1 billion kilometers of real-world driving data, with accident reduction of up to 70%.
• Received a new patent for CARD (Cognitive Assessment of Risk for Drivers), linking personalized and contextual driver scores directly to insurance premiums.
• Became the first and only AIS 184-compliant system validated by ARAI in December 2024.
  

Rohan Malhotra, Roadzen’s Founder and CEO, stated, “India’s adoption of these new regulations marks a pivotal moment for road safety in the country. While India accounts for just 2% of the world’s vehicles, it suffers over 11% of global road accident fatalities—resulting in an estimated economic loss of nearly 3% of GDP annually. We have always believed that AI is the only truly scalable solution to address these challenges and are committed to rapidly scaling our platform to meet this urgent need.”

Mr. Malhotra continued, “These regulations also represent a major revenue opportunity for Roadzen. Once these draft regulations are adopted, we estimate that over a million vehicles would require this technology in the first year alone, opening up a market of initial revenue opportunities totaling approximately $200 million — and growing. As the only player in India to have received validation and approval following extensive road testing of our DrivebuddyAI platform by the ARAI, we expect this regulatory shift to significantly accelerate both adoption and revenue. We are actively expanding our marketing and partnerships to seek to scale and capture this tremendous market opportunity.”

About Roadzen Inc.
Roadzen Inc. (Nasdaq: RDZN) is a global technology company transforming auto insurance using advanced artificial intelligence (AI). Thousands of clients, from the world’s leading insurers, carmakers, and fleets to dealerships and auto insurance agents, use Roadzen’s technology to build new products, sell insurance, process claims, and improve road safety. Roadzen’s pioneering work in telematics, generative AI, and computer vision has earned recognition as a top AI innovator by publications such as Forbes, Fortune, and Financial Express. Roadzen’s mission is to continue advancing AI research at the intersection of mobility and insurance, ushering in a world where accidents are prevented, premiums are fair, and claims are processed within minutes, not weeks. Headquartered in Burlingame, California, the Company has 320 employees across its global offices in the U.S., U.K. and India. To learn more, please visit www.roadzen.ai.

Cautionary Statement Regarding Forward Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” and “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements regarding the anticipated benefits of our products and solutions, strategy, demand for our products, market opportunities, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management, as well as all other statements other than statements of historical fact included in this press release. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in “Risk Factors” in our Securities and Exchange Commission (“SEC”) filings, including the annual report on Form 10-K we filed with the SEC on July 1, 2024. We urge you to consider these factors, risks and uncertainties carefully in evaluating the forward-looking statements contained in this press release. All subsequent written or oral forward-looking statements attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this press release are made only as of the date of this release. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact:
Investor Contacts: IR@roadzen.ai
Media Contacts: Sanya Soni sanya@roadzen.ai or media@roadzen.ai

FAQ

What market opportunity does the new Indian regulation present for Roadzen (RDZN)?

The regulation creates a $200 million annual revenue opportunity, covering 500,000+ new vehicles and 500,000 retrofits requiring DDAWS technology, where RDZN's DrivebuddyAI is the only certified solution.

When will Roadzen's (RDZN) DrivebuddyAI become mandatory for commercial vehicles in India?

The technology becomes mandatory for new vehicle models from April 1, 2026, and for existing models from October 1, 2026.

What performance metrics has Roadzen's (RDZN) DrivebuddyAI achieved?

DrivebuddyAI has logged over 1 billion kilometers of driving data and demonstrated up to 70% reduction in accidents.

What certification has Roadzen (RDZN) received for its DrivebuddyAI system?

DrivebuddyAI is the first and only system validated by the Automotive Research Association of India (ARAI) under AIS 184 standard.

How does Roadzen's (RDZN) CARD technology impact insurance premiums?

CARD (Cognitive Assessment of Risk for Drivers) links personalized and contextual driver scores directly to insurance premiums through its patented technology.