Market Trends of Asia Pacific Automotive Engine Industry
This section covers the major market trends shaping the APAC Automotive Engine Market according to our research experts:
Rise in sales of Electric Vehicles (EVs) is hindering the growth of market
Sales of passenger cars declined in major economies such as India, China, Japan, etc. in 2019. In 2018, the global passenger cars production accounted for 70.49 million units recording a continuous growth. However, in 2019 the production came down to 67.15 million units. Improving road infrastructure and rising disposable income of the middle-class consumers are driving the passenger car market in the developing countries. Competitive pricing of vehicles by automotive manufacturers has also created a huge demand for passenger cars in developing countries in Asia Pacific.
Asia Pacific Electric vehicle market is also expected to exhibit a healthy growth rate during the study period. Eventually customers will switch to electric mobility but high cost associated with electrification of vehicle & adoption of electric vehicles at local level will continue to maintain the relevance of IC engines. A large number of electric vehicles are hybrid electric vehicles therefore IC engines will be produced until electric car market see full electrification of vehicles.
China and India Expected to Dominate the Engine Market
Large amount of OEMs profit during the forecast period will come from developing economies like India and China. Some of the major factors driving the growth of the market are increasing automotive production and sales of trucks and buses in countries, like India, China and ASEAN Countries and growing automotive components sector. Engine after sale market is also expected to exhibit a healthy growth rate during the forecast period. Growth in engine after sale market can be attributed to growth in customer specific customization and used car market.
However, the region, especially China, has been witnessing a rise in the sales and production of electric vehicles, which is hindering the growth of the automotive engine market. In 2018, nearly 1.25 million electric vehicles were sold in China registering more than 60% sales growth over 2017. Additionally, in 2019, both India and China witnessed a decline in vehicle sales, owing to trade tensions and shaky consumer confidence, uneven monsoon, poor festive demand, and high fuel and insurance costs, which also hindered the market growth, as the production of vehicles slowed down. Another factor responsible for the decline is increased awareness about shared mobility and COVID 19 outbreak.
