Market Trends of Asia Pacific Automotive AHSS Industry
Growing Vehicle Production Across the Region
Asia-Pacific stands at the forefront of global vehicle production, primarily due to the presence of some leading automotive manufacturers. Bolstered by advanced manufacturing capabilities and robust supply chain networks, the region solidifies its leadership in the automotive sector.
As vehicle demand rises, so does the reliance on steel, a pivotal element in vehicle production. This escalating trend in steel consumption indicates a promising trajectory for the market in the years ahead. Driven by strong production rates, the Asia-Pacific region stands out as a dominant force in the future landscape of vehicle manufacturing.
In 2023, the Asia-Pacific region saw a notable rise in vehicle production, driving increased demand for high-strength steel in the search for lighter vehicles. For instance, According to the OICA, the region manufactured around 55.11 million vehicles in 2023, up from roughly 50.02 million in 2022.
Additionally, customers and automakers are prioritizing advanced safety systems owing to increasing accident rates. Some developed nations are witnessing a decline in injury and death rates through improved vehicle designs and innovations. In light of this, these nations are focusing on safety regulations and advocating for the integration of safety-enhancing subsystems in vehicles.
Moreover, Soaring aluminum prices, especially in comparison to steel, are driving up electric vehicle costs. In light of this, manufacturers are increasingly turning to AHSS, which are lauded for their superior stiffness, strength, and energy absorption capabilities during crashes.
With the development mentioned above across the region, the demand for advanced high-strength steel in vehicle production will likely grow in the coming years.
China and India Are Expected to Witness the Fastest Growth in The Asia-Pacific Region
China has emerged as a dominant country in the Asia-Pacific vehicle manufacturing landscape. The nation boasts major automotive manufacturers, from established local players to global automakers establishing their production bases. These automotive manufacturing companies are set to fuel a significant demand for advanced high-strength steel, popular for its lightweight and durable attributes.
With the automotive industry pivoting towards efficiency and sustainability, China's advanced high-strength steel market is poised for robust growth, presenting lucrative avenues for industry producers and suppliers.
To bolster its automotive sector, the Chinese government has implemented incentive schemes to stimulate auto sales and extended subsidies for electric vehicle purchases.
India's burgeoning economy, buoyed by rising disposable incomes among its middle class, is witnessing a surge in automobile demand. Over the past five years, the nation's cost-effective production landscape has catalyzed a swift uptick in vehicle manufacturing. As this manufacturing boom continues, the automotive sensor market is gaining momentum. With increasing investments, the market is poised for significant growth in the coming years. For instance,
- In February 2023, RHI Magnesita announced plans to invest USD 43.80 Crore (INR 3,600 crore) in India over the next two to three years, aiming to bolster its nationwide production capacity.
As vehicles in India modernize and safety standards align with global benchmarks, the rising average age of vehicles signals a promising trajectory for market growth during the forecast period.
