Market Trends of Automotive Leaf Spring Industry
Increasing sales of Commercial Vehicles boost the market growth
The rise in disposable incomes in both developing and developed countries and growing construction activities and urbanization are also projected to drive the adoption of commercial vehicles, which will result in the growth of the market. Considering the scenario, manufacturers are working on innovating vehicle design and customizing vehicles according to weight regulations.
Moreover, the logistics market shifted to offering customer-centric solutions, making the growing need for commercial vehicles. Supportive policies and initiatives by governments raised the demand for commercial electric vehicles. Electric buses and heavy-duty truck registrations increased in North America and Asia Pacific.
For instance, in August 2023, the Indian Government approved USD 7 billion to run 10,000 electric buses in 169 cities.
Due to rising MHCV (Medium and Heavy Commercial Vehicle), production is growing in regions like the Asia-Pacific, and automotive giants such as Tata Motors are focusing on new technologies for the production of commercial vehicles. Many companies are also focusing on developing composite leaf springs for electric vehicles and LCVs since composite leaf springs may minimize noise, vibration, and harshness. Furthermore, the composite leaf springs are 40% lighter, with a 76.39% lower stress concentration, and deform 50% less than steel-graded leaf springs.
The Society of Indian Automobile Manufacturers states that sales of medium and heavy commercial vehicles increased from 2,40,577 to 3,59,003 units, and light commercial vehicles increased from 4,75,989 to 6,03,465 units in FY-2022-23, compared to the previous year.
Thus, with the rise in adoption of commercial sales and production, demand for leaf springs will continue to grow and contribute to market growth.
Asia-Pacific is Anticipated to Play a Significant Role in the Market
In the Asia-Pacific region, the increasing e-commerce businesses are fueling the expansion of the transportation industry. According to our analysis, with the largest population in the world and only 6% of India's retail market coming from e-commerce, the market is one of the fastest growing in the world.
With expanding vehicle manufacturing in India and China, the Asia-Pacific region is likely to experience considerable development in the global market. For instance, according to the International Organisation of Motor Vehicle Manufacturers, the top 5 car production countries in the world are dominated by Asia-Pacific, with China being the first, followed by Japan and India.
Seeing the growth in production and sales of vehicles in the Asia-Pacific region, companies are focusing on making investments in R&D activities to develop new technologies and cater to the demand.
For instance, in December 2022, THACO Chu Lai Industrial Park announced the establishment of THACO INDUSTRIES in Vietnam. The corporation sets the strategy for the development and manufacturing of products like leaf springs on a large scale. It invests in diversifying its products and services by the construction of a new R&D center and mechanical center.
The above factors, coupled with high sales of vehicles and major investments, will fuel the market growth.
