Asia-Pacific Automotive Parts and Components Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Market Overview

The Asia-Pacific automotive parts and components market was valued at USD 55.35 billion in 2021, and it is expected to reach USD 76.17 billion by 2027, registering a CAGR of above 5% during the forecast period (2022 - 2027).

The impact of the COVID-19 pandemic on the automotive industry was significant, especially during the initial days of the pandemic, as many suppliers and parts manufacturers upstream or downstream experienced initial regulatory shocks owing to lockdowns. However, as restrictions eased, key players operating across this region started adopting several growth strategies, which were likely to create market momentum during the forecast period.

Strong demand for automotive components and accessories for repair and maintenance is expected to drive the overall Asia Pacific automotive aftermarket revenue. Moreover, with e-commerce penetration, several parts and component manufacturers are investing in online platforms and using Amazon, eBay, etc., to capture the online consumers' market.

The Do-It-Yourself (DIY) is one of the emerging segments due to its cost-effective products and increasing consumer passion for automobiles. The participation of different industry players in offering innovative and easy-to-use repair kits is expected to support the enhancement of the market. However, replicas and cheap alternatives from chinese companies are likely to act as a challenge during the forecast period.

India, China, and Japan are expected to play a major role in the market studied during the forecast period. These regions act as hubs for some of the largest automotive manufacturers and accommodate growing vehicle production and penetration of new vehicles over the forecast period.

Scope of the Report

Automotive parts and components include bodies, chassis, interiors, exteriors, seating, powertrains, electronics, mirrors, closures, roof systems, and modules. All the parts and components are installed in a vehicle to give customers the best driving experience. The report covers the latest trends and technologies, followed by the COVID-19 impact on the market.

The Asia-Pacific parts and components market is segmented by Type, Application, and Country. By Type, the market is segmented into Driveline and Powertrain, Interiors and Exteriors, Electronics, Bodies and Chassis, Wheels and Tires, and other types. By Application, the market is segmented into original equipment manufacturers (OEMs) and Aftermarket.

The market is segmented by India, China, Japan, South Korea, and the rest of Asia-Pacific. For each segment, the market sizing and forecast have been done based on value (USD billion).

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Key Market Trends

Rising Adoption of Electric Vehicles to Enhance the Demand in the Market

Domestic OEMs currently dominate the Chinese EV market with a sales share of around 94%. China imposed a quota on manufacturers for 100% electric or hybrid vehicles, which must represent at least 10% of total new sales. Additionally, major economies like India, Japan, and South Korea also focus on imposing stringent restrictions to improve EV adoption. So, the growing demand for efficient powertrain systems in vehicles and favorable government policies are anticipated to offer new opportunities for players operating in the market. For instance,

· India's Automotive Mission Plan FAME-II emphasizes providing government support to the country's growing automotive and components manufacturing industry. Over the past few years, the automotive parts and accessories manufacturing industry has gone through a comprehensive remodeling, leading to the advent of a highly competitive industry.

Besides that, manufacturers in the country are geared to limit their current GHG emission levels by optimizing their powertrain system design and focusing on the lightweight and reduced size of powertrain systems with better performance results. So, players in the market are focusing on offering innovative solutions and are expanding their manufacturing facilities to consumers to capture the growing market share. For instance,

· In February 2022, Tesla planned to build a second electric vehicle (EV) facility in China to help it keep up with increasing demand locally and in export markets. In the short term, Tesla plans to increase capacity in China to at least 1 million cars per year, with a second plant planned near its present production in Shanghai's Lingangfree trade zone.

· In January 2022, Honda's Chinese joint venture with Dongfengannounced that it would develop an electric-vehicle manufacturing factory in Wuhan as it seeks to expand its EV output. The Dongfeng-Honda Automobile facility will open in 2024 with a production capacity of 120,000 units per year.

· In May 2022, Toyota Group revealed plans to invest INR 48 billion (USD 624 million) in India to manufacture electric vehicle components.

· In March 2022, Suzuki Motor, the parent company of Maruti Suzuki, announced that it would spend INR 10,440 crore in India to develop a new electric car and battery facility.

Similarly, the uptake of new technologies and innovations in engines, such as hybrid engines, is expected to gain significantly during the forecast period, which is expected to drive demand in the market.

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