Asia Pacific Automotive Parts and Components Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The growing demand for hybrid powertrain systems in vehicles and enactment of stringent norms are some of the major factors driving the growth of the automotive powertrain systems market.

With growing concern on environmental pollution, all the countries in the world have been significantly focusing to tackle vehicle emissions.

The United States is one of the primary countries where the government, with the help of both the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA), implements vehicle emission standards in the country.

To reduce carbon emissions and improve fuel economy of their vehicles, the auto manufacturers are consistently focusing on sufficing the stringent emission standards set under EPA’s Green House Gases (GHG) program.

During 2012-2015, vehicle models were successful in performing well under EPA’s GHG program.

However, in 2016, models of the vehicles exceeded their emission levels beyond the standard, owing to the increased technology adoption in vehicles that had been resulting in the lack of optimized fuel consumption (as the vehicle needs adequate power for increase in number of components in the automotive systems).

Manufacturers in the country are geared to limit their current GHG emission levels by optimizing their powertrain system design and focusing on lightweight and reduced size of powertrain systems with better performance results.

Thus, the countries across the world have a high potential scope for improved powertrain systems, and suppliers are competing strongly with their special design strategies to improve fuel efficiency of the vehicle.

Despite unfavorable economic issues, the robust urban consumption and the increase in public investment have guided the growth in the Indian economy. The increased growth, with commercial and government investments as well as FDI involvement, has driven the market for automotive parts and components in India. The automotive industry is growing with higher demand and with increase in the income level of consumers. In addition, the demand for light vehicles has amplified the awareness about fuel efficiency and environmental benefits. The market for used automotive in India is also increasing, and, in turn, driving the market for automotive to refinish coatings.

In the manufacturing sector of emerging economies, such as India, limited R&D expenditures, along with smaller capabilities has led to regional players compromise in the level of product quality. The problem is compounded when the price is often the primary priority for most customers, and product quality and reliability only come following the price. However, an increasing emphasis on low-quality coating products, particularly in certain end-user segments (such as automotive OEMs) is becoming outdated. Throughout India, and in parts of Asia-Pacific, a greater emphasis is being placed on R&D and more advanced paint formulations due to the increased importance and growth of the automotive sector. Many of these goals for advancement are bolstered through collaboration between MNCs and smaller regional companies.

With the presence of luxury carmakers, such as Audi, BMW, Mercedes and others in the country, customer preferences have changed to vehicles with luxurious and advanced features. Improved consumer spending and a large market for premium cars are expected to propel the market for automotive parts and components in the country during the forecast period.