Asia Pacific Finished Vehicle Logistics Market Size

APAC Finished Vehicle Logistics Market Analysis

The Asia Pacific Finished Vehicle Logistics Market is expected to grow at a CAGR of 5% in the forecasted period.

The Asia Pacific Finished Vehicle Logistics market is demonstrating significant growth across multiple key indicators as it is projected to reach a total value of USD 209.90 billion by 2021. This growth is anticipated to be spurred by an increase in the scope and number of automotive companies using multiple logistics services due to changing customer preferences and the rapid development of e-commerce.

Additionally, increasing production of vehicles, especially three-wheeled vehicles, in countries such as India, Thailand, and Bangladesh, is expected to drive the demand for finished vehicle logistics services in the Asia Pacific region. Additionally, the implementation of a better regulatory framework targeting to ease the transportation of goods across the supply chain, as well as the presence of well-established automaker models, will positively influence the growth of this market. Moreover, strategic collaborations between logistics companies and automakers to increase efficiency will also further enhance market growth.

Developed countries such as Japan, China, and South Korea are the key contributors to the regional market share. Japan is the major contributor to the regional market, followed by other countries such as China, India, and Australia. Regulatory framework changes targeted at easing goods transportation across the supply chain will further stimulate growth for this industry in the Asia Pacific.

This rise can be attributed to the emergence of e-commerce, changing customer preferences, and increased production of three-wheeled vehicles in India, Thailand, and Bangladesh. Strategic collaborations between automakers and logistics companies to enhance efficiency have also positively impacted the market.

The impact of the Covid-19 pandemic on the Asia Pacific finished vehicles market has been significant. The market has suffered from a drop in demand, an ongoing shortage of parts, and supply chain disruptions. This has been due to the closure of factories, restrictions on transportation, an extended lockdown of major production centers, and a dramatic reduction in the number of customers due to lockdowns. The market has struggled to adjust to the changing conditions brought by the pandemic. Many automotive manufacturers have been pushed to the brink, and some have ceased production completely. The decrease in demand caused by the pandemic has resulted in a sharp decrease in production, with some markets being particularly hard hit. Japan, Thailand, South Korea and India are the most affected markets, with an estimated total of 41.3% reduction in production in 2020. This has led to an estimated drop in sales volume of 9.2%, with only an estimated 9.7 million vehicles produced in 2020.