Asia-Pacific Micro-Hybrid Vehicles Market - Growth, Trends, and Forecasts (2020 - 2025)

The Asia-Pacific Micro-Hybrid Vehicles Market is segmented by Capacity (12v Micro Hybrid and 18v Micro Hybrid), Vehicle Type (Passenger Cars and Commercial Vehicles), Battery Type (Lead-acid and Lithium-ion), and Country.

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

CAGR:

8 %

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Market Overview

The Asia-Pacific Micro-Hybrid Vehicles Market is anticipated to register a CAGR of over 8% during the forecast period (2020 - 2025).

  • The few major factors driving the demand for the market are growing environmental concerns (owing to rising exhaust emissions), endorsement of stringent emissions and fuel economy norms, and government initiatives, in terms of subsidies and benefits for increasing the adoption rate of micro and mild hybrid vehicles.
  • The increasing industrialization and growing urban population in this region is attributing the demand to the micro hybrid vehicles market.
  • Also, the development of high-performance lithium-ion batteries is expected to drive the demand for micro-hybrid vehicle market significantly during the forecast period.
  • The Indian government has announced that all the vehicles registered after the April 1st of 2020 should be BS-VI compliant. However, due to the outbreak of CoVid-19 in the country, dealerships and production facilities were shutdown from mid-march, due to which large stock of BS-IV vehicles have been in the inventory. The government has given an extension. This will boost the market post the end of lockdown in the country.
  • The cost of hybrid and electric vehicles and lack of charging infrastructure can hinder the growth rate of market in emerging economies such as India, China, and Japan as cost effective customers prefer conventional IC engine vehicles affordable.
  • With the rapid advancements in automotive technology, automobile manufacturers are focusing on a large number of functional operations these days. The functions have increased exponentially during the past few years, resulting to the intense competition among the automobile manufacturers.

Scope of the report

Micro hybrid vehicles include an internal combustion engine (ICE) equipped with an electric motor, which allows the engine to be turned off whenever the vehicle is coasting, braking, or stopped, yet restart quickly. The Asia-Pacific micro hybrid vehicles market covers the latest trends and technological development in the hybrid vehicles. The market is segmented by Capacity, Vehicle Type, Battery Type, and Geography.

The scope of the report includes:

Capacity
12v Micro-Hybrid
18v Micro-Hybrid
Vehicle Type
Passenger Cars
Commercial Vehicles
Battery Type
Lead-acid
Lithium-ion
Country
India
China
Japan
South Korea
Rest of Asia-Pacific

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Key Market Trends

Increasing Demand for Lithium-ion Batteries

Currently, the lithium-ion battery segment is experiencing more demand and is projected to be the fastest growing battery type in the upcoming years mainly due to the increasing sales and demand for battery electric vehicles. However, electric vehicles are causing a restraint to the market but their increasing sale is driving the market. Also, the stringent emission standards, better fuel efficiency, and government incentives are few major factors driving this segment. Battery manufacturers are partnering with OEMs and this is in-turn increasing the vehicle sales as well.

Most of the governments in Asia-Pacific region such as China, Japan, and Singapore have either lifted taxes or have given a considerable amount of tax exemption on purchase of EVs. These initiatives by the government have attracted a lot of customers to purchase EVs and attributed to the increasing sales of Lithium-ion batteries. For instance,

  • In April 2020, the China government has introduced 10% service tax waiver for electric vehicles to boost the demand of the market due to Covid-19 impact.

Also, rapid growth in industrialization and increasing technology in countries like China, India, and ASEAN countries. For instance,

  • In September 2018, Amara Raja Batteries Ltd., which is India’s second-biggest traditional battery market, had announced to build a new 100 megawatt-hour assembly plant in the southern state of Andhra Pradesh. The company also announced that the market for electric vehicle power packs is set to grow of USD 300 Billion by 2030.
  • In June 2018, Toshiba Corporation, Sojitz Corporation and CBMM (Companhia Brasileira de Metalurgia e Mineração) have announced the joint research and development agreement on next-generation lithium-ion battery material using Niobium Titanium Oxide (NTO). The three companies will be working on development of a next generation lithium-ion battery which is characterized by its high-energy density and ultra-rapid recharging capability required for automotive applications.

Thus, the increasing demand for lithium-ion batteries and such developments shall lead this segment to experience more demand.

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China Holds a Significant Share in the Asia-Pacific Region

Across the regions in Asia-Pacific, China holds a significant share in the hybrid vehicles market share owing to their highest vehicles sales. This can be attributed to their increasing population which is catering to the growth in vehicle sales and stringent government emission norms. For instance, The Chinese government is implementing China 6 norms for pollution control in the region which are stricter than previous China 5 norms and are based on EURO 6 norms, form July 2020, which results in supporting the demand of micro hybrid vehicles in this region.

Currently, vehicle manufacturers such as Toyota and Honda have been dominating the hybrid vehicle segment in China, with their models such as Toyota Corolla Hybrid and Honda Accord Hybrid.

  • In the first three quarters of 2019, Corolla Hybrid sold 38,540 units in China, which has accounted for nearly 20% increase of total hybrid deliveries during the period.

According to the China Association of Automobile Manufacturers (CAAM), hybrid vehicle sales in China will reach 300,000 units by the end of 2019, up 4.3% from 2018. Also, the demand for EVs and plug-in hybrids are expected to decrease widely, as the subsidies for them are reducing.

Also, electric vehicle manufacturers have been signing contracts or deals with China battery manufacturers. For instance,

  • In November 2019, BMW Group has signed a contract of USD 4 Million to buy batteries from CATL, a Chinese battery manufacturer, to support its vehicle electrification drive.

Growing income levels and environmental concerns in China are an also major reason which is driving the market over the forecast period. This, in turn, is expected to result in increased investments in automotive technologies in China

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Competitive Landscape

The Asia-Pacific Micro Hybrid Vehicles market is dominated by few players such as Toshiba Corporation, Toyota Motor Corporation, Mahindra & Mahindra Limited, Nissan Motor Company Ltd, and Honda Motor Company, Ltd. Companies are investing heavily in research and development for the innovation of advanced products and technologies.

  • In February 2020, Honda Motor Company, Ltd. has announced to begin its sales of all new Honda Fit Hybrid vehicles. It is equipped with Honda’s 2-motor hybrid system which drives the vehicle with an electric motor, which results a better fuel efficiency and smooth drive.
  • In April 2020, Mahindra & Mahindra Limited had launched the new Mahindra XUV 500 and Scorpio BS-VI version starting from INR 13.2 lakhs and 12.4 lakhs. Both the vehicles include one diesel engine and 6-speed manual transmission combination. The XUV500 petrol model is anticipated to be launched somewhere in the second half of 2020.
  • In May 2019, Toshiba Corporation had announced that Mazda Corporation has selected its lithium-ion rechargeable battery for the M Hybrid, Mazda’s hybrid system, of the MAZDA3 which is one of its best-selling cars.
  • In November 2018, Toshiba Corporation have signed a partnership agreement with Johnson Controls Power Solutions to deliver low-voltage lithium-ion solutions to meet automaker demands for improved efficiency, lower costs and less complexity.
  • In April 2017, Suzuki Motor Corporation, Toshiba Corporation and Denso Corporation have made an agreement on establishing a joint venture (JV) for the production of automotive lithium-ion battery packs in India.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Capacity

      1. 5.1.1 12v Micro-Hybrid

      2. 5.1.2 18v Micro-Hybrid

    2. 5.2 Vehicle Type

      1. 5.2.1 Passenger Cars

      2. 5.2.2 Commercial Vehicles

    3. 5.3 Battery Type

      1. 5.3.1 Lead-acid

      2. 5.3.2 Lithium-ion

    4. 5.4 Country

      1. 5.4.1 India

      2. 5.4.2 China

      3. 5.4.3 Japan

      4. 5.4.4 South Korea

      5. 5.4.5 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Toshiba Corporation

      2. 6.2.2 Toyota Motor Corporation

      3. 6.2.3 Mahindra & Mahindra Limited

      4. 6.2.4 Nissan Motor Company Ltd

      5. 6.2.5 Honda Motor Company, Ltd.

      6. 6.2.6 Daimler AG

      7. 6.2.7 Kia Motor Corporation

      8. 6.2.8 General Motors Company

      9. 6.2.9 Porsche AG

      10. 6.2.10 Jaguar Land Rover Limited

      11. 6.2.11 Mazda Motor Corporation

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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