Asia-Pacific Micro-Hybrid Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

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:

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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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