APAC Mild-Hybrid Vehicles Market Size

APAC Mild-Hybrid Vehicles Market Analysis

The APAC Mild-Hybrid Vehicles Market size is estimated at USD 22.71 billion in 2024, and is expected to reach USD 66.91 billion by 2029, growing at a CAGR of 18.88% during the forecast period (2024-2029).

• The COVID-19 pandemic compelled about 95% of all automotive-related companies to put their workforces on hold during the lockdowns. The repercussions of the lockdown were immense and unprecedented due to the halt of manufacturing activities across the region. However, the market was expected to regain its momentum as economic activities resumed and vehicle production rose in 2022 across the region and was likely to witness major growth for the market during the forecast period.
• Over the medium term, growing environmental concerns (owing to rising exhaust emissions), enactment of stringent emissions and fuel economy norms, and increasing government initiatives in terms of subsidies and benefits for increasing the adoption of mild hybrid vehicles across the region.
• Mild hybrid is considered a transitional technology and not a solution to stop carbon emissions. The 48V system can meet the average fuel consumption limit of passenger cars in the fourth and fifth stages (the fourth stage: 5.0L/100km (2020); the fifth stage: 4.0L/100km (2025) with a reduction of 42%), but it is difficult to realize the goal in the sixth stage (3.2L/100km (2030)).
• Incidents of lifting and reduced subsidies for the purchase of electric vehicles may hinder the growth of the market in the region. In India, for instance, the government, in 2017, lifted subsidies on mild-hybrid vehicles under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) scheme (the State of Karnataka lost a subsidy of INR 75 crores from the central government).