In 2019, the global vehicle sales fell, owing mainly to a sharp contraction in automobile purchases in China in the second half of the year amid a government-led crackdown on non-bank lending. Sales in Western Europe also dropped sharply in the final months of 2018, owing to a shortage of qualifying vehicles under new emission test procedures introduced in the European Union in September, but still managed a slight increase for the year.

In 2018, Chinese vehicle sales fell for the first time in two decades, owing to a pronounced slowdown in economic activity, particularly in the latter half of the year. Total sales for the year was three percentage points below 2017’s record high, and recorded a sharp year-on-year decline of 14% in December. Several factors contributed to a weak sales performance in 2018. These include an increase in the tax rate applied on small vehicles, a government crackdown on excessive lending, and trade frictions with the United States.

New vehicle emission test rules, which entered into force in September 2018 in the EU led to a big swing in the sales in the second half of 2018, though automobile purchases in Western Europe, excluding the United Kingdom, managed to eke out a 0.3% increase in 2018. Based on the all aforementioned factors, the vehicle sales have been declining, which in turn, hampering the air filter market growth.

Asia-Pacific is anticipated to lead the air filter market over the forecast period. China, India, and Japan are the major economies in the regional market that are anticipated to influence the global industry, due to rising vehicle production. The European region is also likely to have a significant growth in the coming years. Earlier, it was one of the largest regional markets, in terms of revenue, owing to high product demand.

North America is witnessing strong demand for air filter, as the vehicle production is growing in the country, due to the presence of major companies, such as, Ford Motors Co., Chrysler, and General Motors. High disposable income and huge customer base are expected to fuel the demand for automobiles in the region, resulting in a steady growth of the market over the next few years.