The passenger cars segment has shown a considerable rise in sales, particularly in the developing countries. Rising stringency of vehicular emissions regulations and fuel economy standards are the major factors driving the demand for the direct injected engines.

Additionally, an increase in the demand for SUVs and trucks in the developing countries is boosting the automotive alternator market.

At the global level, the passenger car sales have been continuously increasing at an average growth rate of 4.59%, during 2010-2017. However, in 2017, the passenger car sales have increased to only 1.93%, with 70,849,466 units sold in 2017 from its previous year, compared to the 4.79% growth rate from 2015-2016, with 69,506,882 units sold in 2016.

The lower growth rate in 2017, compared to 2016, was due to the decline in passenger car sales in the NAFTA region, and countries, like the United Kingdom and Switzerland, and slow growth in China. The ongoing trade war between the United States, Europe, and China has resulted in the decline of passenger car sales.

The US government is planning to create automotive jobs in the country. Additionally, the government has currently imposed a 2.5% tariff on EU passenger car imports and has declared that the tariff would go up to 20%, if they fail to produce cars in the United States, supporting the growth of the automotive parts industry.

The automotive alternator market is driven by the increasing global demand for passenger cars and commercial vehicles. Asia is estimated to have the highest market share in the alternator market in 2017 and it is expected to continue at the same pace till the end of 2023 and much beyond. Countries, such as India, China, and South Korea, have emerged as the major automotive manufacturing hubs, sourcing components to western automakers.

Asia is an opportunistic region for commercial vehicle manufacturers. The automobile industry in India is developing, and it is expected to be the fastest growing market in the production of automotive by 2020. With the South Asian market providing the low-cost labor, it is set to become the major automobile hub in the near future. The European automobile industry has invested about USD 46.3 billion in R&D activities. With the modernization of car-related appliances, there has been a rise in deploying electronic devices in vehicles and increase in requirement of power in cars. Thus, this has led to an increase in the demand for alternators.