Automotive - Industry - Asia Pacific Market, Share and Trends 2023-2028

Summary of Automotive

Increasing disposable incomes of people in the Asia-Pacific region are playing a significant role in boosting the growth of the automotive market. Increasing incomes are leading to an increase in demand for personal transportation. In many countries in the region– owning a car is seen as a status symbol and a way to improve mobility and access to employment and education opportunities. This has led to an increase in demand for cars, SUVs and other types of personal transportation vehicles. For example – in China: – the number of cars on the road has been increasing rapidly and is expected to continue to do so in the coming years.

Rising incomes are also enabling people in the region to purchase more expensive vehicles with advanced features and technologies, such as electric and hybrid vehicles. Governments in the region are offering incentives and regulations to encourage the adoption of electric and hybrid vehicles, which is helping to spur demand for these products. For example – in Japan: – the government has been offering tax incentives and other incentives to encourage the adoption of electric vehicles.

Based on our estimates, we can say that Asia Pacific’s regional Automotive industry is forecasted to be a $2973.69 billion industry in 2029 from $1839.6 billion in 2023 with a CAGR of 8.21%.

Many of the countries in the region – including China and India – make up some of the fastest-growing nations in terms of population size. Taking its increasing population into consideration, it comes as no surprise that Asian economies and industries are evolving constantly. One such industry is the automotive industry. Increased population produces increased demand for effective mobility. The region has a reputation as being home to some of the world’s most valuable vehicle manufacturers.

Recent Trends and Insights

Production in Southeast Asian nations is rebounding from pandemic lows. Thailand especially sees growth led by Toyota and Isuzu plants manufacturing for domestic and export markets.

Hydrogen fuel cell technologies are gaining traction in Japan, South Korea, China and Australia with pilot fleets and initial refueling networks in major cities. Further scaling up remains dependent on cost reductions.

Shared mobility continues expanding rapidly across major Asia-Pacific cities. Ride-hailing giant Grab also operates in food/grocery delivery and digital payments in Southeast Asia. EV sales in China grew by over 150% in 2021 to around 3.5 million units, accounting for over half of the global EV market. Subsidies and regulations continue driving adoption higher.

The shift toward renewable energy has been positively influenced by this strong and growing independent voice within government, which provides the impetus for political parties and incumbents to act effectively. Mills is assured that corporate Australia is also starting to see a drive towards sustainability. 

Product Insights

Popular electric models include BYD Tang, various Tesla models, Nio ES8. SAIC & GM have large presences with Roewe, Baojun, Buick brands. Toyota and Honda dominate with hybrids like the Prius and CR-V. Nissan, Mazda, Subaru also prominent. Mitsubishi developing electric and fuel cell vehicles.

Hyundai and Kia are leaders in the EV transition with the Ioniq 5, EV6 and others. Genesis and SsangYong focus on luxury and SUV segments. Tata Nexon EV and Tigor EV gaining sales. Mahindra Bolero and XUV300 popular. MG Motor & Hyundai bringing EVs this year. Local manufacturing boosting economies of scale.

Malaysia (Proton), Thailand (Honda, Toyota), Indonesia (Daihatsu, Toyota) have robust auto industries. EVs gaining attention but affordability and range remain concerns. Toyota HiLux, Mazda CX-5 top sellers. Holden and Ford exited local production. Tesla Model 3 gaining sales as charging infrastructure expands nationally.

Other market players are implementing different strategies that are expected to promote market growth. For instance – SiEngine Technology Co– a start-up engaged in advanced automotive system-on-a-chip designs, secured the biggest funding (2022) in the domestic car chip design industry in the first of 2022. Such factors drive the China automotive semiconductor market growth.

Key Companies

Some major players within this vast domain of industry are

• Toyota
• Honda
• Nissan
• Tesla
• Maruti Suzuki India Limited
• MG Motor India Pvt. Ltd
• Volkswagen India
• Honda Cars India Ltd.
• BYD Company Ltd.
• BMW AG

Regional Analysis

South Korea aims for 8.6% of new car sales to be EVs by 2025. Hyundai and Kia lead the market with their Ioniq 5 and EV6 attracting many buyers. The government provides generous purchase subsidies. Production in Southeast Asian nations is rebounding from pandemic lows. Thailand especially sees growth led by Toyota and Isuzu plants manufacturing for domestic and export markets.

India has set an ambitious target of 30% electric vehicle sales share by 2030. Tata and Mahindra are ramping up local production while Tesla and other global brands evaluate entering the market. Charging infrastructure remains a challenge.

China has emerged as a leader in hydrogen investments, with over $8 billion committed through 2023. Major projects include 100 hydrogen stations along the Beijing-Shanghai corridor and hydrogen valleys in Shanghai, Guangdong and Shandong. Korea too is ramping up its hydrogen economy – the government aims for 6.2 million fuel cell vehicles and 1,200 refueling stations by 2040.

In Japan – Toyota and other automakers are partnering with energy companies like JXTG to build 160 hydrogen stations across the country by 2025. The Japanese government recently approved subsidies up to 15 million yen per station to accelerate this rollout.

Australia is exploring opportunities for hydrogen exports and has launched a A$300 million National Hydrogen Strategy and Roadmap to kickstart local production and use. Several pilot projects are underway in cities like Melbourne and Brisbane.

Market Segmentation

By Type:

• Connected vehicle technologies (telematics, infotainment, OTA updates)
• Advanced driver assistance systems (ADAS)
• Electric powertrain components
• Vehicle safety systems
• Automotive manufacturing equipment
• Industrial automation solutions

By End user:

• Original Equipment Manufacturers (OEMs)
• Automotive suppliers
• Mobility service providers
• Infrastructure providers
• Automotive dealerships

By Enterprise Size:

• Large automakers
• Mid-size vehicle manufacturers
• Component and parts suppliers
• Startups in mobility, EV, and self-driving technologies

By Country:

• China
• India
• Japan
• Indonesia
• South Korea
• Australia

Our Methodology

We have offered a well-founded review of the Asia Pacific’s regional Automotive market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.