ASEAN and India Automobile Market Trends

  • Report ID: 4677
  • Published Date: Jan 18, 2023
  • Report Format: PDF, PPT

ASEAN and India Automobile Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Urbanization

Over the next three decades, Asia—particularly China and India, but also Pakistan, Bangladesh, the Philippines, and Vietnam—would see an increase in its urban population of more than 60%.

Urbanization is expected to make automobile market flourish as it allows consumers who move to cities in search of better employment opportunities to have the wherewithal to purchase private transportation, which expands the market for the same. Hence this factor is estimated to growth of the market.

  • Surge in Sale of Commercial Vehicles

In the Asia-Pacific region, about 7 million vehicles were sold in 2021. This represents an increase over 2015, when more than 6 million vehicles were sold in the Asia-Pacific region.

  • Surge in Investment in Road Infrastructure

By 2022, the government expects to already have built 65,000 km of national highways for the price of Rs.5.35 lakh crore (USD 741.51 billion).

  • Government Policies to Support Automobile Manufacturing

The Nationally Determined Contribution (NDC) that the Government of Indonesia (GOI) submitted to the UNFCCC, which serves as the primary source document for Indonesia's GHG emission reduction strategies, makes an unconditional commitment to reduce GHG emissions by 29% below "business as usual" (BAU) levels by 2030, and up to 41% below BAU levels with international support.

  • Launch of Electric Vehicles

In India, Piaggio unveiled the Ape electric three-wheeler in November 2019. It is powered by cutting-edge Lithium-Ion Smart batteries.

Challenges

  • Complicated Fuel Standards - With some fuel standards being incompatible with more contemporary, fuel-efficient, and environmentally friendly engines, the regional variances in fuel requirements could actually make it more difficult to export vehicles to other nations. Slow progress has been made at raising regional fuel requirements, harmonising them throughout all of the nations, and establishing the necessary infrastructure to support them. Engine technology advancements have been postponed owing to the lack of fuel regulation and fuel property harmonisation, which has affected market expansion.
  • Global Semiconductor Shortage
  • Uncertain Government Policies in Some Countries

Base Year 

2021

Forecast Year 

2022-2032

ASEAN Market CAGR 

3.62%

India Market CAGR 

4.19%

ASEAN Base Year Market Volume (2021) 

15,316.9 Thousand Units

India Base Year Market Volume (2021) 

17,486.8 Thousand Units

ASEAN Forecast Year Market Volume (2032) 

22,538.6 Thousand Units

India Forecast Year Market Volume (2032) 

27,256.0 Thousand Units

Regional Scope 

  • ASEAN (Thailand, Philippines, Malaysia, Indonesia, Vietnam, Myanmar, Singapore, and Rest of ASEAN)
  • India
 

Browse key industry insights with market data tables & charts from the report:

Frequently Asked Questions (FAQ)

The major factors driving the growth of the market are growing urbanization, surge in sale of commercial vehicles, surge in investment in road infrastructure, and others.

The market is anticipated to attain a CAGR of 3.62% and 4.19% respectively over the forecast period, i.e., 2022-2032

Uncertain government policies in some ASEAN countries, infrastructure, and fuel standards in ASEAN, and global semiconductor storage are some of the major factors estimated to hinder the growth of the market in this region.

The market in Indonesia is projected to hold the largest market value by the end of 2032 and provide more business opportunities in the future.

The major players in the market are Hyundai Motor Company, Mahindra & Mahindra Ltd., Kia India Pvt Limited, Honda Motor Co., Ltd., and more.

The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by vehicle type, fuel type, and by region.

The 2-wheeler segment is anticipated to garner the largest market size by the end of 2032 in the market of both these regions and display significant growth opportunities.
Inquiry Before Buying Request Free Sample PDF
footer-bottom-logos