ASEAN and India Automobile Sector: Growth Drivers and Challenges
Growth Drivers
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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.
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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.
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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).
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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.
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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
ASEAN and India Automobile Market: Key Insights
|
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 |
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