Market Overview:
Fuel efficient vehicles refer to vehicles that consume less fuel than conventional vehicles and emit lower levels of carbon dioxide. Fuel efficient vehicles utilize technologies such as lightweight materials, electric drive systems, lower overall weight, and aerodynamic designs to achieve better fuel economy. With fuel prices on the rise, these vehicles offer significant savings on fuel costs for consumers. Additionally, governments across the region are offering various incentives and subsidies to promote fuel efficient vehicles in order to reduce emissions.
Market key Trends:
One of the key trends in the Asia (Japan, South Korea, China, India, ASEAN) fuel efficient vehicles market is the rising demand for electric vehicles. Stringent emission norms and increasing environmental concerns are driving automakers as well as consumers to shift towards electric vehicles. Countries across the region have set targets to increase electric vehicle adoption in the coming years. For instance, China aims to have new energy vehicles account for 20% of auto sales by 2025. Likewise, India plans to solely sell electric vehicles after 2030. Furthermore, technological advancements are leading to greater vehicle ranges and reduced battery costs, making electric vehicles more viable for consumers. This is expected to significantly drive the demand for electric vehicles in the region over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the Asia Pacific (Japan, South Korea, China, India, ASEAN) fuel efficient vehicles market is moderate. Developing the production facilities and getting regulatory approvals for new models require significant investments which pose a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is high in this market. The presence of numerous vehicle manufacturers provides buyers with adequate options to choose from in terms of features and pricing.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. The auto parts industry serving this market is highly fragmented and commoditized. However, engine and battery technologies integral to fuel efficient vehicles are specialized domains held by few large suppliers.
Threat of new substitutes: The threat of substitutes is low as battery electric vehicles and hybrid vehicles do not have close substitutes that can meet the objectives of improved fuel efficiency and reduced emissions. Alternative fuels are still in a nascent stage of development and commercialization.
Competitive rivalry: Competition in the fuel efficient vehicles market is high considering the presence of global automotive giants as well as credible domestic brands aggressively competing to gain market share.
The global Asia (Japan, South Korea, China, India, Asean) Fuel Efficient Vehicles Market Demand is estimated to be valued at US$ 1,013.82 Bn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Key Takeaways
The Asia Pacific (Japan, South Korea, China, India, ASEAN) fuel efficient vehicles market is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period 2022-2030, due to increasing regulatory push for fuel efficiency and emission norms as well as rising consciousness among consumers about environmental protection.
Regionally, China dominates the Asia Pacific fuel efficient vehicles market holding more than 35% revenue share in 2023 owing to the large production and sales volumes in the country. India is projected to be the fastest growing market during the forecast period supported by ‘Make in India’ initiative and expansion of local manufacturing units of leading automakers. Other high growth ASEAN markets include Indonesia, Thailand and Vietnam.
Key players operating in the Asia Pacific fuel efficient vehicles market are Toyota Motor Corporation (Japan), Honda Motor Co., Ltd. (Japan), Hyundai Motor Company (South Korea), Kia Corporation (South Korea), Nissan Motor Co., Ltd. (Japan), BYD Auto Co., Ltd. (China), SAIC Motor Corporation Limited (China), Geely Automobile Holdings Limited (China), Tata Motors Limited (India), Mahindra & Mahindra Ltd. (India), Maruti Suzuki India Limited (India), Mitsubishi Motors Corporation (Japan), Proton Holdings Berhad (Malaysia), Perusahaan Otomobil Kedua Sendirian Berhad (Perodua) (Malaysia), Groupe PSA (France). Global automakers are focused on developing new-age powertrain technologies including hybrids and electric vehicles specifically for the Asian markets.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
