AUTOMOTIVE ASSEMBLY MARKET ANALYSIS

Regional Analysis

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North America is expected to dominate the global automotive assembly market with estimated 44.58% market share in 2024, owing to the presence of some of the largest automakers in the world such as General Motors, Ford and Fiat Chrysler Automobiles. With their headquarters located in the U.S., these companies have established extensive manufacturing operations across the region to fulfil demand. In addition, non-domestic manufacturers like Toyota, Honda, Nissan and Hyundai have sizable production capacities in the U.S. and Canada to serve the local market. Supported by robust auto sales in the region, North America accounts for a major share of the global vehicle assembly each year.

One region that has emerged as an increasingly important player in the automotive assembly space is Southeast Asia Pacific. The Asia Pacific region is expected have the fastest growth with the CAGR of 7.12% in 2024. Strong economic growth rates across several ASEAN countries in recent years have driven a rapid rise in personal income levels and consumer spending. With populations and middle-classes expanding, demand for motor vehicles in nations like Thailand, Indonesia, Malaysia and Vietnam has  increased. Recognizing the huge market potential, global automakers have proactively set up manufacturing hubs in Southeast Asia to capitalize on this fast-growing demand.

Countries in the region also offer competitive operational environments that have attracted major industry investments. Countries provide incentives such as tax holidays, export subsidies and special economic zones to lure automakers. Meanwhile, ASEAN’s abundant and relatively lower-cost labor force has enabled companies to establish highly cost-effective production networks. The region has also signed multiple free trade agreements that allow tariff-free access to major external markets such as China, Japan, South Korea and India, enhancing export opportunities for locally manufactured vehicles. Owing to such favorable conditions, vehicle assembly output across Southeast Asia has expanded tremendously over the past decade and the region has emerged as a vital cog in the global automotive manufacturing industry. With GDP and incomes projected to rise further in the years ahead, the Southeast Asian automotive assembly sector is well-positioned for continued strong growth.