ASEAN Automotive Aftermarket was valued at US$ 28.7 Bn in 2023. The ASEAN Automotive aftermarket is a thriving and fast-expanding industry in Southeast Asia, offering an extensive array of vehicle repair and maintenance services. With over 5000 independent repair shops in Thailand alone, the region boasts a diverse landscape of locally-owned enterprises. These smaller repair shops employ competitive tactics, including service specialization and service diversification, to maintain a competitive edge. Additionally, they are forming strategic alliances and implementing standardized contracts with fleet operators and leasing companies to offer cost-effective replacement and maintenance solutions. As a result, the ASEAN aftermarket is well-positioned for significant growth and advancement in the foreseeable future.
ASEAN Automotive Aftermarket: Drivers
Poor Quality of Road Infrastructure
The quality of road infrastructure has a significant impact on the life of vehicle and its parts. Potholes can severely impact tires or damage the wheel rim. The pits on the road could also lead to premature wear on shocks and struts, suspension damage, steering system misalignment, exhaust system damage or engine damage. The continuous use of vehicle in poor quality road infrastructure results in more wear and tear of automotive components which increases the need for replacement of parts. Moreover, the poor quality of road infrastructure causes rupture of automotive components which can lead to road accidents. The increasing awareness about vehicle safety is leading to periodic maintenance and replacement of vehicle parts. Since service life of automotive components is highly dependent on utilization, components have threshold lifespan. Therefore, the poor quality of road infrastructure is driving the automotive parts market.
ASEAN Automotive Aftermarket: Opportunities
A Diverse Range of Automotive Parts with Varied Rates, Quality, and Materials
The emergence of a new aftermarket automotive parts manufacturer offering a diverse range of products, varying in rates, quality, and materials, presents exciting prospects for the market. With such a comprehensive list of parts, customers gain access to a wider selection, enabling them to find products that match their specific needs and budgets. The availability of different quality levels allows for greater flexibility, catering to both cost-conscious consumers and those seeking premium solutions. Additionally, the utilization of various materials in manufacturing introduces innovative options that can potentially enhance vehicle performance and durability. This increased variety and choice create a dynamic market environment with ample opportunities for growth and customer satisfaction.
ASEAN Automotive Aftermarket: Restraints
End Users Preferring OEM Parts
The ASEAN automotive aftermarket encounters a restraint in the form of end users' preference for Original Equipment Manufacturer (OEM) parts. These parts, produced by the vehicle's original manufacturer, are perceived as highly reliable and compatible, instilling a sense of confidence among consumers. This trust in OEM parts leads many end users to select them, resulting in a limited market share for aftermarket parts suppliers. Moreover, the requirement of using OEM parts to uphold vehicle warranties further encourages consumers to opt for them over aftermarket alternatives. Consequently, the aftermarket industry faces challenges in gaining a substantial market share as consumers prioritize the perceived quality and compatibility offered by OEM parts.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/asean-automotive-aftermarket-3604
Key Takeaways:
ASEAN Automotive Aftermarket was valued at US$ 28.7 Bn in 2023 and is estimated to reach a value of US$ 55.3 Bn by 2030 at a CAGR of 9.8% between 2023 and 2030.
ASEAN Automotive Aftermarket, Passenger Cars under by Vehicle Type segment dominated the global market in 2022, accounting for 44% share in terms of value, followed by Commercial Vehicles.
ASEAN Automotive Aftermarket: Trends
Increasing Adoption of Remote Vehicle Diagnostics Systems
Remote vehicle diagnostics systems enable real time monitoring of vehicle parameters to assess its performance against benchmarks. With advancing vehicle technologies and increasing focus on vehicle safety and connected cars, remote diagnostics system has found increased adoption particularly in the commercial and utility vehicles. OEMs and authorized dealers are focusing on utilizing their capabilities and providing advanced services such as remote diagnosis to earn competitive edge in the market. Furthermore, remote vehicles diagnosis provides added benefits to customers as they don’t need to take the vehicle to the servicing center.
ASEAN Automotive Aftermarket: Competitive Landscape
Key market player includes Bridgestone Corporation, Denso Corporation, Hella KGaA, BorgWarner Inc., Robert Bosch GmbH, Continental AG, Enkei Corporation, F.C.C. Co.,Ltd., Mitsuba Corp., Schlemmer, Showa Corporation, Yachio Industry Co., Ltd., TOYOTA MOTOR CORPORATION, and ZF Friedrichshafen AG
ASEAN Automotive Aftermarket: Recent Developments
In June 2023, the tire manufacturing company, Goodyear Tire & Rubber Company, expanded its Cooper WORK Series by introducing the 'WORK Series Regional Haul Trailer (RHT) 2.' This newly added trailer tire is SmartWay-verified and is designed to enhance fuel efficiency and durability in challenging driving conditions, including high scrub applications and tough environments.
In March 2023, Automotive supplier HELLA, operating under the FORVIA brand, revealed the extension of its Black Magic auxiliary headlamp series by introducing 32 new lightbars. Out of these, 14 lightbars have obtained ECE approval for on-road use, while the remaining are designated for off-road applications.
In June 2023, ZF, a worldwide technology corporation that provides systems for passenger cars, commercial vehicles, and industrial technology, has introduced the ZF Health Check digital service concept aimed at enhancing the operational efficiency of buses. By utilizing real-time data gathered from driving operations, the service enables the creation of personalized maintenance plans specifically tailored to the actual transmission condition of each vehicle. This innovative approach aims to minimize downtime and improve the overall uptime performance of buses on the road.
In April 2023, Continental has recently unveiled its Solution Center in Portugal, intending to digitalize tire solutions, business workflows, and production processes within the Continental Tires group sector. The center, situated at Lousado, is strategically positioned near the company's tire plant, fostering close cooperation between the two entities. The primary objective is to enhance efficiency and innovation by leveraging digital technologies and facilitating seamless communication and integration between the Solution Center and the tire manufacturing facility.