Asia-Pacific Mild-Hybrid Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The mild-hybrid vehicle market in Asia-Pacific region anticipated to register a CAGR of more than 4 %, during the forecast period (2020 - 2025).

Key Highlights

• Some of the major factors driving the growth of the market are growing environmental concerns (owing to rising exhaust emissions), enactment of stringent emissions and fuel economy norms, increasing government initiatives in terms of subsidies and benefits for increasing the adoption of mild hybrid vehicles .
• Asia-Pacific is expected to witness a high growth rate during the forecast period. However, incidents of lifting and reduced subsidies for the purchase of electric vehicles a may hinder the growth of the market in the region. In India, for instance the government in 2017, lifted subsidies on mild-hybrid vehicles under the FAME scheme (State of Karnataka lost subsidy of INR 75 crores from central government).
• In the first half of 2019, 1 in every automobile sold in South Korea was hybrid or electric. The region also witnessed a rise in export of hybrid vehicles during the same time frame. The major players in the region are investing heavily to innovate new products and increase the performance of the vehicles.

Key Market Trends

Increasing Pollutants Concentration in the Atmosphere will Drive Growth

22 of the World’s most polluted 30 cities are from India and other cities are also from some of the south-east Asia countries (China, Pakistan and Bangladesh). The growing pollution levels in the region has forced the governments for stricter emission norms for vehicles. Bharat Stage-VI has been implemented by Indian Government and will come into effect from April 2020. The end users are also getting aware and concerned about the environment and air they breathe. So, they are shifting towards more environmentally friendly vehicles. This will be a major growth driver for mild-hybrid vehicles sales in the region as they are more eco-friendly than the conventional IC engines.

China will be the Market Leader

Across the regions, China has been predominantly capturing the largest share in the market, owing to their highest vehicles sales. The Chinese government is implementing China 6 norms for pollution control in the region which are stricter than previous China 5 norms and are based on EURO 6 norms, form July 2020. This will support the demand of mild hybrid vehicles in the region. The sales of automobiles in the region is expected to be grow with a significant rate during the forecast period and the increasing gasoline prices insists end users to prefer vehicles which works on alternate fuel to increase the performance of the vehicle. Many automotive companies from China made plans to invest in the other Asia-Pacific market to take advantage of the strong demand for hybrid vehicles. For instance, Geely launched Azkarra in February 2020, Hyundai introduced new i20 which is a 48V mild hybrid vehicle claimed to help reduce fuel consumption by 3-4%.

Competitive Landscape

The Asia-Pacific Mild Hybrid Vehicles market is fragmented, with many players accounting for significant amounts of shares in the market. Some of the prominent companies in the Asia-Pacific Mild Hybrid Vehicles market are Toyota Motor, Nissan Motor, Honda Motor, Hyundai Motor and others. Companies are investing heavily in research and development for the innovation of new and advanced products and technologies that may help for new technology.

In June 2019, Toyota launched Glanza in India which became the most affordable mild Hybrid car in the country. Companies are making new strategic partnerships, investing majorly in R&D projects and launching new products in the market for being ahead of their rivals. In May 2019, Toshiba announced that its lithium ion batteries have been adapted by mild hybrid systems of Nissan Motor Co’s Dayz and Mitsubishi motors’ eK mini vehicle.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support