The ASEAN Automotive Aftermarket Market is estimated to be valued at US$ 28.7 Bn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The ASEAN Automotive Aftermarket includes replacement parts, accessories, tires, batteries, lubricants, window films, and other components that are required for repair, maintenance, or upgrade of the vehicles in the region. Automotive parts are required for regular maintenance and repair of vehicles to ensure smooth functioning and extend the lifespan of vehicles. The increasing average age of vehicles and rising vehicle parc has driven the demand for OEM and aftermarket parts in the ASEAN region.
Market key trends:
The ASEAN Automotive Aftermarket is witnessing high growth owing to the increasing demand for OEM and aftermarket parts. The average age of vehicles in ASEAN countries has been steadily increasing over the past few years and stood at around 9-10 years in major countries like Thailand, Indonesia, and Malaysia in 2023. As vehicles age, the requirement of replacement parts and maintenance increases. This has boosted the demand for OEM parts that are designed to original specifications as well as compatible and affordable aftermarket parts. The increasing vehicle parc in the ASEAN region coupled with rising disposable income has also augmented the demand for vehicle accessories and cosmetic upgrades, thereby fueling the growth of the aftermarket.
Porter's Analysis
Threat of new entrants: Low capital requirements and established suppliers pose low threat of new entrants. However, high competition and customer loyalty towards established brands act as a barrier.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated products. Switching costs are relatively low.
Bargaining power of suppliers: Parts suppliers possess moderate bargaining power due to differentiated products and availability of substitute parts from other suppliers.
Threat of new substitutes: Threat of substitutes is moderate as original equipment manufacturers continue to focus on technology advancement.
Competitive rivalry: Industry comprises global and regional players, leading to high competitive rivalry.
SWOT Analysis
Strength: Wide product portfolio and extensive distribution network of key players. Growing demand for vehicle maintenance and aftermarket parts.
Weakness: High dependency on economic conditions and disposable income of customers. Supply chain disruptions affect timely delivery.
Opportunity: Increasing vehicle parc and rapid urbanization in developing nations. Shift towards online sales channels to boost connectivity.
Threats: Stringent environmental regulations regarding carbon emissions. Trade wars and geopolitical tensions impact profit margins.
Key Takeaways
The global ASEAN automotive aftermarket is expected to witness high growth, exhibiting CAGR of 9.8% over the forecast period, due to increasing vehicle parc in Southeast Asia. Growing middle-class population and rising disposable income fuel vehicle sales.
Regional analysis- The Indonesia automotive aftermarket dominates the ASEAN region with a size of over US$ 7 Bn in 2023 owing to large vehicle fleet. Countries like Vietnam, Thailand, and Malaysia exhibit higher growth prospects supported by Government initiatives to boost automotive manufacturing.
Key players operating in the ASEAN automotive aftermarket are 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. These players focus on expanding distribution networks and new product launches catering to local automotive needs.
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