by Market Overview:
Fuel efficient vehicles are vehicles which offer high fuel economy in terms of distance covered per liter of fuel used. These include battery electric vehicles, plug-in hybrid electric vehicles, hybrid electric vehicles, and compressed natural gas vehicles among others. In Asia, governments are increasingly adopting stringent emission norms and providing subsidies on electric vehicles to curb rising pollution levels. As a result, automakers are focused on manufacturing of fuel efficient vehicles to comply with regulations.
Market Dynamics:
One of the major drivers for growth of Asia fuel efficient vehicles market is rising adoption of electric vehicles across major countries. For instance, according to International Energy Agency, the electric car stock in China reached 2.3 million in 2020, up from around 30,000 in 2015. The government of China has set a target of 20% of all new car sales to be electric by 2030.
Furthermore, increasing stringent emission norms by governments is also expected to drive the demand for fuel efficient vehicles over the forecast period. For example, in India Bharat Stage 6 (BS-6) emission norms equivalent to Euro-6 standards came into effect from April 2020 for new vehicles. Automakers were required to upgrade vehicles to comply with the new regulations.
Segment Analysis
The Asia (Japan, South Korea, China, India, ASEAN) fuel efficient vehicles market is dominating by electric vehicles which accounts for over 35% of market share. This segment is dominating due to rising environmental concerns and governments pushing for adoption of clean fuel vehicles through incentives and subsidies. Hybrid electric vehicles is another major segment accounting for 30% share owing to preference for fuel-efficient technology without range anxiety associated with electric vehicles.
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.
PEST Analysis
Political: Strict emission regulations and incentives for electric vehicles by various governments in the region is driving the market. For instance, Japan and China offers subsidy up to $10,000 for EVs.
Economic: Rising disposable income, lower fuel costs and lower total cost of ownership for EVs is contributing to market growth.
Social: Increasing awareness about global warming and pollution is positively impacting EV adoption.
Technological: Continuous advancement in battery technology, fast charging infrastructure and zero tailpipe emission capable models are fueling the market.
Key Takeaways
The Asia (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, due to strict emission norms, availability of subsidies and preference for clean mobility. Regionally, China dominates with over 40% market share due to strong policy push and investments in charging infrastructure by automobile manufacturers. Other major markets include Japan and South Korea. Key players operating in the Asia (Japan, South Korea, China, India, ASEAN) 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).
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
