by Market Overview:
Fuel-efficient vehicles including hybrid, plug-in hybrid, and electric vehicles are gaining traction as they provide better fuel efficiency and lower emissions compared to conventional vehicles. These vehicles are commonly used for urban commutes and intra-city transportation.
Market Dynamics:
The market is witnessing growth due to stringent government regulations regarding vehicular emissions and growing consumer preference for eco-friendly mobility solutions. Major economies in the region have rolled out production-linked incentive schemes and zero-emission vehicle mandates to boost local manufacturing of fuel-efficient vehicles. Additionally, rising fossil fuel prices and increasing electric vehicle charging infrastructure have also contributed to the adoption of these vehicles over the last few years. However, high vehicle costs and range anxiety continue to hamper widespread consumer acceptance.
Market Key Trends:
Asia (Japan, South Korea, China, India, ASEAN) fuel-efficient vehicles market has been witnessing a rise in demand for electric vehicles owing to stringent emission norms and government incentives & initiatives promoting clean mobility. Major economies in the region like China and India have outlined ambitious electric vehicle adoption targets and are investing heavily in developing charging infrastructure to boost consumer confidence in EVs. At the same time, rising fuel costs and increasing environmental awareness among consumers are driving a shift towards greener vehicles with improved fuel efficiency.
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.
SWOT Analysis
Strength: The region has a large consumer base and high auto production capacity to meet the growing demand.
Weakness: Lack of standardization in EV technology and lack of charging infrastructure in some developing markets.
Opportunity: Government emphasis on localized EV production to drive investments and job creation in the local auto sector.
Threats: Rising commodity prices pose risks to profit margins. Delays in technology breakthroughs can negatively impact market forecasts.
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 increasing regulations to curb emissions and government policies promoting electric vehicles and hybrids.
Regional analysis:
China dominates the Asia fuel-efficient vehicles market owing to a supportive policy environment and heavy investments by automakers in electrification. India is also emerging as a high-potential market, encouraged by the FAME-2 scheme offering demand incentives.
Key players:
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
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
