Goldstein
TM
Market Intelligence
AUGUST 2020
"EXPLORE" APAC TWO WHEELER INDUSTRY Goldstein Market Intelligence
WRITTEN BY: Dennis Abraham Vice President Goldstein Market Intelligence
Goldstein
TM
Market Intelligence
INTRODUCTION Asia Pacific automobile industry is fastest growing and is transforming to be a hub of automotive industry. Globally two wheelers are the most accessible & affordable automobile for transportation. But this trend is most evident in Asia Pacific region. The region accounts for nearly 80% two wheelers of all the vehicles on road. Global two wheeler manufacturers in the past decade have established their manufacturing unit across APAC region. Asia Pacific two wheeler market s estimated at USD 6.06 billion in 2016. The market is anticipated to grow at a compounded annual growth rate (CAGR) of 6.26% during the forecast period 2016-2024, to reach a market size of USD 123.98billion by the end of 2024. 100 123.98%
125
75100 50
75
76.30%
81.01%
86.03%
91.39%
97.10%
109.66%
103.18%
116.59%
6.26% Global Vehicle
Sales (In million units)
50
CAGR: (2016-2024)
25 25
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20 24
2020
20 23
20 22
20 21
2019
20 20
20 19
20 18
2018
20 17
0
20 16
0
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Market Intelligence
CHALLENGES TO CONFRONT Enviornmental Challenges Two wheelers, as with all other internal combustion engine-powered vehicles, emit the products of full and partial fuel combustion. Several of these emitted products have been identified as direct or indirect causes of air pollution. A limited number of studies have evaluated the contribution of motorcycles to conventional and toxic urban air pollution inventories and pollutant exposure in Asia. Motorcycles have been identified as the largest source of particulate emissions at busy traffic intersections, accounting for almost half of the emissions measured. Moreover, a study of toxic air emissions from vehicles in Bangkok, Thailand found a strong correlation between motorcycle traffic patterns and airborne benzene concentrations. 25% 10.2%
20%
9.1%
9.2%
2010
15% 5.0% 10.8%
1.3%
2.8%
2.7% 1.4%
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Ka ra ch i
Si ng ap or e
N or th
Vi et na m
1.7%
Vi et na m
Ko ng H on g
G ua ng do ng
4.0%
1.9%
0%
Ta iw an
8.9%
3.6%
2.0%
4.5%
So ut h
5%
2015
3.7%
D el hi
7.8%
Ba ng ko k
10%
Share of Total Fuel Consumption by 2S Scooters, 20102015
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Market Intelligence
TRENDS & OPPORTUNITIES Expansion of Two Wheeler Market in South East Asian Countries South East Asian countries also termed as ASEAN bloc, is witnessing huge expansion of two wheeler industry. The elimination of tariffs on imported completely built-up (CBU) vehicles enables OEMs to treat the region as a single market. Thailand, the region’s biggest manufacturer, wants to raise annual production to 3.5 million units by 2025. Countries in the bloc are laying favorable conditions for electrification. Thailand is planning tax exemptions for companies who want to manufacture EVs and EV components, and the Philippines will introduce excise duty exemptions for EVs and hybrids. Japanese OEMs continue to dominate the market.
Share of Total Fuel Consumption by 2S Scooters, 2010-2015
2010
2015
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Market Intelligence
FUTURE OF APAC TWO WHEELER INDUSTRY Asia Pacific two wheeler market s estimated at USD 6.06 billion in 2016. The market is anticipated to grow at a compounded annual growth rate (CAGR) of 6.26% during the forecast period 2016-2024, to reach a market size of USD 123.98billion by the end of 2024.
The two wheeler sales is highest in India & China on account of being the two largest & developing economies in Asia Pacific. But the Southeast Asian countries including Thailand, Vietnam, Indonesia, Malaysia, Philippines and Bangladesh have huge penetration of two wheelers. Nearly nine out of every ten households own a two wheeler. The presence of huge population in APAC region with majority falling in the low income to middle income category. Thus the adoption of two wheelers is the most affordable and wise choice across the region. Hence the market players recorded huge sales over the past decade. But rising per capita income of people in nearly every country in Asia Pacific, is thus registering a shift in automotive preference. People are shifting towards buying entry level passenger cars. Such changing environment is anticipated to bring stagnation in the growth of two wheeler industry in near future.
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Scan the QR code or click the link below for our study on future of automotive industry. https://bit.ly/3iFfuGj
About the author Dennis Abraham Ph.D, senior vice president at Goldstein Market Intelligence, leads GMI's syndicated health and wellness research. Before joining Goldstein Market Intelligence, Dennis held a variety of senior leadership positions in global and regional consulting roles covering consumer and retail insights across a broad range of healthcare categories. Dennis has been providing crosscategory strategic insights to healthcare brands for over 12 years on topics including digital disruption, ecommerce, and healthcare technology. Dennis holds a Ph.d from Havard University.
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