by The automotive aftermarket in the ASEAN region involves the manufacturing, remanufacturing, distribution, retailing, and installation of all vehicle parts, components, systems, and products, except for new tires, fuel, and lubricants. Surging vehicle sales have resulted in a rapidly expanding vehicle parc in the ASEAN region over the past decade. As vehicles age, there arises a greater demand for replacement parts and components. Common replacement parts include brake pads, filters, belts, wiper blades, batteries, and lighting equipment. Moreover, wear and tear also fuels the need for repair and maintenance services. The automotive aftermarket ensures the continued operation of vehicles through the supply of replacement parts and components.
The global ASEAN Automotive Aftermarket 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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the major trends in the ASEAN automotive aftermarket size is the increasing demand for genuine and OEM spare parts. Vehicle owners prefer genuine spare parts over replicants as they offer higher quality, durability, and performance. Genuine spare parts are manufactured per the blueprints and quality standards of original equipment manufacturers. They fit perfectly within vehicle systems without comprising vehicle integrity and safety. This has driven many leading OEMs like Toyota, Honda, and Volkswagen to strengthen their distribution networks and supply of genuine spare parts across the ASEAN region.
Porter’s Analysis
Threat of new entrants: The ASEAN automotive aftermarket faces moderate threat of new entrants due to established supply chains and distribution networks of existing players. However, rising demand provides opportunities for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products and supply from various manufacturers and distributors.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power as they supply standard finished goods and components. However, some supplier concentration exists for certain components.
Threat of new substitutes: Threat from substitutes is low as automotive components require specifications as per vehicle make and model.
Competitive rivalry: The market features strong competition due to presence of numerous global and regional players.
Key Takeaways
The global ASEAN Automotive AfterMarket is expected to witness high growth. The global ASEAN Automotive Aftermarket 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 to 2030.’
Regional analysis comprises- Southeast Asian countries like Thailand, Indonesia and Malaysia are emerging as the fastest growing regional markets owing to rising vehicle parc, expanding infrastructure and economic growth.
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.
