Growing vehicle parc in ASEAN countries owing to rising disposable income and economic growth has increased the demand for vehicle repair and maintenance. Additionally, increased average age of vehicles has propelled the need for replacement of various components during repair and servicing. The market players offer various components including engine and drivetrain parts, suspension and braking parts, electrical components, exterior trim and accessories. The aftermarket components help in reducing vehicle maintenance cost and extending vehicle life.
ASEAN Automotive AfterMarket is estimated to be valued at US$ 33.07 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the ASEAN Automotive AfterMarket are Dentsply Sirona Inc., Ivoclar Vivadent Ag, GC America Inc., Kulzer GmbH (Mitsui Chemicals, Inc.), Modern Dental Group Limited, COLTENE Group, VITA Zahnfabrik, Amann Girrbach AG, Formlabs, DIO Corporation, Shofu Inc., and Lang Dental Manufacturing Company, Inc. The key players are focusing on expanding their product portfolio and geographical presence through strategic partnerships and mergers & acquisitions.

The ASEAN Automotive After Market Size offers significant opportunities for market players owing to growing vehicle ownership. Additionally, favorable government policies promoting the local automotive industry has encouraged investments in ASEAN countries. Leading players are expanding their footprint through acquisitions of regional players and establishing production facilities in the region to cater to the increasing domestic demand.

Key players are focusing on expanding to high growth potential countries including Indonesia, Malaysia, Thailand and Vietnam owing to growing vehicle fleet. Investments in state-of-the-art manufacturing infrastructure allows production of parts as per regional specification and compliance with quality standards. Focus on developing innovative multi-application automobile accessories and value added services is helping in global expansion of ASEAN automotive aftermarket.

Market Drivers

One of the key drivers for the ASEAN automotive aftermarket is the rising vehicle parc in the ASEAN countries. Factors such as increasing disposable income, economic growth and urbanization are fueling vehicle ownership. Growth in the number of personal vehicles on the road is driving the demand for replacement parts and periodic vehicle maintenance.

Market Restraints

Prevalence of counterfeit and low-quality auto components in the aftermarket poses a major challenge. Lack of stringent regulations has led to proliferation of duplicate parts that compromise vehicle and passenger safety. This acts as a restraint for the organized automotive aftermarket players. Additionally, cheap pricing of counterfeit parts impacts sales volume of established brands.

Segment Analysis
The ASEAN automotive aftermarket can be segmented by component into exterior components, interior components, powertrain and chassis components, electronics, and others. Among these, the exterior components segment currently dominates the market and is expected to continue its dominance over the forecast period. Passenger cars require frequent replacement and repair of exterior components like bumpers, roofing, doors and bonnets which are vulnerable to damages from accidents and wear & tear over time. The high demand for replacement of these components is driving the exterior components segment.

Global Analysis
Regionally, the ASEAN automotive aftermarket is led by Indonesia, Thailand and Vietnam. These countries have a large automotive production base and vehicle parc which ensures steady demand for aftermarket components and services. In particular, Vietnam is projected to record the highest CAGR during the forecast period on account of rapid economic growth, rising disposable incomes and increasing vehicle ownership in the country. Furthermore, the ASEAN region is emerging as an important automotive manufacturing hub with many global OEMs setting up production facilities. This is augmenting the demand for vehicle repairs and maintenance across the region. Key players in the market are focusing on establishing local manufacturing plants and distribution networks to cater to the strong market potential across Southeast Asian nations.
Get more insights on This Topic- ASEAN Automotive After Market