Greater China and Southeast Asia are projected to account for almost 68 percent of global growth in light-duty vehicle populations between this year and 2023, according to analysis by IHS Markit.
The financial information products and services provider estimates that global light-duty vehicle production will grow from 91 million units this year to 107 million units in 2023. Of that increase, Greater China is expected to contribute about 6.4 million units.
Think of that as further penetration inland from a sales perspective, and looking to localize and co-locate as much production as possible right there in the broader China market, Mike Wall, director of automotive analysis for IHS Markit, said during a Sept. 21 webinar.
Southeast Asia is also expected to experience an uptick in light-duty vehicle production, with 4.4 million additional units out to 2023. With Southeast Asia, think India, Thailand and some other Asian markets as well, Wall noted.
Meanwhile, light vehicle production in Japan and Korea combined is expected to contract by about 400,000 vehicles over the forecast period.
Thats very much a strategic decision on the part of Japanese and Korean automakers looking to localize or move production to other markets like North America, or to other Asian countries, he said. Those efforts will continue to take hold.
Part of an industry analysis webinar series by IHS Markit and Auto Care Association, the webinar was titled, Navigating the Waters with Eye on the Horizon: Implications for the Automotive Aftermarket.”
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