Passenger Car Accessories Market Growth Drivers & Restraints

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Passenger car Accessories Market Growth Drivers
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Growth Drivers

• Rising global demand for vehicles fuelling growth
  of car accessories market
• The next five years will see a significant
  increase in the global demand for light vehicles,
  with sales expected to increase by almost 25 to
  reach 103 million units by 2019. Sales are
  supported by stable demand in the US and Europe
  and continued but slower growth in emerging
  markets, especially China.
• The connected car market has the potential to
  significantly boost revenues for automakers in
  the next five to seven years, and to establish
  closer, more profitable connections with their
  customers. The sophistication of the technologies
  is impressive, but success wont be a matter of
  the technology alone.
• The rising demand for small to mid size series
  and premium vehicles is supporting growth in the
  global automotive interiors market, which is
  forecast to reach over USD XX billion by 2024.
  This market is diverse, encompassing a wide range
  of components including seats, upholstery, door
  trims, cockpit electronics and instrument panels,
  pedals, lights and tires.
• Consumers are paying for value added features,
  especially in markets like China where around 50
  of cars sold include leather and premium
  customers prefer fully featured models.

The Top 5 Countries with the Highest Rate of
Road Traffic Accidents per 1000 vehicles, 2016
Sample

• Impact Analysis-
• Tier 1 suppliers are also increasing market share
  by establishing joint ventures with local OEMs.
  French supplier Faurecia has formed a joint
  venture with Chinas Changan Automobile Group to
  produce interior components that will supply
  Changans joint ventures with Ford Motor and PSA/
  Peugeot-Citroen.
• Tier 2 suppliers are establishing significant
  capabilities in emerging market locations to
  support their existing tier 1 customers as well
  as supply local OEMs. For example, in 2013
  US-based body cloth specialist Sage Automotive
  Interiors established a joint venture with
  Chinese supplier Wuhan Boqi to expand into the
  Asian market.

Suppliers are making investments to ensure they
can meet OEMs requirements. UK-based Cab
Automotive has made a significant investment in
equipment to guarantee it can meet the quality
and volume to supply arm rests for the new BMW
Mini. US-based Lears recent US850 million (6x
EBITDA) acquisition of Canadas Eagle Ottawa, the
worlds largest manufacturer of automotive
leather, will help to reduce the impact of OEM
directed sourcing, as well as increase Lears
exposure to China. To protect against supply
chain disruption, tier 1 suppliers are
establishing assembly plants close to their OEM
customers production plants. For example, Audis
new USD 1.3 billion assembly plant in Mexico
already hosts seven suppliers in its just in
sequence suppliers park
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Research
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Growth Drivers
Reason behind the growth of Passenger Car
Accessories Market-2016-2024
The rapid pace development in major economies
such as China, India, Russia, U.S., Germany and
others is impacting hugely on personal disposable
income of the population. The rising disposable
income further allows the population to spend
more on their vehicles and boost the demand for
car accessories
Total sales of automobiles reached to 94 Million
units in 2016 form 90 Million units in 2015. The
total number of automobile units sold in 2014
were 88 Million as compared to 86 Million units
in 2013. The continuous growth in automotive
sales further uplift the demand for car
accessories as well over the forecast period
Impact Analysis- Rapid expansion of urbanization
leads to increase the number of passenger
vehicles in developing and developed countries.
The rising sales of automobiles across the globe
is one of the major growth driver for the
passenger car accessories market. Click here to
contact us for detailed analysis of market
dynamics.
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Research
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Passenger car Accessories Market Restraints
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Published By Goldstein Research
Copyright All Rights Reserved, Goldstein
Research
www.goldsteinresearch.com
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Market Restraints

• Presence of Unorganized Players
• Only XX per cent of the auto components and
  accessories consumed in the emerging countries
  aftermarket belong to original equipment
  manufacturers (OEMs). In fact, original equipment
  suppliers, with other manufacturers and imported
  parts, account for XX per cent share of the
  aftermarket. Moreover, it is estimated that
  almost XX per cent of components in the
  aftermarket are counterfeit or fake
• The auto accessories sector is largely
  unorganized with about XX players operating in
  the unorganized market. There are about XX
  players in the organized market as of 2016. The
  demand from replacement market is low, owing to
  the high cost of genuine component parts.
  Unorganized players mainly dominated the
  replacement market, which were mostly Tier 3/4
  component manufacturers.
• Consumer is left to his own to rely on the
  existing market players, their respective
  facilities and options offered. Very often the
  accessories here are available at a lower price
  but without any guarantee. Often, these products
  are not easily identifiable over the genuine ones
  and mainly cater to price-conscious customers.

Challenges in Automotive Spare Parts
Accessories Market
INTERNAL
EXTERNAL
Complex Parts, Supply Chain Reverse Logistics
Shorter Product Lifecycle
Sample
Increasing No. of SKUs
Branding Requirements
Complex Vehicle Parts Configuration
Gen-X Perceptions on Spare Parts
Source Goldstein Research

• Impact Analysis-
• Aftersales automotive parts revenues on its own
  could grow from approximately EUR 20 billion in
  2012 by 20 percent a year and reach nearly
  EUR 100 billion by 2020. A strong aftersales
• network could also enable OEMs to build brand
  loyalty. To capture this opportunity, OEMs need
  to enhance their dealer capabilities, as today
  the dealership is mainly focused on new car
  sales.
• The company provides real-time traffic alerts
  through its website. Anyone can log on to the
  site and take advantage of alerts scrolled
  through a small window.

Seizure of Counterfeit and Pirated Goods () Top
Countries of Origin of Right Holders Whose IP
Rights are Infringed- 2016
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accessories.
Source Goldstein Research
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Research
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