Passenger car Accessories Market -Growth Drivers & Restraints

1. Passenger car Accessories Market Growth Drivers Connect With Us: Published By: Goldstein Research Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com

2. 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 won’t 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 China’s Changan Automobile Group to produce interior components that will supply Changan’s 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 Lear’s recent US$850 million (6x EBITDA) acquisition of Canada’s Eagle Ottawa, the world’s largest manufacturer of automotive leather, will help to reduce the impact of OEM directed sourcing, as well as increase Lear’s 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, Audi’s new USD 1.3 billion assembly plant in Mexico already hosts seven suppliers in its ‘just in sequence’ suppliers’ park High Medium Low Impact on Passenger Car Accessories Market Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com

3. Growth Drivers • Rapid Urbanization • Rapid pace of urbanization in developed and growing economies such as U.S., Japan, Australia, and others further opening the opportunities for the automotive accessories industry players • Population in urban regions are increasing the demand for passenger vehicles which is one of the major reason fostering the demand for passenger car accessories. • Thus, urbanization giving rise to small and electric vehicles such as hatchback vehicles those are electric powered. The zero emission feature of electric powered vehicles is gaining traction among the population and increasing the demand for hybrid cars • The rising sales of passenger cars in developing countries such as China, India, Mexico, Italy, Spain and others further boost the demand for passenger car accessories • Moreover, China is the biggest automobile market followed by the U.S.. The development in U.S. is expected to increase the car ownership in the country. The rising sales of automobiles further spur the demand for car accessories in near future Reason behind the growth of Passenger Car Accessories Market-2016-2024 Passenger Car Accessories Market Rising Sales of Passenger Cars Urbanization Rising personal disposable income • 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 Source: Goldstein Research • 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. High Medium Low Impact on Global Passenger Car Accessories Market Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com

4. Passenger car Accessories Market Restraints Connect With Us: Published By: Goldstein Research Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com

5. 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 Click here for market research on passenger car accessories. High Medium Low Impact on passenger car accessories Market Source: Goldstein Research Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com