Automotive Seat Market in China – High Demand for SUVs to Boost Growth | Technavio

15-Dec-2017 Intellasia | BusinessWire | 9:09 AM Print This Post

BEIJING–(BUSINESS WIRE)–#ChinaTechnavio
market research analysts forecast the automotive
seat market in China
to grow at a CAGR of more than 5% during
the forecast period, according to their latest report.


The market study covers the present scenario and growth prospects of the
automotive seat market in China for 2017-2021. The report also
lists passenger cars and commercial vehicles as the two major
application segments, of which the passenger cars segment
accounted for more than 88% of the market in 2016.

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only:
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Technavio analysts highlight the following three market drivers that are
contributing to the growth of the automotive
seat market in China
:

  • Growing dependency on public transportation
  • Increasing demand for SUVs and crossovers in China
  • Government initiatives to reduce taxes on small passenger cars

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Growing dependency on public transportation

The main reasons for the increase in the demand for public
transportation are aging population, rising fuel prices, increasing
urbanization, changing consumer preferences along with increasing health
and environmental concerns. The key benefits of public transport include
reduction in traffic congestion, reduced travelling distance through
metros, and improved comfort and convenience for users. Public
transportation helps in reducing additional costs associated with
traffic congestion, accidents, and CO2 emissions.

According to Ganesh Subramaniam, a lead analyst at Technavio for automotive
components
research, “Beijing is planning to invest USD 113
million for developing transport infrastructure during 2016-2020,
which will increase the demand for public transportation. The increase
in the number of buses on the roads will drive the automotive seat
market in China as the buses are equipped with more number of seats than
passenger vehicles.”

Increasing demand for SUVs and crossovers in China

The market share of SUVs in the automotive market in China has and is
expected to grow significantly during the forecast period. This is
mainly due to the emergence of small SUVs that combine the functionality
of a utility vehicle while offering the performance and other advantages
of SUVs. The price mix and utility has caught the attention of consumers
in the country. In addition, the increasing preference for larger
vehicles in China is due to the perception of having a higher social
status by owning a larger car. All these factors are driving the market
for SUVs in the country. The growing demand for SUVs and crossovers is
aiding the growth of automotive seat market as these vehicles typically
require more seating.

Government initiatives to reduce taxes on small passenger cars

In 2016, the automotive market in China 2016 was largely dominated by
small passenger cars. The increase in the sales of small passenger cars
was mainly due to reduction in taxes by the Chinese government and other
subsidies offered by the dealers. There is a growing demand for better
seats
in compact and subcompact car models. Individuals prefer to
buy small vehicles that have better seating features when compared with
the previous models. Therefore, the increase in the market share of
small passenger cars has increased the market penetration of seat
features in these small cars.

“OEMs are realizing the importance of seating and interior comfort
and are focused towards integrating these in their vehicles. There is an
increasing emphasis on the design of interior seats to ensure
comfort, which is emerging as a significant factor in determining the
consumers’ choice of vehicle. This development augurs well for the
growth of the market,”
says Ganesh.

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