Rapid growth to spur China’s US$5433.4 mln automotive plastics market

Rapid growth of the Chinese automotive industry is estimated to spur the US$5433.4 mln automotive plastics market to US$11,044.9 million in 2017 as per Frost & Sullivan.With a market volume of 13.79 million cars including passenger and commercial vehicles, China became the largest automotive producer in 2009. The automotive market in the country is expected to continue growing rapidly in the next three to four years, creating a vast market for automotive plastics. This feverish pace of growth of the end-user market has been backed up by favourable government policies. Subsidy program for auto replacement and incentives for new energy vehicles will encourage the production of more automobile and thereby, increase the volume of automotive plastics. Safety regulations for the automotive industry will also have a bearing on the automotive plastics market. For example, energy absorption systems are considered mandatory in the front bumper systems of passenger vehicles, says the analyst of this research. This bodes well for the polypropylene foam block, which is a successful collision energy-absorption solution. The thrust provided by the government notwithstanding, the high maturity of plastics for certain vehicle parts will limit its future growth. Market participants will still be optimistic about their prospects due to the potential of engineering and high-performance plastics in exterior and under-the-hood applications. Supplying high-quality products with complete technical service will also stand the plastics suppliers in good stead in China. The market can also stave off the challenge from light metals in passenger vehicles, as advanced plastics can lower the weight of the automobile. A 10 per cent reduction in the weight of the automobile translates to a 6-8 per cent decrease in fuel consumption, making plastics more attractive to vehicle manufacturers. Further, as plastics can be recycled and re-used, resource consumption for the manufacturing process of plastics is lower than that of other materials such as metal and glass, notes the analyst. Hence, economy of resources is another driver for the development of automotive plastics. Close cooperation between plastic and vehicle manufacturers can go a long way in producing vehicles with high-energy efficiency, environment friendliness and cost effectiveness. Plastics manufacturers can contribute to this common goal by providing valuable technical support to the industry.