In the past decade, the automotive industry even in developing countries stayed balanced and the rate of production was consistent. The region of Asia Pacific more than doubled the sales in the previous years. The growth, in short, was consistent in emerging markets like China, India, and Mexico. The automobiles catering to passenger cars were affordable and financially feasible. China leads in global passenger car producers making up 29%os total cars produced around the world.
If we consider the in-house segment, it makes the largest share in the overall automotive TIC market in 2020. TIC permits manufacturers to have control through services and personnel under direct control. This way the companies identify the problems immediately. The outsourcing part is expected to flourish with the fastest CAGR in the forecasted time frame.
The progress of the automobile industry is associated with expanding automobile production in coming up economies. The mindset is the urge for outsourcing TIC services. However, the governments’ supervision is to adhere to strict regulatory standards in this industry. Globally there are variations in regulations and standards which curtail its policy. There is slow down because of lockdown in many countries. This has disrupted the supply chain or closing of manufacturing units and a sales slump. All ties have adversely affected the TIC market.
The world was engulfed by the COVID-19 pandemic at the beginning of 2020. The WHO confirmed it. Among other industries, the automobile industry was also adversely impacted. The demand declined to make the situation worse. The automotive TIC market was expected to reach $17.2 billion by 2027 at a CAGR of 2.2% the forecasted period being 2020-2027. The developing market is adopting electric automobiles with features serving quality and safety including technology advancements etc to the market players. Regulation variations and dearth of skilled resources can retard the growth of the market.
TIC companies serve varied industries through a variety of standards because of specific roles between countries and sectors and legislations. The industries covered by it is IT, electronics, environmental protection, oil, and gas industries etc. Some of the key testing and certification services are
The owner must ensure passenger and vehicle safety through inspection
- If the component fails, the vehicle must be called back.
- Supply chain certifications.
- Industrial site inspections
- Product testing,
- Pre-shipment inspection
- Consignment conformity
Compared to the previous year in Europe there is a slump of 52% compared to 52%. The push back conditions will take years to regain growth. The electric cars are showing an upward graph at present. Electric vehicles within it are hybrids, plug-ins and full electric sale has gone up by 15%. This positivity is good news. However, the automobile companies with local government are coming up with bailout strategies and packages. For instance, the Japanese government recommended about $240 billion to cross over COVID-19. The government offered perks and rebates to companies ready to shift from China. South Korean government promised to automakers rapidity in clearance in services like freight transportation, customs clearance etc. In an open letter company such as General Motors, Volkswagen AG, as well as Toyota Motors suggested to the USA government to come up with schemes for loans and loan guarantees to medium-sized manufacturers and small units. This is a growth path taking 4-5 years.