The China Automotive Electric Power Steering Market size is estimated at USD 15.58 billion in 2024, and is expected to reach USD 31.31 billion by 2029, growing at a CAGR of 14.98% during the forecast period (2024-2029).
An increase in passenger car sales can certainly have a significant impact on the China Electric Power Steering (EPS) market. Passenger cars are a major driver of the automotive industry, and their dominance in sales can shape the demand for various automotive components, including EPS systems.
The China Association of Automobile Manufacturers (CAAM) announced vehicle production and sales results for December 2022 and the whole of 2022. For the whole of 2022, vehicle production and sales increased in a stable tone due to continuously positive economic indicators as well as the rapid growth of passenger vehicle production and sales driven by policies such as consumption promotion. Commercial vehicle production and sales were at low levels, but New Energy Vehicle production and sales continued to skyrocket and market share increased to 25.6%, ushering in a new phase of development and growth. Vehicle exports stayed high.
Overall vehicle production and sales in December 2022, totaled 2.383 million units and 2.556 million units, down 18.2% and 8.4% y/y, respectively. Cumulative production and sales volumes from January 2022 to December 2022 were 27.021 million units and 26.864 million units, up 3.4% and 2.1% y/y, respectively.
If passenger car sales continue to rise in China, it is likely that the demand for EPS systems will also increase. Electric power steering has become the industry standard for modern vehicles, offering benefits such as improved fuel efficiency, ease of integration with electric drivetrains, and enhanced driver assistance features. As more passenger cars are sold, particularly electric vehicles (EVs) that rely on EPS, the demand for these systems will grow accordingly.
The China automotive EPS market is fairly fragmented, with many global players and a decent number of local manufacturers catering to the requirement of the OEMs in the market.
The presence of major players, such as Robert Bosch GmbH, JTEKT Corporation, ZF Friedrichshafen AG and etc., is both by the direct presence and joint ventures with local manufacturers. Joint ventures, such as ZF Shanghai Steering Systems, NSK-Wanda Electric Power Assisted Steering Systems Co. Ltd, and Bosch Huayu Steering Systems Co. Ltd also contributed to an important portion of the market.
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