Global and China Automotive Turbocharger Market Analysis 2015-2017

A turbocharger is actually an air compressor that increases air inflow by compressing air to reduce fuel consumption and exhaust emission and to improve output power. It is mainly used inside the engines of automobiles, engineering machinery, agricultural machinery, ships, and airplanes.

The biggest turbocharger demand in China was none other than auto industry. In 2013, 4.004 million units of automotive turbochargers were sold, accounting for 59.6% of China’s turbocharger sales. Driven by policies of energy conservation and emission reduction, vehicle exhaust emission upgrade, etc., China’s automotive turbochargers are expected to speed up by registering a CAGR of 12.2% to 6.34 million units by 2017.

At present, China’s automotive turbochargers are mainly applied to diesel engines, with the installation rate hitting some 71.9% in 2013. In future, as a growing number of products are replaced and upgraded, there will be a great demand. Despite an existing installation rate of a merger 8.6%, automotive gasoline engine turbocharger will have the greatest development potential. In 2017, the sales volume of gasoline engine turbochargers will be very likely to reach 3.184 million units, with the installation rate increasing to 14.0%.

The global auto turbocharger market is mainly monopolized by the foreign giants such as Honeywell, Borgwarner, Cummins, MHI, and IHI, which occupy a combined market share of more than 80%. Being bullish on the outlook of China’s automotive turbochargers, foreign giants have expanded their capacity in China by setting up factories, with market share by farstaying above 60%.

In September 2014, Honeywell, one of the world’s major turbocharger suppliers, opened its new plant in Wuhan, so that it increased an additional turbocharger capacity of 1.5 million units/a. In the future, with the business expansion, the second and third phases of the project will be initiated step by step.

Over the same period, the famous light-duty vehicle...