Along with continued growth in China's car market in 2014-2017, replacement demand for automotive LED lighting in the after-market is expected to take off in 2018, according to industry sources.
China saw new car sales increase from 23-24 million units in 2014 to 25 million units in 2015 and 28 million units in 2016, and the volume is expected grow to 29 million units in 2017. China-based automakers, including Great Wall Motor, Changan Automobile, Geely Auto, JAC Motors and Zotye Auto, have seen their combined market share rise from about 20% in 2013-2014 to over 40% in 2016-2017.
Maintenance for vehicles sold over the past few years will boost after-market demand for LED automotive lighting, mainly taillights, direction indicators and interior lamps, the sources said.
OEM supply chains usually take a long time in product validation and are mostly dominated by international makers. For Taiwan-based LED makers, it is difficult to enter OEM supply chains but easy to become after-market suppliers.
Everlight Electronics has begun producing LED automotive lighting devices at a new factory in central Taiwan, Lextar Electronics has begun shipments of LED automotive lighting modules for the after-market, and Edison Opto will do so in 2018.
However, the large market potential for after-market LED automotive lighting in China will attract many makers and this is likely to result in price wars, the sources commented.
LED automotive lighting for the after-market
Photo: Digitimes file photo
