Demand for automotive plastics is surging in the developing regions of Brazil, Russia, India, and China (BRIC) on account of enhanced focus on safety and comfort among OEMs. Automotive plastics revenues are expected to surpass US$ 15 billion in revenues by 2016, of which China will account for nearly US$ 9 billion.
The automotive market in BRIC has not yet reached the level of saturation as the western markets. OEMs are especially eyeing the lucrative markets of China and India, where millions of people are yet to buy their first car. Demand for automotives is also robust in the commercial sector, as BRIC nations are still working on upgrading their freight network. Steady demand for automotives is supporting the plastic industry in these countries.
Application-wise, FMI has segmented the BRIC automotive plastics market into interior, exterior, and under bonnet. Demand for plastics for interior use in automotives generated revenues worth US$ 6.67 billion in 2014; FMI expects demand to expand at over 14% through 2020. Application of plastics in exterior and under-bonnet is also expected to expand at a high CAGR through 2020.
