What's new in Automotive Logistics?
China holds the largest automotive logistics market share in the Asia Pacific region. The Chinese economy comprises of many automobile manufacturers who are continuously focusing towards the development of automotive logistics in the country. For instance, Kuehne + Nagel to create a new joint venture with Sincero, a Chinese company. The joint venture aims to offer logistics services to the automotive sector. It enhances the Kuehne + Nagel’s automotive logistics business for both tier one suppliers by 70% as well as Chinese OEMs.
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The company has a strong automotive imprint across China through different partnerships with premium and best European brands, such as new dealer distribution centers in Shanghai and Beijing for BMW. Such partnership and collaboration between the market players will propel the automotive logistics market in the forecast period.
The global automotive logistics market accounted to US$ 203.0 Bn in 2018 and is expected to grow at a CAGR of 6.6% during the forecast period 2019 – 2027, to account to US$ 370.8 Bn by 2027.
Company Profiles
- CEVA Logistics AG
- DB Schenker
- DHL International GmbH (Deutsche Post AG)
- DSV A/S
- GEODIS
- KUEHNE + NAGEL INTERNATIONAL AG
- Nippon Express Co., Ltd.
- Ryder System, Inc.
- XPO Logistics, Inc.
- United Parcel Service, Inc.
Rising number of automotive manufacturing facilities
automotive industry is experiencing significant demand for vehicles, which is pressurizing the vehicle manufacturers to deliver the required amount of vehicles. he rise in demand for passenger and commercial automobiles among the global mass is majorly driven by the rise in disposable income and an increase in manufacturing facilities in the developed countries and developing economies. These factors has led the automobile manufacturers to focus on logistics of the vehicle components, wheels significantly, and tires, vehicle skeleton as well as wholly assembled vehicles from one location to another worldwide.
The autonomous vehicles segment majorly, the passenger cars is gaining substantial popularity in recent time, and several automobile manufacturers are testing autonomous trucks. The autonomous trucks would benefit the logistics companies as well as the suppliers with enhanced safety and shorter lead times. The introduction of autonomous trucks is foreseen to catalyze the industry size of the automotive logistics market.
Source: The Insight Partners