The automotive plastics industry across Brazil, Russia, India and China (BRIC) is set for a period of significant growth over the coming decade, according to analysts. Rising vehicle production and an increase in plastics usage per vehicle means these key emerging markets will be crucial to the future of the global automotive plastics sector.
Strong Vehicle Production Growth
Vehicle production across the BRIC nations has expanded rapidly in recent years and this growth is projected to continue. India and China in particular are forecast to see over 10% annual increases in production out to 2030, which will make these two countries central to global light vehicle manufacturing.
This surging production provides a major opportunity for plastics producers to partner with automakers investing in new and expanded BRIC facilities. The value of plastics content per vehicle is also on the rise, increasing opportunities for industry players.
Brazil's vehicle manufacturing has slowed in recent years but is expected to return to growth as the economy recovers. Moscow-based firm Autostat projects Russian light vehicle output will rise over 3% annually through 2030, supported by local demand.
Rise of Electric & Autonomous Vehicles
An emerging trend reinforcing BRIC automotive plastics industry potential is the shift toward electric and autonomous vehicles. These advanced models generally have higher plastics content than traditional internal combustion engine vehicles.
Electric vehicles especially see more extensive plastics usage versus metals in applications like battery enclosures, electric motor housings, and lightweight body panels that improve range. Autonomous technologies also drive increased usage of molded composites and thermoplastics for interconnects, sensors, and advanced clusters/displays.
China aims for new energy vehicles including plug-in hybrids and EVs to account for 25% of auto sales by 2025. India plans to transition fully to EVs by 2030, while Brazil and Russia are also pursuing electrification strategies. This bodes well for plastics producers building relationships with OEMs developing next-gen vehicle platforms.
Material Demand & Innovations
In addition to increased usage, the types of plastics utilized in automotive applications are evolving. Thermoset composites remain crucial structural and exterior materials, while demand grows for advanced thermoplastics with superior performance attributes.
Areas that will see notable material demand growth include durable polymers for under-hood applications tolerant of wide temperature ranges from -40°C to +125°C, flame retardant and high heat resistant engineered plastics, electrically insulating materials, and lightweight reinforced thermoplastics.
Innovations in composite recycling and reuse technologies will also be important for sustainability goals across the BRIC auto industry. Localizing material production through partnerships between multi-nationals and domestic industry will support these developing markets.
Prospects By Country
Each BRIC nation offers unique market potential and characteristics important for plastics producers to understand:
China - Already the world's largest auto producer and plastics consumer, China is central to industry fortunes. Electrification policies open major opportunities despite trade risks. Localization is essential.
India - Rapid vehicle and plastics market growth plus EV plans make India an emerging opportunities hub. However, less developed infrastructure presents challenges alongside developing engineering capabilities.
Brazil - Recent economic and auto industry struggles have slowed growth compared to peers. But vehicle production is projected to rebound with a recovering economy, aided by necessary infrastructure investments.
Russia - Still a relatively small automotive sector compared to others but output growth will continue dependent on domestic demand. Developing advanced materials supplies is important given economic sanctions.
By understanding and adapting to the market-specific regulations, partnerships, resources and technical requirements within each BRIC country, plastics producers can best position to capture the substantial industry potential across the region in the decade ahead.
In summary, rising vehicle production led by strong growth from India and China, increasing plastics usage per vehicle, and advanced materials and processing demands from new technologies indicate the BRIC automotive plastics industries are positioned for significant expansion. While each nation presents unique considerations, automakers and plastics producers able to strategically target and invest in these developing markets will find considerable opportunity amid wider global industry trends. With the auto sector increasingly centered on major emerging economies, success in BRIC nations will prove ever more crucial to competitive advantage.
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