Dec 26, 2017: Replacement demand for automotive LED lighting in the after-market is expected to grow significantly in 2018.
China new car sales increased from 23-24 million units in 2014 to 28 million units in 2016, and in 2017, it is expected grow to 29 million units. China-based major car manufacturers like Great Wall Motor, Changan Automobile, Geely Auto, JAC Motors and Zotye Auto have seen a rise in the combined market share from 20% in 2013-2014 to over 40% in 2016-2017. As a result, this would push growth in LED lighting for automobiles.
Replacement for LED lighting for vehicles sold over the past few years will also increade after-market demand for LED automotive lighting, mainly taillights, direction indicators and interior lamps, reports Digitimes.
Since OEM supply chains take a long time in product validation, it is mostly dominated by international manufacturers. For Taiwan-based LED manufacturers, it is difficult to enter OEM supply chains but easy to become after-market suppliers. For example, Everlight Electronics has begun manufacturing LED automotive lighting devices. Lextar Electronics has also begun shipments of LED automotive lighting modules for the after-market, and Edison Opto will start its shipment in 2018.