China dominates the Asia Pacific automotive powertrain market, capturing the largest share in 2024 thanks to its extensive vehicle production and strong electric vehicle (EV) adoption. The regional market was valued at USD 162.54 billion in 2024, with China as the leading contributor. The rise in electric powertrain demand has been supported by government subsidies and substantial investments in infrastructure, including EV charging networks. In 2023, global EV sales reached 6.9 million units, with China representing a significant share of that total. Looking forward, the Chinese market is expected to grow at a compound annual growth rate (CAGR) of 8.05% from 2025 to 2031, driven by advancements in battery management systems and hybrid technologies, although ongoing semiconductor shortages continue to pose challenges.
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