Asia-Pacific is also another big market for turbochargers as there are big automobile manufacturing markets in China, Japan, and South Korea. In Asia-Pacific, China is the biggest market for turbochargers with a penetration rate of 18% in 2011 and a penetration rate of about 15% in passenger cars.
North America is far behind Europe and Asia-pacific in the use of turbochargers in automotive. It is mainly using turbochargers in gasoline vehicles but the trend is shifting slowly due to the strict emission and fuel economy standards set by U.S. CAFÉ organization. The turbo penetration rate in passenger cars was just 7%. In ROW, Brazil and Russia are two big markets of turbochargers in automotive. The penetration rate of turbochargers in Brazil was around 11% in 2011.
The drivers of the industry are identified as stringent carbon emission norms, engine downsizing trend, and growing passenger vehicles market. The restraining factors are identified as low preference of diesel passenger cars in North America and Asia-Pacific and weak penetration of turbochargers in gasoline engines. The issues in the market are mainly pertaining to that of the usage of counterfeit products; increased preference of gasoline passenger cars; and gradual shift towards electrically assisted turbochargers. The turbocharger manufacturers are closely working with their distributors and automotive manufacturers to address to the growing demands