Automotive Plastics Market Overview

Plastics are commonly used in the manufacture of automotive components and parts owing to their easy manufacturing, renewable raw materials, and improved designs. Automotive plastics also help in the performance and safety purposes in commercial vehicles, modern cars, heavy motor vehicles, and sports utility vehicles. It is used in car bumpers, gas cans, and interior flooring of cars. Automotive Plastics are also used as an economic alternative to expensive plastics having similar strength and durability which can help in reducing the cost of production.

In terms of type, the Polypropylene segment holds the largest share which is a thermoplastic polymer that can be easily molded into any shape. It has excellent chemical and heat resistance properties and is resistant to impact.

Based on applications, the Interior segment dominates the market as it is used in interior applications which offers high durability, color, and aesthetic appeal to automobiles. Moreover, Interior application leads the market as plastics are being grown and used in these applications to give impact resistance and dimensional solidity.

In March 2023, LyondellBasell and Audi announced their collaboration to create automotive plastic parts from mixed automotive plastic waste. Audi is installing plastic seatbelt buckle covers in the Q8 e-tron using LyondellBasell’s plastic that supports the sourcing of feedstocks from mixed automotive plastic waste.

In March 2023, Eastman announced that the company had successfully completed the recycling project for automotive mixed plastic waste.

Rising Demand for Electric & Hybrid Vehicles

The rising demand for Electric & Hybrid Vehicles is one of the main reasons for boosting the growth of the Automotive Plastics market. Advanced plastics are said to be an important part of the automotive industry. Innovation in the automotive industry and the replacement of conventional transportation mean that smart vehicles along with safer performance and full efficiency are the key trends.

China is the largest manufacturer in the electric car market, with a significant increase in the sales of new electric vehicles. Several companies are planning to introduce new lines of electric vehicles in China and Asian countries.

Automotive Plastics Manufacturers:

• Celanese Corporation
• Covestro
• DuPont
• Solvay SA
• Lanxess
• Evonik
• SABIC
• LG Chemical
• BASF

On May 22, 2023, BMW Motors announced that they are planning to manufacture a new class of electric vehicles in China.

Volkswagen has announced that the company plans on using Huawei software in its cars in China, which will help the company in aiming to be the largest electric vehicle market.

Automotive Plastics are resistant to heat and can be used in battery compartments to keep them cool while also reducing their weight overall. This will help in increasing the lifespan of the battery without reducing safety of the automotive.

Plastics are much more cost-efficient as compared to metal and glass. Using Automotive Plastics in the manufacture of car batteries helped reduce the cost significantly, lowering the total cost of the vehicle, and making electric cars significantly more affordable and accessible for most drivers. Automotive plastics are used in the vehicle to reduce costs while offering the same tensile strength as metal in most cases.

Automotive Plastics not only makes the vehicle lightweight but also adds to the value by replacing conventional batteries and parts with advanced lightweight materials. These factors are projected to grow the demand for Automotive plastics in the forecast years.

Harmful nature of Automotive Plastics

Polyvinyl Chloride (PVC) is one of the most common plastics found in vehicles. PVC accounts for around 15-20% of the plastics used in an average car. Around 60-70% of the plastic parts used in automobiles today are PVC, PU, and PP out of which PVC is not recyclable, but PU and PP are easily recycled. Sometimes these plastics are not separated from the cars and put into a recycling system, or just trashed completely and left as waste which is harmful to the environment. Another restraint that can cause less recyclability is mixing toxic additives to recyclable polymers which can restrict a lot of recyclable polymers from being as easily recycled.