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Regional Analysis

All Wheel Drive Market Regional Insights

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North America has 46.3% market share been the dominant region in the global all wheel drive market for several years now. The large presence of premium and luxury car brands like BMW, Mercedes, Audi and Lexus which heavily rely on AWD technology has contributed significantly to the region's dominance. Moreover, climatic conditions across many American and Canadian states demand reliable traction, especially during winters, making AWD a preferred choice. The automotive aftermarket in North America is also well-established with easy availability of AWD parts and systems, allowing strong support for existing AWD vehicles.

However, the fastest growing regional market has been Asia Pacific in recent times. China especially has emerged as a major player due to the concerted efforts of the country's own automakers. Brands like Geely and Great Wall have devoted extensive resources to developing capable AWD models and platforms to access both domestic and international markets. Their aggressive pricing of AWD cars has helped expand the technology's footprint beyond luxury segments. Factors like rising incomes, improving road infrastructure and changing consumer preferences towards versatility and performance have accelerated AWD adoption.

Meanwhile, European manufacturers are enhancing their presence in certain Asian markets through local production and sourcing of components. This has allowed them to keep prices competitive while offering popular AWD nameplates with minor customizations to suit local tastes. The Asia's export surplus of AWD vehicles and parts is increasing, with North America and the Middle East emerging as key importers, signaling the initial success of Asia's ambitious goal to establish itself as a significant export center for advanced automotive technologies in the next decade.

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