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Economic Growth and Infrastructure Developments Fuel Select Opportunities for ASEAN Automotive Industry

by April 20, 2017 General

SUV, CV and launch of new and updated models drive demand and boost sales in select ASEAN regions, finds Frost & Sullivan’s Mobility team

KUALA LUMPUR, Malaysia, April 20, 2017 /PRNewswire/ — Automotive price increases, slump in consumer confidence in some markets, and sluggish exports from the Middle East are several factors challenging the automotive industries in Thailand, Indonesia, Malaysia, Vietnam, the Philippines, Singapore, and Brunei. However, infrastructure development and economic growth across select ASEAN regions are driving demand for pickups, commercial vehicles (CV), and crossover sports utility vehicles (SUV).

“The uptake of vehicles will be augmented by the launch of several new and facelifted models, accompanying attractive promotional campaigns and motor shows,” said Frost & Sullivan Mobility Research Analyst Vijayendra Rao. “Compact, affordable and eco-friendly, entry-level vehicles will continue to command high sales volumes.”

Outlook of Select ASEAN Automotive Markets, Forecast to 2017, recent research from Frost & Sullivan’s Future of Mobility Growth Partnership Service program, finds that Indonesia continues to be the largest market, with a unit shipment of about 1.2 million, followed by Thailand. Though small, Vietnam and the Philippines are emerging as key markets.

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Japanese brands such as Toyota, Honda, Mitsubishi, Isuzu, and Nissan dominate in Indonesia and Thailand, while in Malaysia, national automakers continue to hold high market share. Toyota leads the Indonesian private vehicle market with the launch of the new hybrid crossover, Toyota B-HR, increasing sales. Mitsubishi’s Colt-120 and Triton pickups spearhead growth in the CV segment.

New model launches and updates boosting sales across select ASEAN regions include:

  • Malaysia-Honda BR-V, updated Honda City, Honda Jazz
  • Indonesia-Honda Mobilio, Chevrolet Trailblazer, Mazda CX-3, Suzuki, D-Max, Vitara Brezza, Honda Civic, Toyota CH-R, Suzuki Ignis, Datsun Go-Cross, and Renault KWID
  • Thailand-Toyota Vios, Nissan Note, Honda City, Subaru Forrester and Accord

“In order to thrive in the ASEAN automotive landscape, original equipment manufacturers must design products, campaigns and marketing strategies that focus on current developments, such as the rise in the middle class, with its higher income and purchasing power, and a market shift towards energy-efficient vehicles with low emission control,” noted Rao.

Other topics recently covered under the Mobility Growth Partnership Service include: Cloud and the Car – Use Cases, Business Models and Impact Analysis; Automotive Industry IT Spending – Key Focus Areas, Trends and Future Outlook; Automotive Dealer Management System (DMS) Market-Growth Opportunities and Digital Transformation, Forecast to 2022; State of Automotive Cybersecurity: Key Trends, Solutions, OEM Activities and Vendor Profiles; Disruptive Satellite Communication in the Automotive Industry; and Strategic Analysis of the Automotive Keyless Access Systems Market and Digital Transformation of the Automotive Industry.

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Outlook of Select ASEAN Automotive Markets, Forecast to 2017

Carrie Low
Corporate Communications – Asia-Pacific
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