Our region, ASEAN, is on its way to become the sixth biggest automotive market in the world by 2018, powered by vehicle sales that are expected to almost double to nearly 4.7 million units, compared to 2.4 million units last year.
The Bernama report, which quotes an analysis by Frost & Sullivan, says that our neighbours Indonesia and Thailand will lead the growth, which is likely to jump at a compound annual growth rate (CAGR) of 10.1% (2011-2018).
“Thailand and Indonesia vehicle sales are likely to hit one million units by 2013, driven by local demand, increased buying power and significant investments from Japanese original equipment manufacturers (OEMs),” said Vijayendra Rao, Research Manager, Asia Pacific Automotive Practice.
“Thailand is expected to continue its dominance as a production hub in ASEAN due to the significant investments by Japanese OEMs, incentives from the government, good supply base and required talent,” Rao added.
Thailand is well known as the “Detroit of the East”, but Indonesia, with its large population, has been tipped to be ASEAN’s top auto market in the long run – click here to read more.