As early as 2011, reports had it that Indonesia was set to take over from Thailand as Southeast Asia’s largest automotive market. It has been a while coming, but 2014 is the year it’s finally set to happen.
Reuters says that the switch will happen as early as this year, the change brought about by an expanding Indonesian middle class and growing demand for budget, environmentally friendly vehicles, according to automotive executives and analysts.
Indonesian sales jumped by 17.8% in March from the same period a year earlier, according to data from the Indonesian Automotive Industry Association (Gaikindo). This is more than double the anticipated 8.3% year-on-year growth set out in February. Japanese automakers dominate the market.
Meanwhile, data from the Federation of Thai Industries showed that Thai auto sales has fallen 45% percent year-on-year. According to data from market research firm Frost & Sullivan, Thai car sales are expected to fall 11.7% to 1.175 million in 2014 from a year earlier due to political turmoil and post-election uncertainties. Comparatively, Indonesian sales are projected to increase 6.5% to 1.31 million units this year.
Already, Toyota has said that it may reconsider investing up to 20 billion baht (RM2 billion) in the Kingdom and is contemplating cutting back on production if the political unrest drags on. Other automakers in the meantime are planning to ride out the slump, viewing the long-term growth potential in the region’s second largest economy.
The Indonesian economy, meanwhile, is expected to grow by 5.5 to 5.9% this year. Plans to increase four-wheeled mobility to the masses have seen the introduction of a Low Cost Green Car (LCGC) policy and a slew of lower-priced compact vehicles entering the market, propelling things along.
A market survey by Daihatsu last year anticipates that by 2020, around five million Indonesian households will have the ability to purchase a new vehicle, which is more than double the 2010 figure, with the LCGC potentially increasing that reach further to 12 million households.
Its ambitions to be a regional manufacturing hub could be however hampered by a number of issues, among them an ageing, insufficient infrastructure and a poor-performing electricity power supply, made unstable by decades of under-investment and bureaucracy, the report adds.
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It is sad that Malaysia also lost out on becoming the Detroit of Asia. In the 80s and 90s, we were on our way of becoming the CKD hub of every car manufacturer in the world. But because of all these AP Bumi nonsense, Proton and MITI controlling the prices of other car brands, all the car companies told us goodbye and left and Made Thailand and Indonesia the biggest car manufacturing players after Detroit. Infact, bigger than Detroit.
Malaysia lost out hundreds of billions (not millions but billions) in investment and hundreds of thousands of jobs lost. Infact, the figure may run into trillions lost.
GM recently announced that they have rolled out 1 million cars from just Thailand alone. Just imagine, if Malaysia collected a small RM10,000 in tax for each car rolled out, see how much we lost?
And that is just GM. Multiply that figure with different car brands, and you can see, over the past 30 years, we have lost trillions in income.
Which do you think is better? Lose hundreds of thousands of jobs by tens of car companies or lose just 30,000 jobs by Proton and its crony supply network if Proton closes shop?
SO long as the AP system is maintained and all these special bumi privileges are given, we are not just going to lose trillions from the car industry but EVERY other industry from food, clothing, cosmetics, machinary etc.
Mat Salleh companies rather set up in Thailand, Indonesia, Cambodia or Vietnam where they are not obliged to give 30% of their company away for free.
Don’t blame someone if your life is so miserable paying your sushi crappy car installment. Sushi cars brand price in Thailand and Indonesia are just overprice as Malaysia even though both these 2 countries do not have local car brand plant, worst for them averagely they have lower income than Malaysia.
Then do we thank the Government of Malaysia for car prices that are 3x the world prices?
Do we thank Proton for giving us cheap cars? before Proton came about, a good Japanese car cost less than RM20,000. Over the years, despite inflation, car prices have not gone up. It has actually come down a lot.
Then continue to drive your Potong Car forever… u don’t deserve any better car… It’s anyway good (bettern than none) even car prices remain the same while jobs are created plus FDI by the car companies.. Open your mind you sux !
All Malaysian has been fooled by Proton existence… until today they still stick out their hand and begging for $$$ instead of generating revenue to the country.
Detroit of Asia ptui!….to achieve that 90% of CKD in that period from 1985-2000 is contribute by p1 n p2…AP onli contribute only 10% of production of previous year n is it for grey import and recond..nowaday there is no 30% policy for bumi. it is already scrap..challenge la this statement!!!
wow, it is true about your brain! Bro, still living off people yet in denial.
My my what English. No wonder Malaysia’s ranking in Education is going down the drain. Now I understand why our PISA ranking is so bad.
kzm are you working with Madani from MAI? Because both of you seem to have similiar low intelligence. Or are you Madani’s son?
hmm.. i dont c anyone can challenge ur statement mr.kzm.. hmm.. so u r right? is it? hmm..
Our minister will say, ” Our automotive industries are not affected by others, we are self-sufficient and it is driven by local demand, as such, we do not need to compete with them or give concessions in order to attract foreign car companies to invest in Malaysia.”
y want to relate with boleh? this is not bout production but market…currently boleh market is bout 650k. how do you think that boleh can get 1 million sale this year?
That is the reason why I said we are self-sufficient.
We do not need outsiders at all.
We are NOT AFFECTED by ANY economic crisis at all.
Our market is local demanded driven.
Jaguh Kampung is another way to say it.
u know indo has population of more than 200 million people rite..but still i don understand ur reason with automotive market..u talk bout market (sales) or production?
As long as there is the Almighty Proton still exist in the market, we can’t go anywhere far.
1. We won’t have good quality car for affordable price.
2. We couldn’t afford good quality car with its ridiculous tax.
3. Proton still make lose, end up begging for fund, which is our own tax money.
4. The cronies continue to change Lamborghini, Ferrari, Bentley.
5. People suffering regular money and time lose due to sending the J class back to garage.
Beat Thailand/Indonesia market, car price, build quality or production volume? Find Raja Bomoh lar!!
Same Lorr spot on. Only a kampung idiot, who reads Utusan the whole day, believes his government is giving him cheap cars and cares for him wholeheartedly.
kzm, now i know why you are doing online sales. I think with your intelligence, I don’t think you can get a proper job. Take some Gingko Biloba and Omega DHA and EPA, it helps with intelligence.
thank god i don read so much utusan except sport…i do online sales as part time i do have full day jobs…i dont know y u guy say MARKET = PRODUCTION..as far as i know market mean how large or size consumer or number of sales in given area. production is how much is produce…i dont know who is otak udang or kampung idiot now..
kzm adalah graduan kami. Kami bangga dengan kepandaian dan intelek kzm.
Everything is related to Malaysia. It is a global world. Only katak di bawah tempurung kamoung like you don’t want to admit.
Boleh cannot be ASEAN biggest automotive market with 30 million people.
Only katak di bawah tempurung kampung think like that. It is not for just domestic market alone but the global market. Our CKD cannot even export anywhere in the world because all standards fail.
All over the world, from Vietnam, Brazil, Argentina assemble world brand cars but still can exports worldwide. Malaysian CKD fail all test globally.
Only Malaysian test it score Perfect 10.
cant u differentiate between automotive MARKET and automotive PRODUCTION?..this story is bout Largest ASEAN Automotive MARKET.
both contribute to Automotive Industry
Big thanks to Dr.M the father of Indonesian automotive industry…Bravo! Clap::clap::clap::
how this relate to automotive market?
this bout automotive market (sales) not automotive production
Everything relates to Mahathir. If there was no AP, to benefit about 20 or 30 cronies in Malaysia, BOTH production and sales will be ten fold. Both for local consumption and global consumption.
Malaysia would have been first world long ago if not for Mahathir and his 20 or 30 AP buddies.
those 30 AP crony u say are selling grey import or recond car..n does not apply to official distributor or maker
wow, its true, you are indeed nothing up there. Grey import affects us all as official APs given to official distributors are limited.
If official distributors get more AP, they can benefit from volume sales and bring down prices. But most of the APs go to the thieves.
those AP by distributor not like that…if they follow same AP obviously numbers of non-boleh built car will not exceed 10% of total production in boleh..why official distri want to use grey import when they have official one?
kzm adalah graduan kami. Kami bangga dengan komentari dia!
There goes our Malaysian automotive industry,all our concessions,FDI’s to our neighbors.Truly sad but it is what is,unless something drastically changes,this kinda news is what we will be reading.
We had and still have a huge potential to be a major player in the ASEAN automotive industry sector,but unfortunately has been going to waste of late.Sigh.
Cheers.
how this relate to automotive market?
yes boleh has potential to become major player in automotive industry but not automotive market..
Malaysia got no hope to be a global player because of Proton. Full stop. Just to Protect Proton, we have lost trillions in money for the rakyat of Malaysia. One of the richest countries in the world with oil revenue but nearly 1 trillion in debt.
aiyoooh, kzm, I bet you are very happy with the BRIM that you got this year and think kerajaan banyak prihatin.
While you are going for your holidays to Pertama Complex to hang around, the SIngaporeans are travelling the world and eating at Harrods in London
You don’t go to Harrods to eat, you go to Harrods to shop
Lol, unfortunately KZM makes sense.. this report is about the market. If we are talking about production for export then its another story. Our own market is not as big as the others, if we were to talk about exporting and as an assembly hub for Asean then its a different story. Which most ppl are complaining about.
Good for them,thy have a clear vision where they want to be,no NAP crap to kick investors away,thy win,we loose,nothing new then
how do you know that they don hav nap similar thingy?
Kzm,u like some of out ministers,everytime open mouth, deficiency n lack of understand pours out of u,everytime u coment is either critisizing or jus arguing,everyone has an opinion,if u lack knowledge its ok,we all learn,but in the age of google,thrs no excuse of jus talking nonsense, u can read abt anyting u wan n gain knowledge,we all do dat bt we have a conversation in da end not jus attacking here n thr,if ur mature enough,which i hope,u wil understand me,if not,thn i wont b surprised…..considered it a friendly advice
what nonsense?…u go read thai n indo automotive scene..both favor car made in their country..eg thai 80% import tax to CBU non-ASEAN car..i know im not havard graduate thats y i read a lot to gain knowledge..if u don read how do u know..
Jangan kutuk kzm. Kzm adalah graduan kami dan dialah graduan paling handal.
alo ‘UiTM’… y need to make a racist statement??????
Only malaysia has NAP to benefit people like you kzm!
Proton basher is coming in 3, 2, 1…
A typical case study if goverment policies and politician self interest over writting country priorities.
Thailand is heading south due to politican selfishness. Indonesia is flourishing with open policies.
Malaysia… same old same old. Still talking the same old crap.
u read indo online paper n read the comment parts. u will know how indo feel bout their gov
As far as I know all Indonesians love their government a lot. All my Indonesian friends say, the government is so caring and unlike the Malaysian government, always taking money and hands out all the time.
Indon people love their government a lot???? LOL.
If the majority of them love their government a lot then why did Bambang Yuduyono lost big time in the recent election?
Do some research before you open your mouth and just talk kosong.
Lol, President Susilo Bambang Yudhoyono is not contesting the coming Presidential election. His 2 term limit is ending this year. As for his party losing support in the legislative election, it is to be expected with his party, the National Democrat, being tainted with numerous corruption scandals. A number of high-ranking Democrat people are already behind bars, including the former Minister for Youth and Sports, Andi Malarangeng. It would be strange if they can still win after all this.
car enthusiast, your friends from indo lies to u you know and thier lies is about wash your brain and make you hates your own country,you better watchout
When we are…??
Indonesia has a population of 237.5 million, while Thailand has a population of 69.5 million.
No wonder that sooner or later Indonesia will finally overtake Thailand and become ASEAN’s largest automotive market.
this comment i can agree..others comment above bout production.
Who cares u agree or not? Prifff….
I care what kzm think because he is the benchmark of all baby formula companies to assess the intelligence of babies and increase the dha and epa in baby milk to build the brain.
Haha
Based on ratio (sales per population), Malaysia is 2.17%, Thailand is 1.68% and Indonesia is 0.55%.
Therefore there is potential to expand the market more in Indonesia than Malaysia, the sales volume in Thailand is coming down, Boleh Land will follow Thailand soon, this is the reason why there are proposal to scrap the old cars and force the Boleh Landers to buy new cars.
P1 and P2 should ‘ta-pau’ from Bolehland and re-locate to Indonesia.
And to those who keep complain of Malaysia garment policies, you can pack up and migrate to ANY country of your choice, we can provide 1-way ticket for you, of course through AirAsia.
sudah perhgi siam, gadis molek, makan sedap murah. bestnye.
I want more developed life style. I go to Singapore and not coming back. Singapore is what Malaysia should become but can’t thanks to our idiotic politician and law.
Our Dr.M WARNED us that we would become LIKE Singapore if we change the current gahment, I don’t know want to laugh or cry.
Most young ones already left and earn good salary in other Land except the older ones who happily hang on to your tail coat and then crawl to your body and suck your blood without you realizing..
Why are you still here? The grass is always greener in Otherlands.
For me , too much car on the road nowadays in Malaysia.
Now there is like 2+ cars in each house in Malaysia.
in my neighbourhood, people had to park outside their house . total car = 5.
when there is too much cars on the road, there is no use for it like in singapore.
not enough road, even in the seremban PLUS highway always getting jammed in this past 2 years.
Automotive revolution…..
We are FORCED to buy 1 car for 1 person because our public transport is near to ZERO.
WE have to pay through our teeth through 7-9 years of loan just for 1 car.
The long payment for car has impeded other investment opportunities.
The cycle goes on and on and on.
Meanwhile in Malaysia…
Hahaha….
True, Indonesia is the leader due to the sales volume, but in terms of cars per household, Malaysia still no 1 on ASEAN.
How many of you heard 1 family has more than 1 cars in MY? (alot) but in Indo 1 family shares 1 car.
That’s the reason MPV sells like hotcakes over there.
With increases production n more people being employed,thy wil enjoy easy credit frm banks n in no time all wil have more than one car,jus wait for banks to offer competitve loans
ya, kerana kat Malaysia orang boleh hutang kereta sampai 9thn?? kat indon kencang2 pun 5 thn, diaorang biasa bayar CASH!!,,,
congratz…
so indon road become more congested.
even now the jam is terrible..more car than the road can cope.
That’s correct for Jakarta and a few other massive metropolises that were planned for the previous century. But Indonesia is not just Jakarta, savvy? Plenty of small towns and cities (mostly 2nd and 3rd tier), especially those in the Outer Islands, feature large, open roads, plenty of cars and elbow room. And the problem of congestion in cities like Jakarta is being addressed with massive investment in new infrastructure. Of course, it would be lovely if more can be done more quickly to increase the deficient road to land ratio in Jakarta, which at just over 7% is pathetic. But we go from where we are with what we can get.
As for traffic congestion in general, it is a part and parcel of motorization. Most countries do not solve the problem before it becomes apparent. The US itself did not start a massive road and freeway building program until the 50s, when there were already more than 40 million cars on the road and numerous large cities were inundated by traffic. Democracies are known for reactive, not proactive policies, you see.
Thailand has almost 70 million people, Indonesia has almost 250 million. Malaysia only has 30 million. How can we expect to keep up the sales volume with our bigger neighbours ? This is all pure logic and maths. It was always only a matter of time before our neighbours caught up.
In the 50s and 60s, Singapore used to be the biggest car market in Southeast Asia, but now they’re the smallest. It does not matter how many cars are sold in any country, what matters is the car-to-population ratio. Malaysia is the second highest in Southeast Asia in that aspect, after Brunei.
Also, one should note the kind of cars that are being sold in each country. In Indonesia it is mostly budget MPVs, Thailand mostly budget sedans and trucks, Malaysia is a mix of everything and Singapore is full-on Continental cars only. A case of quality over quantity then.
There is so much more to the automotive markets than just sales volume. I would rather have lower sales but higher quality cars rather than higher sales and rubbish cars. Just saying.
You mean it’s got nothing to do with our government??? Your post makes too much sense….
I wouldn’t say it has ‘nothing to do with our government’. Because government intervention works both ways. Some governments make it easier for people to get new cars, some make it harder, and some don’t give a nut.
The Singaporean government for example, they make cars so incredibly expensive with a COE tax so that only the super rich can afford one. Apparently, this is to reduce traffic congestion, and yet, traffic jams still happen in Singapore.
The Chinese and Indian governments do not control their car sales growth very much. As a result, traffic jams can last for days and breathing can be difficult due to the severe pollution.
Which is why I say sales volume alone is not everything there is to the automotive industry. I would much rather have a balanced system which favours safety, long term sustainability and infrastructure efficiency rather than profits, short term growth and an incompetent infrastructure.
That said, our current BN government is crap so…
So what ? As PATI go back to indonesia lo !!!
When you have monkeys running the government and MAI, pls don’t expect Malaysia to do well in auto sector.
It is quite simple really, car manufacturers flocked to Thailand because the labour cost was cheaper there as compared to bolehland. After sometime, the Thais now demanded higher salaries. So, the manufacturers need to find another alternative for cheap labour. And for now, it is Indonesia.
It is quite simple really. Ten years ago cars manufacturers flocked into Thailand for two reasons, cheap labour and bigger market.
Now, it is Indonesia turn. Bottom line, maximizing profit. Same thing is happening in other industrial venture, many are now relocating to cheaper countries such as Vietnam.
Following some idiot logic here, Indon is better than Malaysian.
An average salaryman like me would rather own decent home, good access to good quality public transport, though I would love to own a car one day for long distance journey, to kampungs and rural countryside.
Please tear off your id.
p jahanam sama malaysia. ada aku kesah?
Biggest market will be Indonesia, but biggest production is still be Thailand.
Soon Myanmar will come and take over despite their aggressive policy changing to bring better and cheaper car. Japanese car is entering Myanmar market.
If follow current Thailand automotive policy, nonetheless they will become the biggest production automotive and export to the southeast country. Malaysia will no where to go as long protecting policy still running..
Soon Myanmar will come and take over despite their aggressive policy changing to bring better and cheaper car. Japanese car is entering Myanmar market.
If follow current Thailand automotive policy, nonetheless they will become the biggest production automotive and export to the southeast country. Malaysia will no where to go as long protecting policy still implement.