For the first time in three years, the car market in six Asean countries is growing

2022-06-27 0 By

As February draws to a close, most of the major auto markets have already reported their first-month sales figures.However, when people focus on the domestic market, European market, American market, South American market, Middle East market and other major auto market segments, it is easy to ignore a small but distinctive auto market — Southeast Asia market.Especially when the domestic, American and European markets are gradually becoming saturated, the problem of seeking new markets is haunting every car company’s mind, and the Southeast Asian market has become one of the emerging markets that they will try to develop next.But this regional market was almost monopolized by Japanese cars, whose market share once reached more than 80 percent. No one who wants to enter the market can really survive.It is for this reason that when the car market represented by the six ASEAN countries changes, especially the growth changes, it attracts the attention of those brands who want to seek overseas breakthrough.Total new-car sales in six major ASEAN economies rose last year for the first time in three years, thanks to a surge in Sales in Indonesia and the easing of COVID-19 lockdown restrictions in the second half of last year, foreign media reported.In December, new car sales in the six ASEAN countries reached 330,000 units, up 6 percent year-on-year and 15 percent month-on-month, showing signs of recovery in the region’s auto markets.Overall, sales in Indonesia, Thailand, Malaysia, Vietnam, the Philippines and Singapore totaled 2.79 million vehicles, up 14 percent from a year earlier, with Sales in Indonesia jumping 67 percent.However, many market watchers predict that sales are unlikely to continue to rebound strongly in 2022 as the Omicron variant becomes popular.In mid-2021, Indonesia overtook Thailand for the first time in two years to become the largest car market among the six Asean countries, with sales of 887,202 vehicles.This, of course, would not have happened without tax cuts introduced last March to boost demand.Indonesia’s tax cuts were due to expire at the end of last year, but the government has extended some of them until the end of March.Prior to the decision, the Indonesian Automobile Industry Association had forecast 900,000 new car sales in 2022.Although it is lower than the 1.03 million units in 2019 before the pandemic, it is still recovering.In Thailand, new-car sales had fallen for three consecutive years, or 4%, to 759,119 units.Sales in Thailand were up in the first half of last year compared with the same period last year, but new-car sales lost momentum after a lockdown in Bangkok and other cities in July.A shortage of chips and other components also contributed to the drop.Toyota, the no. 1 automaker in The Thai market, expects to sell 860,000 vehicles in The country in 2022.While Thailand’s auto industry is “gradually moving towards normalisation”, the market is unlikely to recover to the 2019 level of 1 million units until 2023 as consumers’ purchasing power has weakened during the prolonged pandemic.New car sales in Malaysia declined for the second consecutive year and fell 4% year-on-year to 508,911 units.After the Malaysian government imposed a nationwide lockdown last June, sales all but stopped for a while.New car sales in Malaysia are expected to be 600,000 units in 2022, almost the same as in 2019, according to the Malaysian Automobile Association.This year, sales will benefit from an economic recovery in Malaysia and its neighbors, as well as an extension of tax incentives for car sales.But the agency forecasts that new car sales in Malaysia will fall below 2019 levels this year, saying the local auto industry will continue to suffer from semiconductor shortages through 2022.In Vietnam and the Philippines, new vehicle sales in 2021 both rose for the first time in two years, up 3% to 300,000 units and 16% to 280,000 units, respectively.Vietnam was the fourth-largest market for new vehicles in Southeast Asia in both 2020 and 2021, a position long held by the Philippines.For The Southeast Asian market, the performance of the six ASEAN countries is a barometer of the entire southeast Asian market, after all, you can’t expect myanmar’s monthly sales of less than 10,000 vehicles to determine the direction of the southeast Asian market.At present, the performance of the auto market in the six ASEAN countries is not only affected by the epidemic and chip, but also closely related to the government’s policies to attract foreign investment and the development of the auto industry.But sparrows may be small, but they have all the organs.Therefore, whoever can take advantage of the policy wind wind, in the context of relaxed epidemic prevention policies and a slowing chip shortage, and successfully capture the incremental market, will be in the global market for more territory.So who will it be, Japanese, American or own brand?