ASEAN countries use targeted regulations to attract investment

The lack of an existing automotive supply base means that automotive production growth in the South Asia region has spurred the growth of an automotive supplier industry in tandem with it. But which are the most promising markets?

The automotive industry in the ASEAN countries is currently in a growth phase. If considered as one unit, the ASEAN region is the world’s seventh largest automotive market after China, the United States, Japan, Brazil, Russia and Germany. The top five countries in ASEAN – Thailand, Indonesia, Malaysia, Vietnam, the Philippines – boast total vehicle sales of 3.19 million units in 2014, which is likely to increase by one-third to around 5.3 million units by 2020, according to IHS forecast. Indonesia, especially, is displaying strong growth prospects. In the next five years, its vehicle sales are likely to increase by about 12% annually, overtaking sales in Thailand. Rana Mathew, regional manager, Communications & Strategic Marketing, India & South East Asia, Halla Visteon Climate Control, says, “ASEAN is a growing region. South Asian countries including ASEAN countries and India are set to overtake Japan and Korea region by 2020 in terms of vehicles sold.”