New vehicle sales in the Association of Southeast Asian Nations (ASEAN) region posted their second consecutive increase during September, according to data released by the ASEAN Automotive Federation (AAF). This is only time there have been two consecutive monthly increases in the space of a year. Total sales in the regions stood at 260,979 units, representing a slight gain of 0.4% year on year (y/y). Indonesia remained the largest automotive market in the region during the month with sales of 93,038 units, although this was a decline of 9.3% y/y, followed by Thailand with sales of 61,869 units (down 10.5% y/y). However, there were improvements in Malaysia (51,106 units, up 7% y/y), the Philippines (27,069 units, up 29.4% y/y), Vietnam (19,256 units, up 48.7% y/y), and Singapore (7,598 units, up 56.8% y/y), although sales in Brunei were down 36.4% y/y to 1,043 units. For the year to date (YTD) period in September, total vehicle sales in the ASEAN region stood at 2.2 million units, down 6.8% y/y from 2.4 million units in the same period of 2014.
On the production front, Thailand led the way with 171,496 units in September, representing a gain of 4.4% y/y. Indonesian production totalled 102,968 units, although down 10.5% y/y, followed by Malaysia (45,734 units, down 7.6% y/y), Vietnam (14,856 units, up 33.1% y/y), and the Philippines (10,253 units, up 30.2% y/y). Total vehicle production in the ASEAN region stood at 345,307 units in the month, down 0.7% y/y, while the YTD tally remains at 2.9 million units, a fall of 2.4% y/y from 3 million units produced in corresponding YTD of 2014.
Significance: The overall slight improvement in sales and production in the ASEAN region is primarily attributable to improving conditions in Indonesia and Thailand. These markets were posting double-digit declines for most part of 2014 and 2015, on the back of unfavourable macroeconomic conditions and local policy changes, and unstable political situation. Nevertheless, OEMs are retaining confidence in the ASEAN region over the longer term and see significant growth potential in the region. For 2015, IHS Automotive expects combined industry sales in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam to total 3.09 million units, down from 3.28 million units in 2014. Total vehicle production in Indonesia, Malaysia, the Philippines, Thailand, and Vietnam is also projected to fall from 3.99 million units in 2014 to 3.86 million units this year.
