INDONESIA – Bright prospects for the Southeast Asian Automotive Industry
Asia Pacific will be the third-fastest growing region for vehicle sales in 2018, according to BMI Research forecasts, which show sales for the region rising 4.7%, ahead of the 3.6% forecast for global sales growth.
There is strong evidence to suggest that new vehicle sales in the ASEAN market will fluctuate greatly due to the economic upturn, changes in economic policy, and promotion measures. The aggregate new car sales in Singapore, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia has risen five percent to nearly 3.4 million units in 2017.
Indonesia with over 260 million of the population (40% of the total ASEAN population) has become ASEAN’s largest economy in the region. Indonesia’s Statistics Agency (BPS) announced that gross domestic product (GDP) of Indonesia expanded 5.06 percent year-on-year (y/y) in the first quarter of 2018. With the largest economy in ASEAN, Indonesia expects passenger vehicle growth at a CAGR of 7.4% to 2020. Vehicle sales in ASEAN grew 5 percent year-on-year to 3.3 million and Indonesia remained the biggest car sales market as well as the second-biggest car producer in the ASEAN region by contributed almost one-third to the total. In Indonesia, car sales rose 11,1 % year-on-year to 95,892 vehicles (wholesale) in January 2018 according to latest data from Association.