The automotive market in Association of Southeast Asian Nations (ASEAN) regions is expected to grow at a compound annual growth rate of 10.1% by 2018, according to a new report.
Frost & Sullivan's report, 'CEO 360 Degree Perspective of the Automotive Industry in ASEAN,' revealed that the vehicle sales in the ASEAN region will almost double to about 4.7 million units in 2018 when compared to 2.4 million units in 2011.
According to the report, the automotive market growth in ASEAN region is mainly driven by sales in Thailand and Indonesia.
Frost & Sullivan Asia Pacific Automotive Practice research manager Vijayendra Rao said that as a region, the ASEAN has assumed greater importance in the last few years due to the implementation of ASEAN Free Trade Agreement in 2010 and strong competitionamong ASEAN member countries to draw foreign investments.
"Thailand is expected to continue its dominance as a production hub in ASEAN due to the significant investments by Japanese OEMs (original equipment manufacturers), incentives from the Government, good supply base and required talents," Rao said.
The report also revealed that vehicle sales in Thailand and Indonesia are anticipated to hit one million units by 2013.
Indian and Chinese automotive firms are also planning to expand in ASEAN region, the report said.
Passenger vehicle sales in ASEAN are expected to rise at a CAGR of 10.2% to 3.1 million units in 2018, compared to 1.5 million units in 2011, while sales of commercial vehicles are expected to grow at a CAGR of 9.8% to 1.6 million units in 2018 from 780,000 units in 2011.
