The implementation of the ASEAN Economic Community (AEC) in 2015 will likely reduce the dominance of the big Japanese automakers (such as Toyota & Honda) in the region which will be on a more level playing field, says Frost & Sullivan.

Smaller Japanese players such as Suzuki, Mitsubishi and Isuzu and new entrants will gain the most from the implementation of the AEC, as the level playing field will make it easier to expand their presence and challenge incumbents.

“However, big Japanese OEMs are still likely to continue to lead the market,” Principal Consultant, Automotive & Transportation Practice Asia Pacific at Frost & Sullivan Dushyant Sinha said in a statement Wednesday.

Thailand is Honda's largest export production base for power products. The company exports a wide range to more than 80 countries, with Asia-Oceania, the US and Europe the main markets
Thailand is Honda’s largest export production base for power products. The company exports a wide range to more than 80 countries, with Asia-Oceania, the US and Europe the main markets

New analysis from Frost & Sullivan found that market realities and existential threat perceptions are the biggest drivers for AEC integration.

However, Sinha said that given the sheer scope and complexities of various outstanding issues, there is a strong likelihood that closer to 2015 some of the elements of the AEC will be put on hold.

He noted that Indonesia, Thailand and Malaysia are the key automotive markets in ASEAN, accounting for 89 per cent of the passenger car market.

“However, at the global level, Indonesia, Thailand and Malaysia do not figure amongst the top-15 passenger car markets,” he added.

via AEC will reduce big Japanese carmakers’ dominance: Frost & Sullivan | MCOT.net.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

SET market report for March 2022

SET Index in the first quarter of 2022 was driven by industry groups which benefit from the country reopening, as such Services, Technology and Resources industry groups rose at a faster pace than the SET Index at end-2021.

The Impact of Covid-19 on MSMEs in Southeast Asia

“Barely Staying Afloat: The Impact of Covid-19 on MSMEs in Southeast Asia” is the result of collected data in six countries on the impact those lockdowns in multiple sectors, including tourism, agriculture, manufacturing, and services.

In 2020 Asia will have the world’s largest GDP. Here’s what that means

In 2020 Asia’s GDP will overtake the GDP of the rest of the world combined. By 2030, the region is expected to contribute roughly 60% of global growth. Asia-Pacific will also be responsible for the overwhelming majority (90%) of the 2.4 billion new members of the middle class entering the global economy.