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

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

The Bank of Thailand Bond Issuance Programme for 2022

For 2022, the BOT bond issuance programme continues to take into account the increased financing needs of the government to fund Covid-19 relief measures

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.

Thailand’s H1 Investment Applications rise 158% in combined value, BOI says

Japanese firms ranked first with 87 projects worth 42.8 billion baht, followed by investments from the U.S. with 18 projects worth 24.1 billion baht, and China with 63 projects worth 18.6 billion baht.