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.
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.
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.
In the first six months of 2021, Thailand’s investment applications increased 14% from the year earlier period in terms of the number of projects, and 158% in combined value, led by increasing foreign direct investment (FDI) applications, sustained growth in target industries including the electronics and medical sectors, as well as in power generation, the Thailand Board of Investment (BOI) said.(more…)
Large Shopping Malls in Bangkok Will Be Closed until July 25th
Shopping malls under the Mall Group, including all branches of The Mall, the Emporium, Emquartier and Paragon Department Store, are also closed for 14 days, from today, except for supermarkets, food courts, pharmacy shops, eateries (take-out and delivery only), banks, mobile phone shops and vaccination sites.
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