ASEAN: Thailand and Indonesia aim to be regional EV hubs, CASE businesses growing

Manufacturing operations being reviewed, new plants to be built in Vietnam and Myanmar



Mitsubishi Xpander Cross
Perodua Aruz compact SUV (launched in Malaysia in January 2019)
(Photo: Daihatsu)

  Recently in the ASEAN market, businesses related to the CASE technologies have been advancing. Each country is promoting electrification to meet increasingly stringent environmental regulations. Thailand and Indonesia aim to become ASEAN regional EV hubs and have announced their new electrification policies. Malaysia also disclosed its new national automotive policy and set the goal of becoming a regional production hub for next-generation vehicles. Thailand plans to manufacture EVs, constituting at least 30% of its total production capacity by 2030, while Indonesia is targeting for EVs to account for 20% of its production by 2025. ASEAN countries also have plans to manufacture batteries for electrified vehicles and build charging stations.

  In the ASEAN market, mobility services such as ride-hailing services as well as autonomous driving technology are also being developed. In Indonesia, Hyundai Motor partnered with Grab, a leading ride-hailing service operator, while Mitsubishi Motors similarly invested in the major ride-hailing platform Gojek. Singapore is currently conducting field testing for autonomous buses.

  Vehicle production in ASEAN’s four major countries declined in 2019 for the first time in three years, down by 4.5% year-over-year (y/y), to 3.97 million units. In Thailand, GM sold its plant to Great Wall Motors and discontinued sales of its vehicles. Great Wall Motors will begin production in 2022 at the plant that it acquired from GM. In Indonesia, Nissan ceased production of vehicles, while Hyundai Motor will build a new plant with an annual production capacity of 150,000 units. Honda discontinued manufacturing vehicles in the Philippines. Ford, Kia Motors, Vinfast and PSA will increase their production capacity in Vietnam, and Toyota and Suzuki will build new plants in Myanmar.

  New vehicle sales in ASEAN’s six major countries decreased by 1.5% y/y to 3.38 million units in 2019. Vehicle sales have surpassed the previous year’s level for three consecutive years until 2018, but sales dropped in 2019 due to the economic downturn in various countries impacted by political instability and the U.S.-China trade friction. In Thailand, sales were sluggish due to stricter auto loan approval processes. Indonesia saw a drop in sales as the presidential election created political instability. In Malaysia, vehicle sales inched up due to the increased demand for new models including SUVs. The Philippines experienced a slight increase in sales as the impact of the rush demand before the tax increase continued. In Vietnam, vehicle sales grew because the sales of imported cars increased significantly due to the limited impact of non-tariff barriers exerted by Decree 116. Singapore saw reduced sales with the economic downturn caused by the U.S.-China trade friction.

  Please refer to the ASEAN sales forecast by LMC Automotive at the end of this report and the content below for the direct impact of the COVID-19 pandemic and OEM countermeasures in 2020 and beyond.

Related reports:
Thailand International Motor Expo 2019: Eco-cars, sports models, and pickup trucks (Dec. 2019)
Japanese suppliers in ASEAN: Components and materials for electrification on the rise (Aug. 2019)
Thai government approves nine OEMs’ investment projects for electrified vehicles (Jul. 2019)
Indonesia: Considering measures for the introduction of electric cars, automakers seeking incentives (May. 2019)
Bangkok International Motor Show 2019: diversification of local lineups (Apr. 2019)
ASEAN: Thailand accelerates EV production; new plants to be built in Malaysia and Vietnam (Mar. 2019)


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