Strategies to steer through Southeast Asia’s promising automotive market.
In light of slowing growth in BRIC markets, automakers are rapidly turning their attention to new growth frontiers in Southeast Asia. The region boasts a consumer market of over 600 million people, low vehicle ownership, and is growing in importance as an automotive manufacturing and export hub.
Typical of growth markets, the SEA landscape is unpredictable and automotive sector development is also uneven. Two of its biggest automotive markets – Thailand and Indonesia – are on a decline, while Philippines and Vietnam continue to grow rapidly. In addition, changing government policies and regulations means that automakers who wish to invest and expand in the region will need to have contingency plans in order to navigate the region’s challenging business environment. Nevertheless, there have been success stories even in such difficult times.
This month, PwC’s Growth Markets Centre conducted ground up research by speaking to several automakers and auto associations in the region.
Our report, ‘Riding Southeast Asia’s automotive highway’ presents an overview of the automotive industry in Southeast Asia, highlights challenges amidst the opportunities, and suggests strategies for automakers to successfully navigate the region’s often uneven, complex and volatile terrain.
To download 18-page report, please click here.
Source: PwC – GAI