Sign up | Log in



Home  >>   Daily News  >>   Asean News  >>   Automotive  >>   AEC will level playing field for auto industry
NEWS UPDATES Asean Affairs   7 February 2013  

AEC will level playing field for auto industry


The implementation Asean Economic Community (AEC) in 2015 will likely reduce the regional dominance of big Japanese automakers, such as Toyota & Honda.

Global market research firm Frost & Sullivan said on Wednesday in Kuala Lumpur, Malaysia there would be a more level playing field.

Its principal consultant for automotive and transportation practice Asia Pacific, Dushyant Sinha said that smaller Japanese players such as Suzuki, Mitsubishi and Isuzu and new entrants would gain the most from the implementation of AEC, as the level playing field would make it easier to expand their presence and challenge incumbents.

"However, big Japanese original equipment manufacturers (OEMs) are still likely to continue to lead the market," he said.

Dushyant noted that AEC seemed to be less favourable to the Malaysian automotive sector, as the dominance of national players would come under pressure and the effects will cascade to the entire value chain.

He said market concentration in Malaysia was likely to increase as new players enter the market and challenge the dominance of Proton and Perodua.
There would be more dealerships as new entrants try to increase their presence.

"The implementation of AEC will be challenging for local players and their weak competitiveness is likely to dampen export further," he said.
Dushyant also expected local vendors, supplying exclusively to the national carmakers, to find it challenging to deal with the drop in original equipment (OE) demand.

However, he predicted that under AEC, Indonesia would further capitalise on its large, high growth market and low cost of labour.

"Indonesia's local automotive manufacturing is likely to see a big jump as the country becomes more attractive as a regional hub for production.

"There will be increase in competitive activity as Indonesia becomes more attractive in terms of a large market, lower costs and regional access," he predicted. He added that there would also be an increase in the number of dealers as new players enter the market and tackle the geographic complexity of the market.

"Exports are likely to grow as AEC and Free Trade Agreements will make it easier for OEMs to set up base and supply to other markets," he said.

He also said the relatively "under-developed" vendor base was likely to get a boost as more OEMs come in to set up assembly and cater to the region.
Dushyant said that the current market momentum and sound policy support would positively impact Thailand as well.

He noted Thailand is the second largest automotive market in ASEAN and AEC was not expected to impact sales and growth is likely to continue at existing pace.
He added that the AEC would give a further boost to local assembly production considering Thailand's well developed vendor network and manufacturing base.

"The number of automotive players is likely to increase as new entrants find it easier to enter the market," he said, adding that there will be more dealerships being set up as new entrants try to increase their presence and expand into the market.

Dushyant also expected Thailand's vehicles exports to further grow in ASEAN and outside the region.

He said Thailand has the most developed supplier network in the region and it would likely stay that way under AEC.

Dushyant said Malaysia, Indonesia and Thailand were the key automotive markets in Asean, accounting for 89% of the regional passenger car market

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    7  February 2013   
Subsribe Now !
• AEC will level playing field for auto industry Subcribe: Asean Affairs Global Magazine
• Asean SG welcomes Denmark Ambassador Asean Affairs Premium
• 11th Meeting of AICHR press release
• Asean health ministers meet to tackle challenges
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Indian and Japanese IT firms eye Asean healthcare market
• China invests $9.17 bn in Cambodia
• ‘Filipinos most optimistic in Asean’, Survey
• MasterCard PayPass launched in Vietnam  
Asean Analysis              February 2013      Advertise Your Brand
• Asean Analysis- February 5, 2013  
• Asean Weekly- January 24, 2013 Sponsor Our Events

Asean Stock Watch      7  February 2013     

• Asean Stock Watch- February 7, 2013
• Asean Stock Watch-  February 5, 2013  

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand