Monday, February 13, 2017
ASEAN automobile market and opportunities for China
ANBOUND
According to the data released by the Indonesian Association of Automotive Industries (GAKINDO) on February 9, 1.06 million new cars were sold in Indonesia in 2016 an increase of 5% over the previous year, making the country largest auto market in ASEAN for 3 consecutive years. With global commodity prices recovering, Indonesia's economy will continue to improve this year, which will boost Indonesia's car sales. On the demand side, most Indonesian families are large families, so the SUV and MPV models with larger space are more popular. In addition, Indonesia's average family economy is less well-doing; therefore cost-effectiveness is a concern for them. These two aspects are the advantage of China's automobiles. At present, Geely, Foto, Chery and other Chinese automobile brands have entered the Indonesian market, and SAIC-GM-Wuling has spent over 170 million to build Indonesia production base during the second half of last year. ASEAN auto market is changing, and this will bring China's automobile manufacturers great opportunities.