4.7 million cars will be Sold in Asean, Indonesia So the biggest contributor

Asean automobile market predicted so one of the main players in the future. In the upcoming year 2018 there will be an estimated 4.7 million cars were sold in the region. Most absorbed by Thailand and Indonesia.

Research Institute Frost & Sullivan predict if Asean would be the third-largest automotive market in the world in the year 2018 with vehicle sales nearly doubled, reaching 2.9 million units versus 2011 i.e. 2.4 million units.

Countries in the Asean region until that year did not yet exist that would make the world's largest market for 10, but as the region, ASEAN has a bigger role in recent years related to the implementation of the ASEAN Free Trade Agreement in 2010 and there is healthy competition among ASEAN countries to attract foreign investment.

The results of the latest analysis from Frost & Sullivan entitled CEO'S 360 Degree Perspective of the Automotive Industry in ASEAN which includes 4 major markets in ASEAN, namely Indonesia, Malaysia, Thailand and Viet Nam, finds that the market is expected to grow 10.1 per cent of ASEAN during the period 2011-2018, driven by growth in Thailand and Indonesia.

Indonesia and Thailand vehicle sales will reach 1 million units in 2013 driven by domestic demand, increasing purchasing power and investment significantly from OEM-OEM Japan.

Automotive companies of India and China also central expands into ASEAN. ASEAN automotive production center is a competitive exporter of vehicles to the networking and strong competence in some type of a particular product.

"Thailand will continue to dominate as the predictable Centre of production in the ASEAN-investment thanks to a significant investment from Japan, OEM-OEM incentives from the Government, appeal and supply inventory experts needed," says Research Manager – Automotive Practice, Asia Pacific, Frost Sullivan Vijayendra Rao & in its official description.

Production in Indonesia also is expected to meet domestic demand, which is largely driven by changes in ownership of motor cars to MPV and SUV.

Sales of passenger vehicles in the ASEAN predicted would rise by 6.3 percent CAGR reached 3.1 million units in 2018 of 1.5 million units in 2011. In the meantime, commercial vehicles is expected to grow slightly slower, i.e. 9.8 percent CAGR reach 1.6 million in 2018 from 780,000 units in 2011.

The Role Of Indonesia

Indonesia makes 2011 as year of bumper for automotive market Indonesia along with the rising total volume of 10.5 percent industrial y-o-y reach 894,164 units that later made the largest market in Indonesia as ASEAN, although it happens perlambata the global economy and a series of natural disasters in Japan and Thailand.

Automotive export Indonesia US $ 203.5 billion in 2011, especially to other Asian countries. Import vehicle intact up (Completely built-up-CBU) Indonesia also rose 16.0 percent reaching 107,932 units in 2011.

Middle class segment of the growing Central Indonesia has increased demand for vehicles at an affordable price, which ranges between 150-200 million rupiah (US $ 21,160 $15,870-US). "The demand for premium cars also increased from upper middle class fuelled by rising purchasing power," Rao imbuh

MPV is a segment that most interest today, with 5 cars with sales of best of these segments. Compact cars, especially popular among type hatchback also young people who have a high mobility.

Total vehicle sales in Indonesia rose 8.7 percent CAGR predicted (2011-2018) reached 1.6 million units in the year 2018, driven by stable economic growth, positive consumer sentiment, low interest rates and the release of new models and variants by the manufacturer-manufacturer of automotive.

Production of vehicles in Indonesia is predicted to grow 5.8 percent CAGR during the 2011-2018 reach 1.57 million in 2018.

"Passenger vehicle production is expected to exceed 70 percent in the next few years with increasing purchasing power and consumer interest in personal vehicles as well as changes to the trend among OEMS that tends to increase the production of passenger vehicles compared to commercial vehicles," said Rao.

Indonesia will most likely become a production Center for cheap and environmentally friendly vehicles in the future. Indonesia also will become the center of automotive production in the region thanks to the increasing production capacity of ASEAN car manufacturers as international efforts are facing high demand.

Eugene van de Weerd, Country Director, Frost & Sullivan – Indonesia, optimistic against the automotive sector Indonesia. He revealed that the Government of Indonesia has projected stable economic growth above 6 per cent in the next few years-that will affect the growth of all major industry sectors as well as the consumer market.

"Refers to the analysis of Frost & Sullivan, we believe economic growth will drive the purchasing power of the market, especially from the middle and lower middle class, which had a significant impact on the high sales of vehicles at an affordable price," Eugene lid.