beyond china carmakers seek new drivers of asian growth
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

to match the explosive Chinese growth.

Beyond China, carmakers seek new drivers of Asian growth

Arab Today, arab today

Arab Today, arab today Beyond China, carmakers seek new drivers of Asian growth

China is the world's biggest auto market
Beijing - Arab Today

Southeast Asia's potential beckons as global automakers look beyond China's massive market to extend their sales boom in the region, but executives say they face a struggle to match the explosive Chinese growth.

Chinese passenger-car sales have quadrupled over the past 10 years to 24.38 million last year, having become the world's biggest market in 2009.

But with Chinese economic growth moderating, one question being asked at the Shanghai Auto Show is: where in Asia can carmakers look for the next boom?

"There is a challenge to seek growth where the growth is. You look at countries that are less equipped and are in the process of growth or acceleration," said Marc Boilard, industry analyst at the firm Oliver Wyman.

Southeast Asia's potential remains significant, with more than 600 million people, solid economic growth and just 2.1 million passenger vehicles sold last year in the 10-country Association of Southeast Asian Nations (ASEAN).

But carmakers say issues such as import taxes, regional dominance by Japanese manufacturers and lagging infrastructure work against broad-based growth.

ASEAN "is a market that is closed, where import taxes are very high", making it necessary to invest in local manufacturing, said Carlos Tavares, chairman of France's PSA, which produces Peugeot and Citroen.

Indonesia has 250 million people, but US automaker Ford pulled out last year in the face of Japanese firms' more than 90 percent market share, said David Schoch, CEO of Ford China.

"When I sit back and look at it, and think about electrification, smart mobility, and where the industry is going ... where are you going to place your bet?" Schoch said.

Ford has announced plans to double down on China, where electric-vehicle and SUV sales continue to surge.

"Although Indonesia represents a fairly large market and is growing, again, we couldn't see a way forward that we could be successful there," Schoch said.

Vietnam holds potential with more than 90 million people and less than 30 vehicles per 1,000, compared with China's 120 and 800 in the United States.

"The only downside, however, is that these markets have been dominated by the Japanese for a very long time," said François Jaumain of PwC Autofacts.

Japanese carmakers account for 71 percent of sales in Thailand and 59 percent in Vietnam, according to PwC.

PSA, whose China sales plunged 16 percent last year, plans to target five percent of Vietnam's passenger-car volume, which reached just 158,000 last year.

It also is pursuing a strategic partnership with Proton, the struggling national carmaker of Malaysia, where half a million cars were sold last year.

Infrastructure development, which helped facilitate China's private-car boom, has not kept up in Southeast Asia.

Sebastien Amichi of consultancy Roland Berger said: "We've been talking a long time about the 'new dragons', which have had difficulty taking off.

"When we take these countries together, Southeast Asia could be a good growth area, if the infrastructure and banking networks are set up effectively."

source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

beyond china carmakers seek new drivers of asian growth beyond china carmakers seek new drivers of asian growth

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

beyond china carmakers seek new drivers of asian growth beyond china carmakers seek new drivers of asian growth

 



GMT 12:47 2016 Thursday ,01 September

'La La Land' musical masterpiece dazzles Venice film fest

GMT 12:42 2017 Monday ,20 February

Dalia al-Behairy begins 'Yawmiyat Zoga Mafrosa'

GMT 19:01 2017 Wednesday ,30 August

Oil prices down as US reels from Harvey

GMT 04:19 2017 Monday ,08 May

National forces attack mercenaries in Taiz

GMT 19:21 2017 Sunday ,07 May

Iranian Film Week opens in Baghdad

GMT 21:33 2017 Sunday ,30 July

Arab Quartet meeting kicks off in Bahrain

GMT 17:17 2016 Friday ,07 October

Aleppo bleeds as US and Russia spar

GMT 12:03 2015 Monday ,21 December

Nepal protester killed in constitutional crisis clash

GMT 09:47 2016 Thursday ,22 December

Trump vows to cut F-35 spending, as leaked memo

GMT 21:44 2017 Friday ,15 December

King establishes Hawar Development Committee

GMT 20:57 2017 Tuesday ,16 May

Naval Forces rescue 23 tourists in Hurghada

GMT 12:56 2017 Monday ,11 December

Lyon leave it late, Balotelli with Nice winner

GMT 06:18 2017 Thursday ,19 October

Russian delegation meets with Julphar chairman

GMT 21:20 2017 Monday ,23 October

Nasr, delegation of London Stock Exchange

GMT 14:40 2012 Saturday ,10 March

Magdy Al-Galad steps down

GMT 09:47 2017 Sunday ,12 March

Cat Camp in New York attracts cat lovers

GMT 14:57 2016 Friday ,09 September

Madonna, Ritchie settle child custody dispute

GMT 23:52 2017 Monday ,18 September

UAE economic growth boosting logistics sector
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday