Automakers swing from BRIC to ASEAN nations for growth image

Although China will maintain its leadership over the auto industry, executives and analysts have curbed their enthusiasm for the other BRIC nations – Brazil, Russia and India.

The carmakers have started their final push towards “undiscovered” territories, after moving in a matter of decades from the established regions (US, Europe, Japan) to the emerging markets like the BRIC countries. As demand vanes in the first three countries – new regions are discovered and targeted. Among them – the Southeast Asia region, with its Association of Southeast Asian Nations (ASEAN) – a gathering of 10 nations, organized economically and politically.

“You can delete the letters B, R and I from the once highly praised BRIC nations. Only the C is left. By contrast, the ASEAN zone offers strong sales potential for the vehicle industry,” comments Stefan Wolf, CEO of German parts maker ElringKlinger.

The region, with around 600 million people inhabiting it, has always had a presence from the thriving Japanese automakers, but today Ford, GM or Volkswagen are also settling in. The region has reached production of more than 4.2 million vehicles in 2012, with Thailand (1.4 million), Indonesia (1.1 million), and Malaysia (627,000) leading the pack. Autofacts, a unit of PwC, forecasts the manufacturing capacity will climb by around 2.2 million units in Southeast Asia by 2020.

Via Automotive News Europe