With Europe still falling and China’s growth diminished, carmakers have a new Holy Grail market to turn their attention to: the growing markets in Southeast Asia.
With car demand forecasted to slow in China and already dwindling in India, global marques are planning a strategy rethink that would take advantage of previously untapped possibilities of growth in southeast Asian markets like Indonesia, Malaysia and even Myanmar.
The global automakers are betting on a new line-up of “low-cost, green cars” to spearhead their advances in the thriving markets that foreshadow a new automotive boom in Southeast Asia.
“The Asean nations such as Indonesia, Malaysia and Thailand form one of the regional ‘clusters’ that we believe should be on the growth list of every [carmaker] and supplier,” says Xavier Mosquet, senior partner at the Boston Consulting Group in Detroit. “For players in Europe, the US, and Japan, geographic diversification has never mattered more than it does today in order to balance local economic storms.”
Japanese manufacturers such as Honda, Nissan and Toyota have already a good start in Southeast Asia, with low-cost models already on sale, but this is also attracting new entrants from India’s Tata Motors to General Motors, which recently reopened an Indonesian idled plant .
Via Financial Times