Automotive Exports September 2020

ASEAN vehicle
sales plunge
66% in Q2 2020,
yet sales will
stabilise by
the end of the
decade, says
GlobalData
Sales of new vehicles in Southeast
Asia’s six largest markets combined
are estimated to have declined by
almost 66% to 291,889 units in the second
quarter of 2020, according to GlobalData, a
leading data and analytics company.
David Leggett, Automotive Analyst at
GlobalData, comments: “The ASEAN
vehicle market largely shrugged off the
threat of COVID-19 in the first two months
of the year, but the crisis severely dented
vehicle demand in the region from March
and the trend worsened in Q2.”
Countries such as Vietnam and Thailand
have been more successful than others
in bringing the virus under control, but
all countries have suffered significant
economic damage as a result of the
pandemic - and vehicle sales have been
hit hard. Export demand has also declined
sharply, while weak commodity prices
continue to affect incomes and investment
across the region.
Leggett continues: “There were some
positive signs in June sales. In Thailand, for
example, vehicle sales in June were still
sharply lower year-on-year (YOY), but they
were 43% higher than in May. Demand
should stabilize and improve through the
remainder of the year.”
Although 2020 is seeing a setback for the
automotive sector in ASEAN markets,
long-term prospects for the region remain
very strong. GlobalData’s analysis points to
strong indicators for long-term demand as
motorization rates rise with high economic
growth - especially in Indonesia, with a
population of 273 million, and its market of
around one million new vehicles a year is
forecast to double to two million vehicles a
year by the end of this decade.
Leggett adds: “In addition to strong longterm
market prospects, the automotive
manufacturing industry in the region
benefits from relatively low costs, favorable
government policies for investment, as well
as free trading regimes for vehicles and
components.”
September 56