Report: Vehicle Sales in SE Asia to Grow 8% This Year

Total vehicle sales in the 10 nations of southeastern Asia will surge 8% this year compared with 3% in 2016 and less than 4% for Asia overall, says London-based BMI Research, a part of Fitch Group Inc.

The firm predicts that passenger car demand this year will jump 20% in Cambodia, 19% in the Philippines and 18% in Vietnam, The Nikkei reports. The Tokyo-based newspaper says years of strong growth lie ahead because the countries have economies that are growing by 6% or more and very low vehicle ownership per household.

But handling more traffic will be a major challenge for large cities in the region. Last year Bangkok and Jakarta ranked as the second- and third-most congested cities in the world in an analysis by navigation system provider TomTom NV of 390 cities in 48 countries.

High concentrations of high-polluting two-stroke motorcycles also makes air quality a growing challenge for cities in southeast Asia. The Nikkei reports that many analysts believe pollution problems will outstrip efforts to control emissions for years to come.