Strong Sales Growth Ahead for ASEAN

Demand for light vehicles in southeast Asia will expand 5% to 3.29 million units this year, driven by robust growth in Thailand and Vietnam, says LMC Automotive.

The market research firm reports that first-quarter sales of cars and light commercial vehicles in the region rose 3% to 829,300 units. For the full year, LMC expects deliveries of passenger vehicles in the Assn. of southeast Asian National will expand 4% to 2.44 million units, and light commercial vehicles sales will climb 8% to 847,500 units.

January-March sales were driven by 16% gains each in Thailand and Vietnam. LMC raised its full-year outlook for both markets to 937,000 units and 308,000 units, respectively.

Indonesia, the largest market among the Assn. of Southeast Asian Nations, saw first-quarter sales advance only 1% to 267,800 units. A 14% jump in deliveries of light commercial vehicles offset a 2% decline in car sales. But LMC expects a depreciating rupiah and accelerating inflation will continue to drag on the market, softening overall demand to 1.04 million units in 2018

Sales in Malaysia and the Philippines shrank by 5% and 8%, respectively, in the first quarter. LMC projects the Malaysian market will decline 1% to 570,000 units this year, and deliveries in the Philippines will drop to 432,000 cars and light commercial vehicles.