ASEAN automotive market experienced mixed fortunes in the first quarter (Q1) of 2024, with some countries witnessing declines while others enjoyed growth. Indonesia, despite facing a significant drop in sales, retained its position as the region's leading automotive market. Malaysia, on the other hand, saw a modest increase, while Thailand experienced a substantial downturn.
Indonesia: Downturn Amidst Top Spot
According to Gaikindo's report, Indonesia's wholesale automotive sales in Q1 2024 plunged by 23.9%. Domestic automakers managed to deliver only 215,069 units to dealerships, a stark contrast to the higher figures recorded in the same period of 2023. Despite this decline, Indonesia held onto its position as ASEAN's top automotive market.
Factors contributing to the sales slump include:
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Weakening Purchasing Power: Economic instability has impacted consumer purchasing power, dampening demand for vehicles.
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Credit Tightening: Rising non-performing loan (NPL) ratios have led to stricter lending practices by financial institutions, making it more challenging for consumers to obtain car loans.
Malaysia: Buoyed by Domestic Incentives
Malaysia emerged as the second-largest automotive market in ASEAN, registering a 5% increase in sales to 202.245 units compared to Q1 2023. This growth was attributed to the government's economic stimulus package, which included a sales tax exemption for domestically produced vehicles. This incentive proved particularly beneficial for national car brands Perodua and Proton, which collectively hold a 60% market share.
Other factors contributing to Malaysia's sales growth include:
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Continued Fulfillment of Tax-Free Orders: Orders placed before the tax exemption ended in mid-2022 continued to be fulfilled in 2023, supporting sales figures.
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Introduction of New Models: The launch of attractive new models, including electric vehicles, at competitive prices further fueled sales momentum.
Thailand: Challenges Amidst EV Bright Spot
Thailand, once considered the "Detroit of ASEAN," experienced a 25% decline in Q1 2024 sales, falling to 163,666 units, placing it third in the regional rankings. This downward trend has persisted since June 2023 due to rising car loan NPLs and stagnant domestic market absorption.
Despite the overall downturn, the Thai automotive industry received a boost from the growing popularity of electric vehicles (EVs), driven by the influx of Chinese automakers.
