ASEAN Automotive Market Overview Q1 2024: Indonesia Remains Top Despite Decline, Malaysia Rises, Thailand Falters

ASEAN Automotive Market Overview Q1 2024: Indonesia Remains Top Despite Decline, Malaysia Rises, Thailand Falters

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:

  • Weakening Purchasing Power: Economic instability has impacted consumer purchasing power, dampening demand for vehicles.

  • 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:

  • 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.

  • 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.

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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