Market Research Report
ASEAN Commercial Vehicles Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||823691|
|Published||Content info||70 Pages
Delivery time: 2-3 business days
|ASEAN Commercial Vehicles Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: June 1, 2020||Content info: 70 Pages||
The ASEAN Commercial Vehicles market is expected to register a CAGR of 4%, during the forecast period, (2020 - 2025).
Light Commercial Vehicle Segment is Leading the ASEAN Commercial Vehicles Market
Under the light commercial vehicles (LCVs) segment, vehicles with a gross vehicle weight rating of less than 16 metric tons have been considered, which includes pickup trucks, vans, light, and medium trucks, and minibusses. Pickup trucks covered the highest share, covering more than 60% of LCVs sales in the ASEAN region in 2018, and continued to be the highest in the LCV segment during 2019, as well. Thailand, Indonesia, Malaysia, and Vietnam were the major ASEAN countries with high demand for pickup trucks, in 2018. However, during 2019, Vietnam's pickup truck sales declined, due to the country's implementation of stringent checks on imported vehicles, which resulted in import halt from neighboring countries, majorly from Thailand, Indonesia, and Japan.
Major players, such as Isuzu, Mitsubishi, and Hino covered nearly more than 60% of the LCV segment of the market studied during 2018 and 2019. During the forecast period, the sales of LCVs are likely to continue to grow, owing to the following instances in the ASEAN countries, as automotive players in Thailand have geared their production plans in the coming years to capture the growing demand for light commercial vehicles across the ASEAN countries during the forecast period.
New models of LCVs have been significantly introduced in the ASEAN countries by the automobile manufacturers during 2018, to sustain in a highly competitive market, as well as to cater the growing demand for advanced vehicle features among the customers in the ASEAN countries.
In April 2018, Isuzu announced the launch of a cab-over lightweight truck TRAGA. The gross vehicle weight of the truck is 3 ton and it is based the D-MAX pick truck platform. According to the company the new vehicle is firstly launched in Indonesia and gradually will be launched in other emerging markets.
Thailand and Singapore are Expected to Grow at a Higher CAGR
At present, Thailand is the market leader and it is likely to continue its lead in the ASEAN commercial vehicles market. Thailand is the biggest manufacturer in the region and is planning to raise its annual production to 3.5 million units by 2025. The country faces competition from Indonesia, which has the goal of becoming the leading production hub. At present, the demand for commercial vehicles is declining in Vietnam, due to the new rule that came into effect (Vietnam finally eliminated its import tariff for automobiles from within the ASEAN countries from 30% on Jan 1, 2018). As a result, Toyota Motor and Honda Motor have stopped their exports to Vietnam since the beginning of the year, following the implementation of a rule that requires stringent checks on imported vehicles. The sales of commercial vehicles, such as trucks and buses, dropped by 16% to 23,364 units.
Singapore is a highly-developed free economy, with some of the positive factors being open and corruption-free business, followed by a transparent legal framework and many more. The construction sector (primary buildings in the country) exhibited slow growth in the first quarter of 2017. Though new building construction activities were active in the past few years, they exhibited slow growth in the recent past. The decrease is mainly due to the downfall in contract prices.
Some of the key players of the ASEAN commercial vehicles market are Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, and Hino Motors. The market studied is highly driven by factors, like joint-venture, partnerships, and growing demand of the industrial sectors and government's development initiatives across the ASEAN countries. Product expansion facilities, free trade agreements within the countries, growing logistics, e-commerce, and construction sectors are the factors responsible for the increase in the respective market shares of key players in the region.