▍Thailand: Downgrade annual production and sales forecast, formulate investment incentives for hybrid vehicles

According to reports, in the first half of 2024, total automobile sales in Thailand reached 308,027 units, a year-on-year decrease of 24.2%. Passenger car sales totaled 119,326 units, down 19.4% year-on-year, while commercial vehicle sales totaled 188,701 units, down 26.9%. Toyota topped the sales list with 116,278 units sold, down 15.0% year-on-year, followed by Isuzu with 46,260 units sold, down 46.4% year-on-year, and Honda with 43,499 units sold, down 5.7% year-on-year.

The spokesman for the automotive industry department of the Federation of Thai Industries stated at a press conference that Thai financial institutions have adopted stricter credit approval measures, coupled with household debt approaching 90% of GDP, leading to an increase in the rejection rate of auto loans.

Due to the decline in sales in the first half of the year, the Federation of Thai Industries has downgraded its full-year auto sales forecast for 2024 from 750,000 units to 550,000 units, and its production forecast from 1.9 million units to 1.7 million units.

Currently, the Thai government is providing investment incentives to hybrid vehicle manufacturers through the Board of Investment (BOI) promotion program, which includes tax holidays, investment grants, and reduced import tariffs on machinery, among other benefits. These measures are designed to save manufacturers initial operating costs and support the development of EV charging stations and hybrid vehicle parts supply chains. It is expected that the new incentives will attract new investments worth 50 billion Thai baht (approximately $1.4 billion).

▍Indonesia: MPV is the best-selling type, and the market below 300 million Indonesian rupiah is the most active

The Indonesian Automotive Industry Association (GAIKINDO) recently pointed out that the most popular type of vehicle in the Indonesian market today is the Multi-Purpose Vehicle (MPV), which has consistently accounted for 50-55% of total vehicle sales in the country since 2019.

Indonesian society is dominated by families with multiple children, which creates a high demand for vehicles with ample space. MPVs typically offer large interior space and flexible seating arrangements, making them well-suited for families with multiple members and capable of accommodating both passenger and cargo transportation needs. Additionally, MPVs have a higher ground clearance, chassis, and good wading ability, enabling them to navigate Indonesia's complex weather and road conditions. Kukuh Kumara, Secretary-General of GAIKINDO, concluded that MPVs align with the personalities and needs of Indonesian consumers.

However, not all MPVs enjoy impressive sales figures. To achieve high sales, MPVs must offer an "affordable" price point, ideally below 300 million Indonesian rupiah (approximately RMB 133,470). According to GAIKINDO data, sales of MPVs in the mid-to-low-end market reached 25% of total vehicle sales for the first time, making this segment the most dynamic in the Indonesian automotive market.

▍Philippines: Chinese brands account for nearly 6% of the market, with MG being the best-selling brand

According to a joint report by the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA), Chinese brands accounted for 5.84% of the market share in June, remaining stable compared to previous months. Among specific brands, SAIC MG was the best-selling with 726 units sold that month, followed by GAC Motor with 351 units and Foton with 340 units. Geely, on the other hand, experienced a significant decline in sales, selling only 67 units in June.

Among brands that saw sales growth in the first half of the year, GAC Motor was the fastest-growing with a 172% increase, while other brands such as Hyundai, Foton, and Mazda also recorded growth rates of 40%, 30%, and 28%, respectively. In comparison, the top three best-selling brands in terms of sales volume – Toyota, Mitsubishi, and Ford – reported growth rates of 12%, 15%, and 4% during the same period. Among brands that experienced sales declines in the first half, Geely suffered a significant loss with a 47% drop in sales.

▍Vietnam: Consumers prefer high-clearance and well-ventilated vehicles

According to data from the Vietnam Automobile Manufacturers Association (VAMA), high-clearance vehicles such as SUVs, crossovers, and MPVs gained popularity among consumers in the first quarter of this year, with sales outperforming those of low-clearance vehicles like sedans and hatchbacks. Statistics show that sales of high-clearance vehicles exceeded those of low-clearance vehicles by more than sevenfold. This trend is also reflected in the list of the top 10 best-selling vehicles in the first quarter, with seven of them being high-clearance models. Similar trends were observed among manufacturers outside of VAMA, indicating a growing preference among Vietnamese consumers for high-ground-clearance vehicles such as SUVs over sedans.

This consumer trend reflects a pragmatic approach to car purchasing, with consumers seeking versatile models that meet a wide range of needs. They prefer moderate vehicle sizes and open visibility, along with flexibility, convenience, durability, and practicality. Additionally, Vietnam's complex transportation infrastructure, uneven roads, and climatic conditions such as extended rainy seasons and frequent flooding make high-clearance vehicles a more advantageous choice.

Furthermore, Vietnamese car buyers also prioritize good ventilation within the vehicle to reduce discomfort during long journeys.

Typesetting: Zheng Li

Source: Autopro.com.vn, Autodeft.com, Gaikindo.or.id, Carguide.ph

Image Source: Qiantu Images