Au­tomak­ers race to take ad­van­tage of South­east Asia con­sumer boom

The Hamilton Spectator - - BUSINESS -

To get a taste of South­east Asia’s bur­geon­ing 600 mil­lion­strong con­sumer base and what it means for eco­nomic growth, take a look at the car in­dus­try.

Car­mak­ers are rac­ing to steal a big­ger slice of the mar­ket at­tracted by ris­ing in­comes and young work­ers look­ing to buy their first set of wheels. The Philip­pines and Viet­nam will be the two fastest-grow­ing pro­duc­tion hubs from 2017 to 2021, ac­cord­ing to BMI Re­search. Out­put will surge 300 per cent in the Philip­pines to 359,000 units and al­most dou­ble in Viet­nam to 112,000 units, it fore­cast in June.

Toy­ota and PSA Group, pro­ducer of Citroen and Peu­geot, are among those swoop­ing in to take ad­van­tage of both na­tions’ in­creas­ingly richer pop­u­la­tions — many of whom are first-time buy­ers in coun­tries where ex­ist­ing car own­er­ship is low. They also boast eco­nomic growth rates that ex­ceed six per cent — among the fastest in the world.

Only six per cent of house­holds in the Philip­pines own a car and two per cent in Viet­nam, ac­cord­ing to Pew Re­search Cen­ter us­ing 2014 data.

The ra­tio is 82 per cent in Malaysia and 51 per cent in Thai­land.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.