On September 29, the South East Asia Iron and Steel Institute (SEAISI) revealed the outlook of the automotive sector which is the second largest steel consuming sector in many countries in the ASEAN (Association of Southeast Asian Nations) region.
Accordingly, Thailand takes the lead with the country becoming the production hub for many global automotive manufacturers. Commercial car production from January to July contracted by three percent, when compared to the same period of 2010. Meanwhile, passenger car production seems to be healthier with an increase of two percent year on year. Thailand's government has recently launched a first-time buyer car program and it is expected that this scheme will help boost up domestic demand for vehicles in the country until the end of 2012.
As for Malaysia, vehicle demand in the country remains strong, according to the Malaysia Automotive Association (MAA). According to the Department of Statistics, Malaysia's production index for motor vehicle from January to July 2011 slowed down by an average of 15 percent when compared on year-on-year basis. However, compared to the second half of 2010, the figure in the first seven months of 2011 showed a continuous increase. Proton and Perudua, the national car makers, are preparing to launch new models in the near future. This could help to boost domestic demand in the country.
Indonesia's automotive sector remains buoyant. The country's motor vehicle production, as reported by CEIC, showed a significant continuous upward trend after a sharp decline in 2009. The country's stable economic outlook as well as the introduction of new vehicle models would be major factors driving the sector in 2011. According to the Frost & Sullivan Research Company, automobile sales in Indonesia are expected to reach 797,000 units in 2011, an increase of 4.3 percent from last year.
As for Vietnam, the automotive sector is becoming more important, especially in view of the growing demand for passenger cars. According to the Vietnam Automobile Manufacturers Association, vehicle sales grew significantly in 2010. However, demand from January to July of 2011 became sluggish, growing by only one percent year on year to 61,132 units.