FOURIN,Inc. - Research and Analysis of the Asian Automotive Industry

Cost-competitiveness Supporting Low-cost Strategic Vehicles and Global Supply Chains
- Korea, Taiwan, Thailand, Indonesia, Malaysia, Philippines, Vietnam, India, Pakistan -

Asia’s automotive industry continues to grow on the back of expanding domestic demand and increasing development of export bases. In the high economic growth markets of India and ASEAN, parts makers are actively boosting investment to meet expanding vehicle production. At the same time, as low-cost vehicles fuel product competition, automakers and parts suppliers aim to acquire greater cost competitiveness, drawing attention toward low-cost technology avenues accordingly. Moreover, on the back of low prices and improving quality, there are increasing moves to position Asia as a global supply or complimentary base, further raising the critical importance of the region within worldwide supply chains.

　In Asia, varying economic growth levels and competitive footings provide a spectrum of growth scenarios and risks. India is forecast to see vehicle production expand to 10 million units annually in the medium to long-term, based on which, local firms and foreign majors are working to step up investment activities. Additionally, growth is also anticipated as an export base for powertrain components to the likes of Europe and North America. In ASEAN, investment is being boosted particularly into Thailand and Indonesia. Thailand, which aims to become the ‘Detroit of Asia,’ is establishing its position as a hub base in the region of Southeast Asian countries. Under this situation, the country continues to form a solid, all-encompassing parts industry. On the other hand, as a result of disruptions caused by the widespread flooding in autumn 2011, progress is likely to be made in realignment of operations by dispersing risk throughout the ASEAN region. Indonesia, with the region’s largest population, looks to introduce policies to encourage the production and sale of low-cost vehicles as it aims to maximize growth for the vehicle and parts manufacturing industries. Furthermore, countries such as Malaysia, the Philippines and Vietnam are searching for growth strategies for which they can pin industry survival on. Korea and Taiwan are each eyeing expansion into overseas markets, while at the same time, set their sights on capturing global presence in the field of environmentally-friendly vehicles, such as electric and hybrid cars.

Whilst giving precise analysis of growth opportunities and risk factors inherent to Asia’s parts industry, this publication also provides insight into the future direction of the region’s development. Covering parts industries in nine major Asian countries, in-depth details are given of the current status and growth scenarios, production and procurement efforts of leading automakers, and business developments of major suppliers.

FOURIN Inc. is certain this publication will provide any Asia automotive industry related business an essential source of trends, outlooks and invaluable intelligence and data to support business planning.