A study by The Boston Consulting Group, a global advisor on business strategy, says that the Southeast Asian region is expected to deliver 4.6 million new vehicle sales by 2020.
With reports saying bikes have outsold cars for a 2nd year in a row in most European countries, automakers should start seeking new markets and new regions to conquer.
But even with consistent vehicles sales in developed countries and the rise of the automotive economy in BRIC economies (Brazil, Russia, India and China), the study says Southeast Asia is one of the key markets that will ensure long-term viability.
Tagged as “Beyond BRIC” markets, the Philippines is part of this emerging sector that is slowly on the rise and will contribute to the global automotive economy along with Indonesia, Malaysia, Thailand and other countries of the ASEAN.
Countries like Iran, Saudi Arabia and Turkey in the Middle East; South America’s Argentina, Chile and Colombia; and the North Africa’s Algeria, Egypt and Morocco have also been identified as auto markets with vast potential OEMs and third-party suppliers.
The growth rate of these markets are pegged at 6% annually until 2020, which is 4x faster than Japan and even countries in the western hemisphere. By that year, sales in “Beyond the BRIC” countries will comprise 20% of global sales of new vehicles.
While none of these “new market” countries can outsell a BRIC or a developed country by itself, automakers are advised to treat these areas as clusters and custom-fit the marketing and sales of vehicles depending on the needs and preferences of the people.