This document provides an outlook on the Southeast Asian automotive sector from 2013 to 2015. It notes that consumer preferences have changed significantly in each Southeast Asian country over the last 5 years. The trends show demand shifting towards mass market and first-time buyers, requiring strengthened sales and distribution networks. Government regulations will continue influencing supply and demand. The document identifies opportunities like the growing market for eco-friendly cars in Indonesia, focusing on mass market segments, and expanding into premium categories. It recommends maximizing distribution coverage and considering export markets in Vietnam, Cambodia and Myanmar.

1. 1
Spirethoughts –
SEA Automotive
Sector Outlook 2015
Prepared for:
2nd Annual Southeast Asia Automotive Summit 2013
26 June 2013

2. 2
Topic
1
The Fall and The Rise of Global Automotive
Industry
2
Spirethoughts: SEA Automotive Sector Outlook
(2013 – 2015)
3
Market ENTRY & GROWTH Opportunities and
Strategies
Agenda

3. 3
The Fall and The Rise of Global Automotive Industry

4. 4
Southeast Asia Automotive Industry:
The Changing Faces

5. 5
Spirethoughts: SEA Automotive Sector Outlook
2013 – 2015
In last 5 years, consumer preference in car
category has changed significantly and
differently in each SEA country
However, there is a clear trend now and
this will hold till 2015
Overall, Indonesia market is evolving fast
Changing preference across ALL consumer
segments
Premium vs. Mass market
Urban vs. Sub-urban/rural

6. 6
Spirethoughts: SEA Automotive Sector Outlook
2013 – 2015
New demand shifts towards mass market
and first-time car buyers, evolving to the
motorcycle industry characteristics
Strengthening sales & distribution
network is critical to winning competition
Critical for Southeast Asia market
Similarly, a balancing act between urban,
sub-urban and rural areas

7. 7
Spirethoughts: SEA Automotive Sector Outlook
2013 – 2015
Government controls and regulations
continue to play a major role in swinging
the supply-demand and car pricing in
the SEA automotive market
Eco-car regulation: Thailand (2009),
Indonesia (2013)
Even in smaller markets: Singapore (COE
pricing)
Right price-bandwidth for different model
and type offerings
Consumer bi-polarization: Premium +
Mass-market only
Shifting consumer preferences

8. 8
Market Entry and Market Growth Strategies
Consumer
behaviors
Regulations,
demographic
diversity
Brand
building
through CSR
Executing export
market strategies
Benchmarking,
competitive intelligent
Sales distribution network,
logistics efficiency
Pricing strategy
Segment
targeting
A holistic
market view
Buying decision process
Parts vendor sourcing
Market analysis
and monitoring

9. 9
Market Entry and Growth Opportunities & Strategies
(2013-2015)
1. New segment of eco-friendly cars in Indonesia
Expect demand to continue outstrip supply by three-folds
Driven by the flock of first-time car buyers

10. 10
Market Entry and Growth Opportunities & Strategies
(2013-2015)
2. The main focus remains at mass market for 2013-2015
Indonesia
Malaysia
Small
MPV
Compact
sedan
Category
Country

11. 11
3. Consider bringing in premium, sport and luxury car category
Hot markets:
Indonesia,
Singapore
and Malaysia
Limit quantity of
total imports by
model and color
Increase model
offerings to
increase sales
Market Entry and Growth Opportunities & Strategies
(2013-2015)

12. 12
Identify
‘the hotspots’
Maximize
distribution
network
Focus on
tier-2 /
sub-urban
Match total potential
buyer population
per district
Use Geo-marketing strategy
for car dealer networks
Market Entry and Growth Opportunities & Strategies
(2013-2015)

13. 13
5. Look beyond ASEAN-5 market, consider export to:
Vietnam, Cambodia and Myanmar
High reliance of imported new and used cars
Annual new passenger car import (2015F):
VIETNAM CAMBODIA MYANMAR
52,000 units/year 35,000 units/year 45,000 units/year
Source: Spire Research team analysis
Market Entry and Growth Opportunities & Strategies
(2013-2015)

14. 14
PT Spire Indonesia
Tel: (62 21) 5794 5800
Fax: (62 21) 5894 5808
Wisma 46 Kota BNI, 25th Floor, Unit 07-09
Jalan Jendral Sudirman Kav. 1
Jakarta, Indonesia
id.info@spireresearch.com
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