According to industry statistics compiled by Just Auto, recent automobile sales in six major ASEAN markets rose 53% to 846,562 units within the third quarter of 2022 from 553,564 units in the identical period last yr.
A pointy recovery from dismal volumes a yr ago and improving supply chain bottlenecks spurred growth, with buyers also scrambling to strike deals on rates of interest at the beginning of the tightening cycle.
Economic growth accelerated within the region within the third quarter, supported by a rebound within the tourism industry following the widespread easing of travel restrictions within the second quarter. Strong demand for goods and energy has also boosted production and investment in countries reminiscent of Indonesia and Malaysia.
With volumes up 248% and 166% respectively from very low levels a yr earlier, when strict lockdown rules were in place to curb the rise in Covid infections, Vietnam and Malaysia recorded the best growth within the third quarter. Third quarter sales were also higher in Indonesia, Thailand and the Philippines as supply chains continued to expand and manufacturers managed to satisfy weak demand.
According to data published by the Vietnam Automobile Manufacturers Association (Vama), sales in Vietnam rose 248% to 64,789 units within the third quarter because the market recovered from last yr’s lockdowns. Sales for the primary nine months increased by over 56% to 264,951 units. In late October, in response to the numerous decline in the worth of the dong, the country’s central bank raised its benchmark rate of interest by a further 100 basis points to six.0%.
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After excluding data from members of the Avid importers association, sales within the third quarter of Philippines increased by greater than 28% to 93,280 units from just 58,838 units in the identical period last yr, bringing the overall to 248,154 units for the primary nine months. Since the increases began in May, the Philippine central bank has raised its benchmark rate of interest by 225 basis points to 4.25%.
According to available information, regional sales in the primary nine months of 2022 increased by almost 30%, reaching 2,456,866 units in comparison with 1,883,543 units in the identical period last yr.
The outlook for the fourth quarter is way worse, and the Indonesian market is anticipated to slow after tax cuts are eliminated at the top of September. While customers can still take delivery of their cars until the top of March 2023, Malaysia similarly abolished similar tax breaks at the top of June.
In the third quarter, supply chain bottlenecks improved and huge pent-up demand in key regions was already being met. In response to rising inflation and weaker local currencies against the US dollar, central banks within the region began raising rates of interest within the second quarter. Regional growth is prone to weaken in the approaching quarters coupled with a slowdown in the worldwide economy.
According to data published by the regional industry organization Gaikindo, recent vehicle sales in Indonesia increased by greater than 27% to 282,895 units within the third quarter of 2022 from 223,068 units at the identical time last yr.
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High commodity prices, rising foreign direct investment and a rebound in domestic and international tourism after the lifting of travel restrictions earlier this yr have contributed to the country’s economic recovery. In October, the Bank of Indonesia again raised its benchmark rate of interest by 50% basis points to 4.75% in an effort to curb inflation and support the local currency against the US dollar.
The third quarter saw a big rebound within the automotive industry, helped by reduced bottlenecks in the provision chain and increased buyer anticipation of the removal at the top of September of luxury tax breaks implemented to support the industry through the pandemic. At the start of the rate of interest hike cycle, buyers also sought to make rate of interest deals.
Total vehicle sales rose almost 21% in the primary nine months of the yr to 758,216 units from 627,537 units a yr earlier. Passenger automobile sales increased by over 22% to 571,494 units, while business vehicle sales increased by just over 17% to 186,722 units.
According to wholesale data provided by the Federation of Thai Industries, recent automobile sales in Thailand increased by 32% to 205,900 units within the third quarter of 2022 from 155,984 a yr earlier (FTI). The market benefited from strong economic development within the country within the third quarter, driven by the easing of travel restrictions, which gave a big boost to the country’s key tourism industry.
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After growing by 2.5% within the second quarter, GDP is anticipated to grow by 3.5% year-on-year within the third quarter. In September, the Bank of Thailand raised its benchmark rate of interest again, this time by 25 basis points to 1.0%, in an try to combat excessive inflation attributable to rising import costs and robust consumer demand. Semiconductor shipments improved within the third quarter, helping vehicle makers clear large backlogs of orders.
Vehicle sales rose almost 20% in the primary nine months of the yr to 633,687 units from 529,075 units in the identical period in 2021, mainly resulting from strong demand for pickup trucks. During this time, the variety of vehicles produced increased by roughly 14% to 1,364,037 units, while exports increased barely to 706,444 units.
FTI reiterated its earlier forecast that the domestic market would grow 12% to 850,000 units in 2022, but additionally noted that sales could reach 900,000 units if semiconductor supplies proceed to enhance.
According to registration data released by the Malaysian Automotive Association (MAA), recent vehicle registrations in Malaysia rose 166% to 185,412 units within the third quarter of 2022 because the market rebounded from weak sales of 69,649 units a yr earlier – when the country was under lockdown resulting from the Covid pandemic.
As the federal government ended a sales tax break introduced a yr earlier to assist the economy get better from last yr’s lockdowns, domestic vehicle makers continued to fill a backlog of orders received before the top of June.
In the short term, the market will probably be supported by the chance for buyers who made confirmed purchases before the top of June to register their cars without paying sales tax until the top of March 2023.
The Malaysian government has confirmed that import and excise duty exemptions on imported electric vehicles (EVs) will probably be prolonged for an additional yr until the top of 2024 in the primary draft of the 2023 national budget, which was unveiled earlier this month. Companies won’t should pay a permit fee in the event that they plan to import electric vehicles before the top of 2023.
From 318,827 to 516,798 units in the primary nine months of 2022, total vehicle sales increased by roughly 62%. Passenger automobile sales increased by 62% to 457,160 units, while business vehicle sales increased by 66% to 59,638 units. During this time, domestic vehicle production increased by 67% to 508,761 units.
Source: Just-Auto.com
