New vehicle sales within the six largest markets within the ASEAN region recorded a slight decline within the fourth quarter of 2022, reaching an estimated total of 920,000 units. This decline followed a period of strong growth within the previous quarters. This information is predicated on data collected from a wide range of industry sources, including vehicle manufacturers, industry associations and government departments.
The decline in sales might be attributed to several aspects. First, the decline was fueled by comparisons with strong data from the previous 12 months, when markets rebounded significantly from pandemic-induced lows. Second, ongoing semiconductor shortages have impacted vehicle supplies. Additionally, sales in Thailand were negatively impacted by local floods that occurred through the last two months of the 12 months. While other markets also experienced slower growth, Vietnam recorded a big 35% decline in sales within the fourth quarter.
Despite these challenges, economic growth across the ASEAN region remained solid within the fourth quarter. This growth was driven by a recovery in international travel and tourism within the second half of the 12 months, increased demand for goods, higher investment rates and domestic consumption. Most markets within the region have successfully returned to pre-pandemic levels. Malaysia recorded the strongest growth, recording an almost 42% increase in sales to a record 720,658 units last 12 months, followed by the Philippines and Vietnam. Indonesia retained its position as the most important market, with sales increasing by over 18% to 1,048,040 vehicles, accounting for about 31% of total sales within the region.
Here is a summary of the situation in individual markets:
Philippines
The Philippines recorded a remarkable sales growth of over 36% within the fourth quarter of 2022, with sales of 104,442 units in comparison with 76,549 units within the previous 12 months. The market has already rebounded to pre-pandemic levels, showing an almost 29% increase in full-year sales to 369,000 units from 285,694 units in 2021. The country’s GDP grew by an estimated 7.6% in 2022, driven by solid consumer spending and investment . In response to inflation, the central bank increased the reference rate of interest to five.5%.
Vietnam
In the fourth quarter of 2022, Vietnam saw sales plummet by 35%, with 93,112 units sold in comparison with a high of 142,852 units in the identical period last 12 months. This decline was attributed to the exceptional market recovery within the previous 12 months. Full-year sales, nevertheless, increased by greater than 29% to 358,063 units, supported by an economic growth rate of greater than 8%. It is value noting that sales growth within the services sector amounted to 10%.
Indonesia
In Indonesia, recent vehicle sales increased by almost 12% within the fourth quarter of 2022, reaching a complete of 289,824 units in comparison with 259,665 units in the identical period last 12 months. Over the past two years, the domestic vehicle market has successfully returned to pre-pandemic levels, with full-year sales increasing by greater than 18% to 1,048,040 units from 887,202 units in 2021. Economic development in 2022 was around 5.5%. , supported by the return of international tourism, rising commodity prices, increased private investment and powerful consumer spending. The local industry has introduced policies to extend the uptake of electrical vehicles (EVs).
Thailand
In the fourth quarter of 2022, sales in Thailand declined by greater than 6% to 215,701 units in comparison with 230,044 units within the previous 12 months. This decline was attributed to local flooding in the ultimate months of the 12 months and protracted semiconductor shortages. The economy grew by about 3.4% in 2022, driven by domestic consumption and a resurgence in international tourism. The Central Bank of Thailand raised its benchmark rate of interest to 1.25% in response to the economic situation.
Malaysia
In Malaysia, recent vehicle sales increased by just over 7% within the fourth quarter of 2022, reaching 203,860 units in comparison with 190,084 units within the previous 12 months. The market within the country has rebounded strongly from pandemic-induced lows, with full-year sales increasing 42% to 720,658 units from 508,883 units in 2021. The market growth was supported by the recovery in economic activity and government stimulus policies. Notably, electric vehicle (EV) sales tax exemptions led to a tenfold increase in EV sales in 2022.
Despite strong performance in 2022, there are concerns about sales prospects in 2023 as a result of the withdrawal of pandemic-related sales incentives, rising rates of interest, inflation and slowing global economic growth impacting exports and commodity prices. The ASEAN region is fastidiously considering these aspects because it plans for the approaching 12 months.
