The path to prosperity: emerging automotive markets in Southeast Asia

Abstract

Abstract As the economy continually fluctuates, industries have been required to shift their focus to reflect new customer trends and behaviour, low-cost sourcing of material and labour as well as the need for expansion into new emerging markets. In this context, dominant players of the global automotive industry, the European Union, Japan and [now] China, are currently facing issues regarding rising costs of production and raw materials and a new generation of carowners who are looking towards greener as well as more sustainable modes of transportation. This thesis aims to provide a regional economic analysis of Southeast Asia as an emerging market, with a focus on identifying the predominant characteristics of its automotive market and defining why certain countries within the region are ideal for production capabilities and/or as a sourcing destination. The thesis further provides a macro-economic overview of the top five most promising countries, as well as a comparison analysis of their current automotive markets and industries, the range of Government incentives available as well as emerging automotive trends within these countries. The analysis in this thesis will cover the countries: Thailand, Indonesia, Malaysia, Vietnam and the Philippines. The exploration of the automotive industry within these five countries will be followed by a breakdown of the possible challenges and barriers as well as advantages and opportunities foreign investors may encounter when entering Southeast Asia as a market, production hub or supplier source. The thesis concludes with recommendations for foreign investors and possible future prospects that could be pursued within the region.