Market Trends of ASEAN Commercial Vehicles Industry
Light Commercial Vehicle Segment Dominates the Market
- Light commercial vehicles are mainly used to transport goods over short distances. The increased demand for goods via e-commerce is driving the use of LCV in logistics, paving the way for the market’s growth. Many e-commerce and logistics companies are expanding in the ASEAN region, driving the commercial vehicles market in the region. Thus, key players in the region are coming up with revised products at lower prices to improve sales.
- With urban areas across ASEAN nations grappling with narrow streets and traffic congestion, these compact vehicles have proven instrumental in navigating such infrastructural challenges seamlessly.
- Moreover, the cost advantages associated with LCVs, both in terms of acquisition and operational expenses, have rendered them an attractive proposition for small and medium-sized enterprises (SMEs) and start-ups operating in the region. Recognizing their potential, several ASEAN governments have proactively implemented policies, such as tax incentives and lending programs, to stimulate LCV adoption among businesses.
- Overall, LCVs emerge as the preeminent commercial vehicle type in the ASEAN region, aligning with the urban economic landscape and business models that favor smaller, more agile modes of transportation.
Indonesia to Register Highest CAGR
Indonesia has emerged as the leading nation in the ASEAN commercial vehicle market in recent years. This growth can be attributed to several key factors.
The nation's robust economic growth and increasing infrastructure development have fueled significant demand for commercial vehicles across various segments. The government's ambitious infrastructure push, including the construction of new toll roads, ports, and transportation hubs, has necessitated the deployment of a vast array of heavy-duty trucks and construction vehicles.
Furthermore, Indonesia's burgeoning logistics and e-commerce sectors have driven substantial demand for light commercial vehicles (LCVs) to facilitate last-mile deliveries. Additionally, Indonesia's commercial vehicle market has also benefited from favorable government policies aimed at promoting domestic manufacturing and vehicle adoption.
Moreover, Indonesia has also pledged to the Major Economies Forum on Energy and Climate (MEF) objective of achieving 30% of global medium and heavy-duty vehicle sales as zero-emission vehicles (ZEVs) by 2030. This commitment reflects the country’s focus on sustainability and carbon neutrality in its transportation sector.
The key players operating in the Indonesian market are increasingly launching innovative and advanced commercial vehicles to cater to the country's requirements.
- In August 2023, Mitsubishi Fuso Truck and Bus Corporation announced the launch of its all-electric eCanter trucks in Indonesia. The eCanter, with its locally emission-free and nearly noiseless electric drivetrain, is expected to contribute to a better quality of life in Jakarta.
