Market Trends of ASEAN Commercial Vehicles Industry
This section covers the major market trends shaping the ASEAN Commercial Vehicles Market according to our research experts:
The 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 regional market growth. Many e-commerce and logistics companies are expanding in the region, adding to the market growth. Thus major key players in the region are coming up with revised products at lower prices to improve sales. For instance,
- In November 2022, Renault simplified its light commercial vehicle lineup with a revised trim line-up and several price cuts. All vehicles in the range will have the same model structure as the latest Kangoo, starting from 2023, with Advance and Extra Sport specifications.
Indonesia aspires to become the world's top industrial center. Due to a new law, Vietnam officially repealed its 30% import duty for autos from inside ASEAN nations in 2018. At the same time, Thailand is expected to maintain its position in the ASEAN commercial vehicle market. Thailand is the region's largest producer, with plans to increase annual output to 4 million units by 2026. For instance,
- In April 2021, LCV sales in the ASEAN area, including Indonesia, Thailand, Malaysia, Philippines, Singapore, Vietnam, and Brunei, increased by 388% Y-o-Y. However, the tremendous rise was masked by a low base in April 2020, when the market only sold 50,387 units since every country in the area was under lockdown, which slowed economic activity and disrupted LV demand.
Thailand and Singapore are Expected to Register Higher CAGRs
At present, Thailand is the market leader and the biggest manufacturer in the region. The country faces competition from Indonesia, which aims to be the leading production hub. Thailand offers a low-cost manufacturing option to automakers. Most of the companies active in the region are focusing on expanding their fleet. For instance,
- In October 2022, Energy Absolute (EA) unveiled the locally manufactured "MINE MT30" electric mini truck. The model, which was presented under the concept of "Respect Environment," has been registered as Thailand's first 100% electric pickup truck.
Singapore is a highly developed free economy, with an open and corruption-free business and a transparent legal framework. To support vehicle sales, in March 2020, a new scheme was launched in the country to promote the adoption of cleaner and newer commercial vehicles, which took effect in April 2021.
The Commercial Vehicle Emissions Scheme (CVES) plans to classify a variety of commercial vehicles into three categories. It also includes a USD 10,000 surcharge for the most polluting vehicles and a USD 30,000 incentive for the cleanest vehicles. Light goods vehicles, goods-cum-passenger vehicles, and small buses with a maximum combined weight of not more than 3500 kg would be grouped into three bands by their worst-performing pollutant.
To accelerate the adoption of electric vehicles in the country, companies are working toward developing a network of charging stations. For instance,
- In August 2022, FOTON received an order for 210 iBlue EV Vans to be used in urban logistics in Singapore. Customers prefer FOTON iBlue EV Vans because of their numerous benefits in terms of environmental friendliness, energy efficiency, operation, and maintenance. FOTON Motor delivered the first 60 units on August 1, with the remaining 150 to be shipped in the fourth quarter of this year.
- In April 2021, SP Group (SP) and Singapore's largest commercial vehicle leasing firm, Goldbell Group, announced an agreement for SP to provide EV charging solutions to Goldbell's commercial fleet customers. The deal includes making SP's nationwide EV charging network available to Goldbell's customers and installing EV charging infrastructure on customers' premises, where feasible, to support electrification.
