In 2016 car manufacturers in Thailand produced 1.94 million vehicles, hence accounting for nearly 50 percent of all car manufacturing in ASEAN. It is a figure that is much higher compared to Indonesia. Indonesia only managed to produce 1.17 million cars in full-year 2016.

Kukuh Kumara, Secretary General of the Indonesian Automotive Industry Association (Gaikindo), says it will require hard work for Indonesia to surpass Thailand in terms of car production figures. Currently, Indonesia is primarily dependent on foreign investment from car manufacturers, especially from Japan, for the establishment of onshore production facilities. Moreover, Indonesia also needs to develop car components industries that can support the car manufacturing industry.

Read more: Overview of Indonesia's Automotive Industry

For the long-term car sales are expected to remain strong in Indonesia as per capita car ownership is low while the economy is expected to grow robustly, implying people's purchasing power strengthens.

Car Sales in ASEAN:

Country    2014    2015    2016
Thailand
 881,832  799,632  768,788
Indonesia 1,208,019 1,013,291 1,061,735
Malaysia  666,465  666,674  580,124
Philippines  234,747  288,609  359,572
Vietnam  133,588  209,267  270,820
Singapore   47,443   78,609  110,455
Brunei   18,114   14,406   13,248
ASEAN 3,190,208 3,070,488 3,164,742

Source: ASEAN Automotive Federation

Bahas