ASEAN Commercial Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)
The ASEAN commercial vehicles market is valued at USD 45.55 billion in 2021, and it is expected to reach USD 67.97 billion by 2027, projecting a CAGR of over 6.97% during the forecast period.
COVID-19 has affected the market, and commercial vehicle sales took a dip in 2020 in the ASEAN region. The social distancing norms and the preference of self and individual mobility are bound to bring down the public transport sector of the commercial vehicles market. However, post the pandemic, the rapid urbanization and need for mass material movement are expected to improve the market conditions.
The implementation of stringent regulations on vehicle emissions, advancements in vehicle safety. the introduction of driver-assist systems in new vehicles, and rapidly growing logistics in the retail and e-commerce sectors across ASEAN are primarily driving the demand for the new and advanced commercial vehicles. The demand for LCVs is likely to increase. as the logistics and e-commerce industries are growing rapidly. Additionally. rapid urbanization has created new retail and e-commerce platforms. which require efficient logistics. leading to the rise in the demand for light commercial vehicles (LCVs).
Governments across the ASEAN region are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, which in turn is compelling the OEMs to invest in developing electric trucks (e-trucks). Meanwhile, low-emission zones are driving fleets to replace diesel trucks with cleaner options.
Key Market TrendsThe Light Commercial Vehicle Segment Dominates the MarketLight commercial vehicles are largely used for carrying goods for shorter distances. The increased demand for goods through e-commerce is pushing the use of LCV in logistics, paving the way for market growth in the region. As many e-commerce and logistics companies are growing in the region.
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. Indonesia, which aspires to become the world's top industrial center, competes with the country. Due to the new law Vietnam officially repealed its 30 percent import duty for autos from inside ASEAN nations in 2018.
In April 2021, LCV sales in the ASEAN area, which includes Indonesia, Thailand, Malaysia, Philippines, Singapore, Vietnam, and Brunei, increased by 388 percent year on year (YoY). However, the tremendous rise was masked by a low base in April of last year, 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 Grow at a Higher CAGRAt present, Thailand is the market leader and the biggest manufacturer in the region. The country faces competition from Indonesia, which is aiming to be the leading production hub. Thailand offers a low-cost manufacturing option to automakers. Most of the companies active in the region export their vehicles to other regions. For instance,
Singapore is a highly-developed free economy, with some of the positive factors being open and corruption-free business, followed by a transparent legal framework. To support the vehicle sales, in March 2020, a new scheme was launched in the country for promoting the adoption of cleaner and newer commercial vehicles, which took effect from April 2021.
The Commercial Vehicle Emissions Scheme (CVES) may classify a variety of commercial vehicles into three categories, resulting in a USD 10,000 surcharge for the most polluting vehicles to 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 3500kg will 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,
Some of the key players of the ASEAN commercial vehicles market are Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, and Hino Motors. The market studied is highly driven by factors like joint ventures, partnerships, and the growing demand of the industrial sectors and government’s development initiatives across the ASEAN countries. Product expansion facilities, free trade agreements within the countries, growing logistics, e-commerce, and construction sectors are the factors responsible for the increase in the respective market shares of key players in the region.
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