Asean Commercial Vehicles Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The ASEAN commercial vehicles market was valued at USD 45.55 billion, and it is expected to reach USD 67.97 billion, projecting a CAGR of over 6.97% during the forecast period.
The COVID-19 pandemic impacted the market, and as a result, commercial vehicle sales in the ASEAN region fell in 2020. The preference for self- and individual mobility, as well as social distancing norms, drove down the public transportation segment of the commercial vehicle market. However, rapid urbanization and the need for mass material movement have improved the market conditions in the post-pandemic period. For instance,
Key HighlightsOver the long term, stringent vehicle emission regulations, 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 expected to drive demand for new and advanced commercial vehicles. LCV demand is expected to rise as the logistics and e-commerce industries expand rapidly. Furthermore, rapid urbanization has given rise to new retail and e-commerce platforms that necessitate efficient logistics. Such developments are increasing the demand for light commercial vehicles. For instance,
Key HighlightsGovernments throughout the ASEAN region are putting pressure on vehicle manufacturers to reduce carbon emissions from diesel fuel combustion and address greenhouse gas emissions, compelling OEMs to invest in developing electric trucks. Meanwhile, low-emission zones are causing fleets to switch to cleaner diesel trucks.
ASEAN Commercial Vehicles Market TrendsThe Light Commercial Vehicle Segment Dominates the MarketLight 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,
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 Due to a new law, Vietnam officially repealed its 30% import duty for autos from inside ASEAN nations in 2018.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,
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,
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,
Some of the key players in 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 growing demand from the industrial sector and government development initiatives across ASEAN countries. Product expansion facilities, free trade agreements within countries, and the growing logistics, e-commerce, and construction sectors are the factors responsible for increasing the respective market shares of key regional players.
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