Automotive

India - Auto industry may feel heat until early 2013

Source: The Economic Times, 28 December 2011

The auto industry may continue to face tough times till the first quarter of 2012-13 as firms are expected to hike car prices by up to 10 per cent, resulting in reduced demand, a study has said. "The hike in car prices would mainly be driven by high interest rates, rising raw material cost coupled with labour pangs," said the Assocham study.

The industry body suggested that automakers should revise their marketing strategies and launch diesel variants to tide over the tough times. "Automakers must revise marketing strategies, launch diesel variants, promote easy availability of finance options to woo the customers and keep a tab on tier II, III cities to spurt the car sales in the recent future," Rawat added.

Thailand - Growth seen for resilient car industry

Source: The Bangkok Post, 22 December 2011

The car industry is predicted to grow 16% in terms of vehicle production next year, despite the impact of flooding. Even with the severe disruption of supply chains and production during the fourth quarter, Thailand's auto industry is expected to fully recover by the second or third quarter next year and produce 1.8 million units in 2012, says Finansia Syrus Securities.

Production will begin to show solid signs of recovery by the first quarter, but full recovery will kick in from the second quarter on. Domestic sales would increase by 14-19% to 925,000-965,000 vehicles, the same volume as the 2011 pre-flood sales target.The government's first-time car owner tax rebate scheme is still in effect, new models have just launched, and flood-affected automakers were able to import cars built overseas duty-free.

Indonesia - Car Sales to Be Driven by Cheap Financing Next Year

Source: The Jakarta Globe, 28 December 2011

Indonesia’s automotive sector faced challenges this year as major supplier countries Japan and Thailand suffered natural disasters, but a combination of a strong economy and cheap financing helped to boost sales of cars and motorcycles.

Further spurring automotive demand, banks’ lending rates have fallen after the central bank’s recent rate cuts to all-time lows to protect the economy from a slowdown in Europe and the United States. Low interest rates have been fueling the rise in sales, Jongkie said, and the trend is expected to continue next year.

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