Japan pulls out of SE Asia

Japan pulls out of SE Asia

BANGKOK: Japanese carmakers are expected to have a reduced
presence in Southeast Asia as the U.S. Big Three move into the
region.

According to Bangkok-based Automotive Research Asia, Japanese
automakers will assemble 66 percent of all vehicles produced in
four Southeast Asian countries in 2002, down from 76 percent at
present.

Furthermore, the U.S. Big Three carmakers are likely to expand
their combined market share in those nations to 9 percent that
year from the current 1 percent. Despite this, Toyota is expected
to hold the largest market share, followed by Mitsubishi and
local maker Perusahaan Otomobil Nasional Bhd. (Proton) of
Malaysia.

ARA expects the four countries -- Thailand, Malaysia,
Indonesia and the Philippines -- to produce a total of 1.49
million vehicles in 2002, citing the fact that only 4 percent of
their combined populations now owns cars. However, because of the
region's economic woes, vehicle output will decrease to 718,000
in 1998 from the previous year's 1.17 million.