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.