SE Asia car sales up 46.5% in 2000

SE Asia car sales up 46.5% in 2000

SINGAPORE (AFP): New vehicle sales in Southeast Asia's four key markets rose 46.5 percent in 2000 over the previous year but are expected to weaken this year as political uncertainty takes its toll, industry monitors said Monday.

The number of new vehicles sold last year in Indonesia, Malaysia, the Philippines and Thailand totaled 989,884 units, up from 676,765 in 1999, marketing strategy company Automotive Resources Asia (ARA) said in its latest report.

Falling sales in Indonesia and Malaysia in December failed to dampen overall growth, it said.

December sales in Indonesia declined 19 percent from the previous month, while vehicle sales in Malaysia were down by 10 percent in the same period.

For the year overall, however, Indonesia posted the most dramatic rise in sales, from 94,474 units in 1999 to 300,573 units last year -- a whopping 218 percent increase.

Another industry watcher, MotorBusiness-Asia.com, said in a separate report the more than three-fold increase in car sales in Indonesia showed that Indonesian consumers "have evidently built up a strong tolerance to political instability."

ARA said Thailand sales rose 20 percent on the year to 262,189 units, while Malaysian annual sales ended the year 19 percent higher at 343,173 units sold. The Philippines saw sales rising 13 percent to 83,949.

"There is a great deal of nervousness in each of the ASEAN markets," said ARA executive director John Bonnell, referring to the Association of Southeast Asian Nations.

"As a result, we are looking for a weakening of sales in the coming months, though nothing drastic," he said.

MortorBusiness-Asia.com said in a report it was "very cautious" on the outlook for new vehicle sales in Indonesia.

"The political instability looks to be intensifying, with the leadership crisis being a big potential source of social unrest and a lack of coherent economic management," it said.

It forecast a contraction of 8.4 percent in new vehicle sales for Indonesia this year, "but this is provided there is not a serious deterioration of the political environment."

A moderate growth is forecast in 2002 "provided that the current political and social problems do not escalate," it added. Japan's Toyota remains the leader for the region, with a 20- percent share of the market, followed by Malaysia's Proton with 18 percent and Mitsubishi with 12 percent.