SE Asian cars to fuel growth

SE Asian cars to fuel growth

HONG KONG (AFP): South Eastern Asian motor markets are
expected to lead global growth over the next five years driven by
increased volumes and greater vehicle variety, a leading global
bank said Wednesday.

A report released by ING Barings said automobile manufacturers
and industry experts predicted an average compound annual growth
rate (CAGR) of 13.8 percent for the region's vehicle market over
the next five years.

Over the same period, total vehicle volumes would more than
double to 1.6 million.

Asia will be the largest contributor to global growth,
contributing over 40 percent relative to other countries, the
report said.

In particular, fewer vehicle numbers in the Association of
South East Asian Nations (ASEAN) countries, coupled with rising
income levels, would boost average CAGR to 4.2 percent over the
period, the bank predicted.

However, the bank warned that political and economic
uncertainties in the region could adversely affect forecasts.

In terms of economic growth, "while strong recovery rates are
recorded, slowing domestic consumption and potential slowdown in
US exports mean that growth rates may be difficult to sustain in
the short term."

In addition, "political uncertainty currently prevailing in
some ASEAN countries could hamper future growth prospects." the
bank said.

However, the bank added it believed the region would be
attractive for long term automotive manufacturers eager to
capitalize on high potential growth prospects.

The report added that Japanese motor giant Toyota Motor
Corporation would the region's biggest success due to its strong
global presence and established brand name.