SEA auto sales override economic fall

SEA auto sales override economic fall

SINGAPORE (AFP): New vehicle sales in Southeast Asia's four biggest markets rose 19 percent in the first two months of the year despite the regional economic slowdown, an industry monitor said Tuesday.

However, signs of an impact on consumer confidence were starting to emerge which may hurt sales in coming months, Automotive Resources Asia Ltd. said in its latest report.

Total new vehicle sales in Indonesia, Malaysia, the Philippines and Thailand totaled 144,579 in January and February, up from 121,384 a year ago.

The Indonesian market was the most aggressive with sales improving 34 percent to 39,017, Malaysia improved 24 percent to 57,172 while Thailand showed a more modest 13 percent increase to 36,704.

In the Philippines, sales rose slightly in February, but were down 16 percent for the year at 11,686 units after an uncertain January during a political crisis which climaxed with a military- backed civilian uprising that ousted president Joseph Estrada.

"Though total sales in the first two months of this year grew impressively from last year, the region's economies remain on shaky grounds," said Automotive Resources associate Chabaphrai Srinont.

"We see the depreciation of the yen and (Southeast Asian) currencies taking its toll on consumer confidence and fear this may negatively impact on sales in the coming months," he said.

"One the other hand, the intense regional market situation, with automakers competing hard for market share, is working to stimulate regional new vehicle sales."

Malaysia's national car Proton had the largest market share at 21 percent, followed by Toyota at 16 percent and Izuzu, Mitsubishi and Perodua with 11 percent.