Toyota sales may double in four Asian markets
Toyota sales may double in four Asian markets
SINGAPORE (Bloomberg): Toyota Motor Corp. expects vehicle
sales in four of the largest markets in Southeast Asia to almost
double by 2005, aided by fast economic growth, lower tariffs and
increased competition among automakers.
Asia's largest automaker estimates total demand for vehicles
in Thailand, Indonesia, Malaysia and the Philippines will grow 88
percent to about 1.7 million units in 2005, from 900,000 in 2000,
according to Hirofumi Fujise, a spokesman for Toyota Motor
Management Services Singapore Pte., or TMSS.
The world's biggest automakers, including General Motors Corp.
and DaimlerChrysler AG, predict growth in Asian demand will
outpace that of North America and Europe. Plans by member
countries of the Association of Southeast Asian Nations to slash
tariffs on auto parts and vehicles will add to the region's
allure for carmakers, analysts said.
"We're totally aware that our rivals will really move into the
market especially after tariff restrictions get lighter," said
Fujise, in an interview. "We just have to keep on trying to
expand and increase business in the region."
As part of a 1998 agreement by ASEAN, the grouping's four main
markets will cut automotive-related tariffs to a maximum of 5
percent by 2005, down from 50 percent, provided the trade
involves automakers and suppliers located in the region.
For automakers to qualify for the benefits, set to begin as
early as 2003, at least 40 percent of a vehicle's components have
to be manufactured in an ASEAN country before the vehicle can be
exported.
"I'm not too worried about Toyota in the region," said Shu
Nung Lee, a senior auto analyst at Lehman Brothers Japan Inc.
"Toyota had a huge head start in terms of assembling and supply
bases in Asia -- it knows more about the market than other
makers."
Toyota has been expanding operations steadily in ASEAN
markets, opening 10 manufacturing units there since the late
1960s. Japan's largest automaker had a market share in the region
of about 20 percent in 1999. Automakers' success worldwide is
becoming more dependent on how well they succeed in the Asia-
Pacific region, companies and analysts said.