Automotive Industrie in ASEAN Region

Eberspächer Exhaust Technology

ASEAN Strategy

DRIVING THE MOBILITY OF TOMORROW prepared by Babak Niazi © Eberspächer ASEAN Member Countries

Rank Country Production Vol. Rank Country Production Vol. in 2014 in Mio. in 2020 in Mio. 1 China 23.72 1 China 31.48

2 USA 11.66 2 USA 13.56

3 Japan 9.77 3 Japan 11.84

4 Germany 5.90 4 Germany 6,57

5 Korea 4.52 5 ASEAN 6.08

6 ASEAN 4.47 6 India 5,21

7 India 3.36 7 Korea 5.50

8 Mexico 3.36 8 Mexico 4,92

9 Brazil 3.14 9 Brazil 3.98

10 Spain/Portugal 2.38 10 Spain/Portugal 3,19

‹ ASEAN is currently the 6th largest region, likely to become the 5th largest region!

Indonesia, Thailand and Malaysia are the key markets in the ASEAN region, accounting for 90% of the market. Production Volumes has been increased to 200% since 2009

-0,1 % YTD

+13,4 % YTD +5,5 % YTD +27,1 % +5,0 % YTD YTD

ASEAN Automotive Market: Key Players

• All countries are likely to grow at a CAGR of 6-9% in the next 5 years with the exception of Indonesia at 16%. • Growth in population is averagely staying between 1-2% • Indonesia is predicted to be the fastest growing country in next 5 years with increase GDP per capita are likely to be more than 13%

Growth in ASEAN, decline in Thailand

• Top 5 ASEAN markets reached 3,5 Million units of total industry volume • Thailand remained the largest market however, saw a steep decline of 8% • Indonesia continued to grow inching closer to ist no. 1 position

Advent of Fuel efficient cars

• Indonesia, Malaysia and Thailand announced new policies for new class of prodcuts broadly classified as „Fuel efficient“ vehicles opportunity for Exhaust Technology supplier • Malaysia rolled out National Automotive Policy which focuses on Energy Efficient Vehicles • Thailand announced 2 programs to attract further investments in production capacity

AEC implemantation delayed but inevitable

• There has been some delay in the AEC implementation however there are some structural developments that point towards AEC being an inevitable development to unify the market

Decisive consumer Dramatic increase in Thailand‘s First car buyer Sub Compact and shift from pick-up incentive program Compact car sales trucks to passenger cars

Multifold increase in Positive consumer Malaysia‘s continued tax Hybrid car sales in attitudes towards break for Hybrid cars Malaysia Hybrid and EV

No luxury tax – Sales zoomed to Launch of LCGC program hence 10% lower 50,000 in first 4 in Indonesia price months

While Thailand provides a bouquet of incentives, Malaysia has decided to customize its offerings based on how strategic the investments is

ASEAN likely to become the 5th largest automotive market in the world

German OEMs announced to focus more on ASEAN

New policies and full implementation of AEC will alter the competetive position of Japanese OEMs and open the door for High potential challengers (Ford, VW, BMW, Mercedes etc.

Strategic partnerships in this region to be a part of undeveloped but growing market

‹ Thailand is the 3 rd biggest economy in ASEAN (67,1 mio. population)

‹ Thailand is currently 9th largest automotive producer worldwide

‹ 3 Mio. units milestone will be achieved by 2017

‹ JE is currently investigating a Footprint in Thailand to enter in global Ford, Honda and VW business

‹ BMW will increase the production in Thailand dramatically from 2015 on

‹ Honda plans to build a new plant in Prachinburi/Chonburi with a production capacity of 240.000 units a year

‹ Ford opened second plant in Thailand (invest 450 Mio $, annual capacity of 150.000 vehicles. Thailand capacity increases to 445.000 vehicles in Thailand. ‹ Ford is planning to launch 50 new vehicles and powertrain in Asia Pacific and Africa by mid-decade

Ayutthaya

Samrong Bangkok

Bangkok

Chonburi Samut Prakan Bangkok

Pluak Daeng /Rayong Rayong Chachoengsao

Chonburi

Pluak Daeng / SOP 2019 Rayong

Bangkok to Rayong 170km

‹ Strategically located in the heart of South-East Asia

‹ In ASEAN Malaysia is the third biggest car market

‹ Local OEMs ( Perodua, Proton) has a marekt share of 60%

‹ National car dominance is expected to decline further with more liberalization in the near future

‹ European OEMs are represented with CKD plants

Gurun Rawang

NAZA Automotive Perodua

Kulim Kuala Lumpur

INOKOM CORPORATION Tan Chong Motor

Tanjung Malim Tanjung Malim Pekan FAURECIA HICOM ECT DRB HICOM Kuala DRB HICOM Lumpur

Shah Alam ISUZU-HICOM Assembly Services SDN BHD

Malacca DRB HICOM Honda Malyasia

Swedish Motor Assemblies

‹ Indonesia predicted to be the fastest growing country in next 5 years

‹ Biggest Population in ASEAN 240 Mio. (worlds 4 th most populous country)

‹ Less than 5 percent of Indonesia's population own vehicles

‹ JAPANESE OEMs lead a highly consolidated and competitive market (54% of Market held by Astra International (comprising Toyota, Daihatsu and Isuzu)

‹ VW is investigating to build a factory in West Java

‹ GM reacitivated a plant (capacity 40.000 p.a)

Jakarta Tangerang Bogor Mercedes Benz Gaya Motor Assembler Trijaya Union

Isuzu Astra Motor West Java

BMW Indonesia

Jakarta

Krama Yudha

Unicor Prima Motor

Kia Mobile Indonesia

Foton Mobilindo Bekasi Karawang Purwakarta Suzuki Indombil Motor Toyota Motor Nissan Motor

Astra Daihatsu Motor GM Indonesia Honda Motor Hino Motors

National Assembler Astra Daihatsu Motor

650.000

600.000

550.000

500.000

450.000

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350.000

300.000 2014 250.000 2019 200.000

150.000

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