Automotive

Is India ready for driverless cars?

As automotive manufacturers around the world continue to grapple with stagnating or declining sales in their traditional markets, a strong strategy for geographic diversification becomes increasingly urgent.

China overtook the United States as the world’s largest automotive market in 2009 and has retained the crown since then. China’s automotive aftermarket industry value reached USD 118 billion in 2015 and it is expected to grow at 12.7% CAGR to reach USD 214 billion by 2020.

Indonesia’s developing used car market is gradually becoming more structured due to the greater availability of flexible financing terms, standardised and authorised dealership channels and better transparency of information.

Today, the cars produced by the major automotive original equipment manufacturers are built with automotive embedded systems. Soon they will become communicating objects. Ipsos expects that there will be 69 million connected cars on the road by 2020, equivalent to 75% of all cars shipped globally.

Thailand continues to be the dominant hub within South East Asia, with the best automotive supply and logistics chain as well as impressive production figures for domestic and export markets. Whilst the industry has suffered significantly in recent years, the underlying trend suggests that the industry is close to being back on a growth path. As with other markets, Thailand is moving towards eco cars and SUVs, but the country’s industry is still dominated by one ton pick-up trucks.

We are predicting that passenger vehicle sales in Indonesia will surpass 1 million units by 2020, facilitating the country's dream of overtaking Thailand to become that No. 1 automotive hub in ASEAN.

ASEAN is host to two of the world's most important emerging markets for Automotive - Thailand and Indonesia. In our latest automotive publication our Automotive team provide you with an outlook on the Indonesian automotive industry in 2020, including the opportunities and challenges that automotive OEMs and parts manufacturers will need to address.

We believe that the Indonesian truck market will continue to experience good growth, making it a market that demands attention from automotive OEMs.