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130626_Annual Southeast Asia Automotive Summit 2013_SpireThoughts on SEA Automotive Sector Outlook 2015


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Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting was invited to speak at the 2nd South East Asia Automotive Summit.

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130626_Annual Southeast Asia Automotive Summit 2013_SpireThoughts on SEA Automotive Sector Outlook 2015

  1. 1. 1Spirethoughts –SEA AutomotiveSector Outlook 2015Prepared for:2nd Annual Southeast Asia Automotive Summit 201326 June 2013
  2. 2. 2Topic1The Fall and The Rise of Global AutomotiveIndustry2Spirethoughts: SEA Automotive Sector Outlook(2013 – 2015)3Market ENTRY & GROWTH Opportunities andStrategiesAgenda
  3. 3. 3The Fall and The Rise of Global Automotive Industry
  4. 4. 4Southeast Asia Automotive Industry:The Changing Faces
  5. 5. 5Spirethoughts: SEA Automotive Sector Outlook2013 – 2015In last 5 years, consumer preference in carcategory has changed significantly anddifferently in each SEA countryHowever, there is a clear trend now andthis will hold till 2015Overall, Indonesia market is evolving fastChanging preference across ALL consumersegmentsPremium vs. Mass marketUrban vs. Sub-urban/rural
  6. 6. 6Spirethoughts: SEA Automotive Sector Outlook2013 – 2015New demand shifts towards mass marketand first-time car buyers, evolving to themotorcycle industry characteristicsStrengthening sales & distributionnetwork is critical to winning competitionCritical for Southeast Asia marketSimilarly, a balancing act between urban,sub-urban and rural areas
  7. 7. 7Spirethoughts: SEA Automotive Sector Outlook2013 – 2015Government controls and regulationscontinue to play a major role in swingingthe supply-demand and car pricing inthe SEA automotive marketEco-car regulation: Thailand (2009),Indonesia (2013)Even in smaller markets: Singapore (COEpricing)Right price-bandwidth for different modeland type offeringsConsumer bi-polarization: Premium +Mass-market onlyShifting consumer preferences
  8. 8. 8Market Entry and Market Growth StrategiesConsumerbehaviorsRegulations,demographicdiversityBrandbuildingthrough CSRExecuting exportmarket strategiesBenchmarking,competitive intelligentSales distribution network,logistics efficiencyPricing strategySegmenttargetingA holisticmarket viewBuying decision processParts vendor sourcingMarket analysisand monitoring
  9. 9. 9Market Entry and Growth Opportunities & Strategies(2013-2015)1. New segment of eco-friendly cars in IndonesiaExpect demand to continue outstrip supply by three-foldsDriven by the flock of first-time car buyers
  10. 10. 10Market Entry and Growth Opportunities & Strategies(2013-2015)2. The main focus remains at mass market for 2013-2015IndonesiaMalaysiaSmallMPVCompactsedanCategoryCountry
  11. 11. 113. Consider bringing in premium, sport and luxury car categoryHot markets:Indonesia,Singaporeand MalaysiaLimit quantity oftotal imports bymodel and colorIncrease modelofferings toincrease salesMarket Entry and Growth Opportunities & Strategies(2013-2015)
  12. 12. 12Identify‘the hotspots’MaximizedistributionnetworkFocus ontier-2 /sub-urbanMatch total potentialbuyer populationper districtUse Geo-marketing strategyfor car dealer networksMarket Entry and Growth Opportunities & Strategies(2013-2015)
  13. 13. 135. Look beyond ASEAN-5 market, consider export to:Vietnam, Cambodia and MyanmarHigh reliance of imported new and used carsAnnual new passenger car import (2015F):VIETNAM CAMBODIA MYANMAR52,000 units/year 35,000 units/year 45,000 units/yearSource: Spire Research team analysisMarket Entry and Growth Opportunities & Strategies(2013-2015)
  14. 14. 14PT Spire IndonesiaTel: (62 21) 5794 5800Fax: (62 21) 5894 5808Wisma 46 Kota BNI, 25th Floor, Unit 07-09Jalan Jendral Sudirman Kav. 1Jakarta,