Complementation Strategy of Japenese OEMs in ASEAN
Complementation Strategy of Japenese OEMs in ASEAN
ASEAN production forecast expected to reach 5 million units by the year of 2020. It is expected most of major automotive countries such as Thailand, Indonesia, Malaysia and Philippines need to create extra production capacity by 1.3 million units by 2016 / 2017 to match up with forecast target in 2020.
Japanese OEMs are dominating heavily in ASEAN market particularly in Thailand and Indonesia whereby manufacturers such as TOYOTA, HONDA, DAIHATSU, MITSUBISHI etc. have gained major market shares. The Japanese OEMs also adopt product complementation strategy among its suppliers for as long that these countries offers open automotive policy.
The strategy is also well supported with the strong presence of Japanese-based vendors especially in Thailand and Indonesia, whereby the vendors are highly committed to Japanese OEMs hence limiting sourcing option for other non-Japanese.
OEMs Strategy for Proton post AFTA
Malaysia has signed several FTAs bi-laterally and under the platform of ASEAN with other major economies such as China, Korea etc. These would also supported with the implementation of ASEAN Economic Community (AEC) by 2015 and provide wider market access to automotive OEMs and part & components manufacturers. PROTON may leverage on this access in obtaining market expansion for its current and future products.
The export strategy also need to take into account supporting automotive after-market such as replacement parts and dealership system in ensuring PROTON to sells more and achieve greater economy of scale.
At the same time, efforts in enhancing its brand would also been a major strategy; offers a product with well equipped with latest technologies, safety features at competitive price.
ASEAN production forecast expected to reach 5 million units by the year of 2020. It is expected most of major automotive countries such as Thailand, Indonesia, Malaysia and Philippines need to create extra production capacity by 1.3 million units by 2016 / 2017 to match up with forecast target in 2020.
Japanese OEMs are dominating heavily in ASEAN market particularly in Thailand and Indonesia whereby manufacturers such as TOYOTA, HONDA, DAIHATSU, MITSUBISHI etc. have gained major market shares. The Japanese OEMs also adopt product complementation strategy among its suppliers for as long that these countries offers open automotive policy.
The strategy is also well supported with the strong presence of Japanese-based vendors especially in Thailand and Indonesia, whereby the vendors are highly committed to Japanese OEMs hence limiting sourcing option for other non-Japanese.
OEMs Strategy for Proton post AFTA
Malaysia has signed several FTAs bi-laterally and under the platform of ASEAN with other major economies such as China, Korea etc. These would also supported with the implementation of ASEAN Economic Community (AEC) by 2015 and provide wider market access to automotive OEMs and part & components manufacturers. PROTON may leverage on this access in obtaining market expansion for its current and future products.
The export strategy also need to take into account supporting automotive after-market such as replacement parts and dealership system in ensuring PROTON to sells more and achieve greater economy of scale.
At the same time, efforts in enhancing its brand would also been a major strategy; offers a product with well equipped with latest technologies, safety features at competitive price.