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Different Green Car Policies Across ASEAN Countries Create Unique Combinations of Market Push and Pull, Says Frost & Sullivan

HONG KONG and SINGAPORE, April 24, 2014 /PRNewswire/ -- The different Green Car policies across ASEAN create unique combinations of market "push" and "pull", dramatically impacting demand patterns and opportunities for future growth, says Frost & Sullivan.

Mr. Dushyant Sinha, Associate Director, Automotive Practice, Asia Pacific at Frost & Sullivan said that the 3 biggest automotive nations in ASEAN - Thailand, Malaysia and Indonesia - have all embarked on "low emission, high mileage" vehicles.

However, he added that the policy approach and focus are significantly different. The Thai Eco Cars have stringent product and investment requirements, whereas Malaysian EEVs cover the widest possible range of segments and vehicles. While Thailand provides a bouquet of incentives across income tax, excise duty and import duty, Malaysia has decided to customize its offerings based on how strategic the investment is.

Mr. Dushyant said that the developments in the Green Car space are not just limited to the Big-3 of ASEAN. The other 2 ASEAN countries which boast of local manufacturing – Vietnam and Philippines are also toying with various policy initiatives and roadmaps to boost investment. In Philippines, the Hybrid Incentive Bill is on the verge of becoming a law and is expected to further support existing grass root initiatives such as the e-Jeepney.

He added that the different Green Car policies across ASEAN create unique combinations of market "push" and "pull", dramatically impacting demand patterns and opportunities for future growth.

Mr. Dushyant said that Thailand's limited market necessitates a strong "push" strategy with Government support such as the first car buyer policy while Indonesia's large and growing customer base and low motorization creates a natural growth engine to drive forward its low cost green car agenda.

He added that it is the strong policy "push" that has given Thailand a significant lead over Indonesia and Malaysia in the Green Car space. However, its sustainability would be a key challenge over the next decade.

About Frost & Sullivan   

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Media Contact
Alice Chia
Corporate Communications – Asia Pacific
Email: [email protected]

SOURCE Frost & Sullivan

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