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ASEAN Commercial Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

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  • 101 Pages
  • August 2022
  • Region: Asia Pacific
  • Mordor Intelligence
  • ID: 4760167
The ASEAN commercial vehicles market was valued at USD 45.55 billion in 2021, and it is expected to reach USD 67.97 billion by 2027, projecting a CAGR of over 6.97% during the forecast period.

The COVID-19 pandemic affected the market, and commercial vehicle sales took a dip in 2020 in the ASEAN region. The social distancing norms and the preference for self and individual mobility are bound to bring down the public transport segment of the commercial vehicles market. However, post the pandemic, the rapid urbanization and need for mass material movement are expected to improve the market conditions.

The implementation of stringent regulations on vehicle emissions, advancements in vehicle safety, the introduction of driver-assist systems in new vehicles, and rapidly growing logistics in the retail and e-commerce sectors across ASEAN are primarily driving demand for new and advanced commercial vehicles. The demand for LCVs is likely to increase as the logistics and e-commerce industries grow rapidly. Additionally, rapid urbanization has created new retail and e-commerce platforms that require efficient logistics. Such developments are leading to a rise in the demand for light commercial vehicles (LCVs).

Governments across the ASEAN region are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, which in turn, is compelling OEMs to invest in developing electric trucks (e-trucks). Meanwhile, low-emission zones are driving fleets to replace diesel trucks with cleaner options.

Key Market Trends

The Light Commercial Vehicle Segment Dominates the Market

Light commercial vehicles are largely used for carrying goods for shorter distances. The increased demand for goods through e-commerce is pushing the use of LCV in logistics, paving the way for market growth in the region. Many e-commerce and logistics companies are growing in the region, further boosting the market growth.

Thailand is expected to maintain its position in the ASEAN commercial vehicle market. Thailand is the region's largest producer, with plans to increase annual output to 4 million units by 2026. Indonesia, which aspires to become the world's top industrial center, competes with the country. Due to a new law, Vietnam officially repealed its 30% import duty for autos from inside ASEAN nations in 2018.

In April 2021, LCV sales in the ASEAN area, including Indonesia, Thailand, Malaysia, Philippines, Singapore, Vietnam, and Brunei, increased by 388% Y-o-Y. However, the tremendous rise was masked by a low base in April 2020, when the market only sold 50,387 units since every country in the area was under lockdown, which slowed economic activity and disrupted LV demand.

Thailand and Singapore are Expected to Register Higher CAGRs

At present, Thailand is the market leader and the biggest manufacturer in the region. The country faces competition from Indonesia, which is aiming to be the leading production hub. Thailand offers a low-cost manufacturing option to automakers. Most of the companies active in the region export their vehicles to other regions. For instance,
  • In February 2020, Isuzu Motors Limited announced plans to start exporting the all-new D-Max pick-up truck. The production of the model began in Thailand. The company plans to expand its market reach by increasing export destinations, starting in Europe and Australia.
Singapore is a highly developed free economy, with some of its positive features being an open and corruption-free business and a transparent legal framework. To support vehicle sales, in March 2020, a new scheme was launched in the country for promoting the adoption of cleaner and newer commercial vehicles, which took effect from April 2021.

The Commercial Vehicle Emissions Scheme (CVES) plans to classify a variety of commercial vehicles into three categories. It also includes a USD 10,000 surcharge for the most polluting vehicles and a USD 30,000 incentive for the cleanest vehicles. Light goods vehicles, goods-cum-passenger vehicles, and small buses with a maximum combined weight of not more than 3500 kg would be grouped into three bands by their worst-performing pollutant.

To accelerate the adoption of electric vehicles in the country, companies are working toward developing a network of charging stations. For instance,
  • In April 2021, SP Group (SP) and Singapore’s largest commercial vehicle leasing firm, Goldbell Group, announced an agreement for SP to provide EV charging solutions to Goldbell’s commercial fleet customers. The agreement includes making SP’s nationwide EV charging network available to Goldbell’s customers and installing EV charging infrastructure on customers’ premises, where feasible, to support electrification.

Competitive Landscape

Some of the key players in the ASEAN commercial vehicles market are Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, and Hino Motors. The market studied is highly driven by factors like joint ventures, partnerships, and growing demand from the industrial sector and government's development initiatives across ASEAN countries. Product expansion facilities, free trade agreements within countries, and the growing logistics, e-commerce, and construction sectors are the factors responsible for the increase in the respective market shares of key players in the region.
  • In April 2021, DFSK officially launched the DFSK Gelora E as the first electric commercial vehicle in Indonesia, at the Indonesia International Motor Show (IIMS) 2021. This functional vehicle is offered in two variants, namely, Minibus and Blind Van. The combination of its battery and electric motor allows the vehicle to go as far as 300 km (based on NEDC).
  • In October 2020, Tan Chong Motor Holdings BHD (TCMH) entered a memorandum of understanding (MoU) with PT SGMW Motor Indonesia (SGMW) to explore potential automotive markets in Malaysia and Thailand. PT SGMW Motor Indonesia is a subsidiary of China's SAIC GM Wuling Automobile Co. Ltd.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Vehicle Type
5.1.1 Light Commercial Vehicles
5.1.2 Medium- and Heavy-duty Commercial Vehicles
5.2 Country
5.2.1 Indonesia
5.2.2 Thailand
5.2.3 Vietnam
5.2.4 Singapore
5.2.5 Malaysia
5.2.6 Philippines
5.2.7 Rest of ASEAN
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Izusu Motors Ltd
6.2.2 Mistsubishi Motor Corporation
6.2.3 Honda Motor Corporation
6.2.4 Daihatsu Motor Co. Ltd
6.2.5 Ford Motor Company
6.2.6 UD Trucks Corp.
6.2.7 Scania
6.2.8 Fiat Chrysler Automobiles
6.2.9 Hyundai Motor Corporation
6.2.10 IVECO (CNH Industrial NV)
6.2.11 Hino Motors Ltd
6.2.12 Tata Motors

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Izusu Motors Ltd
  • Mistsubishi Motor Corporation
  • Honda Motor Corporation
  • Daihatsu Motor Co. Ltd
  • Ford Motor Company
  • UD Trucks Corp.
  • Scania
  • Fiat Chrysler Automobiles
  • Hyundai Motor Corporation
  • IVECO (CNH Industrial NV)
  • Hino Motors Ltd
  • Tata Motors