The Asia Automotive Industry 2009 Yearbook -Automobile-

Chapter One
Current Situation and Outlook of Asia Auto Industry1

Industry Outlook:

Asian Automotive Industry Tops Nine Million Units from Expansion in India and Thailand 2

◇Development as Production and Export Base and Establishment of Own Operating Systems 4
◇Asia Becoming an Epitome of the Competition among Global Automakers6
◇Potential for Development as Production Hubs for Motorcycles and Motorcycle Parts 8
Market Overview:

Expectation for Asian Sales Volume to Record 12 Million Units in 2015 from 5.55 Million Units in 2007 10
◇Asian Sales Volume in 2007 Recovered from 2006 Stagnation 10
◇Motorcycle Market Growth and Potential Demand Expansion 12
Features:

Marketing and Cost Competition Focus in Asia 14
◇Response to Market Demand Required for Government-led Eco Car Project 14
◇Impact of the Tata Nano Market Launch 16
◇Main Competition in the A2/A3 Compact/Midsize Segment 18
◇MPV Demand Remains High in the Asian Market 18

Chapter Two
East Asia 21

China:

Acquisition of Independent Technology Required in the Two-Tiered Industrial System of the Auto Part Industry 22
◇Immobilized Dual Structure in Response to Domestic Market Expansion after Accession to the WTO 22
◇Acquisition of Independent Technological Capability Aimed in the 11th Five-Year Guidelines24
◇Centralization of Environment and Safety Issues and Acquisition of Technologies Against

Them 26

Taiwan:

Development of Exports and Business Expansion in China and Establishment of the Overseas Development Strategies 30
◇Need to Strengthen High-Mix Low-Volume Production Capacity and Development in Export Strategy to Recover the Industry Up to a 400,000 Unit Volume 32
◇China Motor and Yulon Try to Progress Operations in China 34
◇Market Volume Estimated to Remain at 400,000 Unit Volume While Waiting for Market Expansion Constraints to be Resolved 36
◇Political Stability and Positive Replacement Demand Open the Way for Market Recovery 37
◇Despite Joining WTO, the Effects of Tariff Reduction on Imported Car Sales Seems to be Limited 38
Korea:

Strengthening of Global Product Acquisition and Domestic-Foreign Balance to Become One of the World's Top Four Automobile Producing Nations 40
◇Expansion of Free Trade Agreements and Response to Environmental Issues for a Strengthening of Exports to Developed Nations 41
◇Realization of Production in 2007 of 4 Million Units for the First Time Due to Positive Exports and Progress in Manufacturing and Development 45
◇Global Strategies of Hyundai and Kia Groups Call into Question Domestic and Foreign Business Equilibrium 47
◇Introduction of New Standards for Mini Vehicles Carry Expectations of a Lift in the Market and Product Expansion for Each Maker 49
◇Diversification of Products in the SUV Segment and Active Release of Vehicles into the Upper Class Passenger Market 50
◇Entry Expansion of Japanese Brands Due to Increases in Volume Sales in the Imported Vehicle Market 52

Chapter Three
South East Asia 57
Thailand:

Kick-Starting Plans for the ?Eco Car?Brings Annual Production of 2 Million Vehicles into Sight, Expanding Investment in the Small Car Sector 58
◇Acceleration of Vehicle Components Production Accumulation and Export Base Strengthening for Eco Car Project 60
◇Economic Slowdown in 2006-2007 Due to Rising Oil Costs and Unstable Political Conditions to Impact on Automobile Market from 2008 66
◇Automobile Makers Active to Enter New Markets Following Increased Demand and FTAs 68
◇Excise Duty Reductions for E20 Compliant Cars and Expansion of the Passenger Vehicle Market by the‘Eco Car’ 70
◇Export Driven Automobile Production Expands, Aiming for Annual Eco Car Volume of 2 Million Units from 2010 70
◇Auto Manufacturers Begin Preparations to Start the Eco Car Project 75
◇Strengthening of CBU Bases Progress, Driven by Exports to the Middle East and Australia 78

Indonesia:

Assessment of Auto Industry Development Looking to Production of 1.5 Million Units by 2015 80
◇Future Automobile Industry Policy Aiming for Production of 4 Million Units in 2025 82
◇Potential Sales of 750,000 Units in 2010 through Maximization of Dormant Growth 86
◇Demand for MPV Greatest by New Users over Upgrades and Second Vehicle Purchases 86
◇Auto Finance Supports Expansion of Vehicle Sales, Increasing Business for Japanese Trading Companies 91
◇Rapid Expansion of Compact Multipurpose Vehicle Production, Leading to Expectations of 1 Million Units in 2010 92

Malaysia:

An Attractive Plan for Promoting Malaysia as an Export Hub for International Car Makers 96
◇A Measure to Attract Investment from Foreign Automakers 97
◇Vehicle Market is to Expand, Increasing Demand Boosted by a New Proton Model 98
◇Vehicle Production Rebounds in 2008, Boosted by Increasing Domestic Demand 102
◇Seeking a Way to Make Malaysia an Export Hub Focusing on National Car Makers 103

Philippines:

Entering a Period of Market Recovery, Searching for Development Strategy to Realize Sales of 200,000 Units and Exports of 50,000 Units 106
◇Clarification of Medium Term Production Development Scenario Required for Period of Market Recovery 108
◇Development of Production Base Expected through Promotion of FTA with Nations other than ASEAN 109
◇Market Recovery Driven by Light Commercial Vehicles, Active Release of New Basic Segment Passenger Car Models 111
◇Effect of Ban on Used Imports Evident, Government Leadership over Jeepney Restrictions Questioned 113

Singapore:

Competition Intensifies on Reduced Demand Due to COE Issue Restraints 114
◇Rising Vehicle Ownership Leads to COE Issue Restrictions from 2009 115
◇While the Overall Auto Market Shrinks, Turnover of High-End Class Brand Vehicles Expands 117

Vietnam:

Clarification of a Medium and Long Term Automotive Industry Development Strategy 120
◇Core Vehicle Class Clarification Questions Automotive Development Policy 121
◇Domestic-Made Vehicle Sales Double in 2007, Boosted by Passenger Cars and Chinese Brand Trucks 122

Chapter Four
South Asia 125
India:

Gaining Export Competitiveness on the Back of Increased Domestic Demand, Looking for Growth in the Auto Industry at Home and Abroad 126
◇New Model Launches Increasing in the Small Car Market 129
◇A2 Compact Segment, the Driving Force in Vehicles Sales 134
◇Production Tops 2.2 Million Vehicles in 2007, Plans for Build-up of Capacity by

Manufacturers 138
◇Focus on Small Cars for Expansion of Completed Vehicles Exports 141

Pakistan:

Strengthening of Parts Production Expansion and Technical Expertise to Realize Capacity of 500,000 Units in FY201 144
◇Start of New Automotive Industry Policy, Strengthening Campaign to Attract Auto Parts Industry and Technical Expertise 145
◇Slowdown of Automobile Market in 2007 Due to Rising Interest Rates and Political Instability 148
◇Introduction of Preferential Investment Policies for Realization of FY2011 Passenger Vehicle Target 149

Appendix
Asia Automotive Industry Statistics 153
【Taiwan: Vehicle Production by Model (2003-2007, Jan-Jun 2007-2008)】 154
【Taiwan: Vehicle Production by Manufacturer (2003-2007, Jan-Jun 2007-2008)】 154
【Taiwan: Vehicle Production by Manufacturer, Type and Model (2003-2007, Jan-Jun 2007-2008)】 154
【Taiwan: Vehicle Production by Manufacturer, Type and Model (2003-2007, Jan-Jun 2007-2008)】(Continued) 155
【Taiwan: Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 156
【Taiwan: Vehicle Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 156
【Korea: Vehicle Production by Type (2003-2007, Jan-Jun 2007-2008)】 157
【Korea: Vehicle Production by Manufacturer (2003-2007, Jan-Jun 2007-2008)】 157
【Korea: Vehicle Production by Manufacturer, Type and Model (2003-2007, Jan-Jun 2007-2008)】 157
【Korea: Vehicle Productianufacturer, Typon by Me and Model (2003-2007, Jan-Jun 2007-2008)】(Continued) 158
【Korea: Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 159
【Korea: Domestically-Produced Vehicle Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 159
【Korea: Domestically-Produced Vehicle Sales by Manufacturer, Type and Model (2003-2007, Jan-Jun 2007-2008)】 159
【Korea: Domestically-Produced Vehicle Sales by Manufacturer, Type and Model (2003-2007, Jan-Jun 2007-2008)】(Continued) 160
【Korea: Imported Car Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 160
【Thailand: Vehicle Production by Type and Segment (2003-2007, Jan-Jun 2007-2008)】 161
【Thailand: Vehicle Production by Manufacturer (2003-2007, Jan-Jun 2007-2008)】 161
【Thailand: Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 162
【Thailand: Vehicle Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 162
【Indonesia: Vehicle Production by Type and Category (2003-2007, Jan-Jun 2007-2008)】 163
【Indonesia: Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 163
【Indonesia: Vehicle Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 163
【Malaysia: Vehicle Production by Type (2003-2007, Jan-Jun 2007-2008)】 164
【Malaysia: Vehicle Production by Brand (2003-2007, Jan-Jun 2007-2008)】 164
【Malaysia: Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 165
【Malaysia: Vehicle Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 165
【Malaysia: Vehicle Production by Brand and Model (2003-2007, Jan-Jun 2007-2008)】 166
【Malaysia: Vehicle Production by Brand and Model (2003-2007, Jan-Jun 2007-2008)】(Continued) 167
【Philippines: Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 168
【Philippines: Vehicle Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 168
【Philippines: Vehicle Sales by Brand and Model (2003-2007, Jan-Jun 2007-2008)】 168
【Philippines: Vehicle Sales by Brand and Model (2003-2007, Jan-Jun 2007-2008)】(Continued)169
【Singapore: Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 170
【Singapore: Vehicle Sales by Brand (2003-2007, Jan-Jun 2007-2008)】 170
【Singapore: Passenger Car Sales by Brand and Model (2003-2007, Jan-Jun 2007-2008)】 170
【Singapore: Passenger Car Sales by Brand and Model (2003-2007, Jan-Jun 2007-2008)】(Continued) 171
【Singapore: Passenger Car Sales by Brand and Model (2003-2007, Jan-Jun 2007-2008)】(Continued) 172
【Vietnam: Domestically-Assembled Vehicle Sales by Type

(2003-2007, Jan-Jun 2007-2008)】 173
【Vietnam: Domestically-Assembled Vehicle Sales by Brand

(2003-2007, Jan-Jun 2007-2008)】 173
【Vietnam: Domestically-Assembled PC/SUV/MPV Sales by Brand and Model

(2003-2007, Jan-Jun 2007-2008)】 174
【India: Vehicle Production by Type (2003-2007, Jan-Jun 2007-2008)】 175
【India: Vehicle Production by Manufacturer (2003-2007, Jan-Jun 2007-2008)】 175
【India: Domestically-Produced Vehicle Sales by Type (2003-2007, Jan-Jun 2007-2008)】 175
【India: Domestically-Produced Vehicle Sales by Manufacturer (2003-2007, Jan-Jun 2007-2008)】 175
【Pakistan: Vehicle Production by Type (2003-2007, Jan-Jun 2007-2008)】 176
【Pakistan: Vehicle Production by Brand (2003-2007, Jan-Jun 2007-2008)】 176
【Pakistan: Vehicle Production by Brand and Model (2003-2007, Jan-Jun 2007-2008)】 176
【Pakistan: Domestically-Produced Vehicle Sales by Type(FY2003-2004, 2005-2007,Jan-Jun 2007-2008)】 177
【Pakistan: Domestically-Produced Vehicle Sales by Manufacturer(FY2003-2004, 2005-2007, Jan-Jun 2007-2008)】 177