In the near future, Indonesia and Malaysia will establish bilateral G to G cooperation to make ASEAN cars. Chairman of the Indonesian Automotive Institute Made Dana M Tangkas explained, this collaboration will optimize production items from two countries. ASEAN cars are vehicles whose production components come from ASEAN countries. This is based on the human population in ASEAN has reached 600 million people with a potential market for car sales of 4 million each year. For this reason, Indonesia collaborated with Malaysia to build cars that will be marketed in the Asian region.
With this collaboration, Malaysia and Indonesia can transfer technology to business transfers. Made said, to realize this, the Indonesian component industry will establish a joint venture with the Malaysian component industry. Later, this joint venture is to develop component products needed by the two countries’ automotive industry.
In addition, the joint venture will be deepened by conducting research and development to produce automotive products needed by countries in ASEAN.
To date, there are three component industries from Indonesia that are ready to establish joint ventures with component industries from Malaysia.
“Two of the members of PIKKO (Association of Small-Medium Automotive Components Industries), one other outside PIKKO,” said Made.
In addition, the joint venture will be deepened by conducting research and development to produce automotive products needed by countries in ASEAN. Until now, there are three component industries from Indonesia that are ready to establish joint ventures with component industries from Malaysia.
Meanwhile, Malaysia Automotive Institute (MAI) Chief Executive Officer Dato Madani Sahari said that the potential of the two countries’ component industries was very large to collaborate. “If combined can reach 90 percent to meet the component needs in ASEAN. Very large,” Madani said.
For this reason, the Ministry of Industry’s Director General of Resilience and International Industrial Access Development, I Gusti Putu Suryawirawan, hopes that both of them will be able to create research and development centers for the ASEAN automotive industry. “Thus, there will come together products together. They will identify which component industries are feasible to collaborate,” Putu said.
As additional information, based on data from the ASEAN Automotive Federation, car sales in eight ASEAN countries as a whole in 2017 grew 5% compared to the previous year of 3.168 million units to 3.339 million units. The passenger vehicle segment contributed sales of 2.15 million units or 64.49%, and the remainder were commercial vehicles of 1.186 million units or 35.51%.
Indonesia leads the market as well as the only country with sales figures above 1.079 million units, growing by 2% compared to the previous year’s 1.061 million units.
In the second place, Thailand contributed sales of 871,650 units or grew 13% to 768,788 units.
The third rank was occupied by Malaysia with sales of 576,635 units, down 1% compared to the previous year’s achievement of 580,085 units.
Besides Malaysia, Brunei and Vietnam are countries where car sales have decreased. While the others are growing.