Southeast Asia’s passenger vehicle market is facing an uphill battle. The once appealing and accommodating “blue ocean” market is fast disappearing as growth slows, with the gloomy global economic outlook compounding the slowdown. Players now not only need to work harder, they also have to plan smarter to safeguard the fast-lane profit levels they used to enjoy.
Standing at the crossroads of risk and reward are the conglomerates that dominate automotive distribution in Southeast Asia (SEA). On the one hand, these players risk increased customer churn, revenue decline or even risk of replacement if they fail to act. But on the other hand, the rewards if they take advantage of the new opportunities arising from the market’s volatility are great: increased customer loyalty, dominance in the used car market, partnerships with mobility providers who are here to stay and, ultimately, sustainable long-term growth.