- With rapid economic growth and rise in population, Southeast Asia's transport sector has witnessed an increase in the demand for two-wheelers in major cities.
With rapid economic growth and rise in populations, Southeast Asia's transport sector has witnessed an increase in the demand for transport, particularly for two-wheelers in the major cities.
Bloomberg reports that lack of investment in the public transport system in major Southeast Asian cities has increased reliance on private road transport.
This region has experienced rapid growth in the vehicle fleet in the last decade with over 266 million vehicles in 2019. 78% of these vehicles are two-wheelers, while passenger vehicles make up only 15% of the total vehicle fleet.
Two-wheelers form the largest percentage of the vehicle fleet in Vietnam, Indonesia, Philippines, Thailand and Malaysia.
In Vietnam, two-wheelers form 94% of the country's vehicle fleet. Similarly, in Indonesia, the two-wheelers to total vehicle fleet ratio is 86%.
Singapore's case is slightly different. Despite, an increase in the overall demand for transport, passenger vehicles form the largest proportion of the Singapore's vehicle fleet.
Growth in the demand for two-wheelers presents a unique opportunity for auto manufacturers in the region to expand their production and exports to these Southeast Asian countries.