Chinese automakers are expanding their footprint in Southeast Asia as growth in the domestic market slows. At the Indonesian International Auto Show in Jakarta, 40 percent of exhibitors are from China.
Almost one thousand auto and auto parts makers are participating in the show, making it southeast Asia’s largest auto show in recent years. Chinese companies dominate among exhibitors. Not only in numbers, but also on their integrated chain production and improved services.
Xie Shuguang, General Secretary of Wenzhou Foreign Econ. & Technical Cooperation Association, said, “Chinese brands are competitive in three ways. First, we provide related products, such as auto parts and accessories, to save buyers time. Secondly, our price is reasonable. Thirdly, we are honing our after sale services.”
According to Xie, Chinese automakers need go abroad to seek out growth in this fiercely competitive environment. And they seem to have made some progress.
Baki Lee, director of Gem Indonesia, Event Host, said, “Local companies look forward to working with Chinese auto makers. Unlike the situation in the past, Chinese products are good quality now.”
Indonesia has one of the biggest auto markets in South Asia. In Jakarta alone, there are around 10 million vehicles – that means one vehicle for every person. But domestic producers have turned to foreign suppliers as local output cannot meet the strong demand for auto parts.