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DRIVING THE MOBILITY OF TOMORROW

Eberspächer Exhaust Technology

ASEAN Strategy

prepared by Babak Niazi

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ASEAN Member Countries

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Production Forecast Top Ten Countries Global

Rank Country Production Vol. in 2014 in Mio.

1 China 23.72

2 USA 11.66

3 Japan 9.77

4 Germany 5.90

5 Korea 4.52

6 ASEAN 4.47

7 India 3.36

8 Mexico 3.36

9 Brazil 3.14

10 Spain/Portugal 2.38

Rank Country Production Vol. in 2020 in Mio.

1 China 31.48

2 USA 13.56

3 Japan 11.84

4 Germany 6,57

5 ASEAN 6.08

6 India 5,21

7 Korea 5.50

8 Mexico 4,92

9 Brazil 3.98

10 Spain/Portugal 3,19

� ASEAN is currently the 6th largest region, likely to become the 5th largest region!

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Automotive industrie in ASEAN region

Indonesia, Thailand and Malaysia are the key markets in the ASEAN region, accounting for 90% of the market.Production Volumes has been increased to 200% since 2009

-0,1 %YTD

+13,4 %YTD

+5,5 %YTD +27,1 %

YTD+5,0 %

YTD

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Japanese players dominate the passenger cars market in Thailand and Indonesia; Local OEMs makes account for 60% in Malaysia

ASEAN Automotive Market: Key Players

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ASEAN countries however, are not very homogenous. Among top 5 markets, Indonesia is the largest and f astest growing economy

• All countries are likely to grow at a CAGR of 6-9% in the next 5 years with the exception of Indonesia at 16%.• Growth in population is averagely staying between 1 -2%• Indonesia is predicted to be the fastest growing co untry in next 5 years with increase GDP per capita are likely

to be more than 13%

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Key Highlights of 2014

• Top 5 ASEAN markets reached 3,5 Million units of total industry volume• Thailand remained the largest market however, saw a steep decline of 8%• Indonesia continued to grow inching closer to ist no. 1 position

Growth in ASEAN, decline in Thailand

• Indonesia, Malaysia and Thailand announced new policies for new class of prodcutsbroadly classified as „Fuel efficient“ vehicles opportunity for ExhaustTechnology supplier

• Malaysia rolled out National Automotive Policy which focuses on Energy EfficientVehicles

• Thailand announced 2 programs to attract further investments in production capacity

Advent of Fuel efficient cars

• There has been some delay in the AEC implementation however there are somestructural developments that point towards AEC being an inevitable development tounify the market

AEC implemantation delayed but inevitable

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Fuel Efficient cars have changed the landscape in t he top 3 ASEAN markets

Thailand‘s First car buyerincentive program

Dramatic increase in Sub Compact andCompact car sales

Decisive consumer

shift from pick-uptrucks to passenger

cars

Malaysia‘s continued taxbreak for Hybrid cars

Multifold increase in Hybrid car sales in

Malaysia

Positive consumerattitudes towardsHybrid and EV

Launch of LCGC programin Indonesia

No luxury tax –hence 10% lower

price

Sales zoomed to50,000 in first 4

months

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Policy Camparison

While Thailand provides a bouquet of incentives, Malays ia has decided to customize its offeringsbased on how strategic the investments is

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Key Opportunities

ASEAN likely to become the 5th largest automotive market i n the world

German OEMs announced to focus more on ASEAN

New policies and full implementation of AEC will alter t he competetive position of JapaneseOEMs and open the door for High potential challengers (F ord, VW, BMW, Mercedes etc.

Strategic partnerships in this region to be a part of unde veloped but growing market

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THAILAND

� Thailand is the 3 rd biggest economy in ASEAN (67,1 mio. population)

� Thailand is currently 9th largest automotive produc er worldwide

� 3 Mio. units milestone will be achieved by 2017

� JE is currently investigating a Footprint in Thaila nd to enter in global Ford, Honda and VW business

� BMW will increase the production in Thailand dramat ically from 2015 on

� Honda plans to build a new plant in Prachinburi/Cho nburi with a production capacity of 240.000 units a year

� Ford opened second plant in Thailand (invest 450 Mi o $, annual capacity of 150.000 vehicles. Thailand capacity increases to 445.000 vehicles in Thailand.

� Ford is planning to launch 50 new vehicles and powe rtrain in Asia Pacific and Africa by mid-decade

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Thailand OEM / supplier locations

Bangkok

Ayutthaya

Samrong

Samut Prakan

Chachoengsao

Bangkok

Chonburi

Pluak Daeng / Rayong

SOP 2019

Bangkok to Rayong 170km

Bangkok

Pluak Daeng /Rayong Rayong

Chonburi

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MALAYSIA

� Strategically located in the heart of South-East As ia

� In ASEAN Malaysia is the third biggest car market

� Local OEMs ( Perodua, Proton) has a marekt share of 60%

� National car dominance is expected to decline furth er with more liberalization in the near future

� European OEMs are represented with CKD plants

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Malaysia OEM / supplier locations

MalaccaHonda Malyasia

Kulim

INOKOM CORPORATION

Gurun

NAZA Automotive

Rawang

Perodua

Tanjung Malim

DRB HICOM

Kuala Lumpur

Tan Chong Motor

Shah AlamAssembly Services SDN BHD

Swedish Motor Assemblies

DRB HICOM

Pekan

DRB HICOM

ISUZU-HICOM

Kuala Lumpur

FAURECIA HICOM ECT

Tanjung Malim

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INDONESIA

� Indonesia predicted to be the fastest growing count ry in next 5 years

� Biggest Population in ASEAN 240 Mio. (worlds 4 th most populous country)

� Less than 5 percent of Indonesia's population own v ehicles

� JAPANESE OEMs lead a highly consolidated and compet itive market (54% of Market held by Astra International (comprising Toyo ta, Daihatsu and Isuzu)

� VW is investigating to build a factory in West Java

� GM reacitivated a plant (capacity 40.000 p.a)

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Indonesia OEM / supplier locations

JakartaGaya Motor Assembler

BMW Indonesia

Isuzu Astra Motor

Krama Yudha

Kia Mobile Indonesia

Unicor Prima Motor

Foton Mobilindo

Astra Daihatsu Motor

BekasiSuzuki Indombil Motor

National Assembler

GM Indonesia

KarawangToyota Motor

Astra Daihatsu Motor

Honda Motor

PurwakartaNissan Motor

Hino Motors

BogorMercedes Benz

TangerangTrijaya Union

West Java

Jakarta

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Major PC OEM Production Volumes & EET Potential

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2014

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