Localisation and the Automotive Industry Outlook in Southeast Asia

Southeast Asia is a region best known for its tropical locales, delicious food, and above all else, its friendly people. For many industries, it’s also a region that possesses plenty of untapped potential. That is changing though as more entities are starting to pay attention to the aforementioned region.

Those in the automotive industry in particular are watching the growth of the Southeast Asian market. Recent trends have certainly warranted that kind of attention.

In this article, we’ll explore the current state of the automotive market in Southeast Asia. We’ll also highlight how automotive translation could be the service companies need in order to break into that region.

Car Ownership Statistics in Southeast Asia

To better understand the state of the car market in Southeast Asia, we first have to look at some numbers. Statista has the latest numbers on registered passenger cars per each ASEAN country. The latest numbers available right now are for 2019.

Per Statista, Thailand leads the way in terms of registered car owners. An estimated 17.3 million cars were registered in that country according to the numbers available. Malaysia is not that far behind at 15 million registered cars while Vietnam sits in third place with just over 2 million registered cars.

What’s interesting though is that other countries in the region such as Singapore, Myanmar, Laos, Cambodia, and the Philippines count fewer than 1 million registered cars. It’s clear that there are markets there for automotive companies to tap into.

But, is there a willingness on the part of the people in those countries to purchase cars?

The Shifting Attitude towards Car Purchases

The fact that so many people in Southeast Asian countries don’t own personal cars is one thing. Automotive companies can look at that as a growth opportunity for sure. However, they may also regard that as an indicator that consumers in those markets are simply not as keen on car purchases.

In order to get to the heart of what is truly going on, we turn to research conducted by the multinational firm Deloitte for some key information.

The research carried out by Deloitte highlights a clear shift in the attitude that Southeast Asian residents have towards buying cars. It’s a change in attitude that has been brought about in no small part by the COVID-19 pandemic.

Prior to the onset of the pandemic, only about 37 per cent of consumers in Southeast Asia preferred to use private vehicles for their regular commutes. Since the start of the pandemic though, that number has risen all the way up to 52 per cent.

Previously, we highlighted just how wide open the automotive market is in Southeast Asia. Now, we’re seeing that the open market is also populated by interested buyers.

An Open Mind for New Technologies

Marketing to new consumers in Southeast Asia is not going to be easy. International brands may have a way to reach them effectively though. Statistics suggest that a significant percentage of consumers in that region are interested in vehicles utilizing new technologies.

Around 38 per cent of consumers in Southeast Asia have expressed interest in owning fuel-efficient vehicles. Hybrid electric vehicles in particular are gaining considerable interest. Nearly a quarter of the consumers in the region indicated interest in buying a hybrid electric vehicle.

The interest in innovative features goes beyond fuel efficiency.

69 per cent of the consumers in that region also have a favourable opinion of cars that utilized online connectivity. Respondents in Thailand and Vietnam were especially fond of the technology.

Consumers in Southeast Asia have also shown an interest in owning cars that come loaded with advanced safety features such as automatic emergency brakes and blind spot alerts. They are also interested in seeing cars that come with a built-in navigation system.

Interest in more technologically advanced cars exists in Southeast Asia. Now, it’s up to automotive companies to detail how advanced their vehicles are.

International companies must communicate how their latest offerings meet the demands expressed by the consumers. The technical aspects of certain features must be conveyed properly.

Going into great detail regarding those more advanced features will also help international companies compete better with local brands. Explaining how those features are superior to what competitors can be hugely beneficial to international companies looking to break into the Southeast Asian market.

The Role of Automotive Translation Expert

The Power of Automotive Translation for International Companies

International companies can turn to automotive translation services if they want a better shot at breaking into the Southeast Asian market.

Automotive translation accurately converts technical and marketing information related to cars. With that translated information in hand, branches based in the region can connect better with prospective buyers there.

Translators can also grasp the nuance included in the source text and translate that properly into the local language. The essence of certain passages will not get lost in translation. This is particularly important because there is hesitancy among buyers in Southeast Asia that stems from legitimate concerns.

For example, this article from the World Advertising Research Center notes that 48 per cent of consumers in Southeast Asia are hesitant to purchase an electric car out of concerns that they may run out of power before reaching a charging station. That is worth noting because the same article points out that more people in Southeast Asia have become more concerned about the issue of environmental protection.

Bridging Language and Culture for Effective Market Penetration and Consumer Engagement

Automotive translation can help ease those concerns that some buyers may have. Companies can lean on translation to let their customers know that there will be an infrastructure in place that can prevent those kinds of issues.

We also noted earlier that many consumers in Southeast Asia are interested in vehicles that utilize online connectivity. However, 65 per cent of those consumers have also voiced their concerns over how safe those vehicles are. Consumers in Malaysia, Singapore, and Thailand are among the most vocal about that issue.

Companies must use automotive translation to ease those concerns. Proper automotive translation can address all relevant concerns regarding cybersecurity and smart vehicles.

Partnering with a reputable automotive translation service is a necessity for companies hoping to reach the Southeast Asian market. We at elionetwork can help companies do exactly that.

Southeast Asia is a diverse market with different languages and different cultures. It’s crucial that companies pick up on those nuances so they can get right to the heart of the issues that matter to their target consumers.

Offering automotive translation that clears language and cultural barriers is our specialty at elionetwork.

Here at elionetwork, we employ expert linguists and translators who are based in five different continents. They are completely immersed in their regions and that allows them to provide the best and most accurate translations.

Our translators also have extensive knowledge regarding the automotive industry. They can work easily on technical documents because they have a deep understanding of the source material.

Reach out to us at elionetwork if your company needs automotive translation. We also offer a free quote and trial so you can check out our services before finalising the deal.