The firm’s latest data shows that total light vehicle sales of the ASEAN‐5 countries combined at around 258k, a 6% decrease from both the previous year and last month. However, the decreasing rate has significantly improved from the average of ‐14% in the first three months of the year. The continued increases in the other four markets, and lower base in Thailand in April 2013, contributed to the improvement. The firm said its annual projection remains unchanged at around 3.2 million.

The contraction in Thailand can be attributed to the market normalization in the aftermath of the impact created by the “first car scheme”. Sales registered just above 71k, a ‐33% decrease. The decrease, however, improved from the average of ‐46% in the first quarter. The improvement could be explained by the comparatively low base in April 2013, and new sales boosted by new model launches. The 71k monthly sales level is, in fact, higher than average monthly sales in 2011, prior to the special purchase scheme, at around 64k.

The Seasonally Adjusted Annual Rate (SAAR) in April also surged to 927k from 861k in the previous month. Sales in May should confirm whether the firm should further cut the current yearly projection at 972k.

In contrast to the decline in Thailand, sales in the other four countries continued to increase. By volume, the strongest sales growth was in Malaysia, ending April at around 58k, or a 12% increase. The growth came mainly from strong demand for sub‐compact cars, especially the Toyota Vios and the Honda City. As this momentum tracked its projection, LMCA has kept its annual projection at 674k.

Indonesia followed in terms of increased volume, registering sales in April at 98k, or a 6% increase. Although overall sales continued to improve, it is notable that sales in the MPV/minivan segment, the biggest segment in the market, dropped significantly. The coming months should provide further evidence of whether this is merely temporary or the result of expansion in other segments. Given that the market momentum followed LMCA’s forecast, it says it has retained its previous annual projection of around 1.2 million.

Sales in the Philippines and Vietnam also continued to increase strongly, with double‐digit growth. The former registered sales in April of 20k, while the latter’s sales reached 10k. While strong demand for SUVs was the main driver for growth in the Philippines, growth in Vietnam was driven by the sub‐compact segment.

Growth in the two smaller markets in the ASEAN region has presented a positive opportunity for new players to increase their presence; namely, Chevrolet and Subaru in the Philippines, and Mazda and Ford in Vietnam.

LMCA added that annual sales in the two markets are expected to reach around 237k and 120k, respectively, while the average SAAR for the first four months was 250k and 129k, reflecting the positive momentum.