Laos Auto Market in first half of 2016 hit record sales and production. The market is dominated by Toyota and Daehan while the most of new vehicles registered are commercial.
Laos’s economy lost some steam in 2015 due to weak global demand for commodities, which is still keeping rubber prices down and affecting farmers’ incomes. Commodity exports, especially mineral ores and rubber, are one of the main drivers of growth for Laos. Ten years ago, farmers turned their farmland into rubber tree plantations to take advantage of the high prices of rubber.
However, latex prices declined severely in 2015-2016 and production has become unprofitable. Further, growth in the agricultural sector, which plays an essential role in Laos’s economic and social development, could be constrained as a consequence of weak agricultural investment.
The automotive sector is keeping its fast track with record sales and production hit in the first half that project 2016 to be the sixth record year in a string.
Indeed, during this first half vehicles sales grew at 20.325, almost doubling from the previous year.
Market leader was Toyota with 8,198 sales and 40.3% of market share.
The local commercial vehicles producer, Daehan, was second with 4,688 units with no other player above the 1,000 units threshold.
Source: Focus 2 Move