According to greenfield investment monitor fDi Markets, investment in the automotive original equipment manufacturer (OEM) sector, excluding retail projects, in Asia-Pacific has experienced a sharp decline in 2012 and 2013, compared with 2011 levels.

In 2012, automotive OEM FDI into Asia-Pacific experienced a sharp decline, which continued into 2013. In 2012, 65 FDI projects were recorded by 46 investing companies, which saw the creation of 57,777 jobs. Compared with 2011 levels, this represents a 41.44% decrease in projects recorded, a 30.51 % decrease in jobs created and a 39.47 % decrease in companies investing. In 2013, FDI levels decreased further from 2012 levels, with 60 projects recorded by 41 investing companies, and with 48,611 jobs created. Comparing 2013 FDI levels with those from 2011 represents a 45.95% decrease in projects recorded, a 46.05 % decrease in companies investing and a 41.53 % decrease in jobs created. The years 2012 and 2013 are the worst for Asia-Pacific-destined automotive OEM FDI between 2003 and 2013.

Advertisement

With five months of data published for 2014, FDI levels would appear to be following a broadly similar pattern as in 2013, with 27 projects recorded by 23 investing companies creating 21,328 jobs. On this basis, FDI in 2014 seems to be on course to possibly arrest the downward trend of the two preceding years.