KUALA LUMPUR: OSK Research said Tan Chong's venture into the motorcycle segment in Laos holds promise given the growth potential and the country's limited purchasing power.
It said on Wednesday, March 2 that in general, the Indo China region is characterised by a low GDP per capita of less than US$1000, according IMF data.
OSK Research said given Laos' poor road infrastructure, motorcycles are an important mode of transport and in view of their attractive pricing ranging from US$700-US$1,000 each, such vehicles are entry level products provide individuals with low cost and low risk mobility.
'Furthermore, we also believe that penetrating the entry market will allow Tan Chong to ultimately tap the after-sales market and progressively move into the upgraded four-wheeler market,' it said.
On Tuesday, Tan Chong announced it is establishing a new venture to undertake the assembly, sale and distribution of motorcycles in Savan-Seno Special Economic Zone in Laos.
Tan Chong has been issued a 75 years manufacturing license with favorable tax incentives by the Laos government.
It said on Wednesday, March 2 that in general, the Indo China region is characterised by a low GDP per capita of less than US$1000, according IMF data.
OSK Research said given Laos' poor road infrastructure, motorcycles are an important mode of transport and in view of their attractive pricing ranging from US$700-US$1,000 each, such vehicles are entry level products provide individuals with low cost and low risk mobility.
'Furthermore, we also believe that penetrating the entry market will allow Tan Chong to ultimately tap the after-sales market and progressively move into the upgraded four-wheeler market,' it said.
On Tuesday, Tan Chong announced it is establishing a new venture to undertake the assembly, sale and distribution of motorcycles in Savan-Seno Special Economic Zone in Laos.
Tan Chong has been issued a 75 years manufacturing license with favorable tax incentives by the Laos government.
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