PH auto sector left in the dust in terms of regional sales

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The Philippine automotive sector continues to lag behind its Southeast Asian neighbors in terms of vehicle sales and production.

Latest data from the Asean Automotive Federation showed that, as of end-November 2013, the Philippines ranked fourth among seven countries belonging to the Association of Southeast Asian Nations, as it sold only 164,098 motor vehicles from January to November. The Philippines was way behind Thailand, which sold the most number of vehicles at 1.2 million units.

Indonesia had the second highest number of cars sold in the first 11 months of 2013 at 1.1 million units, followed by Malaysia, at 595,300 units. Vietnam, Singapore and Brunei meanwhile sold 87,017 units, 30,453 units and 17,174 units, respectively, during the same period.

For motorcycles and scooters, Indonesia posted the highest sales at 7.2 million units from January to November. It was followed by Thailand, which sold 1.88 million units. The Philippines was far behind with 677,101 units.

Among five countries rated in terms of motor vehicle production, the Philippines remained at the bottom, producing only 73,558 units as of end-November.

According to the Asean Automotive Federation, Thailand led the way, producing 2.3 million motor vehicles from January to November. It was followed by Indonesia with 1.1 million units. Malaysia’s motor vehicle production meanwhile reached 548,420 units, while Vietnam produced a total of 83,656 units during the same period.

Heftier investments are expected to be poured into the Philippine automotive sector once the government issues the much awaited automotive roadmap. But delays have hampered its release as the economic managers sought for more data to justify the new or additional incentives to be given to the sector.

Trade Secretary Gregory L. Domingo said last month that the roadmap could be issued in the first quarter of this year.

Domingo had said that, with the buildup of a supply chain, the Philippines would gain a competitive edge in the region.

For instance, one company from Taiwan has put up a local facility for plastic molding, not primarily for the purpose of servicing the automotive sector. But it can be tapped later on by the sector, the Trade chief said. Another Japanese firm is reportedly setting up shop that can supply parts for automotive firms.

The only investments lacking, Domingo said, are for facilities for steel stamping for large parts. The target is to attract at least one or two firms that can do large parts metal stamping, he added.

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  • southernsons

    Less car, less pollution!!! We don’t have to worry if we are buying less car than our neighbors. Let them filled their streets with lots of cars, pollutes their air, and thirsty for oil. Let see who has the last laugh at the end.

  • Zim

    This is not a bad news. This is bad only to dealers and car manufacturers. But this is good news to our environment and to other road users. Look at Singapore, they even sold less car than Vietnam but not bothered. They don’t have that much problem with traffic like Indonesia and the Philippines.

  • san miguel

    Grabe na nga traffic sa mga lansangan, aambisyunin pa natin na lalong dumami ang sasakyan?

    We need more mass transport like trains para bumilis lalo ang takbo ng ekonomiya. Madaming nasasayang na oras dahil sa traffic dagdag pa ang pollution.
    .

  • Jay Ramos

    I don’t think we lag behind our neighbors, we just have less people with more money to spend than affluent people of Indonesia, Thailand & Malaysia.

  • rem_rod

    i’d rather see the Philippines as producing more cars and exporting them rather than Pinoys buying them. INdication that we are not congesting our streets.

  • Dayunyor Binay

    ….regulate importation of used cars from other countries and this might boost up the market for new cars assembled in the Philippines and thus create employment to thousands of our countrymen…..

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