Motor vehicle sales in seven Asean countries fell by 13 percent to 1.33 million units in the first five months of the year from 1.5 million a year ago, according to data from the Asean Automotive Federation.
Of the total sales generated for the period, however, the Philippines accounted for a mere 6.7 percent at 89,335 units, placing fourth among the seven countries. This was despite posting a 23.6 percent year-on-year growth in domestic sales during the January to May period.
According to the Asean AutoFed, Indonesia continued to chalk up the biggest vehicle sales in the region at 531,812 units, followed by Thailand, which sold 367,112 units in the first five months. Motor vehicle sales in Malaysia meanwhile stood at 274,581 units during the same period, while Vietnam, Singapore, and Brunei sold 44,086 units, 15,694 units, and 7,511 units respectively.
In terms of motor vehicle production, the Philippines continued to be at the bottom of the heap compared to its counterparts in the Asean. Domestic production stood at 34,561 units in the first five months of the year, accounting for only 2 percent of the 1.69 million motor vehicles produced in five Asean countries.
Thailand remained the biggest manufacturer in the region, having produced 792,233 units from January to May, followed by Indonesia with a production of 556,346 units. Ranking third would be Malaysia which manufactured 264,299 motor vehicles, while Vietnam placed fourth with a production of 43,690 units.
At present, automotive players in the Philippines are highly bullish of prospects in the country, prompting a number of them to expand their operations, raise their production capacities, and increase sales targets in anticipation of the third wave of motorization. This was despite the delay in the issuance of the much awaited automotive roadmap, which was supposed to set the direction and lay down some crucial policies that will make the business more conducive for automotive manufacturing.
Toyota Motor Philippines Corp., for one, has raised its planned capital spending in the Philippines this year to P700 million to boost the capacity of its manufacturing plant in Sta. Rosa, Laguna. It also raised its sales target to about 100,000 units.
Mitsubishi Motors Corp. meanwhile is eyeing to invest an initial P10 billion in its Philippine operations to make the country its third manufacturing hub in the Asean. This proposed capital infusion is expected to increase the current production of its local unit, Mitsubishi Motors Philippines Corp. (MMPC), to as much as 100,000 units annually from the current 15,000 units.