The Philippine automotive sector bucked a regional decline in vehicle sales in January this year, as the country posted the third fastest growth in the Asean (Association of Southeast Asian Nations), next to Vietnam and Singapore.
Data from the Asean Automotive Federation (AAF) showed that the Philippines recorded a 19.3-percent growth in vehicle sales to 18,662 units in January. In the same period, Vietnam and Singapore posted high double digit growths of 80 percent and 60.9 percent, respectively.
In terms of volume, however, the Philippines, Vietnam and Singapore continued to lag behind some of their neighbors in the region.
The Philippines ranked fourth among the top seven Asean vehicle markets in January. Vietnam followed with sales of 16,110 units while Singapore ranked sixth with sales of only 4,728 units in the same period.
Indonesia continued to account for the bulk of vehicle sales in the region during the month, with 94,194 units. The figure, however, was down by 9.1 percent from the level in January last year.
Thailand came in second with sales of 59,720 units which, however, were lower by 12.8 percent than year-ago level to 59,72 units.
Malaysia followed with 50,062 units, slightly higher than the year-ago sales.
Meanwhile, Brunei continued to lag behind its peers in ranking, having sold only 1,411 units in January this year.
Cumulatively, these seven Asean member economies posted a 2.4 percent decline in sales to 245,428 units.
In terms of vehicle production, the Philippines continued to lag behind its counterparts, having produced only 6,470 units in January this year. The figure was 6.4 percent higher than the 6,078 units assembled in the same month last year.
Data from the AAF showed that Thailand remained the front runner in the region in terms of motor vehicle production. The Thai vehicle industry reported total production of 166,400 units in January, up by 2.3 percent from the 162,652 units produced a year ago.
Indonesia produced 98,838 units in the same period, followed by Malaysia with 56,654 units and Vietnam, with 12,112 units.
For this year, the Philippine automotive sector expects total vehicle sales to reach 310,000 units. Sales and production are expected to further increase with expectations that the government will issue soon the much-awaited automotive manufacturing road map.
The road map, which covers the production of four-wheeled motor vehicles and parts, including body shell assembly, was meant to steer the Philippines to becoming a competitive manufacturing base for motor vehicles and auto parts and components by 2025, and a global hub for automotive-related human resource development.
Under the program, fiscal and non-fiscal incentives will be granted for a period of five to six years, depending on certain performance conditions.