2012-09-04 09:02:11 - New Transportation research report from Business Monitor International is now available from Fast Market Research

A major blow to autos manufacturing in the Philippines came from Ford Motor's announcement it will close its Santa Rose facility by end-2012. The closure is highly significantly for the domestic production segment, given that Ford currently stands as the sole autos exporter in the industry. Industry estimates show that Ford exported around 10,000 cars each year, out of a full capacity of 15,000 units. Ford Group Philippines' President Randy Krieger's revelation that the company could not make a strong business case for future production highlights the broader concerns of the industry participants about the final form of the Motor Vehicle Development Programme (MVDP). Following Ford's announcement in June 2012, local parts suppliers urged the government to support vehicle assemblers

domestically.


Full Report Details at
- www.fastmr.com/prod/451345_philippines_autos_report_q3_2012.aspx


In view of the growing caution and pessimism, BMI has revised down its production growth forecast to 2016. After a close to 16.5% year-on-year (y-o-y) increase in autos production to 60,200 units in 2012, we forecast growth to average 1.6% y-o-y during the rest of the forecast period, to 64,400 units by 2016. The obvious upside risk to this forecast is the entry of new players into the autos manufacturing segment. While some carmakers have been reluctant to make investment decisions regarding the Philippines until the new MVDP has been finalised, Chinese carmakers Great Wall Motors and Chery Automobile are reportedly keen to set up assembly operations in the country.

Things look more promising for the demand side on the other hand. Encouraged by the robust 6.4% y-o-y growth in the country's real GDP during Q112, along with the introduction of new car models, improved supply conditions and sustained consumer confidence, domestic autos association CAMPI expects recordbreaking sales in 2012. CAMPI President, Rommel Gutierrez, revealed that the growth is significant in both the passenger car and commercial vehicle segments. BMI accordingly forecasts vehicle sales to reach 218,700 units by the end of 2016, growing by an average of 9% per annum between 2012 and 2016.

With a view to cashing in on this growth, in April 2012, Japanese carmaker Mitsubishi Motors together with authorised dealers Zamboanga Motors began construction of a showroom and service centre on a 5,320 sq m lot located in Governor Carmins Avenue, Zamboanga City. The dealership will have six vehicle displays and 19 work bays. It is expected to be fully operational by December 2012. Meanwhile, Filipino car dealer Autostrada Motore is looking to bring the Ferrari and Maserati brands to the country. These announcements bolster BMI's view that the competitive landscape in the country is still far from saturated by carmakers and the market therefore provides ample opportunities for new entrants.

Report Table of Contents:

SWOT Analysis
- Philippines Auto Industry SWOT
- Philippines Political SWOT
- Philippines Economic SWOT
- Philippines Business Environment SWOT
Global Overview
- Global Autos Update: End Of First Quarter Brings Both Positive And Negative Revisions As Key Trends
- Table: Passenger Car Sales (Units), Jan-March 2012
Regional Overview
- Honda May Have Breakthrough In Reducing Rare Earth Reliance
Business Environment Ratings
- Table: Business Environment Ratings - Autos Industry Asia Pacific
Macroeconomic Forecast Scenario
- Table: Philippines - Economic Activity, 2011-2016
Industry Forecast Scenario
- Table: Philippines Auto Industry - Sales, 2010-2016
- Table: Philippines Auto Industry - Production , 2010-2016
- Trade
- Table: Philippines Auto Industry - Exports And Imports, 2010-2016
- Economic Contribution
- Table: Philippines Auto Industry
- Industry News
Passenger Cars - Forecasts & Analysis
- Table: Philippines Passenger Cars - Production , 2010-2016
- Top Ten Carmakers in Philippines By Sales (Units)
- Company News
Commercial Vehicles - Forecasts & Analysis
- Table: Philippines Commercial Vehicles - Production , 2010-2016
Motorcycles - Forecasts & Analysis
- Table: Philippines Motorcycle Segment , 2010-2016
Company Monitor
- Asia Key To Delphi Post-Bankruptcy Growth But Not Without Competition
Company Profiles
- Toyota Motor Philippines (TMP)
- Honda Cars Philippines (HCP)
Demographic Outlook
- Table: Philippines' Population By Age Group, 1990-2020 ('000)
- Table: Philippines' Population By Age Group, 1990-2020 (% of total)
- Table: Philippines' Key Population Ratios, 1990-2020
- Table: Philippines' Rural And Urban Population, 1990-2020
BMI Methodology
- How We Generate Our Industry Forecasts
- Sources

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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

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