2013-02-24 15:34:55 - Fast Market Research recommends "Philippines Autos Report Q1 2013" from Business Monitor International, now available
BMI Industry View
Two key themes that we expect to see in the Philippine autos market heading into 2013 are outperformance of the commercial vehicle segment over the passenger car sector (on the back of strong investment activity) and continued strength of private consumption. As such, we are bullish on vehicle sales in the country, forecasting growth of 10.1% year-on-year (y-o-y), to over 169,000 units, in 2013.
However, we are bearish on local production in Philippines and see very weak growth for 2013. In December 2012, US firm Ford Motor was preparing to close its vehicle assembly plant in the Philippines and consolidate its ASEAN production in Thailand and Malaysia. The plant, which opened in the mid-1990s, is the country's only exporter
of new vehicles, shifting a total of 80,000 units to other ASEAN markets between 2002 and 2010.
Full Report Details at
A bigger risk to companies looking to increase production or imports to the Philippines lies in the proposed new industry policy, which aims to bring total vehicle output to 67,200 units by 2016. Although the policy in itself seeks to encourage investment in local production rather than imports, there remains considerable uncertainty regarding the future course of the policy. We believe the government needs to adopt a more proactive approach if it is to see the auto production and component industry thrive.
As such, we forecast 2013 vehicle production to grow just 2.2%, to 60,700 units. Furthermore, BMI is forecasting average annual growth in domestic vehicle production of 2.1% over 2013-2017.
Despite the uncertain policy environment, the growth potential in the Philippines is strong enough to create a highly competitive vehicle segment. In 2012, Japanese Toyota Motor is expected to report its highest sales ever in Philippines. In the first 11 months of the year, the carmaker sold 58,890 vehicles, more than the full-year sales in 2011 and the 56,855 units sold in 2010.
In the same 11-month period, Mitsubishi Motors Philippine posted sales of 31,500 units and is targeting 43,000 units in 2013. In order to further heat up competition in the new vehicle market, France-based carmaker Peugeot and US-based General Motors Company (GM) are also each looking to expand their presence in the Philippines.
The Philippine motorbike sector is experiencing mixed fortunes. Japanese company Suzuki Motor's Philippines subsidiary launched its new motorcycle manufacturing plant in the Carmelray Industrial Park in Laguna in November 2012. However, its compatriot Honda Motor has put on hold plans to expand its motorcycle plant in Batangas, with Generoso Paralisan, assistant vice president for external affairs at Honda Philippines, stating 'the market is not growing as expected'. The firm was hoping to expand production at its motorcycle plant from 400,000 units to 600,000 units annually.
Report Table of Contents:
BMI Industry View
- BMI Industry View
- Business Environment
- Industry Forecast
- Table: Philippines Auto Industry - Sales, 2011-2017
- Table: Philippines Auto Industry - Production, 2011-2017
- Table: Philippines Auto Industry - Exports And Imports, 2011-2017
- Table: Philippines Auto Industry - Economic Contribution, 2011-2017
- Economic Analysis
- External Woes Too Pervasive To Ignore
- Investment Sector Offers A Bright Spot
- Long-Term Rebalancing In The Cards
- Table: Philippines - Economic Activity
- Table: Philippines - Current Account
Industry Risk Reward Ratings
- Industry Risk Reward Ratings
- Table: Business Environment Ratings - Autos Industry Asia Pacific
- Competitive Landscape
- Passenger Cars
- Table: Top 10 Carmakers In Philippines By Sales (Units), 2010-2011
- Company News
- Chinese Influx
- Commercial Vehicles
- Table: Philippines Commercial Vehicles - Production & Sales, 2011-2017
- Company Monitor
- Company Profile
- Company Profile
- Regional Overview
Global Industry Overview
- Global Industry Overview
- Table: Passenger Car Sales 8M12
- Incentive Boom For Japan, US Powers On
- UK Leads As Germany Falters
- Russia And Brazil Go From Strength To Strength
- Philippines 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
- How We Generate Our Industry Forecasts
- Automobile Industry
About Business Monitor International
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
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.