Philippines still 3rd fastest market for automobiles in Asean

MANILA, Philippines - The Philippines remained the third-fastest automotive market in Southeast Asia as of end-July and likewise held on to its position as the emerging frontier for the motorcycle industry in the region.

Data from the ASEAN Automotive Federation showed vehicle sales in the country accelerated at the third-fastest pace of 26.5 percent in the region from January to July this year.

Singapore emerged with the highest year-on-year growth with 68.1 percent, followed by Vietnam with 35.4 percent.

Overall sales in the seven ASEAN-member economies monitored by the region’s automotive federation, however, grew only 3.2 percent year-on-year to 1.8 million units as automotive sales in Brunei, Malaysia and Thailand finished lower as of end-July.

Production-wise, vehicles manufactured in the region stood at 2.3 million units, with the Philippines’ contribution at 64,569 units.

Along with the country’s robust automotive sales is the continued strong showing of its motorcycle and scooter industry which recorded the fastest growth in the region at 40.9 percent to a total  640,958 units as of end-July..

Motorcycle sales in Indonesia and Malaysia declined 7.1 percent and 1.9 percent during the seven-month period, respectively, while that of Singapore and Thailand advanced 13.5 percent and 2.1 percent, respectively.

Total motorcycles sales in the region reached 5.34 million units, down 1.1 percent from the previous year’s 5.40 million units.

Motorcycle production also slipped 18.7 percent to 4.34 million units, of which 584,282 units were manufactured in the country.

The Motorcycle Development Program Participants Association said the need for increase mobility and affordable financing continue to drive motorcycle demand in the Philippines.

The group expects motorcycle sales in the country to reach 2.5 million units by 2020, surpassing that of Thailand.

Meanwhile, the Chamber of Automotive Manufacturers of the Philippines Inc.  sees vehicle sales nationwide to increase to 500,000 units by 2020.