Automotive Industry

Of The Philippines
1PRESENTED
‒ BY: Team Philippines
April 15th, 2021
 Content 01 02
The Automotive Industry Of The Overview Of The Main Manufacturers
Industry
Philippines Sales volume
Sales & Production Volume Positioning.
Import & Export
Indicators of demand

03 04
Models & Prices Barriers to Imports &
Ownership
Prices of different models .
of brands

2‒
 Overview
Of The Industry

3‒
Imports & Exports; Production & Sales
There Is An Obvious Trade Deficit In The Import And Export Of Automobiles. Domestic Sales Outweigh Domestic
Production By Many Times.

Total Imports & Exports Of Automobiles (million USD)

Tariff liberalization program in the Philippines was way
Imports Export ahead of that adopted by the big three ASEAN
4870 producers (Indo, Malay and Thai), which weakened the
3780 3340 position of the Philippine assembly industry in its own
home market.

19 23.2 17
2017 2018 2019 Massive car smuggling:the wide gulf between the
total of newly-registered cars reported and the
Total Production & Sales Of Automobiles (unit) total of the cars sold by the local assemblers and the
Production Sales licensed importers.

457639
408967 415826

Policy incoherence regarding importation and local

141251 content promotion.
79763 87864

2017 2018 2019

4‒
(E. Ofreneo, 2015)
Import & Export Partners
Pakistan Is The Main Export Partner (Export Value $14.3 Million) And Indonesia Is A Major Import Partner Of The
Philippines (Import Value $1.6 Billion) .

Top export partners (2019) Top import partners (2019)

84% 4% 49% 26%

Pakistan Indonesia Indonesia Thailand

2% 1% 6% 8%

Cambodia Japan China Japan

5‒
(OEC, 2021)
Indicators Of Demand
In General, The Demand For Cars Shows An Increasing Trend Over Time, With An Exception Of The Economic
Downturn Kickstarted By The Covid-19.

In 2018, car ownership was about 5.9%, and was forecast to increase.

In 2019, around 361.9 billion Philippine pesos of auto loans had been granted by
universal and commercial banks in the Philippines.

Car sales in December 2020 improved by 19.1% compared with the month prior,
citing the holiday season and improving economic climates as drivers of growth.

The Philippine auto industry is forecasted to see double-digit growth in 2021, with
sales expected to grow by as much as 21.5% year-on-year, despite the Covid-19.
6‒
(Crismundo, 2021)
 2
Main Manufacturers

7‒ © Ipsos | Doc Name

Main Manufacturers
Japanese Brands Capture Close To 80% Market Share. U.S. Automakers Capture Only About 7-8% Of The Market.

unit Sales Volume 2018-2020

% Market Share Of Brands (2020) 180000
160000
45
140000
40
35 120000
30 100000 2018
25 80000 2019
20 60000
15
2020
40000
10
20000
5
0 0
ToyotaMitsubishiNissan Hyundai Suzuki
a i ai ki d u
ot ish san d z u or nd
a
uz
y b s un F Is
o u Ni Su Ho
T i ts Hy
M
GDP per capita
2017 2018 2019 2020
3.123,23 USD 3.252,09 USD 3.485,08 USD 3.000,00 USD

8‒
(Philkotse, 2021)
 Positioning Map Of Brands
Honda Is A Good Example Of Low Price – High Quality.

Positioning Map Of Brands Some Information

High price

Japanese producers who account for more than

80% of the market, are the ones who produce low-
cost cars with decent quality.
Low quality High quality

US manufacturers including Ford, although popular

in other countries, only make up 7% of the market,
with the slight gap in quality compared to Honda.

Low price
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 •2

Models & Prices

3
10 ‒
 Comparisons Of Sizes, Prices And Sales Volume
SUV-sized Cars Sell The Most Despite Being The Highest In Price. The Opposite Is True For Compact-sized Cars.

$US unit Sales Volume By Manufacturers And Car Sizes

Prices Of 3 Car Sizes From 10 Brands
80000
80000
70000 70000

60000 60000
50000
50000
40000
Compact
30000 40000
Medium
20000 SUV
30000
10000
20000
0
0 2 4 6 8 10 12
Toyo Mitsu Hyun Niss Ford Suzu Honda Isu Hino Kia
10000

0
ta h i
an ai ki rd da u o
Ki
a
o is s d zu Fo on uz in
oy ub is un Su Is H
Compact Medium SUV T its N H
y H
M
11 ‒ (Philkotse, 2020)
Barriers To Production &
Ownership
4
12 ‒ © Ipsos | Doc Name
 Barriers To Imports & Ownership
Tariff Is The Main Barriers To Imports, While Higher Taxes And Stricter Paperwork Requirement Are Applied For Car
Ownership.

2021: Import safeguards on automobiles 1988: Increase VAT

imposing a 70,000 PHP ($1,460) tariff on passenger cars and VAT was increased to 10-
110,000 PHP ($2,262) on light commercial vehicles 12%

Import Barriers Ownership barriers

1998: Applied 40% tariff 2020: Stricter papers/certificates

Imports of finished automotive vehicles are More documents of ownership and higher
subject to a 40% tariff as an incentive inspection.
to promote local assembly
13 ‒ (Philkotse, 2020)
 Reference

AutoIndustriya.com. 2021. Hyundai's sales hero for 2019: the Accent - Auto News. [online]. [Accessed 14 April
2021]. Retrieved from https://www.autoindustriya.com/auto-industry-news/hyundai-s-sales-hero-for-2019-the-accent.html

E. Ofreneo, R., 2021. Auto and Car Parts Production: Can the Philippines Catch Up with Asia?. [online] Eria.org.
[Accessed 14 April 2021]. Retrieved from https://www.pna.gov.ph/articles/1127434

Oec.world. 2021. What does export? (2019) | OEC - The Observatory of Economic Complexity. [online].
[Accessed 14 April 2021]. Retreived from https://oec.world/en/visualize/tree_map/hs92/export/phl/all/show/2019/

Philkotse.com. 2021. Philkotse | #1 Auto Portal to Buy and Sell Cars Online. [online]. [Accessed 14 April 2021].
Retrieved from https://philkotse.com/

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 Thank You

Te a m P h i l i p p i n e s

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