PH auto market to reach 300,000 by 2015 –UA&P study

PH auto market to reach 300,000 by 2015 –UA&P study

by UA&P News Desk on December 5, 2011 - 2:02 pm

by Ma. Elisa P. Osorio, from the Philippine Star

Majority of the players in the auto industry expect the Philippines to become a 300,000-vehicle market by 2015, a study of the University of Asia and the Pacific  (UA&P) on the auto industry showed.

The same view was shared by Trade and Industry Secretary Gregory L. Domingo but he said the 300,000-mark may be hit by 2016 especially since the per capita income of Filipinos is growing.

“Reaching a 300,000-unit market demand by 2016 is very possible,” Domingo said noting that the per capita income has reached over $2,000. “Sales of cars have been proven to shoot up if per capita income exceeds $2,500,” he said.

According to the UA&P study, the size of the country’s population plus rising per capita income can further stimulate vehicle ownership.

Likewise, the study noted that the other positive signs that can push the vehicle sales are the steady inflow of OFW remittances and rising agricultural incomes which boost purchasing capacity. In addition, the study noted attractive financing terms have led to higher automotive on availments especially by entry level buyers for their business or personal use. The country’s archipelagic make-up and improved infrastructure can also be a source of growth for vehicle ownership.

“Given the aforementioned growth factors, an increase in the size of Philippine automotive manufacturing can be expected. In fact, a shared view among parts and components makers and most of the automotive manufacturers is a 300,000 vehicle market by year 2015,” the study noted.

The study has reiterated the importance of incentives in order to make manufacturers more economically competitive. “Solid incentives support from the government will make it possible for locally registered automotive manufacturers to be economically competitive. With incentives, manufacturers can sustain buying from local parts makers that will enable sharing of their research and development efforts, best practices in applying manufacturing know how to local parts makers,” the study stated.

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