Philippines retains 3rd fastest vehicle sales position in Asean

MANILA, Philippines - The Philippines sustained its position of having the third fastest vehicle sales within the Association of the Southeast Asian Nations (Asean) next to Singapore and Vietnam.

Data from the Asean Automotive Federation showed Philippine vehicle sales surged 22.7 percent to 261,930 units in the first 11 months of 2015 as compared to the 213,427 units sold in the same period in 2014.

Singapore posted the highest sales growth at 63.2 percent during the period, followed by Vietnam at 58.3 percent.

Aside from Singapore, Vietnam and Philippines, the remaining four key automotive markets in the region registered lower sales from January to November last year.

Vehicle sales in Brunei dropped 20.4 percent as of end-November last year, while Indonesia, Thailand, and Malaysia posted drops of 16.8 percent, 11.9 percent, and 0.8 percent, respectively.

In terms of volume of vehicles sold, however, Indonesia topped the region with sales reaching 1.13 million units.

Thailand was second with 698,168 units sold followed by Malaysia with 597,273 units.

But despite the fast paced growth in sales enjoyed by the local automotive industry, the Philippines continued to lag behind when it comes vehicle production.

Vehicle production in the country remained at the bottom among the five top Asean automotive markets, with total output growing 10.7 percent to 92,669 units as of end-November 2015.

Thailand remained the region’s biggest vehicle producer with 1.76 million units manufactured in the 11-month period followed by Indonesia with 1.02 million units.

Total vehicles produced in the region during the period slipped 1.9 percent to 3.60 million units from the previous year’s 3.67 million units.

The Philippines is projected to become a major automotive market in Southeast Asia by 2020 as domestic sales are seen posting continued stellar growth while local production is seen ramping up with the government’s Comprehensive Automotive Resurgence Strategy (CARS) program.

Meanwhile, motorcycles and scooters sold in the country rose eight percent to 773,685 units in the 11-month period ending November last year from 716,596 units a year ago, data from the Asean Automotive Federation showed.

The sales of motorcycles and scooters were 511,755 units more than the number of vehicles sold in the country during the period as many Filipinos still prefer using a two-wheeled motorized vehicle since it is considered as a more convenient option for transport during heavy traffic.

With the continued demand for two-wheeled motorized vehicles in the country, the Philippine motorcycle and scooter market continued to move in the opposite direction of other markets in the region.

While the country posted an eight percent sales growth in the January to November 2015 period, sales of the other top motorcycle and scooter markets within the Association of Southeast Asian Nations fell.