The 2010 MVDP: Feat. the "Filipino Car" or Philippine Brand Vehicles

[niky]

this statement from you: "People who buy Subic cars are those who can't afford what they want brand new" This is true. Which means the Subic cars are competing with the ones that are made locally - tama ba?. This drives the locally produced vehicle's sales down - tama ba?.

people who can afford brand new vehicles turn to subic cars to acquire a model that is not available. what should be done is to make the popular models available through legal importation of these vehicles, brand new. these imported brand new vehicles from the manufacturer with a presence in the philippines will then notice how much demand there is for that model and bring that model in themselves to get a slice of the profit. they might then decide to manufacture here to get more profits from that model. better?

Which is what happened with the Starex and HARI. And yet, HARI does not build the Starex here... neither does Pitstop... they both import, legally, brand new vehicles. But manufacture? That depends on volume... and like I said, when a vehicle struggles to sell more than a few thousand units a year, there's not enough volume to make a manufacturer build a multi-million peso plant. They have to export to make the plant viable (as Ford, Toyota, Mitsubishi and Nissan do)... In our tiny market, popularity isn't enough incentive to ensure investment.

you said that the buyer is thinking: "Do I buy secondhand local, or secondhand imported?" it implies that the model he is interested in buying is available locally - tama ba? if this is the case, that is direct competition.

Do you seriously think the guy who comes on tsikot asking about buying a secondhand Corolla at 250k is even considering a brand new Corolla? Seriously? Unless they are, there is no direct competition with the official dealerships.

yung imported surplus vs local surplus di ko maintindihan. are you referring to car parts? but if you meant imported second-hand cars vs local second-hand cars, may effect pa rin yan. people will keep their old car longer than replace after 5-years because the imported second-hand drives the cost of the second hand to a level that is too low for a 5-year old car. parang feeling nila lugi sila.

I'm referring to cars.

And do you really think that Subic imports hurt resale value? Here's a clue. See how many people are selling secondhand Pajeros? See how many are selling "Subic" Pajeros? See how people are still selling locally bought secondhand Pajeros for at least a hundred thousand pesos more than Subic Pajeros? Secondhand imports crowd the secondhand car market, but thanks to public distrust of right-hand drive conversions, thanks to truck accidents, the media, and even those of us at tsikot who discourage buying these cars (and I do discourage people from buying converted cars, on safety grounds), people refuse to pay good money for Japanese secondhands. If it was a big deal, you'd see people selling secondhand local Jazzes for 300k asking to compete with Port Irene imports. They're not.

But the part where you say it affects brand new purchases doesn't hold. People don't stop from buying a brand-new Corolla because they're thinking: "I can't resell it for good money in five years." People who think that way will be buying secondhand cars, anyway, whatever the situation. A one or two year old secondhand will cost you over 200k pesos less and will maintain a bigger percentage of its resale value over five years.

he answered a challenge question regarding how much of his product he is selling. then he answered subic imports. doesn't that mean that he sells used cars from subic? then he mentioned a website about port irene. this is another place where used cars are sold. so there, he sells used cars. he has not denied it.

It's his business what his business is. He did not say he had any dealings at Port Irene, and he didn't specify what he did at Subic. But that's beside the point...

i said he is ONE OF THE factors as he is not only directly involved, but promotes it as well. I did not say he IS the only killer.

Because this misconception is the point. Market research shows that people who are willing to buy "Subic" aren't in any way ever going to consider buying new. Ever. (don't ask me who commissioned that study, I forget) Same as people buying secondhand in general. People who buy brand new are those who would rather have the security of buying a new car with a warranty and hassle-free ownership. And, more to the point... people who can actually afford brand new are rather well-off. Sales figures for manufacturers simply reflect the wealth level of our society, irregardless of secondhand imports or of the secondhand market in general.

It's the same misconception that the US government and others used in their "Cash for Clunkers" scheme. Get people out of old cars and into new ones. Those schemes didn't convince buyers of secondhand cars to consider new cars... they just brought forward sales of new cars from buyers already considering them... after the programs ended, the sales dip reflected the sales rise caused by the program.

-

Now, smuggling is another banana... but I really struggle to see how "Subic Imports" automatically means smuggling. Heck, if I were a smuggler, the last thing I'd say about my job is that I sell "Subic Imports", I'd say I owner a Jollibee franchise or something...

[OyiL]

Which is what happened with the Starex and HARI. And yet, HARI does not build the Starex here... neither does Pitstop... they both import, legally, brand new vehicles. But manufacture? That depends on volume... and like I said, when a vehicle struggles to sell more than a few thousand units a year, there's not enough volume to make a manufacturer build a multi-million peso plant. They have to export to make the plant viable (as Ford, Toyota, Mitsubishi and Nissan do)... In our tiny market, popularity isn't enough incentive to ensure investment.

then the semi knocked down should be the way to go. they wont have to set-up a new plant toyota, mitsubishi, honda, nissan to be able to make the model available without importing.

Do you seriously think the guy who comes on tsikot asking about buying a secondhand Corolla at 250k is even considering a brand new Corolla? Seriously? Unless they are, there is no direct competition with the official dealerships.

huh? why would he ask himself the question "secondhand local vs secondhand imported" then? obviously, there is confusion here.

I'm referring to cars.

And do you really think that Subic imports hurt resale value? Here's a clue. See how many people are selling secondhand Pajeros? See how many are selling "Subic" Pajeros? See how people are still selling locally bought secondhand Pajeros for at least a hundred thousand pesos more than Subic Pajeros? Secondhand imports crowd the secondhand car market, but thanks to public distrust of right-hand drive conversions, thanks to truck accidents, the media, and even those of us at tsikot who discourage buying these cars (and I do discourage people from buying converted cars, on safety grounds), people refuse to pay good money for Japanese secondhands. If it was a big deal, you'd see people selling secondhand local Jazzes for 300k asking to compete with Port Irene imports. They're not.

secondhand subic pajeros vs secondhand local pajeros: meron ngang distinction. may bumibili pa rin nung secondhand local pajero dahil hindi converted. may bumibili nung seconhand subic pajero because they can have it for the same price as a local secondhand adventure, pero pajero na. so ang totoong magkatapat ay not the same model but the next lower model of the somewhat similar type. still they are competing with locally produced cars.

But the part where you say it affects brand new purchases doesn't hold. People don't stop from buying a brand-new Corolla because they're thinking: "I can't resell it for good money in five years." People who think that way will be buying secondhand cars, anyway, whatever the situation. A one or two year old secondhand will cost you over 200k pesos less and will maintain a bigger percentage of its resale value over five years.

again. its about letting go of their old cars to use the money to buy a new one as replacement. these old cars that they want to replace are bought by them brand new. you should always consider resale value when buying a car, especially if its brand new.

It's his business what his business is. He did not say he had any dealings at Port Irene, and he didn't specify what he did at Subic. But that's beside the point...

but he did say he sells something. then he mentioned subic imports. and he hasnt denied it yet.

Because this misconception is the point. Market research shows that people who are willing to buy "Subic" aren't in any way ever going to consider buying new. Ever. (don't ask me who commissioned that study, I forget) Same as people buying secondhand in general. People who buy brand new are those who would rather have the security of buying a new car with a warranty and hassle-free ownership. And, more to the point... people who can actually afford brand new are rather well-off. Sales figures for manufacturers simply reflect the wealth level of our society, irregardless of secondhand imports or of the secondhand market in general.

It's the same misconception that the US government and others used in their "Cash for Clunkers" scheme. Get people out of old cars and into new ones. Those schemes didn't convince buyers of secondhand cars to consider new cars... they just brought forward sales of new cars from buyers already considering them... after the programs ended, the sales dip reflected the sales rise caused by the program.

so why not just ask the local manufacturers to come up with a cheap model than can be bought brand new at the same price as subic imports.

-

Now, smuggling is another banana... but I really struggle to see how "Subic Imports" automatically means smuggling. Heck, if I were a smuggler, the last thing I'd say about my job is that I sell "Subic Imports", I'd say I owner a Jollibee franchise or something...

port irene cars are taxed but lower. some people say that cars that come from here cannot be registered in manila. personally, i think they just went around legislation to have done it this way.

nobody said that uls is a smuggler.

[OyiL]

'Wag na kasi makialam sa market forces! Jeez. Kawawa naman kasi ang consumer kapag walang pagpipilian.

Smuggled or not, it's none of my business.

HA! yung may pambili ng kotse kawawa?

[roberto_minosa]

HA! yung may pambili ng kotse kawawa?

Yung may P150,000 na hindi makabili ng matinong auto ang kawawa. Ang pagpipilian nya, laspag na ex-taxi, owner-type jeep na practically calesa, o kaya mag-commute na lang sya at ang pamilya nya...ALL IN THE NAME OF "SAVING THE LOCAL AUTO INDUSTRY".

Hindi kasi lahat katulad mo, na merong pambili ng bagong sasakyan.

Benefits of imports?

> Ang gumagawa ng mga imported (o kaya conversion) ay mga talyer din dito. Bakit nila pahihirapan sarili nilang gumawa ng OTJ eh kaya naman mag-refurbish ng buong auto? Kahit papaano, meron pang safety standards at di hamak na mas reliable kesa sa mga kalesang de-motor. Think Norkis products. Kawawa naman ang mga talyer kung wala yun, di ba?

> Karamihan ng bumibili ng imported, walang pambili ng bagong auto; hindi katulad mo. Bakit sila bibili ng kalesang de-motor eh makakabili naman ng matino-tinong Mitsubishi Delica na meron pang aircon at seatbelt? Hindi pa matatanggal ang mga drivelines habang umaahon ng bundok. Tsaka hindi mahuhulog si bunso kapag sumandal sya sa trapal. Kawawa naman sila, di ba?

> Meron nang mapapagpilian ang mga totoong auto enthusiast. Okay, merong P3m na Mitsubishi Evolution...at P2.5m na Subaru Impreza...at 1.6m na Hyundai Genesis...eh paano na yung gustong magka Nissan Skyline? Nissan Silvia? Toyota 86? MR-2? MR-S? Kaya bang punan ng local auto industry yung mga iyan? Magtyatyaga pa bang mag-CBU ang mga malalaking local auto companies para sa mga ganyang sasakyan? Hindi di ba? O kaya, personal importation na lang, thru BoC...kung may pambayad ka ng pamasahe para bumili ng mga yan sa Japan. Karamihan sa amin, hindi kaya iyon. Siguro, ikaw kaya mo. Kawawa nga kaming mga enthusiast, di ba?

Tama si niky tungkol sa KMU...misinformed, closed-minded, purely ranting-capable advocacy. Nothing ever gets done with that kind of thinking. We need more jobs! Yet they drive away employers. We need higher wages! Yet they're the same reason why cost of living is stratospheric. Then someone would say...we need to make more cars! Yet they're the same reason why no one would buy their own cars...too expensive, or too crappy...either way, consumer is driven away...then they'd go bankrupt...and then they'd blame either the government or I, the consumer.

Kawawa nga kami.

[OyiL]

Yung may P150,000 na hindi makabili ng matinong auto ang kawawa. Ang pagpipilian nya, laspag na ex-taxi, owner-type jeep na practically calesa, o kaya mag-commute na lang sya at ang pamilya nya...ALL IN THE NAME OF "SAVING THE LOCAL AUTO INDUSTRY".

Hindi kasi lahat katulad mo, na merong pambili ng bagong sasakyan.

Benefits of imports?

> Ang gumagawa ng mga imported (o kaya conversion) ay mga talyer din dito. Bakit nila pahihirapan sarili nilang gumawa ng OTJ eh kaya naman mag-refurbish ng buong auto? Kahit papaano, meron pang safety standards at di hamak na mas reliable kesa sa mga kalesang de-motor. Think Norkis products. Kawawa naman ang mga talyer kung wala yun, di ba?

> Karamihan ng bumibili ng imported, walang pambili ng bagong auto; hindi katulad mo. Bakit sila bibili ng kalesang de-motor eh makakabili naman ng matino-tinong Mitsubishi Delica na meron pang aircon at seatbelt? Hindi pa matatanggal ang mga drivelines habang umaahon ng bundok. Tsaka hindi mahuhulog si bunso kapag sumandal sya sa trapal. Kawawa naman sila, di ba?

> Meron nang mapapagpilian ang mga totoong auto enthusiast. Okay, merong P3m na Mitsubishi Evolution...at P2.5m na Subaru Impreza...at 1.6m na Hyundai Genesis...eh paano na yung gustong magka Nissan Skyline? Nissan Silvia? Toyota 86? MR-2? MR-S? Kaya bang punan ng local auto industry yung mga iyan? Magtyatyaga pa bang mag-CBU ang mga malalaking local auto companies para sa mga ganyang sasakyan? Hindi di ba? O kaya, personal importation na lang, thru BoC...kung may pambayad ka ng pamasahe para bumili ng mga yan sa Japan. Karamihan sa amin, hindi kaya iyon. Siguro, ikaw kaya mo. Kawawa nga kaming mga enthusiast, di ba?

Tama si niky tungkol sa KMU...misinformed, closed-minded, purely ranting-capable advocacy. Nothing ever gets done with that kind of thinking. We need more jobs! Yet they drive away employers. We need higher wages! Yet they're the same reason why cost of living is stratospheric. Then someone would say...we need to make more cars! Yet they're the same reason why no one would buy their own cars...too expensive, or too crappy...either way, consumer is driven away...then they'd go bankrupt...and then they'd blame either the government or I, the consumer.

Kawawa nga kami.

OFW ako.

para sa akin, pag may pambili ka ng kotse, hindi ka kawawa. pag-meron kang owner-type (yan ang sasakyan ko dati nung college), mas-ma suwerte ka pa sa mga pasahero sa dyip, bus, sidecar, tricycle lalo na kung mga lampas ng dalawang oras ang biyahe mo araw-araw. mas wala kang kaba sa otj dahil di problema ang parking kahit saan pwede dahil walang mag-iinteres mag-carnap. mas matipid sa gasolina, dahil magaan ang kaha. i remember noon, 50Petot lang nakakaabot na ako sa sta mesa galing sa paranaque at nakakauwi pa.

sa auto industry, ang kawawa ay yung mga workers sa planta. kapag wala nang maibenta yung planta, delikado ang trabaho nila.

[roberto_minosa]

OFW ako.

para sa akin, pag may pambili ka ng kotse, hindi ka kawawa. pag-meron kang owner-type (yan ang sasakyan ko dati nung college), mas-ma suwerte ka pa sa mga pasahero sa dyip, bus, sidecar, tricycle lalo na kung mga lampas ng dalawang oras ang biyahe mo araw-araw. mas wala kang kaba sa otj dahil di problema ang parking kahit saan pwede dahil walang mag-iinteres mag-carnap. mas matipid sa gasolina, dahil magaan ang kaha. i remember noon, 50Petot lang nakakaabot na ako sa sta mesa galing sa paranaque at nakakauwi pa.

So...magtyaga na lang ang walang pera sa mga owner-type? Noon kasi, pwede pa...presko pa ang hangin, maluwag ang mga kalsada, at wala pang expressway. Pwede talaga ang OTJ...lalo na nung martial law, nung ang choice mo lang ay Lancer kung may pera ka, o owner. Yun ang sabi mismo ng lolo ko. Kasi, sya mismo, nagkaroon ng owner. At sinumpa nya ang pagbili noon. And a little something...being carnap-proof can't qualify as a vehicle quality. It just proves that it isn't worthy of being stolen.

sa auto industry, ang kawawa ay yung mga workers sa planta. kapag wala nang maibenta yung planta, delikado ang trabaho nila.

Magsasara kaya ang mga dambuhalang auto company dahil sa iilang mga secondhand na van at SUV? Kasi, iba ang market ng mga secondhand, imported man o hindi. Hindi sila nakikisawsaw sa benta ng mga local auto "manufacturer", na kung maari, tawagin kong "assembler". Pag dumami ba ang nagbenta ng mga lumang auto, babagsak na lang bigla ang sales ng mga auto company? Same thing on secondhand imported autos.

Simple lang yan...kung ako merong P150k-P200k lang para sa kotse, mabuti nang maraming pagpipilian para hindi naman ako ang maging kawawa...o agrabyado. Kesa naman kokonti na nga pera ko, gigipitin pa ng gobyerno ang mga choices ko. Kahit sino naman siguro nagiging kawawa kapag tinanggalan ng kakayahang pumili.

Teka...teka...isn't the local auto industry supplied by surplus auto parts from Japan? So...if I got it straight, the difference between local and imported secondhands is that the former arrives as a car but in bits, and the latter arrives as a whole car.

Same banana, made more complicated.

[niky]

Unfortunately for shops that assemble owner-types, people with 100k already have a lot of choices.

For that much money, you can buy 70's cars (10k-50k, running), Prides and Charades (60-80k), B12 Sentras (around 80k or less), B13 Sentras (90-120k), B14 Sentra taxis (about 120k+, but you can get lucky), 92 Corollas and Lancers... all of which have better weather protection, a better ride and more comfort than an owner-type.

Even without imported surplus, the market is saturated with cheap secondhands that may be more desirable than locally assembled vehicles. It's time for local assemblers to step up the game and offer something more current and in-line with what the market wants.

Note: I cited (here or in another thread) what the market wants before that we are capable of assembling locally to the proper quality... motorcycles... and we have at least two locally-owned motorcycle companies with original designs in the Philippines.

Unless they have the ability to build a relatively modern passenger car, small and medium scale motor-vehicle assemblers otherwise have to rely on the cargo and public-utility sectors to sell to.

And, last I looked, the government legitimizes import of whole surplus trucks and buses for commercial use... which means there's less incentive to buy buses from local assemblers.

[romski123]

wala namang problema sa 2nd hand vehicles e. basta 2nd from the local market.

hindi smuggled in na basura from other countries.

Ang Japan nagbabayad ng malaki just to dispose their old cars, tayo binibili pa ang basura nila.

All other countries around us don't allow 2nd hand vehicles from other countries, Tayo lang ang pumapayag.

[OyiL]

So...magtyaga na lang ang walang pera sa mga owner-type? Noon kasi, pwede pa...presko pa ang hangin, maluwag ang mga kalsada, at wala pang expressway. Pwede talaga ang OTJ...lalo na nung martial law, nung ang choice mo lang ay Lancer kung may pera ka, o owner. Yun ang sabi mismo ng lolo ko. Kasi, sya mismo, nagkaroon ng owner. At sinumpa nya ang pagbili noon. And a little something...being carnap-proof can't qualify as a vehicle quality. It just proves that it isn't worthy of being stolen.



Magsasara kaya ang mga dambuhalang auto company dahil sa iilang mga secondhand na van at SUV? Kasi, iba ang market ng mga secondhand, imported man o hindi. Hindi sila nakikisawsaw sa benta ng mga local auto "manufacturer", na kung maari, tawagin kong "assembler". Pag dumami ba ang nagbenta ng mga lumang auto, babagsak na lang bigla ang sales ng mga auto company? Same thing on secondhand imported autos.

Simple lang yan...kung ako merong P150k-P200k lang para sa kotse, mabuti nang maraming pagpipilian para hindi naman ako ang maging kawawa...o agrabyado. Kesa naman kokonti na nga pera ko, gigipitin pa ng gobyerno ang mga choices ko. Kahit sino naman siguro nagiging kawawa kapag tinanggalan ng kakayahang pumili.

Teka...teka...isn't the local auto industry supplied by surplus auto parts from Japan? So...if I got it straight, the difference between local and imported secondhands is that the former arrives as a car but in bits, and the latter arrives as a whole car.

Same banana, made more complicated.

hmm...you dont get my point. di bale na lang.

[ocanursjr]

Lovely. You just told the public.

That all along you are among those people who are selling all imported vehicles from SUBIC that the local auto industry is trying to stop through MVDP.


No wonder you love to bash all efforts to produce Phillipine made vehicles (assembled by the Japanese or Americans here or those assembled by Pinoys) including CKDs.

And you keep on insisting that the demand for CBUs will definitely increase in the future probably because it will be good for your business.

Oh well, anyway, thanks for the info.[IMG]file:///C:/DOCUME%7E1/user/LOCALS%7E1/Temp/moz-screenshot-8.jpg[/IMG]

Are you buying that * jpdm? He's here in tsikot 24/7.

[OyiL]

Are you buying that * jpdm? He's here in tsikot 24/7.

ocanusjr, are you saying that you dont believe that uls sells imported used cars because he's in here in tsikot all the time?

[romski123]

i was confronted with this question:



he thinks he's the only one who has ever sold anything

i was thinking i should just let it pass

but at that moment, i didn't wanna let it pass

the guy thinks he's the only one who has ever sold anything

ang feeling naman

i couldnt let it pass

i was thinking -- if i answered "i sold a lot of things" and didnt elaborate, it would sound like b.s.

so i felt had to elaborate

so i limited my elaboration to 2 words

that's it

hehe

hehe smuggler

[romski123]

Imported secondhand vehicles aren't what's killing our automotive manufacturing sector. In fact, cheap surplus engines from Japan have long been the driving force behind the local production of buses and jeepneys by local talyers.

Research shows that people who will buy surplus imported SUVs and cars aren't the same people who would buy brand new vehicles. If a person is looking at a secondhand Dubai Land Cruiser, he's not thinking: "maybe I should buy a locally-maufactured Jeepney or a brand new Land Cruiser instead...", he's thinking: "Do I buy secondhand local, or secondhand imported?"

actually Niky ok lang ang importation of 2nd hand engines. kasi kikita pa rin ang chassis maker, ang body maker, and mekaniko, ang assembler etc. maraming trickle down.

dati ang choices lang brand new or mag assemble ako ng owner jeep.

and the quality level was far from the brand new cars.

what really killed the local auto industry was the subic 2nd hand smuggled imports.

buo na kasi at murang mura. pano kasi ang kumita lang yung smuggler. Walang effect sa economy.

there where years when subic vehicles were at their peak (in fairness medyo nabawasan na) less than 20 percent of all newly registered cars were from the formal brand new assemblers.

Kaya tayo napag iwanan ng Thailand, Indonesia and Malaysia.the S-U-Bics were just too much for the formal assemblers. Buo na kasi at sobrang mura.

Other countries don't allow 2nd hand vehicles to protect their auto industry. sa atin lang pinayagan. kaya ganyan ang nangyari.

[niky]

actually Niky ok lang ang importation of 2nd hand engines. kasi kikita pa rin ang chassis maker, ang body maker, and mekaniko, ang assembler etc. maraming trickle down.

dati ang choices lang brand new or mag assemble ako ng owner jeep.

and the quality level was far from the brand new cars.

what really killed the local auto industry was the subic 2nd hand smuggled imports.

buo na kasi at murang mura. pano kasi ang kumita lang yung smuggler. Walang effect sa economy.

there where years when subic vehicles were at their peak (in fairness medyo nabawasan na) less than 20 percent of all newly registered cars were from the formal brand new assemblers.

Kaya tayo napag iwanan ng Thailand, Indonesia and Malaysia.the S-U-Bics were just too much for the formal assemblers. Buo na kasi at sobrang mura.

Other countries don't allow 2nd hand vehicles to protect their auto industry. sa atin lang pinayagan. kaya ganyan ang nangyari.

Smuggled cars, yes, were a problem... but that's not an issue of importation per se, but of the lack of enforcement to protect our industry.

In a country where a ship can just pull up to shore and dump hundreds of surplus scooters off on an unmarked beach, protection for local industry is a big problem, despite the laws that exist to protect it.

Sadly, it's also difficult to write a law that would only allow spare parts and not leave loopholes for people to simply cut cars in half and weld them back together again when they get here (yes, I'm familiar with this trick, though I would never ever trust my life to something like that!).

-

Quality is a problem... and perceived quality. Owner-types are going the way of the dinosaur because they're not progressing in technology, and for the cost of assembling one with a surplus engine, you can already buy cheap manufactured secondhands... and no longer just Subic imports... there's even more competition now from locally sold cars that have depreciated in value to near rock-bottom levels. The smuggled Subic cars may have started the trend, but the maturing market and growing supply of locally bought secondhands are what will finally kill the cottage industry.

At least there will always be room for small-scale manufacture of Wrangler-types for the off-road enthusiasts, and Willys reproductions such as yours, but in today's world, backyard assemblers are likely going to go the way of the dodo, unless new products and concepts are found that they could sell for a good price and that people will actually want. Small chinese companies may, ironically, point the way forward.

Heck, even specialists are in trouble. For the life of me, I still can't find the shop in Laguna that sells the Suzuki-based micro-owner types. I really wanted to do a feature on them!

[ghosthunter]

Our local auto manufacturing industry is ailing not because of smuggling.

It is simply a symptom of a sick economy.

In a sick economy, people don't buy a lot of expensive goods.

The typical pinoy income is barely enough to keep the typical Juan dela Cruz in shelter, fed, educated and healthy.

Brand new cars is an expensive luxury that only the fortunate few can afford.

Yet for those who need personal transport, many opt for scooters and motorcycles.

Scooters & motorcycles are cheap to buy and cheap to operate.

Government protectionism policies can only help so much, but if the people dont buy enough new cars, even the most drastic protectionism policies will not help.

The average pinoy motorist is also to blame.

We tend to keep our cars on the road longer than other countries.

We tend to keep our cars ten years, fifteen years, twenty years after leaving the car's showroom.

Old cars still being used by the Pinoy motorist prevent new cars from being sold.

Assuming a car's model life is five years... a 15 year old car means it has kept at least two new cars from being sold by the car dealers.

So why does the typical Pinoy keep his car for so long?

The answer is simple. New cars are expensive.

Why are new cars expensive? There are too many taxes, fees, profits, commissions added to the cost of the car that the final selling price has increased 30%, 40% to even 50% above the price in other surrounding countries.

So if cars are expensive, people don't buy a new car often.

Expensive cars in a sick economy results in even less new cars to be sold.

The solution is obvious ... but everyone involved wants their share of the honeypot and then some.

Hence everyone loses.

[olidotcom]

+1 ako dyan.... mahal talaga. tapos mababa pa kinikita ang average filipino. even i have my own problems maintaining my 1 year old vehicle... natatakot pa nga ako sa mga gastos na dadating when i read some of the feedbacks / threads regarding repair and such.

[romski123]

Our local auto manufacturing industry is ailing not because of smuggling.

It is simply a symptom of a sick economy.

In a sick economy, people don't buy a lot of expensive goods.

The typical pinoy income is barely enough to keep the typical Juan dela Cruz in shelter, fed, educated and healthy.

Brand new cars is an expensive luxury that only the fortunate few can afford.

Yet for those who need personal transport, many opt for scooters and motorcycles.

Scooters & motorcycles are cheap to buy and cheap to operate.

Government protectionism policies can only help so much, but if the people dont buy enough new cars, even the most drastic protectionism policies will not help.

The average pinoy motorist is also to blame.

We tend to keep our cars on the road longer than other countries.

We tend to keep our cars ten years, fifteen years, twenty years after leaving the car's showroom.

Old cars still being used by the Pinoy motorist prevent new cars from being sold.

Assuming a car's model life is five years... a 15 year old car means it has kept at least two new cars from being sold by the car dealers.

So why does the typical Pinoy keep his car for so long?

The answer is simple. New cars are expensive.

cars are more expensive in other countries. I agree that economy and spending power play a vital role.

kaya lang lets confine it to the auto industry muna. we have to choose our battles. economy is too broad.

lets just focus on the 150 to 200 thousand people who can buy a new car yearly. I dont mean that they buy cars every year, but every year this is the number of new cars sold.This is a big enough industry. although it represents a very small percentage of the population, it is still quite a big industry . we should protect this industry. kaya lang when we started smuggling SUB-ics the sales of brand new cars were extremely affected.

Ngayon nag iimprove na. Car companies are increasing sales. Sana tumulouy tuloy na.

dapat di na payagan ang second hand.

[ghosthunter]

cars are more expensive in other countries. I agree that economy and spending power play a vital role.

Although cars may be more expensive in other countries but the per capita income is also higher.

kaya lang lets confine it to the auto industry muna. we have to choose our battles. economy is too broad.

Unfortunately you cannot separate the auto industry with the economy as they are closely related. More companies will buy more trucks when the economy is good because they need to transport more goods. When the economy is bad, the transport fleet is scaled back.

lets just focus on the 150 to 200 thousand people who can buy a new car yearly. I dont mean that they buy cars every year, but every year this is the number of new cars sold.This is a big enough industry. although it represents a very small percentage of the population, it is still quite a big industry . we should protect this industry. kaya lang when we started smuggling SUB-ics the sales of brand new cars were extremely affected.

Why are you so focused on smuggling as a problem with those people buying new cars? The fact is, those 120,000 to 140,000 who are buying new cars will not be found buying a used surplus car, imported legally or otherwise.

Also, where did you get that figure of 150K to 200K new car buyers for 2010? The car sales forecast (done in January 2010) for 2010 is a 4% growth from 2009 figures. That should be around 137K.

As for calling the some-130k vehicles sold last year as a big industry, when compared to the 92 million people in the Philippines, that just comprises 0.14% of the total population of the country.

Just to place a comparison, Toyota Thailand sold 230,000 vehicles in the first six months of 2009. Toyota USA sold over 2,000,000 in 2008.

Ngayon nag iimprove na. Car companies are increasing sales. Sana tumulouy tuloy na.

The fact that car sales improved in 2009 is simply because of people buying new cars to replace the cars that were damaged/destroyed in the floods caused by Ondoy and Peping. That observation is supported by the fact that the increase of sales happened after the floods and not throughout the year of 2009.

[OyiL]

A
As for calling the some-130k vehicles sold last year as a big industry, when compared to the 92 million people in the Philippines, that just comprises 0.14% of the total population of the country.

teka, itas natin ng konti. out of the 92M people only about 60M is in age above 24. kaya 0.21% naman.

[ocanursjr]

actually Niky ok lang ang importation of 2nd hand engines. kasi kikita pa rin ang chassis maker, ang body maker, and mekaniko, ang assembler etc. maraming trickle down.

dati ang choices lang brand new or mag assemble ako ng owner jeep.

and the quality level was far from the brand new cars.

what really killed the local auto industry was the subic 2nd hand smuggled imports.

buo na kasi at murang mura. pano kasi ang kumita lang yung smuggler. Walang effect sa economy.

there where years when subic vehicles were at their peak (in fairness medyo nabawasan na) less than 20 percent of all newly registered cars were from the formal brand new assemblers.

Kaya tayo napag iwanan ng Thailand, Indonesia and Malaysia.the S-U-Bics were just too much for the formal assemblers. Buo na kasi at sobrang mura.

* gh

Try to read and understand what romski123 stand on the issue. Tagalog na yan baka di mo pa makuha ang puntos nya.