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

[romski123]

For something that is supposed to be an example of what should not happen to us, the people in New Zealand seems to be enjoy more options of motoring than we do.

Although I noted that most cars on the road there are in the econobox range... that is simply the result of the high price of fuel in NZ.

New Zealand chose to stop having local auto manufacturing in their country, and chose to let 2nd hand imports as well as brand new imports (because they have no choice) get in.

Its a choice. Konti lang ang population nila and they are already developed. We can't compare New Zealand with the Philippines. Hindi sila dapat tularan.

[ghosthunter]

New Zealand chose to stop having local auto manufacturing in their country, and chose to let 2nd hand imports as well as brand new imports (because they have no choice) get in.

Its a choice. Konti lang ang population nila and they are already developed. We can't compare New Zealand with the Philippines. Hindi sila dapat tularan.

Inspite of what you say, the Philippines also does NOT have a local auto manufacturing industry.

All we have are assembly plants that just screw together the finished parts shipped in from abroad.

As for NZ having a small population, true... but lets compare figures...

In New Zealand:
-for the year 2007, they sold a total of 102,468 new vehicles.
-NZ population is only around 4.2M
-that equals to 2.4% of the population bought a new car for that year.

In the Philippines:
- sales figures of 2009 = 130,000 total new vehicles sold
- RP population is around 92M
-that equals to 0.14% of the population bought a new car for that year.


You have to face the reality.

The only way to save the local car assemblers in the country is if "we" buy more new cars.

The people buying used cars (legal of otherwise) are not going to buy a new car.

The problem is NOT smuggling.

The problem is that the vast majority of the population cannot afford to buy a new car.

The only way people will start buying more new cars if their incomes increase dramatically enough to afford a new car.

[OyiL]

ASEAN statistics:
info regarding vehicle sales
http://www.buyusa.gov/auto/singapore.pdf

http://in.reuters.com/article/idINJAK48616620100524

http://www.export.by/en/?act=news&mode=view&id=18794

[ghosthunter]

ASEAN statistics:
info regarding vehicle sales
http://www.buyusa.gov/auto/singapore.pdf

http://in.reuters.com/article/idINJAK48616620100524

http://www.export.by/en/?act=news&mode=view&id=18794

Malaysia population = 27M
car sales = 560K (estimate for 2010)
% of population bought new vehicle = 2.07%

Singapore population (2007) = 4.58M
total vehicle sales (2007) = 851,336
% of population bought new vehicle = 18.58%

Indonesia population = 237M
total vehicles sales (2008) = 602,000
% of population bought new vehicle = 0.25%

Philippines population = 92M
total vehicle sales (2009) = 130,000
% of population bought new vehicle = 0.14%


We do not have the sales to help the car assemblers to maintain volume of new car sales year on year.

No degree of legal legislation will help if people cannot afford to buy more expensive new cars.

[OyiL]

Malaysia population = 27M
car sales = 560K (estimate for 2010)
% of population bought new vehicle = 2.07%

Singapore population (2007) = 4.58M
total vehicle sales (2007) = 851,336
% of population bought new vehicle = 18.58%

Indonesia population = 237M
total vehicles sales (2008) = 602,000
% of population bought new vehicle = 0.25%

Philippines population = 92M
total vehicle sales (2009) = 130,000
% of population bought new vehicle = 0.14%


We do not have the sales to help the car assemblers to maintain volume of new car sales year on year.

No degree of legal legislation will help if people cannot afford to buy more expensive new cars.

you are pointing out that this business sector in the philippines is already saturated. that the current state is at the best that it can be. that no further profit can be realized out of this sector, thereby, preventing manufacturers to set-up factories.

based on your own assumptions, is this industry dying in the philippines? if the industry gets reduced just to meet the basics to sustain other businesses in the philppines and the private sector, how small would it be?

[uls]

wanna increase new car sales?

let's look at new motorcycle sales here

new motorcycle sales in the Phils. increased rapidly in the past years

it's coz of availability of credit (hulugan)

it made brand new motorcycles within reach of lower income consumers

wanna increase new car sales?

make new cars affordable and extend credit to lower income consumers (financing companies have to lower their lending standards)

if that doesnt happen, new car sales will be limited to middle and high income consumers

[ghosthunter]

you are pointing out that this business sector in the philippines is already saturated. that the current state is at the best that it can be. that no further profit can be realized out of this sector, thereby, preventing manufacturers to set-up factories.

It is far from saturated. But the fact is, and the numbers do not lie, the average pinoy cannot buy a brand new car. Or at least, not enough brand new cars to sustain a much bigger local car assembly industry.

The Philippines does have the population to potentially sustain a bigger car assembly business, but at the same time, the population does not earn enough income to make such an expensive purchase.

So... yes, the current state of the local car industry is pretty much what you can expect form it with the current state of our national economy.

If somehow the national economy improves, there will be trickle down improvements to more people. And if that happens, you will be able to see improvement in the sales of items like cars as a result.

based on your own assumptions, is this industry dying in the philippines? if the industry gets reduced just to meet the basics to sustain other businesses in the philppines and the private sector, how small would it be?

The local car industry is not dying in the Philippines. It is just a matter of how much of a cut-back can they sustain and still be operational to a satisfactory level. It also depends on how much can those car companies earn from other sources of income like aftersales services.

Some ways they can cut down is by doing more CBU instead of SKD or CKD. These might have higher per unit cost in terms of taxes,etc but it means less requirement for an expensive local facility and personal to assemble the parts into a car which may mean a bigger savings for that particular level of operation.

It may not look good for local employment but that would still save the rest of the car company industry in the country like trained technicians/mechanics, sales and marketing, executives, etc.

[romski123]

Inspite of what you say, the Philippines also does NOT have a local auto manufacturing industry.

All we have are assembly plants that just screw together the finished parts shipped in from abroad.

As for NZ having a small population, true... but lets compare figures...

In New Zealand:
-for the year 2007, they sold a total of 102,468 new vehicles.
-NZ population is only around 4.2M
-that equals to 2.4% of the population bought a new car for that year.

In the Philippines:
- sales figures of 2009 = 130,000 total new vehicles sold
- RP population is around 92M
-that equals to 0.14% of the population bought a new car for that year.


You have to face the reality.

The only way to save the local car assemblers in the country is if "we" buy more new cars.

The people buying used cars (legal of otherwise) are not going to buy a new car.

The problem is NOT smuggling.

The problem is that the vast majority of the population cannot afford to buy a new car.

The only way people will start buying more new cars if their incomes increase dramatically enough to afford a new car.

We still have a local auto manufacturing industry. May mga manufacturing and assembly plants pa. They generate a lot of jobs. Do bnot discount that.

people who buy 2nd hand cars won't buy brand new, ok na yun.

But don't smuggle in cars that will compete with the formal sector. Kasi maski yung mga bumibili ng brand new at kaya naman e maloloko bumili ng japanese junk. Mura kasi smuggled. Pero sira agad.

if you really wana make a difference concern yourself with what you can do. Analyzing the economy is useless kung hindi ka naman aaksyon.

[niky]

I think scaring people from buying SUVics (as we've been doing for the past several years here on tsikot), has helped, at least a tiny bit.

A lot of Americans sell their arms and legs for JDM Honda engines. And guess what, my own cousin in the US wished that they could import Skylines. Why can't they? 'Coz the DMV thinks those cars are too badass to hit the roads. Not 'coz they're a bunch of old Japanese junk.

Actually, Skylines are illegal to import because they're not Federalized. Motorex used to do the work Federalizing them (costs a mint... you actually have to crash test one, as I recall...), and allowed a few to be imported legally.

In the US, as long as a car meets all US requirements, you can drive it on the road, even if it is RHD.

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Actually, the most succesful case of protecting a local auto-industry is Malaysia. And they were only able to do it because the government set up a huge tariff for imports and pumped money into a national car company. The tariff part is impossible now. All we can do is try to give tax shelter to local makers.

Without the political support to do the same, we can't aspire to that level of success... again, though... the idea is to start at a level the market can afford... motorcycles, for one (and the sales of even local motorcycle manufacturers would make many official car dealerships drool with envy)... or vehicles that cost almost as little as motorcycles, yet offer more utility, like cargo-trikes or passenger trikes. Then scale up to bigger models as the buying population becomes more affluent.

Those sales numbers are depressing... Indonesia may have a similar sales percentage per population compared to the Philippines, but the sheer volume still means that it's more profitable for the multinationals to set up shop there...

[OyiL]

so what we need are cheaper cars. india builds the cheapest brand new car. what would convince india to set-up here?