Increasing Vehicles Sales in the Philippines - Pros and Cons

[fourtheboys96]

Ford recently left the Philippines with reports saying the market in the Philippines is too small to sustain operation.
Meaning it is better for them to transfer to other location with bigger market and just export their vehicles to the Philippines.

According to this report, our vehicle sales is way below our neighbors.

Now considering the impact on the economy of more vehicles sales (or more goods in general) and also the effect on traffic, urban congestion and urban sprawl, do you think we should the government should find ways to increase vehicles sales?

I know vehicle demand is basically a function of income but still there maybe some innovative ways to increase it with our current income level.

[uls]

I know vehicle demand is basically a function of income but still there maybe some innovative ways to increase it with our current income level.

yes there is. credit

actually that's what drove up vehicle sales. loose credit. banks/financing companies are very willing to lend. just look at the super low down "all-in" schemes. there's a credit boom going on

you can see car displays in malls. car dealers are taking their showrooms to the customers

btw credit is what made motorcycles affordable to the masses. kaya nakakabili ng bagong motor mga low wage earners kasi may hulugan

[uls]

practically anyone whose income qualifies them for car financing already bought a car

so banks are taking more risk going down the creditworthiness ladder

they're now in subprime territory -- lending to people whose income hardly qualifies them to buy a new car

got this somewhere:

OWN A HYUNDAI EON FOR AS LOW AS 8,000PHP FOR THE 0.8L GL M/T AND 18,000PHP FOR THE 0.8L GLS M/T ALL-IN PROMO

we're gonna see banks' warehouses filled up with repossessed small cars hehe

___________

do you think we should the government should find ways to increase vehicles sales?

not directly

what the govt can do is provide a business-friendly environment so the economy can grow then everything else will follow

[niky]

Easy credit is the easiest way. And we have that now.

The big question is... should we encourage stronger vehicle sales? Or should we encourage people to spend their money elsewhere... like... say... in housing or entrepreneurial investment? While the automotive sector does provide employment and investment, there are other industries that will probably provide better return-on-investment locally. Like motorcycle assembly.

we're gonna see banks' warehouses filled up with repossessed small cars hehe

Give it one year, and I'm buying a repossessed Eon for maybe 300k.

[dfopiso]

naku, dapat sabay ang pagdami ng auto (especially malakas din ang 2nd hand industry, ibig sabihin konti lang nababawas) sa pag improve ng mga kalsada

[uls]

yes the govt should encourage entrepreneurial investment

dito kasi sa atin pag nagkapera inuuna ang end-user consumption

if those billions of dollars sent home by OFWs get reinvested imagine what that can do for the country

[vinj]

Easy credit is the easiest way. And we have that now.

The big question is... should we encourage stronger vehicle sales? Or should we encourage people to spend their money elsewhere... like... say... in housing or entrepreneurial investment? While the automotive sector does provide employment and investment, there are other industries that will probably provide better return-on-investment locally. Like motorcycle assembly.




Give it one year, and I'm buying a repossessed Eon for maybe 300k.

Punta ka dun sa bank na "Maasahan"... ;) I'll bet in 6 months time may Eon na yan.

I don't mind increased vehicle sales as its a sign of progress in most ways. What i do hope is that the government also find ways to:
- Increase road capacities and networks
- Strictly regulate ageing cars, trucks, jeeps and buses. No offense to old car owners (i have a couple of relics in my garage as well) but getting rid of those that are unroadworthy (meaning: Strict LTO inspection standards) would help a bit.

[ghosthunter]

Ford recently left the Philippines with reports saying the market in the Philippines is too small to sustain operation.
Meaning it is better for them to transfer to other location with bigger market and just export their vehicles to the Philippines.

Just to clarify... Ford is NOT leaving the Philippines. They are just closing down their vehicle assembly plant. They will continue selling cars but these will be CBU units probably from Thailand.

[pop3corn]

pag ginagamit mo pa tsikot mo to go to work, paktay ka. i can just imagine gano katinde ang inuubos ng isang empleyado may magarang tsikot, high fuel expenses, high maintenance expenses, sabay-sabay pumasok sabay sabay umuwi, grabe ang toll nyan sa tsikot mo

ako kasi for the past 6 years hindi ako bumili ng car eh, may condo na ako, tapos bayad na yun 2 parking lots ko. yun isa nga iniisip ko parenta eh, tapos yun isang car ko iwan ko na lang sa bahay namin.
i walk to work every day. pag napunta naman ako sa isang office ko, i dont do rush hours.

sa sobrang dami ng freetime ko living in a condo, nabasa ko na ata world history since the age of antiquity eh. makes me more competitive in the future. while others bago at magara nga tsikot, they spend 2-3 hours a day sa time consuming traffic and spend resources sa cars. imagine my SF is just 36tkm for 6 years, tapos lahat bago pa di pa bakit daw di ko ginagamit sabi ng Hyndai c5

[uls]

pag ginagamit mo pa tsikot mo to go to work, paktay ka. i can just imagine gano katinde ang inuubos ng isang empleyado may magarang tsikot, high fuel expenses, high maintenance expenses, sabay-sabay pumasok sabay sabay umuwi, grabe ang toll nyan sa tsikot mo

...while others bago at magara nga tsikot, they spend 2-3 hours a day sa time consuming traffic and spend resources sa cars.

ano ka ba? that's the Filipino dream... to own a car and get stuck in traffic 2-3 hours a day