Philippines: Automotive Industry

1
Philippines Automotive Industry

• U.S. Commercial Service
• U.S. Embassy Manila, Philippines

www.buyusa.gov/philippines
2
Industry Overview

• 2.3 growth in motor vehicle sales for 2006
• Highest new motor vehicle sales figure in five
  years (99,541 units). 2007 sales projected to
  breach 100,000 mark
• Commercial vehicle (CV) dominates motor vehicle
  sales with 61 share in 2006
• Japanese brands (Toyota, Honda, Mitsubishi,
  Nissan, Isuzu) dominant, but U.S. brands (Ford
  and General Motors) have shown consistent growth
  in the market

3
Market Trends

• Average vehicle life ranges from 10 to 15 years
• 70 of the market are low-end buyers, which
  strongly favor third party rather than OEM
  products.
• ASEAN Industrial Cooperation (AICO) beneficial to
  the industry.

4
Best Sales Prospects Buyers

• Best sales prospects are
• Replacement parts (engines and associated parts,
  body and mechanical parts)
• Auto Electric - Batteries, light bulbs, air
  conditioners and compressors.
• Aftermarket products for Japanese brands
• Service equipment
• Biofuel technology and other environment-friendly
  products for the automotive industry.
• Buyers Service stations, auto retail shops,
  automobile owners

5
Market Entry

• Partner with a reliable Philippine distributor
• Assist Philippine distributor develop the market
  by
• Technology / knowledge transfer through adequate
  training
• Support marketing efforts to introduce new
  product / technology (i.e. participate in
  exhibitions, advertising in yellow pages,
  sponsoring industry events)
• Provide reliable after-sales support

6
Market Challenges

• Piracy counterfeit auto parts and aftermarket
  products.
• Used vehicle imports.
• Regional initiatives (i.e. the Japan-Philippines
  Economic Partnership Agreement or JPEPA) which
  favors Asian auto manufacturers.

7
Philippine Trade Events

• Manila International Auto Show 2007
• April 6-9, 2007
• World Trade Center, Manila, Philippines
• http//www.worldbex.com/mias06/details.html
• Trans Port Show 2007
• April 18-22, 2007
  Megatrade Halls 1-3, SM
  Megamall
• Mandaluyong City, Philippines
  http//www.tradeshow.com.ph/events-transportshow/i
  ndex.html

8

Thank you See you in the Philippines!
Judy Reinke Judy.Reinke_at_mail.doc.gov Commercial
Counselor

• Aida Miranda
• Aida.Miranda_at_mail.doc.gov
• Senior Commercial Specialist

U.S. Commercial Service U.S. Embassy Manila,
Philippines