Name: Automotive, Parts, Lubricants, and Fuels

Icon: /photos/committee/icon/2/icon-automotive.png

Content: <p>ASEAN is becoming one of the largest markets globally for vehicle sales. By December 2014, sales in the seven major vehicle markets of ASEAN amounted to over 3.1 million, while motorcycle and scooter sales added up to over 10.8 million by the same month. It is estimated that by 2019, ASEAN will be the fifth largest market in the world.</p> <p>The Philippines is one of the fastest growing markets in ASEAN for vehicle sales; in fact, YOY growth for 2014 for motor vehicle sales was 29.2%, equal to 234,747 vehicle sales as compared to 181,738 in 2013. Philippine motorcycle and scooter sales had the highest growth among recorded ASEAN sales, at 5% YOY.83 In absolute numbers, however, the Philippines still has significantly lower sales than the major markets in the region; over 1.2 million motor vehicles were sold in Indonesia and more than 880,000 in Thailand during the same period.</p> <p>Fuels, lubricants and parts are also a growing market; most major international players are present, although especially in the parts industry they are deterred by a large market of substandard products.</p> <p>The motor vehicle manufacturing sector also grew substantially in 2014, with YOY growth at 12.2%. However, automotive manufacturing remains an area in which the Philippines significantly lags behind regional competition; despite a 23.5% shrinking of the industry in Thailand, it still produced over 1.8 million cars in 2014, while Indonesia produced just under 1.3 million. The Philippines produced just 88,845.85 CARS, the planned Philippine Automotive Industry Roadmap which is expected to be introduced in 2015, is hoped to boost the competitiveness of the Philippines as a destination for automotive manufacturing investment and effectively the number of vehicles produced in the country.</p> <p>In terms of employment generation, in 2013 the automotive manufacturing sector generated an estimated 68,000 direct jobs. 8,000 of those were in vehicle manufacturing, while 60,000 were in parts manufacturing.86 <br /> Most major European automotive brands are present in the Philippines in the retail sector, however due to investment restrictions, most dealerships are present in the market through a national partner.</p> <p>A young demographic, rising middle class and low ownership of cars are the driving forces for continued growth of the sector.</p> <p><a href="http://www.epbn.ph/publications/download?file_name=EPBN_Business_Primer_Teaser_-_Automotive.pdf&amp;id=7">Click here to download A Brief Overview of the Philippine Automotive Industry »</a></p>

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