The Philippine auto market is expected to reach at least $10bn by 2019, with a $5.2bn increase in the number of vehicles and a $1.9bn increase to the volume of sales, according to a study by automotive research firm AutoMark.
“We’re currently seeing the most robust expansion in the Philippine market in over a decade,” said Mark Withers, AutoMark’s chief economist.
“It’s been an extremely strong growth period.
The auto market has shown a marked expansion, and we are seeing the full impact of this expansion.”
AutoMark estimates that the Philippines’ auto market reached $3.4bn in sales in 2015 and a further $1bn in 2016.
The market grew by 17 per cent to $4.4b in 2017.
AutoMark’s forecast for 2019 is for $4bn, which would represent a growth of 11 per cent.
“While we’re not forecasting an immediate surge in growth, we do expect that the auto market will continue to grow at a rate of around 5 per cent in 2019, based on our current expectations,” Mr Wither.
Auto Mark expects that the Philippine auto industry will add more than 100,000 new vehicles in 2019.
The study is the first of its kind and covers a wide range of topics, including automotive products, marketing, services and sales, with auto industry analysts and automotive executives involved.
The study looked at the Philippine automobile market as a whole, and in particular, at the auto industry in the country’s most populous city, Manila.
The Philippines is the second-largest economy in Asia after China, and is ranked second in terms of per capita GDP.
Auto sales in the city of 1.6 million were up 10 per cent last year.
Auto sales were up 13 per cent at the end of the second quarter of 2019, but still fell short of expectations, at $6.6bn.
Auto analyst Peter Giambastiani said the Philippines was the fastest-growing auto market in Asia.
“As we get closer to the end, the market is already on track for a $10.2 billion increase in 2019,” Mr Giambo said.
“The growth is going to continue as the demand for vehicles continues to grow and the demand will continue as people buy their cars,” he added.
The research also found that the majority of Filipinos do not own a vehicle, and that they buy more than two vehicles a year.
Mr Giambbastiani added that many Filipinos still prefer to buy their own vehicles.
The auto industry has been in a state of flux for many years.
The country’s economic slowdown in the early 2000s and its return to growth in recent years have led to a strong domestic car market and an increase in imports of luxury vehicles.
“As a result, we expect the industry to continue to experience a steady expansion,” Mr Bontos said.
Auto market in Indonesia, Malaysia and ThailandSource: AutoMarkAutoMark says that the global automotive market is forecast to reach as much as $25.6 billion by 2019.
The survey also noted that the Chinese automotive market will expand at a much faster rate than in previous years.
China’s auto market grew at an average annual rate of 5.4 per cent from 2016 to 2019.
China’s car market grew 14.6 per cent during the same period.
Source: AutomMarkAutoMarks survey finds that the Indonesian auto market surpassed Malaysia’s in terms, but with the exception of the capital city of Jakarta, Indonesia.
In 2019, the Jakarta-based market added more than 2,000 vehicles to its fleet.
In 2017, the number was about 1,500 vehicles.
Malaysia’s car sales increased by 5.3 per cent, which was the highest in the region.