IJR   Automotive Links 

Welcome to my   Home Page !
Hoping to share with you  views, perspectives, and opinions
about the automotive and transportation industries
where many of us belong.

An Information Exchange Resource for the Movers
and Practitioners of the
Automotive and Transportation Industries

 

Hi!  I'm Ildefonso. My friends call me Ilde or Nene. The old 1999 format has been redesigned, thanks to Jessie. The emphasis now of this site is not only in providing useful information vis-a-vis the auto-motive industry but also in  surviving the economic crisis. Am including here more articles on effective management and leadership, since these seem to be the keys to the survival and recovery of the industry.

           New!    "The Leadership Secrets of Attila the Hun"
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  Industry Outlook   

The automotive and transportation industry in the Philippines  is vital to national development and a strategic component in economic pla-nning. The industry therefore has wide ramifications for the   govern-ment, for business entrepreneurs,  and for the  motoring public. The per-capita ratio (no. of veh. per person) in the Philippines is     25:1 while that of the United States is almost 1:1 - thus the truism that the more-industrialized the country is, the higher its    per capita vehicle ratio.

Trend and Business Impact

There are now over 4 million vehicles registered with the Department of Transportation and Communications (DOTC), per Autostop 2000, a trend-watcher of the Philippine motoring scene. This is  a 25% gro-wth since 1997, whom many consider to be  a    banner year  for the Philippines because it marked the first time vehicle registrations brea-ched the 3-million mark. Averaging about 10% for the period 1972-1997,  the automotive industry has slowly edged its way up to a res-pectable growth rate of 16% per annum.  With the country's comb-ined exports and imports  of   automotive parts projected to  reach US$ 4.5 billion in the next  four years, the business opportunities cre-ated by the trend is tremendous. The Philippine government envisions the automotive sector to be a world-class producer  and exporter of automotive parts and components.

Challenges and Opportunities

Even before the 1997 economic meltdown   in Asia, automotive lea-ders already recognized the need to be more aggressive, especially in after-sales service  in order to survive.   Other than being customer-oriented, they correctly anticipated what was then a rising market for the SUV and LCV - the vans, the pickups, the  utility trucks (AUVs). Not even the 9/11 attack seems to have fazed the practical-conscious Filipino buyer.     Where before passenger cars accounted for nearly 40% of the   total vehicle sales,   now light commercial vehicles  ac-count for 70%. Honda is the biggest vehicle seller by industry in the passenger car category, with Toyota next. Nevertheless, the car mar-ket has been on a decline since 1999 (now only 30 percent of the en-tire  industry sales) while commercial vehicles shot up to 70%. 40%.
    But uncertainty and complaints abound. The vehicle assemblers - long the "milking cow" of the government for revenue - is again up in arms, warning of the "devastating effects on the automotive industry and rel-ated industries "if the government shall push with plans to ex-pand the coverage of excise taxes. The Chamber of Automotive Ma-nufacturers of the Philippines  (CAMPI) with its allied  organizations recently  petitioned the Office of the President to suspend the  oper-ation of vehicle auctions (read: smuggling)   presently proliferating all over the country.
    The country is not alone though. In the huge U.S. market into whe-re Japanese and European cars come in as  cheap  imports, Forbes Global is less sanguine about the situation of the Big Three -   Ford, General Motors, and Chrysler.   Their combined market share has steadily been falling,   from 72% to 60% since 1998 to the present. Still, just like the Philippines, U.S. carmakers are hoping for a turn-about -- soon.

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