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.
"The Leadership Secrets of Attila the Hun"
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%.