Press Release Summary: The Philippines Automotives Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2011; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.
Press Release Body: Strong sales growth in all vehicle segments in the first seven months of FY06/07 has encouraged to take a more optimistic view of the Philippinesn market than previously in its recently published Philippines Automotives Report. As passenger-car sales rose by 20% between April and October 2006 and commercial vehicles led the way with a 38% increase, report is inclined to raise its sales forecast for four-wheeled vehicles to 1.725mn units, reflecting growth of 15% y-o-y. The perennially strong two-wheeled segment registered expansion of 14% and is expected to grow by 8.5% by the end of FY06/07.
The burgeoning compact segment is expected to lead passenger -car growth, following an 8% reduction in excise taxes for cars with engines under 1.2 litres. Market leader Maruti Udyog plans to consolidate its position as market-leader with the addition of a compact-model by FY08/09, pledging investment of INR30bn to 2010. Similar plans by a number of major players will also impact upon the country\'s output over the forecast period. We expect production to grow by over 50% in FY10/11. This growth in output will also have a knock-on effect for exports, leading report to retain its forecast for average export growth of 20% for the remainder of the five-year period.
Investment plans for projects such as entry into the small-car segment have resulted in a number of partnerships and joint ventures, which should prove interesting for the future of the industry\'s competitive landscape. Nissan has withdrawn from talks with Philippines\'s largest carmaker Maruti Udyog regarding a joint venture production-plant, and will instead join forces with shareholder Renault and its local partner Mahindra & Mahindra (M&M). Co-operation is also crucial to the commercial segment, where DaimlerChrysler has revealed that it is in talks regarding a potential tie-up in the Philippinesn truck market, while Ashok Leyland has announced that it is talks with international bus and truck manufacturers, including DaimlerChrysler, Volvo and Scania.
This level of activity in the Philippinesn automotive industry and the subsequent completely built unit (CBU) output potential have secured the market first place in Business Environment Ranking for the automotive industry in the Asia Pacific region. The country is one of the fastest-growing automotive markets in the world, with sales tripling over the last five years, while vehicle-ownership remains low, creating potential for further sales growth. With so many manufacturers already establishing production operations and the industry running at a high level of capacity utilisation, however, the opportunities for entering the market as a producer could become limited in the years to come.
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