PH car production jumps 19.2% in 2019

Published February 23, 2020, 12:00 AM

by manilabulletin_admin


Car production in the Philippines dramatically improved by 19.2 percent in 2019 making it the most improved among the big ASEAN car manufacturing countries but failed to reverse the overall 4.8 percent regional decline.

An annual report by the ASEAN Automotive Federation (AAF)showed that total motor produced in the region in 2019 reached 4,158,983 units or 4.8 percent down from 4,368,870 manufactured in 2018.

Among the big ASEAN car production hubs, the Philippines posted the biggest jump of 19.2 percent as local production went up to 95,094 units from 79,763 units in 2018. The increase in domestic car manufacturing could be traced to the full-year production of the car models by Mitsubishi Motors Philippines Corp. and Toyota Motor Philippines, the only two participants in the tax-incentive driven but performance-based Comprehensive Automotive Resurgence Strategy (CARS) Program of the government.

Thailand, the region’s biggest car assembler posted a considerable 7.1 percent decline to 1,013,710 units from 2,167,6934 units in 2018 while second biggest producer Indonesia also decreased production by 4.2 percent to 1,286,848 units from 1,343,714 units in 2018.

Malaysia ended flat at 1.2 percent increase to 571,632 units from 564,971 units in 2018.

Vietnam, ASEAN’s most promising manufacturing hub, registered the steepest decline of 12.1 percent with production reaching only 176,203 units from 200,436 units.

In terms of sales, the smaller car markets in ASEAN performed better in 2019 compared with its big brothers, which either posted flat or negative growth as overall regional sales dropped by a negative 2.9 percent.

AAF data showed that total motor vehicle sales in ASEAN declined by 2.9 percent to 3,458,482 units from 3,561,714 units in 2018.

The negative growth was largely pulled by the dramatic 10.5 percent negative growth of Indonesia, the largest car market in the region, to 1,030,126 units from 1,151,291 units in 2018.

Sales in Thailand also decreased by 3.3 percent to 1,007,552 units from 1,041,739 units sold in 2018. Malaysia was flat at 1 percent to 604,287 units from 598,598 units.

The Philippines managed to improve its sales by 3.5 percent to 369,941 units from 357,410 units.

The smaller markets saved the year-end performance of ASEAN with Vietnam’s market expanding by 11.7 percent to 322,322 units from 288,683 units.
Myanmar increased by a hefty 25.1 percent with sales reaching 21,916 units from 17,524 units.

Motor vehicle sales in Singapore dropped by 5.1 percent to 90,243 units from 95,243 units sold last year.

In the motorcycle segment, AAF data showed there were only three countries that submitted report for 2019. The three countries produced a total of 3,663,508 units, 3.3 percent lower than the 3,788,725 units the previous year.
Motorcycle production in the Philippines dropped by a worrisome 7.7 percent to 1,161,646 units from 1,258,566 units in 2018.

Motorcycle production in Thailand also decreased by 5.6 percent to 2,063,076 units from 1,948,480 units. Malaysia, however, significantly improved by 19 percent to 553,382 units from 465,083 units in 2018.

In terms of sales, four ASEAN countries – Philippines, Thailand, Malaysia and Singapore – reported combined sales of 3,989,658 units or 3.3 percent higher than the 3,862,551 units in 2018.

Philippines reported a positive 7.2 percent growth with sales of 1,704,900 units from 1,590,333 units. Thailand declined by 3.9 percent to 1,718,587 units from 1,788,323 units in 2018.

Malaysia improved substantially with 5446,813 units sold or 15.9 percent higher than the 2018 sales of 471,842 units while Singapore jumped by 60.6 percent to 19,358 units from 12,053 units in 2018.