THE ECONOMY OF THE PHILIPPINES IS ON WHEELS – THE AUTOMOBILE INDUSTRY OF THE PHILIPPINES


 

ALL ABOUT THE AUTOMOBILE INDUSTRY OF THE PHILIPPINES

 

PAST

 

The automobile industry was first established and became operational during the years 1898 to 1946. At that time, the local people used animal-driven vehicles while the elite category of people could only afford these newly introduced vehicles in the market. Initially, imports from US automobile manufacturers dominated the Philippine market such as Mercury, Buick, and Ford. Later, due to various import policies and sanctions, imports of fully built cars got prohibited.

 

PRESENT

 

The automotive or automobile industry of the Philippines is considered one of the biggest industries in the Asia-Pacific region and is placed in 9th position in terms of annual revenue and growth. You would be surprised to know that most of the vehicles sold in the Philippines belong to international companies and are entirely built domestically. This production of automobiles in the Philippines comes under the PMVD program which was bought into force and governed by the Board of Investments.

 

The Philippines imports automobiles and cars majorly from these nations- Thailand, Indonesia, South Korea, Thailand, China, and India.

 

Based on the Philippines Trade Data for the last 5 years (2018-2022), the imports and exports of automobiles (excluding parts and accessories) to and from the Philippines are as follows:

 

IMPORTS AND EXPORTS OF AUTOMOBILES TO AND FROM THE PHILIPPINES

YEAR

IMPORTS

EXPORTS

TOTAL TRADE

2018

USD 8.64 billion

USD 1.11 billion

USD 9.75 billion

2019

USD 8.48 billion

USD 1.06 billion

USD 9.54 billion

2020

USD 5.16 billion

USD 939.1 million

USD 6.09 billion

2021

USD 7.00 billion

USD 1.17 billion

USD 8.17 billion

2022

USD 8.78 billion

USD 953.8 million

USD 9.73 billion

 

According to the table above, the Philippines Import Data showed a little decline in the year 2020 which can be due to the decline in the imports made by the Philippines during the pandemic but after that, the imports of automobiles in the nation took a long jump.

 

Similar is the case with the Philippines Export Data report. The country recorded a decline in the year 2020 but since then, the exports of automobiles are also rising.

 

MAJOR COUNTRIES FROM WHOM THE PHILIPPINES IMPORTS AUTOMOBILES THE MOST

 

As per the latest insights derived from the Philippines Import Data for the year 2022, the top countries from whom the Philippines Imports automobiles the most were:

 

·        Indonesia (USD 3.09 billion)

·        Thailand (USD 2.23 billion)

·        China (USD 1.27 billion)

·        Japan (USD 1.01 billion)

·        India (USD 412.17 million)

·        Korea (USD 131.4 million)

 

Apart from these nations, the Philippines also imports automobiles from Vietnam, Israel, the USA, and many more major nations.

 

MAJOR COUNTRIES TO WHOM THE PHILIPPINES EXPORTS AUTOMOBILES THE MOST

 

Just like the Philippines Imports automobiles from around the world, similarly, the nation exports automobiles too. So, according to the Philippines Export Data for the year 2022, the major nations to whom the Philippines exported automobiles the most were:

 

·        Thailand (USD 325.36 million)

·        Japan (USD 179.04 million)

·        Argentina (USD 63.06 million)

·        The USA (USD 61.95 million)

·        Indonesia (USD 56.77 million)

·        Singapore (USD 46.02 million)

 

China, South Africa, India, and Malaysia were also the biggest export partners of the Philippines in the year 2021.

 

ACTIVE CAR MANUFACTURERS IN THE PHILIPPINES AT PRESENT

 

As per the data for the month of February 2021, in total there are 58 brands that are popular and operational in the nation. Some notable brands amongst them are:

·        General Motors (operational since 2014)

·        Isuzu (operational since 1950)

·        Honda (operational since 1990)

·        Hyundai (operational since 2001)

·        Kia (operational since 1994)

·        Mercedes-Benz (operational since 1990)

·        Toyota (operational since 1988)

 

LET’S PULL THE HAND BREAK – CONCLUSION

 

In the end, we just want to put stress on the point that the automobile industry is the main driving industry of any economy and just like that, it is the major industry of the Philippines too. This can easily be analyzed by referring to the trade statistics too. In the year 2022, the contribution of the automobile sector in total exports was 1.2% whereas in total imports, the contribution of this market was 6%.

 

For more information related to The Philippines Trade Data and its recent analysis, contact TradeImeX today and get all your queries cleared. Apart from the Philippines, we also provide Import Export Data for 70+ major countries like Vietnam, Turkey, Indonesia, etc.

Location: Pitam Pura, New Delhi, Delhi, India

Comments

Post a Comment

Popular posts from this blog

IMPORT EXPORT DATA: A BOON OR BANE FOR MARKETERS?

Image
  SYNOPSIS   Foreign trade of goods, otherwise called the global exchange of physical products and services is a kind of business wherein different sorts of services and products are sold starting with one country and then onto the next in return for cash or equivalent. It is important to keep a legitimate exchange balance between Imports and exports so as to keep track of the trade deficit and surplus. Each foreign transaction, be it import or export, is first recorded in the main report known as the Import Export Data report which is maintained by the customs ports of every nation. One of the best ways to enter a foreign market is by importing or exporting goods on a regular basis. This helps in building social integrity and a mutual sense of respect between the two nations.   We would like to give you an idea of all the details available in the full-fledged Export Import Data report that enables merchants to know about the ongoing trends in a particular nati...
Read more

COLLAPSE OF SILICON VALLEY BANK AND ITS IMPACT ON THE US ECONOMY

Image
  Silicon Valley Bank, also known as SVB Bank was one of the biggest and most popular state-chartered banks which was founded in the year 1983 by Wells Fargo. The bank had its headquarters in Santa Clara, California. The bank had its branches in California as well as Massachusetts. SVB offered a plethora of services that were able to fulfill the needs and demands of the tech-based industry and related countries. Due to its exceptional services, the Silicon Valley Bank became the top choice of every tech company in the United States, and slowly and gradually this bank became the most loved and trusted choice for more than half of tech-based companies and startups. When the SVB got collapsed on 10 th March 2023, it was the 16 th largest commercial bank in the United States. Big and popular companies such as Airbnb, Block, and Pinterest were the present clients of this bank. WHY DID THE SILICON VALLEY BANK COLLAPSED ON 10 TH MARCH 2023? The only reason behind this massive col...
Read more

VIETNAM FUELS ASIA’S GROWTH IN THE YEAR 2022

Image
  WHY IS VIETNAM GROWING RAPIDLY IN CURRENT TIMES?   The story about how Vietnam became a rapidly growing economy is very inspiring for other nations that are planning to expand and grow in the international market at a very rapid pace. Talking about Vietnam, the nation registered an annual growth rate of 8.02% in the year 2022 which is one of the fastest growth rates for Vietnam after 1997. Even those big multinationals like IMF and the World Bank didn’t predict this much growth rate for Vietnam in 2022 as the year was a laid-back year when all the businesses were reopening and getting back to normal after Covid restrictions were uplifted.   Based on our study and analysis, Vietnam’s amazing performance was due to its successful handling of the global pandemic and foreign strains and tensions. Some of the other major reasons that led to the successful growth rate of Vietnam in the year 2022 are as follows:   ·         T...
Read more