The Philippines is one of the leading countries in automotive manufacturing. It starts well from the components, parts and building which also serves domestic and foreign market. Over the years, the evolution of automotive in the Philippines changes drastically due to the trend, material and regulation.
Growth of Automotive in The Philippines
In recent years, the growth of automotive in Philippines has been boosted. Most likely, the companies produce passenger cars and commercial vehicles. With such contribution, the country has stable economy from this sector and has been well-known at least in South East Asia.
Not only the price and material, the country is very competitive when it comes to skilled labours. As the latest, the country has achieved full capacity of utilization for automotive components and parts production. It becomes a large opportunity for the companies to thrive far better.
Evolution of Automotive in The Philippines
Automotive industry in the Philippines is thriving well especially manufacturing of parts and component. Recently, the country has about 272 kinds of automotive production. Annually, the Philippines industry creates about 250,000 units which have been standardized by ISO.
Thus, the growth in the automotive sector generated employment, value, trust, and share in GDP. From the automotive industry itself, the contribution is about 4 percent of GDP. The evolution is increasing significantly compared to a decade ago.
As a country with high number of population, the evolution in automotive helps the productive demographic to earn money domestically. This sector employs abou 8,000 workers in manufacturing. While for automotive support, the estimation is about 350,000 workers.
Thankfully, not only that. The evolution also happens for the automotive brands. The Philippines obtained the great name in Asia for the final goods and services they serve. Investors nowadays come to the country to have some investments since it’s leading compared to other countries.
Development of Microbility Vehicles
As population in the Philippines keeps increasing, the needs of transportation for mobility is increasing as well. The number of those who use cars is only 12 percent of the total population. The rest is using small vehicles or named as microbility for efficiency.
The evolution is occurring and becoming more popular since many people avoid being in traffic trap for hours. They tend to choose bikes and scooters for school and work. The growth is higher over the years since they are cheaper for daily activities.
However, the evolution of microbility in Philippines is categorized as a not-wise choice since scooters isn’t in the class of motor vehicles. The maximum speed of it is less than 26km/hour. Since the popularity in increasing, they choose to expand in global market especially SEA countries.
After the expansion of microbility in SEA countries, the Philippines is well-known as a big producer of motorcycles country in the world. Even during pandemic, it contributes about 35 percent of sales. The competition is pretty solid and stable even in a global crisis era.
The evolution of automotive in the Philippines is a huge achievement for the country’s income. This country can hold their population to stay working in the country and increase their own GDP. For the microbility itself, it’s not only for SEA countries but also India, Japan, Taiwan and China.