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Aftermarket Summary
The average vehicle lifespan in the Philippines is at least 15 years. The used car market that caters to the budget conscious is very active. In addition, poor road conditions that contribute to the wear and tear of vehicles are common. All these create a high demand for replacement and maintenance parts in the country.
American tires, car care products, oils, additives, and lubricants have a strong following in the Philippine market because of its quality. European brands also have an established presence in this segment. However, cheaper brands from other Asian countries like China make it very challenging for new U.S. products to compete. Replicas of aftermarket parts and components are popular because of its attractive low price. New market entrants should have their products competitively priced and must have an aggressive distributor. Since there are a significant number of well-known brands in the market, the Philippine distributor/partner plays an important role to create awareness and demand.
Electric Vehicles Market
The Department of Energy (DOE) has started delineating the set of policies that it will be pushing as anchor to the public transport modernization program in the country. The DOE said it will support the development of alternative technology fuel and fuel options that demonstrate energy efficiency, such as hybrid and electric vehicles in the transport sector. However, even the deployment of EVs and other facets of public transport modernization in the country, have not been gaining as much traction –compared to other countries in the Southeast Asian region. That was mainly due to nascent public acceptance.
Best Prospects for U.S. Exports
Market Trends & Demand
Industry leaders expressed optimism that sales will pick up in 2019 as market conditions improve, even with the second round of excise tax on petroleum products as called for by TRAIN LAW 2, taking effect in January 2019. Consumers are also expected to have adjusted to the new auto prices as they plan to acquire new vehicles in 2019.
The Philippines is having a mid-term election in May 2019, so experts see increased spending which can spur vehicle sales. There will be continued interest in electric vehicles and alternative fuels.
Pick-ups which are used both for personal and commercial purposes will continue to be in demand because these are exempted from excise tax as compared to SUV’s.
MArket trends