PHL motor vehicle production jumps 35% in Aug.
By Justine Irish D. Tabile, Reporter
PHILIPPINE MOTOR VEHICLE output jumped by 34.7% in August, logging the second-fastest growth in the region, the ASEAN Automotive Federation (AAF) said.
In a report released on Tuesday, the AAF said the country produced 10,941 units in August, 2,816 more than 8,125 units produced a year earlier.
At 34.7%, the Philippine motor vehicle output growth was behind Myanmar’s 48.7% growth but faster than the 8.9% growth in Malaysia.
It also outperformed the 11.3% decline in the region during the month. A decline in output was seen in Vietnam (7.4%), Indonesia (14.6%), and Thailand (20.6%).
In the first eight months of 2024, Philippine motor vehicle production expanded by 17.3% to 86,585 units from 73,789 a year ago.
This was the second-fastest growth in the region, behind Myanmar, which expanded by 180% to 1,697 units in the first eight months from 606 last year.
In third spot was Malaysia, whose production grew 7.8% to 536,313 units from 497,309 a year ago.
Indonesia (18%), Thailand (17.7%), and Vietnam (8.5%) recorded a drop in production in the January-to-August period. The region’s production had fallen by 12% to 2.51 million as of end-August.
Meanwhile, motorcycle and scooter production in the Philippines surged by 101.3% in August to 115,974, the fastest growth so far this year.
The Philippines posted the highest growth in motorcycle and scooter production among the four countries in August. Indonesia posted a 6.9% growth in production to 630,601 units, followed by Malaysia where output went up 3.3% to 53,323 units.
Motorcycle and scooter production in Thailand slumped by 15.8% to 144,244 units in August.
Overall, the four countries produced 944,142 motorcycles and scooters in August, up by 8.5% from 870,144 units a year ago.
In the first eight months, Philippine motorcycle and scooter production jumped by 5.2% to 893,293, followed by Indonesia which increased production by 2.2% to 4.69 million.
Thailand saw a 12.2% drop in production to 1.29 million, while Malaysia’s output fell by 9.6% to 365,876.
This brought the region’s total motorcycle and scooter production to 7.24 million in the January-to-August period, down 1% from 7.31 million a year ago.
Vehicle manufacturers may have ramped up production in August in anticipation of increased demand.
Toyota Motor Philippines, Inc. (TMP) First Vice-President for Corporate Affairs Josephine Villanueva said production is also driven by market requirements.
“We have been placing greater importance in providing the best Toyota ownership experience to our customers. As the customer requirements continue to evolve, we ensure that we provide value-chain offerings suited to the needs of the Filipino market,” she said in a Viber message.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said higher vehicle sales might have also spurred manufacturers to ramp up production.
“For the coming months, rate cuts could further reduce borrowing costs, thereby further supporting demand for auto and motorcycle loans that could, in turn, lead to faster growth in vehicle and motorcycle sales and production,” he said in a Viber message.
Last week, TMP President Masando Hashimoto cited cooling inflation, strong remittances from overseas Filipino workers and interest rate cuts as revenue drivers.
In the AAF report, the Philippines had the third-fastest growth in motor vehicle sales in the first eight months at 10.3% to 304,765 units.
Meanwhile, motorcycle and scooter sales grew 4.9% in the January-to-August period to 1.1 million, representing the fastest growth in the region.
Region-wide, motor vehicle sales declined by 7.7% to 2.02 million, while motorcycle sales were almost flat (0.3%) at 6.98 million.