Filipino middle class to grow auto industry in two years – Nielsen survey

The local automotive industry may see hefty growth in the next two years, fueled by the Filipino middle class, a survey released by Nielsen on Thursday showed.

 

The Philippines has the fifth lowest car ownership in the world, with about 47 percent of Filipino households not owning a car, according to the Nielsen Global Survey of Automotive Demand. 

 

However, the Philippines is among the Top 10 countries globally with the highest intention to acquire a car within the next two years.

 

The survey showed 76 percent of Filipinos will buy a car in the next two years.

 

"Automotive demand in the Philippines has been relatively low and for many households owning a car has been financially out of reach," Nielsen Philippines managing director Stuart Jamieson said in a statement.

 

"We, however, expect a more robust automotive demand in the coming years as more households join the middle class and reach the financial means to make their first car purchase," he said.

 

This can be attributed to the growing purchasing power and availability of car options in the market, Metropolitan Bank and Trust Company research head Ildemarc Bautista told GMA News Online.

 

"You have more people able to buy a car due to the improving economy leading to expectations that we're going to have more car sales," he said.

 

"More car options, that's also one of the things driving this. There's a movement towards having lower-priced cars," he added.

 

Earlier this month, Chamber of Automotive Manufacturers of the Philippines Inc. president Rommel Gutierrez said the industry may raise a sales forecast of 230,000 units by the middle of the year based on results in January and February.

 

Globally, of those who intend to buy a new car, the current car owners in the Philippines have the highest level of intention to upgrade at 96 percent, the survey said.

 

Among Southeast Asian car owners, Filipinos at 72 percent are the fifth highest globally who view a car as an important symbol of the success they have achieved in life.

 

"Consumers, particularly emerging middle class consumers, are not only in a better position to buy the things they want and need, they are also looking to make purchases which demonstrate their improving social status," Jamieson said. 

 

"For many of these consumers, car ownership is the ultimate symbol of the success they have achieved," he added.

 

The Nielsen Global Survey of Automotive Demand polled more than 30,000 Internet respondents in 60 countries from August 14 to September 6, 2013. – VS, GMA News