The Philippines also known as the Republic of Philippines is a tropical country situated in west of the Pacific Ocean. It is an island country in Southeast Asia. The Philippines is the seventh most populated country in Asia. It also is the twelfth most populated country in the world. The Philippines comprises of almost 7000 islands making it a country which has the most beautiful beaches in the world. It has one of the world’s longest coastline. The Philippines was ruled by the Spanish for almost 350 years. It has strong cultural and spiritual values. The country is unique in its own ways.
The Philippines is one of the fastest emerging markets in the world. The economy of the Philippines is mainly dependent on agriculture. However, markets such as services and manufacturing are developing to make a shift in the country’s dependence on agriculture. The Philippines exports goods like garments, coconut oil, fruits, petroleum, semiconductors, electronic products, transport equipment and copper products. These products are exported to countries like Thailand, United States, Japan, Singapore, Hong Kong and many other countries. There has been tremendous growth in the economic compared to the last few years.
The Philippines is a member of ASEAN group. It has become an attractive market for foreign investors. The automotive industry is a capital intensive industry with high returns. However, the automotive market is the smallest in the Philippines compared to ASEAN region. The Philippines Automotive Competiveness Council Inc. known as PACCI was developed to promote development of domestic auto development. The members of this council include companies that are into bulk car manufacturing. This council plays a major role in the development of the automotive industry. PACCI aims at creating The Philippines a hub for production of automobiles and therefore boosting the automotive market. It also aims capturing a higher market share in the automotive market in ASEAN countries. PACCI wants the Philippines to be a global hub for all human resource developments related to automobile.
The growth of the automotive markets has not been as expected. There are several factors responsible to hamper its growth. These factors include reasons like pressure of smuggling, poor implantation of safety regulations and so on. There has also been a huge gap in the supply chain of auto parts which has hampered the growth of the automotive market. There have not been enough manufacturers of critical part makers in the automotive market. There is a need to build a pool of such manufacturers. This will indeed help the local car markers.
There is an important role of the government to improve the condition of the automotive market. The government has to be create polices such as tariffs, incentives, import laws and programs which will benefit the growth of this market.
