2018 PHILAUTO, the Philippine (Manila) International Automotive Industry Exhibition

Exhibition Overview:

Exhibition Name: PHILAUTO 2018, Philippines (Manila) International Automotive Industry Exhibition

Exhibition Time: July 13-15, 2018

Exhibition Location: SMX Convention Center

Exhibition Introduction:

The Manila International Auto Parts Exhibition is held annually in Manila, Philippines. This exhibition will be the largest and most professional international exhibition of automotive and motorcycle parts, services, and repair equipment in the Philippines, as well as a professional exhibition for technical exchanges and new product launches in the automotive industry. The exhibition is organized by AMB Exhibition Company of Malaysia, a leading exhibition and conference organizer in Asia. The previous session attracted over 300 exhibitors from Taiwan, Indonesia, Vietnam, Malaysia, Cambodia, Laos, China, and the Philippines.

Market Analysis:

Why Choose the Philippines?

1. Market Overview:

l The Philippines has an area of 299,700 square kilometers and a population of approximately 92.2 million. Currently, there are 3 million Chinese people in the Philippines, supporting one-third of the Philippine economy. The Philippines' per capita GDP exceeds US$1600, making it a country with strong purchasing power in ASEAN. The Philippines is one of the largest importers of used cars in Asia, and the huge used car repair and maintenance market will effectively drive the development of the auto parts market. As one of the new BRICS 11 countries, the Philippines will be another important country attracting global investment after the BRICS 4 countries. Population and per capita income growth are expected to stimulate continued growth in Philippine car sales in the coming years. Vehicles assembled in the Philippines account for 39% of the total Philippine car market; the rest are original imported vehicles.

l The Philippines is increasingly becoming a global production base for gearboxes, with its gearbox exports increasing year by year. The value of gearboxes exported from the Philippines to ASEAN countries is US$3.5 billion. Japanese auto companies such as Toyota and Mitsubishi have set up factories in the Philippines to produce gearboxes, which has greatly boosted the Philippine gearbox production industry.

2. The Philippines will invest US$600 million to support the automotive industry:

According to industry insiders, in the Philippines, due to the high import of raw materials and lack of infrastructure, the cost of automobile manufacturing is high. Therefore, most automobile companies choose to import cars from foreign countries instead of local production. Domestic car sales only account for 20% of the national total sales.

In 2015, the Philippine government announced that it would provide US$600 million in subsidies to the automotive industry over the next six years to curb and improve declining automobile production and catch up with competitors. The government plans to provide approximately US$100 million annually in incentives to support the production of three vehicle models. After completing a three-year study, at least 600,000 vehicles will be encouraged to be produced.

3. Rapid Growth in Automobile Sales:

In the first six months of 2016, Philippine car sales reached 167,481 units, a year-on-year increase of 27.4%. The Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association of the Philippines (TMA) said in their joint report that the increase in car sales was mainly due to strong growth in commercial vehicle sales, up 33.3%; passenger car sales also increased by 18.5%.

Philippine commercial vehicle sales rose from 78,687 units in the same period last year to 104,921 units. Among them, light commercial vehicle sales were 69,414 units, an increase of 34.4% year-on-year. Sales of Asian multi-purpose vehicles reached 29,956 units, up 29% year-on-year. During the same period, light truck sales were 3,272 units, up 44.1% year-on-year; while category four trucks and buses were 1,321 units, up 26.9%; and category five trucks and buses were 958 units, up 94.3%. Philippine passenger car sales rose from 52,778 units in the same period last year to 62,560 units. In 2016, the sales target for the automotive industry was approximately 350,000 units, a 10% increase over 2015. In June alone, car sales reached 32,993 units, a year-on-year increase of 36.4% and a month-on-month increase of 8.8%.

Why Choose the Manila Market?

Manila is the economic center of the Philippines, concentrating more than half of the country's industrial enterprises, mainly textile, oil pressing, rice milling, sugar refining, tobacco, rope, and metallurgical enterprises, with an output value accounting for 60% of the national total. Manila is an important transportation hub and trading port in the Philippines, concentrating 1/3 of the country's export goods and 4/5 of its import goods.

Japanese cars are everywhere in Manila, and there is no car scrapping system in Manila. Therefore, there are a large number of used cars on the market. Used car parts are damaged faster and need to be replaced with new parts, so the auto parts market in the Philippines is very strong.

Motorcycles are not banned in the Philippines, so there are various motorcycles and modified motorcycles on the road. This shows that motorcycle parts also occupy a strong market in the Philippines. Moreover, a large part of the financial support in the Philippines comes from Chinese people, so it is conceivable that the sales of Chinese auto and motorcycle parts in the Philippines are significant. There is a dedicated Chinatown in Manila, where there are motorcycle parts retailers and a parts and tire market called Banawe, which shows the soundness of the market.

Exhibition Scope:

Ø Complete Vehicles: Commercial vehicles, buses, and motorcycles, etc.;

Ø Auto Parts and Accessories: Airbags, air conditioners, axles, batteries, bearings, brakes, bumpers, cables, clutches, car covers, essential oils, explosion-proof films, car fragrances, seat covers, mats, vehicle equipment, etc.;

Ø Motorcycle Parts and Accessories: Alarms, batteries, chains, components and accessories, engines, helmets, mirrors, rims, shock absorbers, etc.;

Ø Tire Category: Tires, casings, tubes; wheels, rims; tire accessories; tire repair equipment; tire and wheel production; tire retreading;

Ø Automotive Services: Repair and maintenance, professional tuning system parameters, modification of system parameters, etc.

Contact Information:

Shandong Zhenghe International Exhibition Co., Ltd.

Address: Room 905, Building 1, Xiangtai Plaza, No. 129, Yingxiongshan Road, Shizhong District, Jinan City, Shandong Province (250002)

Contact Person: Zheng Xiao, Han Chi, Miao Shujin, Duan Zhenzhen, Zhou Chao, Wei Rui

Tel: 0531-82726908 61314322 86971926 86985005 82770583 86085400

Website: www.brightway.com.cn