Bargaining Power of Buyers

 Number of customers:
The Philippine automotive industry consists of three major markets: motor vehicles,
motor vehicle parts, and component manufacturing. There are five passenger car
assemblers and 22 commercial vehicle assemblers in the country with a combined
capacity of 150,000 units per year. In 2018, 79,763 units were produced by the industry.
In 2017, parts exports accounted for $3.6 billion while imports accounted for $6.6 billion.
Sales performance of brand new vehicles in 2019 showed 3.7% minimal growth, with
416,637 units sold. Passenger vehicles accounted for 31% of total vehicle sales for 2019.
Commercial vehicles (SUVs, multi-purpose vehicles, pickups, vans, buses and trucks)
comprised the remaining 69%. With the initiation of the Government`s $180 billion
“Build Build Build” infrastructure initiative program, need has increased for commercial
vehicles.
There is a niche market for U.S. automobiles, parts, and automotive aftermarket products.
The average vehicle lifespan in the Philippines is 15 years, and often longer. In 2018,
there were 4.4 million registered passenger and commercial vehicles, representing a large
market for aftermarket products such as chemicals, equipment, accessories, and
replacement and maintenance parts. While this market is also very competitive, U.S.
vehicles in the country still need repair. This includes U.S. vehicles purchased before the
rise of Japan and Korea that need U.S. parts. U.S. firms offering innovative and
reasonably priced products do have a chance in this market.
Source: https://www.trade.gov/market-intelligence/philippines-automotive-market
 Size of each customer order:
AVID released Q1 2020 sales report
The Association of Vehicle Importers and Distributors (AVID), which is comprised of 20
companies representing 26 vehicle brands in the country, has released its latest sales
report – from January to March 2020. As you would have guessed, the numbers aren’t
pretty.
Based on the report, the members of AVID were only able to sell a total of 14,404 cars in
the first three months of this year. Compared to the same period in 2019, the collective
experienced a 34.4 percent dip in car sales – a harrowing turnout, but not surprising at all.
These numbers include passenger cars, light commercial vehicles, and commercial
vehicles.
“The local industry is reeling from this invisible enemy as vehicle manufacturing,
importation, distribution, and maintenance have stopped completely. Demand has
likewise declined as consumers spend on more urgent needs. With this disruption, we
estimate that car sales may drop by around 40% for the year,” AVID president Ma. Fe
Perez-Agudo said.
March vehicles sales experienced the most notable drop when compared to February
2020 – only 2,649 units were sold in March, which is a 58 percent decrease when
compared to February’s 6,262 units. Take note that the enhanced community quarantine
was enforced on March 16 in NCR while the Luzon-wide lockdown followed a day after,
explaining the plunge.
Despite the harrowing outcome for the first three months of 2020, there are companies
who recorded a positive sales output as compared to the numbers from last year.
Auto Nation Group – comprised of brands Chrysler, Jeep, Dodge, and Mercedes-Benz –
sold 178 units of passenger cars from January to March 2020, which is a bit of an
increase compared to the 159 units sold in the same period last year. It wasn’t mentioned,
however, from which specific brands do these numbers came from. Did more people
want a Mercedes at the start of the year only to find out that they won’t be able to drive
them frequently? We’re not sure.
Ford Group Philippines also tallied positive numbers for Q1 2020 per AVID’s report.
There were 415 passenger cars sold by the company from January to March – a 300
percent increase from the 104 units sold in the same period last year. It’s unclear,
however, which of the Ford vehicles are considered under the passenger cars segment.
One thing’s for sure – the Ranger and Everest, the brand’s bestsellers, are under light
commercial vehicles.
Geely, under Sojitz G Auto Philippines, continued its strong sales presence despite its
sole dealership in Quezon City and one model on offer. Geely Philippines entered 2020
with 229 Coolray units sold and ended the first three months with 295 more units tallied.
This says a lot about the company’s strong marketing campaign, as well as the trust of
consumers with the brand and the car itself.
Source: https://wheels.ph/sinking-philippine-car-sales-notables-and-a-few-silver-linings/
 Differences between competitors:

Dealerships are more than just a shiny showroom filled with the latest cars on the market.
They also serve as places where you have your vehicle serviced and maintained. Think of
it as a hospital of sorts for your car. The better access you have to a dealership, the easier
it is to service your vehicle.
With that being said, we take a look at which car brands in the Philippines have the most
number of dealerships. To set a parameter, the brand needs to have at least 20 dealerships
in the country in order to make it on the list. It is important to note, that all the dealership
numbers have been collected based on what is being displayed on each automaker's
official websites.
Toyota Motor Philippines (72)

Toyota Motor Philippines has a staggering total of 72 dealerships nationwide. It has 18

Hot on the heels of the popular Japanese automaker is Suzuki Philippines, Inc. The car
company has a total of 72 dealerships nationwide. It matches the dealership number of
Toyota. The automaker has 21 dealerships in Metro Manila, 28 in Luzon, 16 in the
Visayas, and 8 in Mindanao. With its wide dealership coverage in the country, it’s easy to
see how it continues to rise in the local car brand rankings this year. It takes the second
spot as not all of its dealerships come with a service center attached to it thus giving the
top spot to Toyota as all of its dealerships come with services facilities.
Mitsubishi Motors Philippines Corporation (56)

Coming in third is Mitsubishi Motors Philipines Corporation. The Japanese car brand has
56 dealerships spread all across the Philippines ready to serve car buyers and existing
customers. The brand was able to make a name for itself in the country thanks to its
popular and rugged line of SUVs, pickups, and small cars. The car company has 14
dealerships in Metro Manila, 26 in Luzon, 9 in the Visayas, and 7 in Mindanao.
Ford Philippines (50)

Next up on the list is Ford Philippines. The Blue Oval opened its 49th dealership in
Marikina City. Despite having a smaller dealership count, Ford was able to capture a
substantial chunk of the automotive market thanks to the Everest and Ranger. The Blue
Oval would yet again open another dealership in 2020 to officially hit the 50 dealership
mark. The American car brand has 13 dealerships in Metro Manila, 19 in Luzon, 10 in
the Visayas, and 7 in Mindanao.
Nissan Philippines, Inc. (45)
Just behind the American brand is Nissan Philippines Inc. in fifth place. The Japanese
automaker has 44 dealerships nationwide. The brand has been on a roll by aggressively
adding more dealerships to its lineup in 2019. Through the months of September and
October, the Japanese carmaker has added three new dealerships with another in the
works. The company also opened a new service center in Cebu. It has 13 dealerships in
Metro Manila, 15 in Luzon, 10 in the Visayas, and 7 in Mindanao.
Isuzu Philippines Corporation (44)

Coming in sixth is Isuzu Philippines Corporation. Just one shy from Nissan, Isuzu has 43
dealerships nationwide ready to cater to those who are in the market for reliable SUVs
and pickups. It has 8 dealerships in Metro Manila, 20 in Luzon, 8 in the Visayas, and 8 in
Mindanao.
Hyundai Asia Resources, Inc. (41)
Coming in strong with 41 dealerships in total in the Philippines is Hyundai Asia
Resources, Inc. The South Korean carmaker comes in 7th place as it was able to beat out
its other Japanese rivals thanks to the recent opening of new dealerships. Hyundai has 11
dealerships in Metro Manila, 18 in Luzon, 8 in the Visayas, and 4 in Mindanao. While the
automotive brand has 50 dealerships in total some of these are just for its trucks and
buses, therefore these were not included on the list as it mainly pertains to passenger
vehicles.
Honda Cars Philippines, Inc (35)

Right behind the Korean carmaker is Honda Cars Philippines, Inc. in the eighth position.
The Japanese brand has dealerships many dealerships nationwide, however, during the
pandemic some of these were unfortunately forced to shut down. The carmaker has 9
dealerships in Metro Manila, 16 in Luzon, 5 in the Visayas, and 5 in Mindanao. Despite
its ranking in terms of dealership numbers, Honda has the capabilities to match the likes
of the higher-ranked brands in terms of sales and customer satisfaction as reflected by the
latest J.D. Power survey.
Kia Philippines (35)
Kia Philippines gets ninth place with 35 dealerships all over the country. Kia has changed
its owners and is now under the leadership of the Ayala Group of Companies. The
Korean brand has 8 dealerships in Metro Manila, 13 in Luzon, 7 in the Visayas, and 7 in
Mindanao. The slight increase in dealership numbers might have something to do with
the South Korean brand sharing some facilities with its other partner brands under the
Ayala Automotive umbrella.
Chevrolet Philippines (25)
Just four shy from the Korean automotive brand is Chevrolet Philippines in tenth place.
The Goldern Bowtie has 25 dealerships in the Philippines. The company made a name for
itself in the country thanks to the sales of the Trailblazer and Colorado. It currently has 9
dealerships in Metro Manila, 9 in Luzon, 4 in the Visayas, and 3 in Mindanao. The
American brand has two other dealerships that are soon to rise. While the brand
originally had 28 dealerships in the country in 2019 the pandemic has reduced its number
down to what it is now.
Foton Philippines (28)
An established commercial vehicle brand in the Philippine is Foton. The Chinese
company has established itself well in the local market with 28 dealerships total
nationwide and features a wide array of vehicles both for normal use and commercial use
as well. The automotive brand has 4 dealerships in Metro Manila, 14 in Luzon, 6 in the
Visayas, and 4 in Mindanao.
It's no surprise that Toyota has the most number of dealerships in the Philippines. What is
surprising, however, is that Suzuki’s equally strong foothold. If dealership numbers are
anything to go by, then those two Japanese brands have the most coverage in the
Philippines in terms of sales and services. But there are brands, despite a low dealership
count, that still manage to sell and service a lot of cars. It goes to show that sometimes
it’s not the number that matters but the brand and reputation behind the name.
Source: https://www.autodeal9.sirqolabs.com/articles/car-features/which-car-brands-in-
philippines-have-most-dealerships