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Nielsen sees car buying boom in the Philippines
Publication Date : 25-04-2014
The level of car ownership in the Philippines is among the lowest globally, with an estimated 47 per cent of Filipino households not owning their own cars - the fifth lowest globally - according to a study by the market research firm Nielsen.
However, the latest edition of the Nielsen Global Survey of Automotive Demand revealed that local consumers are showing strong intentions of purchasing a new car that will drive much of the local automotive demand in the coming two years.
“Automotive demand in the Philippines has been relatively low and for many households, owning a car has been financially out of reach,” said Nielsen Philippines managing director Stuart Jamieson in a statement.
He stressed, however, that Nielsen’s study pointed to “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.”
The study found that car ownership was relatively low in the Philippines, with 47 per cent of Filipino households not owning a car, while Malaysia posted the third highest level of car ownership globally (93 per cent) and the highest incidence of multiple car ownership globally at 54 per cent of households who have more than one car.
Despite the low ownership level in the country, Filipino consumers join Indonesians and Thais, all ranking in the top 10 countries globally for intention to acquire a car within the next two years.
The study revealed that 81 per cent of Indonesian consumers and 79 per cent of Thai consumers intend to acquire a car within the next two years, as do 76 per cent of Filipinos, compared to just 65 per cent globally.
The current car owners in the Philippines display the highest level of intention to upgrade globally. Nielsen said that 96 per cent of Filipino car owners intend to upgrade their vehicle when they are financially able, as do 95 per cent of car owners in Indonesia, 93 per cent in Malaysia, 89 per cent in Thailand, and 87 per cent in Singapore, compared to a global average of 89 per cent.
In terms of how they view their cars, Filipino car owners are almost as pragmatic as their Singaporean counterparts. Eighty-eight per cent of Singaporeans view their car as a tool to get them where they are going, followed by 87 per cent of Filipinos and Indonesians, 85 per cent of Malaysians and 82 per cent of Thais.
Many Southeast Asian car owners also believe their car is an important symbol of the success they have achieved in life, and the Philippine market along with two other Southeast Asia markets ranked in the top 10 countries globally when it came to viewing their car as a status symbol.