ASEAN is one of the world’s fastest-growing markets, and has all the right elements for a robust automotive sector. For more information, please email consulting.bc@ipsos.com

1. 1 © 2015 Ipsos.
FootonthePedal
OpportunitiesfuelledbyaBooming
ASEANAutomotiveIndustry

2. 2 © 2015 Ipsos.
This presentation will cover the following areas:
 HOW IS ASEAN PERFORMING IN VEHICLE SALES
 GROWTH OUTLOOK FOR THE PHILIPPINES
 WHERE ARE THE OPPORTUNITIES

3. 3 © 2016 Ipsos.
660 million
population
Trillion
combined
GDP (USD)
2.3 Largest
economy
in the
world
7th Largest
economy
in the Asia
3rd
If ASEAN were a single country
ASEAN
ASEAN is one of the world’s fastest-growing markets, and has all the right elements for a robust
automotive sector
Total vehicles sold in ASEAN is over 3 million
20 million 17 million

4. 4 © 2015 Ipsos.
67 million affluent class households in ASEAN
expected to double to 125 million households by 2025
The luxury sector grew 11% from 2013-14 and expected to keep
showing strong growth
- View their car as a
status symbol
- Emotion “Love to drive”
- They intend to buy when
they are financially able
- The need for utility
4 out of 5 Indonesian
and Thai consumers:
2 out of 3 Filipino
consumers:
intend to acquire a car
within the next two years
(2015-16).
motivations
ASEAN: Growth Outlook for the Auto Sector
Growing middle / affluent class customers in Southeast Asia are creating a positive impact on automotive demand,
although the customers’ needs vary across segments

5. 5 © 2016 Ipsos.
OVERVIEW OF THE SOUTH EAST ASIAN AUTOMOTIVE INDUSTRY, 2015
Thailand
• Population: 69mil
• GDP per capita: U$S5,737
• Vehicle production: 1,913,002 units
• Vehicle sales: 799,632 units
Malaysia
• Population: 31mil
• GDP per capita: U$S9,657
• Vehicle production: 614,664 units
• Vehicle sales: 666,674 units
Philippines
• Population: 102mil
• GDP per capita: U$S2,850
• Vehicle production: 98,768 units
• Vehicle sales: 288,609 units
Indonesia
• Population: 255mil
• GDP per capita: U$S3,357
• Vehicle production: 1,098,780 units
• Vehicle sales: 1,013,291 units
Vietnam
• Population: 92mil
• GDP per capita: U$S2,109
• Vehicle production: 171,753 units
• Vehicle sales: 209,267 units
Singapore
• Population: 5.5mil
• GDP per capita: U$S52,744
• Vehicle production: 0 units
• Vehicle sales: 78,609 units
Source: ASEAN Secretariat, ASEAN Automotive Federation
1st
2nd
3rd
4th5th
6th

6. 6 © 2016 Ipsos.
Philippines, Vietnam and Singapore registered strong double-digit annual growth in sales of motor vehicles in the past 3
years
ASEAN: SALES OF MOTOR VEHICLES (PASSENGER & COMMERCIAL), 2013 - 2016
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Indonesia Thailand Malaysia Philippines Vietnam Singapore
2013
2014
2015
2013-14 -2% -34% 2% 29% 35% 39%
2014-15 -16% -9% 0% 23% 57% 66%
Aug 15-Aug 16 3% 0.2% -15% 28% 35% 62%
Y-O-Y Growth:
Source: ASEAN Automotive Federation

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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Thailand Indonesia Malaysia Vietnam Philippines
2013
2014
2015
Thailand is still ASEAN’s automotive production hub
ASEAN: PRODUCTION OF MOTOR VEHICLES (PASSENGER & COMMERCIAL), 2013 - 2015
Source: ASEAN Automotive Federation
2013-14 -23% 7% -1% 29% 12%
2014-15 2% -15% 3% 42% 11%
Aug 15-Aug 16 3% 5% -17% 39% 16%
Y-O-Y Growth:

8. 8 © 2016 Ipsos.
Growth outlook for
Philippines

9. 9 © 2016 Ipsos.
Philippines: number of registered motor vehicles, 2015
~ 10% OF ALL VEHICLES ON THE ROAD ARE NEWLY REGISTERED
Cars UV SUV Trucks Buses Trailers
New 110,952 183,982 73,099 40,543 2,788 7,975
Renewal 851,413 1,793,517 355,122 344,027 29,155 36,971
12% 9%
17%
11% 9%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Renewal New
Source: Land Transportation Office of the Philippines
Note:
UV – Utility Vehicle
SUV – Sports Utility Vehicle
In Malaysia, only 2.6% of all vehicles on the road are
less than a year old.

10. 10 © 2016 Ipsos.
Philippines’ growth is estimated to reach 7% in 2016, after dropping by 0.2 percentage points from 7.2% in 2013
PHILIPPINES: REAL GDP GROWTH, 2005 - 2015
Source: Department of Statistics Malaysia (DOSM)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016f
GrowthRate(%)

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Sales of passenger cars and commercial vehicles have been on an upward trend from 2011 – 2014,
PHILIPPINES: SALES OF MOTOR VEHICLES (PASSENGER & COMMERCIAL), 2005 – 2015
Source: Department of Statistics Malaysia (DOSM)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2007 2008 2009 2010 2011 2012 2013 2014 2015
Passenger Car Commercial Vehicle
CAGR (2005 – 2014)
11%
14%
YTD: 164,334
YTD: 97,036

12. 12 © 2015 Ipsos.
Determinants of sales of new vehicles
Financing
Advertising
& marketing
Car price
Consumers’
income
Affordability
in ownership
Population
demographics
New models
Government
incentives

13. 13 © 2015 Ipsos.
Where are the
opportunities?

14. 14 © 2016 Ipsos.
Sale of motor vehicles’ parts and accessories, as well as maintenance / repair represented a significant percentage (~40%) of
total sales value of auto goods and services
LOOKING BEYOND THE NORMAL REVENUE STREAM
60%
25%
15%
Sale of motor vehicles
Sale of motor vehicle parts and accessories
Maintenance and repair of motor vehicles
60%
25%
15%
Not forgetting supporting services: financing, insurance etc.

15. 15 © 2016 Ipsos.
WHILE THERE IS ROOM FOR PHILIPPINES TO BOOST ITS LOCAL PRODUCTION AND
ASSEMBLY OF VEHICLES AND COMPONENTS, PERHAPS THE MOST INTERESTING
OPPORTUNITIES FOR THE COUNTRY LIE IN NEW AUTOMOTIVE GROWTH AREAS
Ride-hailing
technologies
Connected car
technologies
Semi-autonomous
driving

16. 16 © 2016 Ipsos.
Philippines and the world is yet to be
locked in one technology or approach.
Technology will evolve to best suit the
local environment.
BECAUSE ALL THESE TECHNOLOGIES ARE STILL NASCENT,
EVERYTHING IS STILL UP FOR GRABS

17. 17 © 2016 Ipsos.
THE UBER EFFECT
Ride-hailing
driven in Total
Global Km
2016
2030
5%
25%
Opportunities to compete, leverage or complement on transportation sharing economy is huge

18. 18 © 2015 Ipsos.
Offering vehicle as more than a mode of transportation
Connected Car will help to…

19. 19 © 2015 Ipsos.
Offering vehicle as more than a mode of transportation
What is a Connected Car?

20. 20 © 2015 Ipsos.
BIGGEST PROFITS FROM AUTONOMY WILL COME FROM PRODUCING AN OPERATING
SYSTEM – SOMETHING THAT INTEGRATES SOFTWARE AND ALGORITHMS
Human Machine Interface – e.g. switch
between autopilot and human control
Digital Security – protection of
personal data from hacking
Big Data – leverage big data to provide
added value to consumers

21. 21 © 2015 Ipsos.
Opportunities for the ASEAN automotive industry
lie in selling more of everything (e.g. more of cars,
components, lubricants and etc.) and maximizing
the potential of new growth areas.
Current GDP per capita is about USD ~3,000 and it is expected
that the growth of car sales will not slow down until the country’s
GDP per capita reaches USD ~5,000
For the Philippines:

22. 22 © 2015 Ipsos.
Thank you