January 18, 2017, 1:05 am
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1 Philippine Peso = 0.07373 UAE Dirham
1 Philippine Peso = 2.57378 Albanian Lek
1 Philippine Peso = 0.03554 Neth Antilles Guilder
1 Philippine Peso = 0.31799 Argentine Peso
1 Philippine Peso = 0.02683 Australian Dollar
1 Philippine Peso = 0.03594 Aruba Florin
1 Philippine Peso = 0.04015 Barbados Dollar
1 Philippine Peso = 1.59024 Bangladesh Taka
1 Philippine Peso = 0.03683 Bulgarian Lev
1 Philippine Peso = 0.00756 Bahraini Dinar
1 Philippine Peso = 33.69343 Burundi Franc
1 Philippine Peso = 0.02008 Bermuda Dollar
1 Philippine Peso = 0.02866 Brunei Dollar
1 Philippine Peso = 0.13752 Bolivian Boliviano
1 Philippine Peso = 0.06466 Brazilian Real
1 Philippine Peso = 0.02008 Bahamian Dollar
1 Philippine Peso = 1.3697 Bhutan Ngultrum
1 Philippine Peso = 0.21257 Botswana Pula
1 Philippine Peso = 401.92732 Belarus Ruble
1 Philippine Peso = 0.03975 Belize Dollar
1 Philippine Peso = 0.02636 Canadian Dollar
1 Philippine Peso = 0.02027 Swiss Franc
1 Philippine Peso = 13.25216 Chilean Peso
1 Philippine Peso = 0.13857 Chinese Yuan
1 Philippine Peso = 59.08452 Colombian Peso
1 Philippine Peso = 10.94158 Costa Rica Colon
1 Philippine Peso = 0.02008 Cuban Peso
1 Philippine Peso = 2.08352 Cape Verde Escudo
1 Philippine Peso = 0.51054 Czech Koruna
1 Philippine Peso = 3.5802 Djibouti Franc
1 Philippine Peso = 0.14047 Danish Krone
1 Philippine Peso = 0.93074 Dominican Peso
1 Philippine Peso = 2.20173 Algerian Dinar
1 Philippine Peso = 0.29553 Estonian Kroon
1 Philippine Peso = 0.37844 Egyptian Pound
1 Philippine Peso = 0.45091 Ethiopian Birr
1 Philippine Peso = 0.01889 Euro
1 Philippine Peso = 0.04186 Fiji Dollar
1 Philippine Peso = 0.01668 Falkland Islands Pound
1 Philippine Peso = 0.01668 British Pound
1 Philippine Peso = 0.08489 Ghanaian Cedi
1 Philippine Peso = 0.88376 Gambian Dalasi
1 Philippine Peso = 186.70949 Guinea Franc
1 Philippine Peso = 0.15123 Guatemala Quetzal
1 Philippine Peso = 4.106 Guyana Dollar
1 Philippine Peso = 0.15569 Hong Kong Dollar
1 Philippine Peso = 0.45774 Honduras Lempira
1 Philippine Peso = 0.14162 Croatian Kuna
1 Philippine Peso = 1.28749 Haiti Gourde
1 Philippine Peso = 5.79984 Hungarian Forint
1 Philippine Peso = 267.35595 Indonesian Rupiah
1 Philippine Peso = 0.07659 Israeli Shekel
1 Philippine Peso = 1.3682 Indian Rupee
1 Philippine Peso = 23.7101 Iraqi Dinar
1 Philippine Peso = 649.86949 Iran Rial
1 Philippine Peso = 2.28267 Iceland Krona
1 Philippine Peso = 2.57599 Jamaican Dollar
1 Philippine Peso = 0.01421 Jordanian Dinar
1 Philippine Peso = 2.28719 Japanese Yen
1 Philippine Peso = 2.08292 Kenyan Shilling
1 Philippine Peso = 1.39468 Kyrgyzstan Som
1 Philippine Peso = 80.11845 Cambodia Riel
1 Philippine Peso = 9.27525 Comoros Franc
1 Philippine Peso = 18.06866 North Korean Won
1 Philippine Peso = 23.72214 Korean Won
1 Philippine Peso = 0.00613 Kuwaiti Dinar
1 Philippine Peso = 0.01646 Cayman Islands Dollar
1 Philippine Peso = 6.68681 Kazakhstan Tenge
1 Philippine Peso = 163.9229 Lao Kip
1 Philippine Peso = 30.21682 Lebanese Pound
1 Philippine Peso = 3.01144 Sri Lanka Rupee
1 Philippine Peso = 1.82694 Liberian Dollar
1 Philippine Peso = 0.27103 Lesotho Loti
1 Philippine Peso = 0.06121 Lithuanian Lita
1 Philippine Peso = 0.01246 Latvian Lat
1 Philippine Peso = 0.02868 Libyan Dinar
1 Philippine Peso = 0.20159 Moroccan Dirham
1 Philippine Peso = 0.40323 Moldovan Leu
1 Philippine Peso = 1.15559 Macedonian Denar
1 Philippine Peso = 27.06284 Myanmar Kyat
1 Philippine Peso = 49.94981 Mongolian Tugrik
1 Philippine Peso = 0.16036 Macau Pataca
1 Philippine Peso = 7.12387 Mauritania Ougulya
1 Philippine Peso = 0.72014 Mauritius Rupee
1 Philippine Peso = 0.30797 Maldives Rufiyaa
1 Philippine Peso = 14.38807 Malawi Kwacha
1 Philippine Peso = 0.43213 Mexican Peso
1 Philippine Peso = 0.08957 Malaysian Ringgit
1 Philippine Peso = 0.27209 Namibian Dollar
1 Philippine Peso = 6.32403 Nigerian Naira
1 Philippine Peso = 0.58975 Nicaragua Cordoba
1 Philippine Peso = 0.17069 Norwegian Krone
1 Philippine Peso = 2.1843 Nepalese Rupee
1 Philippine Peso = 0.02826 New Zealand Dollar
1 Philippine Peso = 0.00773 Omani Rial
1 Philippine Peso = 0.02008 Panama Balboa
1 Philippine Peso = 0.06745 Peruvian Nuevo Sol
1 Philippine Peso = 0.06333 Papua New Guinea Kina
1 Philippine Peso = 1 Philippine Peso
1 Philippine Peso = 2.10359 Pakistani Rupee
1 Philippine Peso = 0.08276 Polish Zloty
1 Philippine Peso = 116.05701 Paraguayan Guarani
1 Philippine Peso = 0.0731 Qatar Rial
1 Philippine Peso = 0.08481 Romanian New Leu
1 Philippine Peso = 1.19264 Russian Rouble
1 Philippine Peso = 16.31379 Rwanda Franc
1 Philippine Peso = 0.07528 Saudi Arabian Riyal
1 Philippine Peso = 0.15698 Solomon Islands Dollar
1 Philippine Peso = 0.26272 Seychelles Rupee
1 Philippine Peso = 0.12864 Sudanese Pound
1 Philippine Peso = 0.17904 Swedish Krona
1 Philippine Peso = 0.02867 Singapore Dollar
1 Philippine Peso = 0.01668 St Helena Pound
1 Philippine Peso = 0.44581 Slovak Koruna
1 Philippine Peso = 146.29592 Sierra Leone Leone
1 Philippine Peso = 10.96165 Somali Shilling
1 Philippine Peso = 462.93516 Sao Tome Dobra
1 Philippine Peso = 0.17511 El Salvador Colon
1 Philippine Peso = 10.33889 Syrian Pound
1 Philippine Peso = 0.27216 Swaziland Lilageni
1 Philippine Peso = 0.7113 Thai Baht
1 Philippine Peso = 0.04658 Tunisian Dinar
1 Philippine Peso = 0.04632 Tonga Pa'ang
1 Philippine Peso = 0.07556 Turkish Lira
1 Philippine Peso = 0.1345 Trinidad Tobago Dollar
1 Philippine Peso = 0.63521 Taiwan Dollar
1 Philippine Peso = 44.48906 Tanzanian Shilling
1 Philippine Peso = 0.5529 Ukraine Hryvnia
1 Philippine Peso = 72.37502 Ugandan Shilling
1 Philippine Peso = 0.02008 United States Dollar
1 Philippine Peso = 0.57519 Uruguayan New Peso
1 Philippine Peso = 64.9468 Uzbekistan Sum
1 Philippine Peso = 0.20026 Venezuelan Bolivar
1 Philippine Peso = 453.06163 Vietnam Dong
1 Philippine Peso = 2.15479 Vanuatu Vatu
1 Philippine Peso = 0.05167 Samoa Tala
1 Philippine Peso = 12.38747 CFA Franc (BEAC)
1 Philippine Peso = 0.05421 East Caribbean Dollar
1 Philippine Peso = 12.49508 CFA Franc (BCEAO)
1 Philippine Peso = 2.24312 Pacific Franc
1 Philippine Peso = 5.01706 Yemen Riyal
1 Philippine Peso = 0.27219 South African Rand
1 Philippine Peso = 104.1859 Zambian Kwacha
1 Philippine Peso = 7.26561 Zimbabwe dollar

2017 VEHICLE FORECAST: More taxes, less vehicle sales, but traffic the same

Vehicles and still more vehicles.

In 2017, the Philippine automotive industry will feed around 500,000 cars  into the already crowded metropolises of the country, with the National Capital Region receiving anywhere from 78 to 82 percent of the new car sales. This figure extrapolates from the combined end-of-year sales estimates of both the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Association of Vehicle Importers and Distributors (AVID).

On one hand, CAMPI’s president Rommel Gutierrez said during the 2016 Philippine International Motor Show, that his organization would reach the targeted 370,000 units sales by end of 2016. Final sales reports show the number may actually be exceeded due to aggressive 4th quarter performance.

AVID, on the other hand has already practically delivered on its sales target registering a 103 percent sales increase from its members. By the 3rd quarter of the year the organization reported a 27% growth from the previous quarter with a total of 68,746 vehicles sold. Industry experts are confident the group can exceed the fourth quarter and thus the total annual sales because of the massive financing deals from led by Ford, Suzuki and Hyundai. 

It is thus safe to say that if the sales trend continued at the same momentum as it did towards the end of the 3rd quarter, total industry sales combined, would mean about 450,000 new cars, SUV and commercial vehicles crowding into the already tight city streets, oftentimes with no garages to properly park in.

Combine that number with the expected over 1 million motorcycle sales the top 5 brands comprising the Motorcycle Development Program Participants Association (MDPPA)—Honda Philippines Inc., Kawasaki Motors Philippines Inc., Yamaha Motor Philippines Inc., Suzuki Philippines Inc., and Kymco Philippines Inc. expect to achieve this year. In 2015, the MDPPA already sold 850,509 and an estimated 27 percent growth means 1,080,146 sales for 2016.

And the industry is growing and the major players are shifting the playing field. 

The Comprehensive Automotive Resurgence Strategy (CARS) program launched towards the end of the Aquino Government is seen by many industry experts as a step that will only boost the competitiveness of the country’s automotive industry by increasing local production volumes.

The updated CARS program now has Toyota Motor Philippines, Inc. (TMPI) joining Mitsubishi Motors Philippines Corporation’s (MMPC) in assembling specific vehicles that will benefit from some P27 billion worth of fiscal and non-fiscal support to both automakers and parts suppliers. 

CARS requires companies who join to produce a total of 200,000 units of a particular vehicle model over a period of six years. Factor in the production volumes by all possible carmakers who apply for the program will mean passenger car production numbers to average 16 to 20 percent over the next five years.

Hyundai Automotive Resources Inc. (HARI) already submitted an application to the Board of Investments (BOI) for a completely knockdown (CKD) kit assembly under the new rules of the Korea and ASEAN Free Trade Agreement (Korea+AFTA) to exported auto components from various sources, including Korea. Sources from HARI have not confirmed the finalization of this assembly but it has already started the prototyping of its vehicle assembly at its Star Motors Manufacturing Corp. plant in Sta. Rosa, Laguna.

Malaya Business Insight saw delivery of the popular Eon CKD on the assembly area of Star Motors is owned by Universal Motors Group of which HARI is also part of.  The plant used to assemble Nissan pick-ups and diesel SUVs. 

Insiders at Star Motors have said a totally new line is being installed and the plant has been retooled to put together a yet-to-be confirmed line of Hyundai models beginning with the 800 cc. Eon.

Hyundai Motor, in wire report confirmed HARI’s plan to install a line capable of assembling in between 5,000 and 6,000 vehicle units annually. Experienced engineers from Star Motors will run the assembly that will eventually hit annual production of 40,000 units. It is unclear with HARI will apply for the benefits available in the CARS program. However, if it does increase its production to the 40,000 unit target it can meet the 200,000 volume requirement.

Industry research experts BMI predict that passenger car sales in the will grow an average 24 percent annually throughout the 2017-2020 period. It also expects the local passenger car market to outperform other ASEAN countries over the same period.

Consumer led growth in the Philippines will be supported by subdued inflationary pressures, and attractive borrowing rates and the research firm’s Country Risk team expects inflation to remain within the Central Bank’s 2 to 4 percent target range through to 2020. This boost to consumer spending power also converts to more car sales, with access to cheap credit, with steady interest rates at an average 3 percent over the 2017-2020 period.

But here is where the congestion stops the growth.

Proposals by the Duterte administration to reform the taxes on vehicles will lead to slower car sales after any tax change is made. Carmakers see the proposed auto tax reforms as a downside risk to vehicle sales due to the significant increase in retail prices.

The increased taxes will create an artificial sale increase before any announcement of implementing rules and regulations and car dealers are already making sales preparations and promotions with banks and financing institutions to rush into aggressive sales programs to avert the expected sales slow down. 

This imposition of new excise taxes on brand new vehicle purchases is aimed at raising revenues and to manage vehicle volume on major roads. But the tax would raise costs of up to P400,000 to P600,000.

The Board of Investments (BOI) expects the negative impact on the growth of the country’s booming automotive industry and is studying measures on how to create the necessary balance between the meeting the government’s tax objectives and the progress delivered by automakers.

Deputy Speaker Raneo Abu of Batangas’ “Proof of Parking Space Act” is also expected to impact on vehicle sales because of the cost of building a garage for both new and currently owned vehicles. Though the proposal was made to drastically reduce the number of vehicles on the road, the garage law also wants to free roads of obstructions that only cause traffic gridlock. The law is applicable only in Metro Manila, Cebu, Davao and other highly urbanized cities.
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