Survey says more people now shop for cars online
People planning to buy new and preowned cars used to go the oldfashioned way of visiting showrooms, meeting with sellers and traveling distances just to see a car.
But a recent study, which seeks to ascertain consumer preferences, commissioned by online vehicle marketplace Carmudi says otherwise.
Results of the survey revealed that more people are opting to do their search online over traditional methods such as personal calls to dealers or printed classifieds.
"This phenomenon has only heightened with the widespread economic growth in Asia. E-commerce in general bloomed an incredible tenfold in tandem with steadily increasing GDP (gross domestic product)," Carmudi said.
In the first month of 2016 alone, 29 percent of the 47.1 million active Internet users in the Philippines purchased a product or service online, according to the online firm.
"And with many industries prospering throughout Asia due to this online shift, automotive manufacturers and dealers in the region have realized that online searching is now a significant, if not the most significant stage of the car buying process,” Carmudi further noted.
With a population boasting US$2,700 per capita income, it said that the Philippine automotive industry has continued to reap the benefits of a vibrant economy.
An estimated 350,000 cars will be sold by the end of 2016, a full 10 percent increase from last year.
Carmudi's study sought to reveal trends and habits more readily gleaned in the electronic arena.
Focused on a two-year period spanning 2014 to 2016, it additionally surveyed its dealers to gain more insights about certain trends in the industry.
"Our research focuses on the popularity of car body styles, car brands, and price ranges among others, to demonstrate the changing trends in automotive search behavior in the Philippines and to share our projections for the coming years.”
A significant finding in the report is that search for used cars online increased by almost 100 percent from 2015 to 2016.
At least 82 percent of total searches were for preowned cars.
Still, 63 percent of used car dealers surveyed in the study revealed to have seen “a slight decrease in second-hand car sales over the past two years. Every dealer that stated this indicated that low downpayment offers from new car dealers was the main reason for this.”
In 2016, car sales grew 24.6 percent, posting a sustained double-digit growth for the industry.
Data jointly released recently by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) showed that member companies sold a total of 359,572 units last year, up from the 288,609 units recorded in 2015.
The two groups surpassed their 2015 sales total in October, when they had sold 292,502 units.
The sales total surpass the groups’ 2016 target of 329,300 units by 12.36 percent.
Another domestic auto industry group, the Association of Vehicle Importers and Distributors, reports its member companies’ sales separately.
In a joint statement, CAMPI and TMA said that the auto industry will “certainly meet the 2016 combined target with other industry players of 370,000 units.
“We are very glad that we were able to surpass the target this year. Successful introductions of new models complemented by various events and promotions enabled us to meet the increasing customer demand in an expanding Philippine market,” Rommel R. Gutierrez, president of CAMPI and a first vice-president at Toyota Motor Philippines said in a statement.