Is this the reason for horrible traffic?

         

A former cellar dweller in Southeast Asian auto markets, the Philippines is now heading for a third straight year of record auto sales on strong consumer spending and easy financing.

Data from the car industry points to sales of 310,000 vehicles this year, up nearly a third from last year —and roughly double the tally in 2012. The growth could be sustained in the coming years partly due to the government's unveiling of a long-awaited $600 million incentive scheme earlier this year.

While the Philippines is only the region's fourth-biggest market, sales are falling in the top three—Indonesia, Thailand and Malaysia. The trend is fueling hopes  that big automakers may boost investment in local production facilities to draw on a widening growth pool.

Auto sales continue to be strong because of the steady growth of buying capacity of customers. Financing companies are also offering attractive financing packages which make purchasing vehicles easier.

Surging auto sales have been accompanied by a jump in total auto loans, up a record 26 percent in the first quarter to 244.6 billion pesos ($5.24 billion), according to Central Bank data. -end-