Woes of auto industry continue in January as sales down 15%
THE automotive industry has shown no signs of recovery in the first month of the year, as January sales fell 15 percent with four segments posting double-digit declines.
Local carmakers sold 26,888 units in January, down 15 percent from the 31,645 units sold during the same month last year, according to a joint sales report by the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association Inc. (TMA).
The auto industry registered a decline in sales at a time it expects sales to rebound after a dismal showing in 2018.
Data from Campi and TMA showed that sales of passenger cars plunged 13.3 percent to 8,487 units, from last year’s 9,790 units.
Further, sales of commercial vehicles in January slowed 15.8 percent to 18,401 units, from 21,855 units during the same month last year. Under this segment, sales of Asian utility vehicles posted the largest decline at 58.5 percent to 2,410 units, from 5,811 units.
Local car manufacturers also sold fewer light commercial vehicles and trucks and buses at category 5, but more light trucks and trucks and buses at category 4, with sales expanding 32.6 percent and 11 percent, respectively.
Sales of light trucks in January expanded to 512 units from 386 units. Trucks and buses at category 4 sold during the period grew to 332 units and 299 units, respectively.
Toyota Motors Philippines Corp. (TMP) is still the strongest player with a market share of 42.23 percent, but its sales declined 14.1 percent to 11,355 units in January from 13,217 units during the same month last year.
Mitsubishi Motors Philippines Corp. came in second with a market share of 19.48 percent, followed by Nissan Philippines Inc. at 11.53 percent, Honda Cars Philippines Inc. at 7.23 percent and Ford Motor Co. Philippines Inc. at 6.66 percent. Nissan was the only leading firm that recorded an increase in sales in January.
Car sales were down 16 percent last year on the back of double-digit declines in most auto segments.
Local carmakers, however, are anticipating sales to grow 10 percent this year. In January they said the improving GDP per capita and the introduction of new models, coupled with a strong economy, will result in higher sales.
In an interview with reporters on Monday, TMP President Satoru Suzuki said vehicle sales will most likely recover in the second half of the year.
Suzuki said the projected easing of inflation will mean better purchasing power for consumers and this could boost demand for cars.
Elijah Felice E. Rosales