Campi aims to exceed projected target

LAST month, the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) announced a rather ambitious target of 468,000 units to be sold for the year 2024. This was revised from an earlier unofficial, off-the-record figure of 500,000 for this year.

Many observers from other industries raised their eyebrows because even though the economy appears to be on the rise, the revenge purchases that followed the end of the pandemic lockdown are actually on the decline.

This means that the money saved by people during the lockdown is now rapidly depleting, and consumers are returning to their old pre-pandemic buying habits.

I mentioned that money was saved during the pandemic lockdown period, and I’m sure some people would say, “Is he crazy? How could anyone save during the lockdown?”

But the truth is that many middle-income and upper-class workers continued to receive salaries but had nowhere to spend it because of the lockdown.

When the restrictions were lifted, they were surprised to realize they had saved a lot during the pandemic and were eager to buy products for which they had previously struggled to save for. Now, they have the money.

These upper- and middle-class consumers are exactly the ones who can afford to buy cars, even houses, using the money they have saved up during the lockdowns. Let’s not pay attention to those useless commenters on social media who bitterly express negativity about buying cars but have no capability, much less have ever entered a showroom. We are talking about people who can actually buy cars.

Now, back to the topic. Campi has projected an ambitious target despite the slowing down of buying power simply because it is just a slowdown, not an actual halt or stoppage. Many car buyers still have yet to find the car of their choice within the past year and this upcoming year.

And the industry has just exploded with different brands, all aggressively coming in with offers and deals that can capture the imagination and wallets of consumers.

United Asia Automotive Group Inc. has just announced the entry of two new badges, Lynk&Co, and their takeover of BAIC, while holding onto Foton, Chery, and Jetour. AC Motors has acquired the rights to BYD and is putting all their bets on this brand, together with heavily promoting Kia and Volkswagen.

Inchcape is now in charge of Changan, some Mazda dealerships together with its earlier acquisitions of Mercedes-Benz, Jaguar Land Rover, Chrysler, Jeep, to name a few.

Astara, after acquiring Peugeot and GAC, now has the rights to JAC and JMC. Omoda/Jaecoo is now finally opening shop after a year of indecision.

Now add this fray to the Japanese, European and American brands that have been dominating the market for the past decades, and we are witnessing a battle royale among car brands that want to dominate the market.

Of course, dominating this market will still depend on the capability of all the brands and they have to unseat Toyota, the current front-runner with a breakaway lead or market share of at least 46 percent.

Still, the car business is booming. Want a solid example? Then just look at Metro Manila traffic. If these gridlocks do not tell you something about car sales, then I don’t know what will.

So, to say that Campi’s projection is ambitious is not entirely untrue, and to say they can reach it and may even surpass the numbers is also not far-fetched.