Slight car sales increase in February may signal vehicle industry recovery

SALES of local vehicle assemblers slightly rose in February on the back of an uptick in the passenger car segment and in what could be the outset of the industry’s recovery this year.

Total industry sales in February rose 0.6 percent to 26,327 units from 26,176 units during the same month last year, according to the Chamber of Automotive Manufacturers of the Philippines Inc. and

Truck Manufacturers Association. However, annual sales of the industry are still in the red.

Sales in January to February declined 8 percent to 53,215 units, from 57,821 units during the same period in 2018.

Yet, this was a more manageable margin compared to the 15percent decline the industry registered in January. Local car assemblers are working to rebound their sales this year after a dismal showing last year.

February sales of passenger cars improved 3.4 percent to 8,471 units, from 8,192 units during the same month in 2018.

On the other hand, sales of commercial vehicles dipped 0.7 percent to 17,856 units from 17,984 units. The Asian utility vehicle bracket had the largest slowdown at 59.2 percent to 2,227 units from 5,463 units.

Sales of light commercial vehicles and light trucks both grew double digits at 25.2 percent and 77 percent, respectively.

However, there were lesser buyers of trucks and buses in February. Sales of Category IV trucks and buses slipped 1.1 percent to 368 units from 372 units, while those of Category V slumped 58.7 percent to 81 units from 196 units.

The uptick in car sales came on the same month inflation, or the general increase in commodity prices, settled at 3.8 percent, according to figures from the Philippine Statistics Authority.

Inflation in February was the same as the rate during the same month last year, but was slower than the 4.4 percent in January. Local car assemblers blamed, among others, the record high inflation last year, which peaked at 6.7 percent in September and October, for their 16percent decline in sales.

Still, the industry has catching up to do if it seeks to achieve its target of growing 10 percent in sales this year.

Sales of passenger cars in January to February are still down 5.7 percent at 16,958 units, from 17,982 units during the same period last year. The decline was larger in the commercial vehicle segment at 9 percent to 36,257 units from 39,839 units.