Campi, TMA: Strong finish for automotive industry despite missed overall sales goal

THE automotive industry is poised for a strong finish this year after growing sales by more than 10 percent in November, but is also headed to miss its target of selling 410,000 units overall.

In a joint report on Wednesday, the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association (TMA) said November sales rose 10.25 percent to 34,465 units, from 31,258 units during the same month last year. The passenger car (PC) and the commercial vehicle (CV) brackets both posted growths, although they are too far ahead.

In November, PC sales improved and went up 3.84 percent to 9,551 units, from 9,197 units, while CV

sales improved almost 13 percent to 24,914 units, from 22,061 units.

Industry sales from January to November expanded 3.27 percent to 336,226 units, from 325,569 units during last year’s same stretch. Sales of CVs—making up for seven in every 10 units sold by the industry—went up 4.66 percent to 236,746 units, from 225,746 units.

Sales of passenger cars, however, grew flat at 99,951 units, from 99,823 units, on slowdown in demand for the product tracing back to last year when the government slapped excise taxes on automobile under the Tax Reform for Acceleration and Inclusion law.

Campi President Rommel R. Gutierrez said the industry is optimistic market demand will pick up big time this December on persistent sales promotions and sustained favorable economic outlook. Further, he said the Christmas month is historically when “the industry experiences exponential growth every year.”

“We are continuously working double time to achieve the industry’s overall sales target of 410,000 units, which we believe remains achievable,” Gutierrez said in a statement.

To hit this 410,000 unit sales target, the industry should sell a total of 73,774 units this December. The industry has yet to post monthly sales this big this year.

Last year vehicle sales dropped over 16 percent to 375,410 units, from 425,673 units in 2017, on tax hikes, record-high inflation, unstable fuel prices and rising interest rates.

As of November, Toyota Motor Philippines Corp. is leading the industry in terms of sales, holding 43.47 percent of the market. Trailing the industry leader are Mitsubishi Motors Philippines Corp. and Nissan Philippines Inc. with market shares of 17.27 percent and 11.88 percent, respectively.

Completing the industry’s leading five are Suzuki Philippines Inc. and Ford Motor Co. Philippines Inc. with shares of 6.56 percent and 5.85 percent of the market, accordingly.