‘Pent-up demand, new car models to boost 2023 sales’

The Chamber of Automotive Manufacturers of the Philippines, Inc. (Campi) said local auto sales could rise by 10 to 15 percent this year.

Campi President Rommel R. Gutierrez told reporters on Monday that data from his group and the Truck Manufacturers Association (TMA) showed that 369,941 vehicles were sold in 2019.

Comparing this with the 352,596 units sold in 2022, the CAMPI head said “it’s really a small gap and we are confident that we will (exceed) the 2019 level this year.”

Gutierrez said the industry is banking on pent-up demand and the “many models” which would boost sales.

In a statement on Monday, Gutierrez said “the auto industry is optimistic of its continued expansion from the demand-side standpoint driven by the growing domestic consumer market.”

The Campi chief also noted that the industry is “mindful” of supplyside challenges which may hamper growth.

Gutierrez said some car models, especially those sourced from Japan, are still affected by the shortage of microchips.

According to a report by Oxford Business Group, “demand for microchips rose sharply during the early stages of the pandemic in response to increased sales of devices such as laptops, phones and televisions.”

however, the Oxford report said this was combined with an “abrupt drop” in production due to factory closures and supply chain disruptions which led to a major shortage worldwide.

Microchips, also known as superconductors, are the “brains” inside electronic devices. The report stated that microchips manage a host of systems in vehicles, for instance, including electric windows and driversafety features.

Moving forward, the report said “it is widely expected that the microchip shortage will result in greater integration between producers and automotive companies.”

Gutierrez also said in his statement on Monday that the auto sales record in 2022 is not always “clearcut” as the industry’s overall economic health and activity depends on various economic key indicators.

A joint report by CAMPI and TMA showed new motor vehicle sales for January 2023 reached 29,499 units, 42.1 percent higher than last year’s 20,765 units.