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AUTO INDUSTRY TARGETS 20.9% GROWTH DESPITE DIP IN AUGUST SALES

The automotive industry endured a double whammy last month: a two-week reimposition of the hardest lockdown, plus the “Ghost Month” from Aug. 8 to Sept. 6 this year when many people postpone big-ticket purchases like buying a new car.

Against this backdrop, it was hardly surprising that the joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) indicated an 11.5% decline in sales for August 2021 compared to the same period last year.

This August, according to the CAMPI/TMA joint report, total vehicle sales reached 15,847 units versus 17,906 units recorded in August 2020.

CAMPI president Rommel Gutierrez attributed the slump to the decline in economic activity and consumer spending which was aggravated by the Enhanced Community Quarantine restrictions in the NCR Plus. “The message of this bleak performance is worth noting,” he said. “Stricter lockdown strategy in response to curbing the COVID-19 pandemic affects the auto industry’s recovery this year.”

Nonetheless, Gutierrez said that the industry is targeting total sales of 295,400 units or 20.9% growth this year compared to actual sales posted last year.

After all, year-to-date, the industry has sold 170,112 units, a 37.8% increase compared with the 123,489 units posted in the same period last year.

HIT A POTHOLE. Meanwhile, Association of Vehicle Importers and Distributors (AVID) president Ma. Fe Perez-Agudo said in a statement accompanying AVID’s report of an 18% decline in sales for the month versus August 2020 that “The entire industry hit a pothole in August this year due to the necessary health restrictions.”

In August, AVID members sold 3,919 units versus 4,753 in the same month last year. Compared to July this year when 4,862 unit sales were recorded, August sales declined 19%.

“This slowdown was mainly caused by the sporadic lockdown due to new highs in recorded COVID-19 cases,” Agudo added. “Despite the slight contraction, the Philippine automotive industry remains on track toward recovery. We at AVID choose to be optimistic as we approach the final stretch of the year.”

AVID’s optimism is buoyed by the 33% YTD sales increase