Auto industry starts second half of year with 33% sales surge

Demand for new vehicles defies high inflation, slowdown in consumer spending

Sales of automotive vehicles in the Philippines continued to rise at a double-digit pace in July, growing by 33.3 percent and signaling a strong start for the industry for the second half of the year.

A joint report from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association released on Tuesday showed that new vehicle sales reached 37,086 units in July, higher than the 27,813 units recorded in the same period a year ago.

Rommel Gutierrez, president of Campi, said the local automotive industry remains strong despite the slowdown in consumer spending owing to the country’s inflation environment.

Sustained growth

“In fact, the auto industry is sustaining its positive growth trend as sales of new motor vehicles recorded a continued yearon-year growth for the past 17 consecutive months since March 2022. The industry hopes to maintain this trend for the year,” the Campi official said.

Gutierrez added that there is optimism in the industry to expand their vehicle lineup for both consumers and businesses alike.

Japanese car brands still dominated most of the Philippine market in July, with Toyota Motor Philippines Corp. maintaining a wide lead with a market share of 43.47 percent.

Mitsubishi Motors Philippines Corp. followed with a 17.12 percent market share; Ford Motor Company Phils Inc. with 9.90 percent, Nissan Philippines Inc. with 7.17 percent, and Honda Cars Philippines Inc. with 2.33 percent.

Strong recovery

The July sales performance brought the local sector’s year-todate sales to 239,501 units, indicating a growth rate of 31.1 percent compared to the previous year.

Sales of automotive vehicles in the Philippines reached 352,596 units in 2022, growing by 31.3 percent compared to the 268,488 units sold in 2021.

Annual sales declined to 223,793 units during the height of the pandemic in 2020, a substantial decrease compared to the 369,941 units sold during the year before the public health crisis.