PH vehicle industry surging ahead

THIS year’s motor show set a new record of 110,000 visitors, up from last year’s 102,000.

WITH the way vehicle sales are surging ahead during the first six months of 2015, members of both Chamber of Automotive Manufacturers of the Philippines (Campi) and the Truck Manufacturers Association (TMA) are confident that the industry would reach a new milestone by the end of this year.

“We just ended the first semester on a very strong note. Industry is confident that it will reach the 310,000 units sales it set for this year,” said Campi president Rommel Gutierrez.

Sales during the first half of the year improved by 21 percent, from 108,957 units last January-June 2014 to 131, 465 units on the same period this year.

Passenger car sales improved by 30 percent as 52,778 units were sold compared to the 40,609 units sold from the same period last year.

On the other hand, commercial vehicle sales improved by 27 percent as 78,667 units were sold compared to the 68,348 units sold from the same period last year.

Campi, which is composed of more than 20 companies representing multiple automotive brands, ended 2014 with a record 234,747 unit sales, a 30 percent jump from the 181,283 vehicles sold in 2013.

Heavy duty trucks also posted record sales during the first six months as the segment slightly exceeded its projected sales target—493 from just 490.

Campi attributed this positive development to the country’s continuously expanding economy—6.4 percent in 2015 and 6.3 percent next year, according to the Asian Development Bank (ADB) growth assumptions (this ADB outlook however, is below the government’s growth target of 7 percent to 8 percent for 2015 and 2016).

Despite the gross domestic product falling to 5.2 percent during the first quarter, the ADB maintained that private investment and household consumption remain strong.

“The Philippine automotive industry is riding with the other industries’ growth as micro, small- and medium-enterprises are expanding which made for the robust demand for Asian utility vehicles, SUVs and light commercial vehicles,” said Gutierrez.

He also thank several factors that are contributing to more Filipinos heading to the dealerships: the ongoing integration of the economies of members of the Association of Southeast Asian Nations (called the Asean Economic Community); the continued growth in remittance flows; the continuing boom of the business process outsourcing sector; the low interest rates on auto loans offered by numerous banks, and the increased purchasing power of the Filipino middle class.