Industry players buoyed by first semester sales results

MOVERS and shakers of the Philippine automotive industry were buoyed by the sales results achieved in the first half of 2016 that hit a grand total of 212,901 units, which is more than halfway to this year’s ultimate 350,000 sales target.

Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) president Rommel Gutierrez, a vice president of Toyota Motor Philippines Corp., said: “There has been a sustained growth since the start of the year. We remain confident in achieving our initial target for the year with continued supply of vehicles, attractive promos, and affordable financing schemes, among others.”

Together with the Truck Manufacturers Association, the eight regular and five associate members of Campi contributed total sales of 167,481, a 27 percent increase over the same period in 2015.

The Association of Vehicle Importers and Distributors (Avid), which has 10 member companies, added 45,410 in sales, representing a precedent-setting 103 percent increase over the year-ago period.

Avid president Ma. Fe Perez-Agudo, the president and CEO of Hyundai Asia Resources Inc. (Hari), cited the 6.9 percent growth of the economy in the first quarter and said: “This growth was mainly investment-driven from the demand side and fairly broad-based in terms of supply side. GDP growth is expected to sustain its momentum as the new administration vowed to continue macroeconomic policies implemented by the Aquino administration.

“Externally, the heightened regional tensions coming from the recent arbitration ruling which favored Philippines over China on competing claims in the West Philippine Sea will likely keep key investors and markets on their toes.

“Nevertheless, auto purchase is seen to be tilted on the upside in the light of increased consumer confidence and attractive roster of products.”

This optimism was shared by Mitsubishi Motors Philippines Corp. (MMPC) first vice president for marketing Froilan G. Dytianquin, who said: “There is no stopping the Philippine auto industry in further breaking sales records annually, as the Filipino purchasing power becomes stronger each year.

“In addition, high consumer confidence gets support from the steady Philippine economy and low interest rates which facilitate easy loans from banks and other financial institutions.

“Our wish for the new government is to step up the road infrastructure projects in order to alleviate the traffic conditions to be able to absorb this much new cars every year.”

In the first half, MMPC posted total sales of 30,372 units, for an 18.1 percent market share, entitling it to second position after Toyota Motor Philippines Corp., which retained the top spot with total sales of 72,642 units, or a 43.4 percent market share.

Lance Mosley, managing director of Ford Philippines, which took third place with first sem sales totaling 16,769 units, said: “Consumer confidence and discretionary spending continue to be fairly strong, and our full lineup of Ford vehicles is helping attract a wide range of Filipino customers to our showrooms across the country.”

Joseph C. Ayllon, assistant vice president for communications of Ford Philippines, added: “We are truly proud of Ford’s performance in the first semester of 2016 and becoming the third best-selling auto brand in the market.

“We are excited to see our global vehicles—particularly the EcoSport, Ranger and Everest—continue to build on their success by appealing to more Filipino customers across the country.”

Perez-Agudo, president of Hari, which benefited from the Asean-Korea Free Trade Agreement that took effect in January and lowered tariffs on vehicles imported from Korea to 5 percent, said: “The local automotive industry will benefit from the overall bright scenario given the upbeat auto-buying intentions, benign inflation, improving employment rates, and greater disposable income.

“With Hyundai’s upward sales trajectory in the first semester of the year, the company’s renascence is just around the corner.”

Hyundai posted total sales of 16,362 units in the first half, thereby ranking fourth in the roster of top performers, close behind Ford’s third place.

Meanwhile, Hajime Koso, president of Isuzu Philippines Corp., which ranked sixth in the list of top 10 performers by registering total sales of 10,555 units in the first half (heavy duty commercial trucks and buses excluded), said: “The brisk movement experienced across Isuzu Philippines Corp.’s model lineup is a manifestation that the company offers consumers some of the most relevant products available locally.

“With many of Isuzu products geared toward business use, the growth is also an accurate indication of the market’s optimistic view regarding the economy.”

(Note: If Isuzu’s Category V heavy duty trucks, Category IV buses and trucks, and Category III light duty commercial trucks are included in the brand’s sales performance in the first half, an additional 2,703 units are added and total sales go up to 13,258 units.)

Indeed, it’s all systems go for this year’s 350,000 total sales target!