Auto industry sees 7.5 % growth in September 2019

In this country, everyone looks forward to September as it marks the beginning of the Christmas shopping season.

Perhaps no sector welcomes September more than the automotive industry.

The car companies’ anticipation of September was validated when the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) reported a 7.5 percent month-on-month growth in sales from 29,599 units in August, to 31,820 units in September.

The September figures also showed a 2.3 percent increase from 31,116 units in the year-ago period.

The sales report revived the cautious optimism of the CAMPI and TMA members whose total vehicle sales in the first half of this year grew only 1.6 percent, compared to the first semester of 2018.

“CAMPI remains bullish that the automotive sector will post continuous positive growth until the end of the year,” CAMPI president Rommel Gutierrez, who is concurrently first vice president of Toyota Motor Philippines Corp., said in a press release.

“September is traditionally the start of an upward trend in sales, as the public begins to spend for the upcoming holiday season.”

Gutierrez was quoted as saying that the industry target of 410,000 units by year-end is

“a highly achievable target.” By

industry he meant not only CAMPI and TMA, but also the Association of Vehicle Importers and Distributors (AVID).

If the year-to-date sales report of AVID, which has yet to be released, also shows an uptick, Gutierrez’s forecast could come true.

Ma. Fe Perez-Agudo, president of AVID and concurrently president/CEO of Hyundai Asia Resources, Inc. (HARI) indicated in a press release from HARI, that she expects stronger sales in the fourth quarter with lower inflation, influx of remittances, and increased government spending for infrastructure.

“This year has been characterized by highs and lows as the automotive industry continues to recover. Beyond external factors, we believe that sales will only improve in the coming months,” she added.

HALF OF THE TOP 10 INCREASED MARKET SHARE

TOP 10 3RD QUARTER 2019 PERFORMERS BASED ON VEHICLE SALES
2019 YTD

The industry’s cautious optimism seems to be confirmed by the fact that this time around, the number of brands in the Top Ten that sold more vehicles YTD rose to five

(Toyota, Nissan, Suzuki, Kia,

Foton) from the previous three (Nissan, Suzuki, Foton).

No. 1-ranked Toyota increased its market share from 39.4 percent (109,402 units sold), to 40.2 percent (114, 117 units sold).

Third-ranked Nissan’s market share jumped to 11.6 percent (32,980 units sold), from 8.8 percent (24,507 units sold).

Fifth-ranking Suzuki’s market share went up to 6.1 percent (17,442 units sold), from 5.3 percent (14,650 units sold).

So far, Nissan and Suzuki have consistently remained the Top Ten’s poster brands with their upward leaping sales figures.

The sales of ninth placer Kia (Adventure Cycle PH, Inc.) grew to 3,719 units YTD 2019, from 1,909 in the same period last year, thus increasing its market share from 0.7 percent to 1.3 percent.

Tenth-ranked Foton sold 3,341 units YTD 2019, compared to 3,217 last year, but its market share among the Top Ten remains at 1.2 percent.

5 BRANDS LOST MARKET SHARE

The brands that saw their market share decline begins with second-ranked Mitsubishi Motors from 18.2 percent (50,588 units sold) in the 2018 YTD, to 16.2 percent (46,007) YTD 2019.

Fourth-ranked Hyundai’s market share slid to 8.7 percent (24,672 units sold), from 9.3 percent (25,781 units sold).

Sixth placer Ford, which held 6.5 percent (18,116 units sold) market share in YTD 2018, went down to 5.8 percent (16,380 units sold) in the same period this year.

Seventh-ranked Honda’s market share decreased to 5.2 percent (14,848 units sold) market share, from 6.3 percent (17,423 units sold).

Eighth-ranked Isuzu, which earned 4.4 percent (12,113 units sold) market share YTD 2018, slipped to 3.6 percent (10,178 units sold) YTD 2019.

KIA’S POWER TO SURPRISE

Meanwhile, Kia proved that it has the power to surprise.

In 2018, when the distributor of Kia cars was Columbian Autocar Corp., sales sank 58 percent to 2,238 units, from 5,186 the previous year.

This year, the Korean brand, which had been acquired by the Ayala Group in January, surprised the industry by breaking into the Top Ten Sales Performers circle.

Kia, distributed by Ayala’s Adventure Cycle Philippines, Inc., scored ninth place by posting 2,908 total vehicle sales from January to July.

In the YTD September 2019 period, Kia further increased its sales to 3,719 units.

It was an impressively executed turnaround of the Kia brand that should encourage other brands currently sustaining dismal sales.

CHALLENGED

The scuttlebutt is that frontliner Toyota Motor PH Corp. (TMP) has pegged its sales target at 165,000 units for this year, after scoring 153,000 unit sales last year.

According to the CAMPI YTD September 2019 report, TMP sold 114,117 units, up by 4 percent from the same period in 2018.

However, TMP president Satoru Suzuki is reportedly not optimistic about achieving the sales target, although he has been quoted as saying “we are now challenged to achieve it.”

With less than three months left to hit its target, TMP has to sell 51,000 units, which is indeed a big challenge.

Hopefully, the urge to splurge on big ticket items during the holiday season will finally fast-track the fragile recovery of the auto industry.

TOP NAMEPLATES PER BRAND

TOYOTA VIOS

NISSAN NAVARA

HONDA CITY

VOLKSWAGEN SANTANA

KIA SOLUTO

MAXUS G10

HYUNDAI ACCENT

SUZUKI ERTIGA

MAZDA 2

SUBARU FORESTER

GRATOUR

MITSUBISHI XPANDER