SALES of local car manufacturers in a 10-month period fell 13.3 percent largely due to double-digit declines in the passenger car, Asian utility vehicle (AUV) and light truck segments.
The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association (TMA) reported a 9.2-percent slowdown in sales in October compared to the same period last year. Sales for the month contracted to 33,150 units, from 36,511 units in October 2017.
On the other hand, October sales was 6.5 percent higher than the September 2018 sales. “This positive growth was largely due to aggressive market promotions and availability of new model units in line with the recently concluded 7th Philippine International Motor Show [PIMS],” said Rommel R. Gutierrez, president of Campi.
He added this trend will most likely be preserved, as Campi and TMA expect sales from the automobile show to reflect this month. “We remain optimistic that sales growth will be sustained in November, as we expect more sales from PIMS will be delivered this month,” Gutierrez said.
In spite of the month-on-month growth, total industry sales from January to October is still down double digits at 13.3 percent. Campi and TMA sold 294,207 units after 10 months, lower than the 339,380 units, during the same stretch last year.
Sales of AUVs from January to October slowed 37.5 percent to 41,590 units, from 66,582 units during the same period last year.
Further, sales of light trucks declined 25.6 percent to 6,185 units from the previous year’s 8,311. The passenger car segment was the third-most hit bracket at 90,522 units sold, 20.1 percent lower against last year’s 113,341 units sold.
Sales of commercial vehicles and trucks and buses (category 5) from January to October also contracted 9.9 percent and 2.5 percent, respectively. Trucks and buses (category 4) and light commercial vehicles, on the other hand, recorded 10.7 percent and 3-percent growth in sales, accordingly, during the same period.
Toyota Motor Philippines Corp. still holds the lion’s share of total industry sales at 42.2 percent, trailed by Mitsubishi Motor Philippines Corp. (19.2 percent) and Nissan Philippines Inc. (9.6 percent). Ford Motor Co. Philippines Inc. and Honda Cars Philippines Inc. have 6.7-percent and 6.6-percent market shares, respectively.
Local car manufacturers are trying to survive the year, as they face the challenges of excise taxes on automobile, rising inflation and unstable global crude prices. These factors, they argued, made consumers prioritize buying basic goods over big-ticket items, such as vehicles.