End-May auto sales continue to fall

AUTOMOBILE sales picked up in May from the previous month, but the number of vehicles sold in the first five months was still lower than last year, according to industry groups.

In their joint report, the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association said in May sales hit 10,450 units, up 4.6 percent from the 9,988 units sold in April.

End-May sales however fell 3.7 percent year-on-year, as 49,002 units were sold this year, compared with 50,883 in the same five-month period last year.

“The [month-on-month] uptick was expected given the full month of sales. The increase in May sales continues to validate the relative confidence of consumers on the market. [The] key to sustained sales is the stable [auto] financing environment,” Elizabeth Lee, Campi president, said in a statement.

“Players continue to be optimistic and will await the results of the first half of the year before any adjustment in forecast will be made. The local auto industry is still doing relatively well considering the drastic decline in sales in the more developed markets, such as the US where sales are down minus 36 percent from last year,” Lee said.

“Auto players continue to sustain sales with promotions and easy payments that benefit buyers. Sales are expected to continue to be stable and to grow in the coming months,” she added.

Sales of passenger cars grew 8.1 percent month-on-month to 3,766 units and 2.3 percent year-on-year to 17,562 units at end-May, bucking the industry trend.

“Growth [in sales of passenger cars] is due to the introduction of some new models and the growing acceptance of compact cars among first-time car buyers,” Lee said.

Sales of commercial vehicles, comprising about two-thirds of the total, were up 2.8 percent month-on-month to 6,684, but down 6.7 percent year-on-year to 31,440 in the first five months of this year.

“Year-to-date sales [of commercial vehicles] declined due to unavailability of units to serve some fleet accounts for the month. Inventories for this segment are expected to be normalized in the coming months,” Lee said.

Sales of Asian utility vehicles dipped 1.3 percent month-on-month due to “low seasonality,” while year-on-year sales fell a faster 13.5 percent.

Light commercial vehicle sales increased 3.3 percent month-on-month due to “steady sales of available models, continuous promos and launches of new models,” but dipped 2.1 percent year-on-year.

Sales of light trucks were down 0.7 percent month-on-month and 0.3 percent year-on-year due to “delayed arrival of some units,” the Campi executive said.

Truck and bus sales were up 24.7 percent month-on-month due to “new bus purchases for transportation-related businesses,” even as year-on-year sales were down 18.7 percent.

Toyota Motor Philippines Corp. remains the domestic player with sales of 17,080 units in the first five months of this year, although sales were 6.2-percent lower year-on-year. Its market share in this five-month period slid to 34.9 percent from 35.8 percent last year.

Mitsubishi Motors Philippines Corp. sold the second most number of vehicles in the first five months of this year—8,750 units, up 27.3 percent year-on-year. Its five-month market share of 17.9 percent is higher by 4.4 percent year-on-year.

Honda Cars Philippines Inc. posted the third-largest sales in the first five months of this year—7,164 units, up 9.9-percent year-on-year. Its five-month market share of 14.6 percent is higher by 1.8 percent year-on-year. –Ben Arnold O. de Vera, Reporter, Manila Times