Auto industry expects 11% growth this year

MANILA, Philippines – The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) has revised upward its year-end sales growth target to 11 percent from 4 percent.

CAMPI President Elizabeth Lee said the industry was bullish due to its strong sales performance during the first four months, and given the surprising 7.3 percent economic growth during the first quarter.

According to her, industry wide sales were up 36.6 percent year-on-year from January to May, mostly on robust demand for light commercial vehicles.

CAMPI expects car sales to hit 147,000 units this year, higher than its earlier projection of 134,000 units.

In 2009, car sales rose 6.4 percent to 132,244 units versus 2008.

Lee said normally the second half of the year is better when compared to the first part of the year. “By third quarter we usually see an upswing in sales.” The good first half was attributed to the replacement rate due to the twin typhoons which hit the metropolis late last year and election spending.

“Factors that will continue to bolster vehicle sales include aggressive financing packages, making it easy and affordable for buyers to purchase their vehicles; OFW remittances, the engine of consumption, is expected to perform even better than last year; and the positive business and consumer confidence. 2010 will be an exciting year for both auto players and buyers,” Lee said. –Ma. Elisa P. Osorio (The Philippine Star)