Local auto industry seen to post slower growth in 2011

MANILA, Philippines – The local auto industry is looking at a slower growth next year after posting a robust sales growth of over 30 percent this year.

Speaking to reporters on the sidelines of the Isuzu Philippines Corp. Christmas party Monday night, Isuzu senior vice president Arthur Balmadrid said that they expect the industry to grow by four percent to five percent next year.

Balmadrid clarified that this is still a working target. He noted that this does not mean that the demand for vehicles is tapering down. The base is already big this year so the percentage growth for next year cannot be as high.

Earlier, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said that the local auto industry is expected to exceed its largest sales performance ever as yearend growth is seen to hit 33 percent.

“It’s about time we surpassed that milestone. A growth of 33 percent thus far is an achievement. However, we have yet to catch up with our ASEAN neighbors who continue to gain significant domestic growth and expansion, allowing for a stronger integration in regional and global trade using local industries that include a healthy parts and components industry. A typical benchmark is Thailand,” CAMPI president Elizabeth H. Lee said.

In a joint report by CAMPI and the Truck Manufacturers Association (TMA), vehicle sales growth is sustained at 33 percent for the 10-month period.

“This year is an interesting year for the industry, with sales getting a boost from election spending coupled with the residual effects of Ondoy early on, robust OFW remittances, aggressive financing packages, new models – many of which were launched during the Philippine International Motor Show (PIMS), and continued consumer and business confidence for the year,” Lee said.

However, for the month of October, there was a one percent contraction in sales when compared to September. If compared to the same month last year, sales, however, are still up with a respectable 12.2 percent growth.

“Sales continue to be sustained although October did show a slight drop of less than one percent. The industry expects an uptick in the last two months of the year given expected seasonality,” Lee said. –Ma. Elisa P. Osorio (The Philippine Star)