Auto sales zoom to highest level in 14 years

MANILA, Philippines – Sales of the local auto industry zoomed to its highest level in 14 years with 168,490 units sold last year.

In a joint report, the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA) said the industry posted a 27.2 percent sales growth last year, making 2010 a landmark year for the industry.

“It’s about time the industry surpassed the benchmark set in 1996. 2010 was an auspicious year for the auto industry, showing strong growth backed by major accomplishments that will help the industry as a whole move forward,” CAMPI president Elizabeth Lee said.

CAMPI has forecast sales growth in 2011 at about 4-5 percent as the industry expects sales this year to follow the regular seasonality typical of auto sales. Last year’s trend did not follow the general seasonality due to the elections and the post-Ondoy effect on car sales. The sales forecast will be adjusted accordingly on a per quarter basis, Lee said.

“2011 is likewise seen to be a positive year as overall economic environment continues to be relatively favorable with sustained business and consumer confidence, GDP (gross domestic product) growth, stable forex (foreign exchange), positive forecast for OFW (overseas Filipino workers) remittances, manageable inflation rate forecast, continued healthy financing environment, as well as new model introductions by auto players this year,” she added.

According to Lee, confidence in the country’s economy will redound to increased investments as the Aquino government continues to work towards its goal of stamping corruption, creating a level playing field that results in a healthy investment climate as well as job creation.

“To move forward, faster, and stronger, we must showcase this administration’s political will to stamp out corruption in any form. This sends a very strong and positive signal to those who are already looking to expand their auto investments in the country,” she said.

“We are likewise hopeful that this year will bring in new investments on the back of government’s direction to support the expansion of local assembly operations, create jobs, and create a competitive environment where the Philippines can participate in a larger scale, regionally. We have to take advantage of the opportunities that are present and use the plant capacities we have available to serve both the domestic and export markets. A strong, clear, and competitive road map is key,” Lee added.

Toyota Motor Philippines Corp. still dominated the industry with a third, or 33.7 percent, of total market share as it sold 56,855 units last year. Mitsubishi Motors Philippines Corp followed with a market share of 19.2 percent, selling 32,422 units. Third was Hyundai Asia Resources Inc with 11.1 percent of the market on sales of 18,696 units.In December alone, sales grew 1.7 percent as the industry sold 13,749 units.

Sales of passenger cars (PCs) grew 27 percent for the year with 58,691 units, although there was a slight 4.9-percent decline in December partly due to the relatively short selling month. PC sales volume for December was at 4,487 units.

Commercial vehicles (CVs) likewise grew 27.4 percent for the year, with December sales growing an additional 5.2 percent. Light commercial vehicles (LCVs) continued to show the strongest segment growth within the CV category with a growth of 32.3 percent. Asian utility vehicles (AUVs) likewise grew by a strong double-digit growth of 21.9 percent. –Ma. Elisa P. Osorio (The Philippine Star)