The CAMPI motor show

Yesterday, I attended the press conference of the Chamber of Automotive Manufacturers Inc. (Campi) on the August 19 to 22 CAMPI International Motor Show (PIMS) in Manila.

This show is significant for at least two reasons. One, there is an emerging auto boom. Auto sales have increased more than 35 percent in the past four months. CAMPI has tripled the projected annual rate of increase in sales from the original four percent to 11 percent.

Total auto sales for the whole of 2010 could hit more than 140,000—a 10-year high—from 132,000 units last year. My own estimate is that vehicle sales are more likely to scale 180,000 units.

Two, there is a new administration. There is a new Motor Vehicle Development Program. Automotive is one of a few manufacturing industries of the Philippines that are still standing.

CAMPI President Elizabeth Lee says “we have come a long way since we first started our very own Philippine International Motor Show put together by CAMPI in August of 2007 when the show was inaugurated by then Senate President Manny Villar.”

That CAMPI first-ever international caliber motor show “was a resounding success,” Lee recalls.

The next one was even more successful. No less than President Arroyo opened it. After those two shows, CAMPI’s PIMS has become the “flag carrier” of the Philippines in terms of international motor shows. It has put the Philippines on the regional auto map.

Manila should have been Asean’s auto manufacturing hub but the bragging rights went to Thailand because we could not get our act together.

Hopefully, under President Aquino things would be better, especially as regards promoting the Philippines as an investment destination, enhancing the competitiveness of local industries, and protecting the few jobs still in local manufacturing.

Lee says automotive “is only one of two manufacturing industries the country can be proud of, automotive manufacturing and assembly is one we, as Filipinos, should be proud of. You know the numbers.”

She says: “We are an enormous industry. We have investments of over P100 billion, workforce of 74,000 auto workers to include the parts and components industry with 500,000 dependent family members—not to mention the large ancillary industries that are connected to the auto industry. Members pay duties and taxes in excess of P20 billion, withholding taxes from employees of assemblers of more than P350 million annually, payroll of about P325 million yearly (approximately), exports of about $2 billion, and heavy, long-term investments by among the world’s largest and most respected automotive companies.”

Lee says local automotive cannot but grow. She cites the following factors:
• The domestic economy posted a 7.3-percent growth in the first quarter of the year 2010, one of the highest in decades. According to Neda, the growth was due to an improvement in the global economy, a brighter economic outlook, increased business and consumer confidence, and election-related spending which contributed to the resurgence in economic activities.
• Overseas Filipino remittances—a key engine of growth in consumption–increased by 7 percent to reach $4.3 billion in the first three months of the year. Neda sources also show that with the growth in remittances, net factor income from abroad increased by almost 25 percent, boosting GNP to grow by 9.5 percent.
• These numbers have been translated to real consumption with our own domestic auto industry growing by a whopping 36.6-percent growth for the first five months of the year compared to the same period last year with 66 percent of total vehicles sold nationwide cornered by commercial vehicles—these are your AUVs, pick up trucks, vans, and compact SUVs—all with a robust growth of over 40 percent for these types of vehicles. Not to be outdone, passenger cars also grew double-digit, growing almost 30 percent compared to the same period last year.
• The Philippines did not succumb to a recession. There was no credit crunch, no credit freeze. In fact, banks to date are fat and awash with cash—which is good for ordinary citizens like us, who can take advantage of aggressive financing packages that make buying a vehicle faster, easier and more affordable.
• Throughout the global crisis which started in 2007, our own domestic auto industry bucked the trend, ending the year with an 18-percent growth. At the height of the crisis the following year, the industry grew another 5.6 percent. Last year in 2009, the industry grew once again with an additional 6.4 percent. This year so far, we are clocking in with a 36.6-percent growth thus far.

During the August CAMPI show, 15 to 20 brands are participating, with over 100 vehicles on display.
“Expect concept cars, cutting-edge technology in fuel-efficiency, more pocket- and planet-friendly vehicles, more high-impact exhibits, dazzling presentations, and unique experiences for Filipinos from all walks of life,” Lee promises. –TONY LOPEZ, Manila Times

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