Passenger Car sales grew 34.7% putting in an additional 6.1% growth in July while Commercial vehicles grew by 38.6, adding an additional 4.6% for the month of July.
"Continued growth in July sales signals sustained improvement in growth for the 2nd half of the year." says Ms. Elizabeth H. Lee, CAMPI President.
Sales of commercial vehicles continue to corner 65% share of total vehicle sales nationwide with Passenger Car sales cornering the remaining 34.7%.
"Auto sales growth is positively correlated to the growth of the economy. The continued robust vehicle sales reflects stronger consumer and business confidence which in turn results in enterprise growth that benefits vehicle sales," says Ms. Lee.
Further boosting auto sales is the Presidents clear message on a crack down on smugglers and all forms of corruption. "We anticipate that President Aquino's firm stand against all forms of corruption, of which smuggling is a significant part of, will greatly benefit our local Philippine auto industry most especially the livelihoods of tens of thousands of auto workers to include the parts and components industry," Lee further adds.
"The President sends a clear signal moving forward. This is important. His commitment is essential and key, particularly to investors," says Ms. Lee.
Under the new Aquino administration, the local auto industry can be poised to finally become a larger part of the regional ASEAN auto industry 'hub' where the Philippines, with its under-utilized assembly plants, can be used to supply the growth and rebound in car sales not only within the region, but possibly export beyond it as well.
The message and goal is loud and clear. The key points in the President's agenda as stated in his SONA directly affects the auto industry. It is the right direction for accelerated growth and the PHI auto industry can be a significant part and contributor to our nation's success.
Other factors that contribute to strong vehicle sales are :
* OFW remittances: about $18 billion seen in 2010: with OFW remittances representing about 12% of GDP, the continued increase directly benefits vehicle sales as remittances provide the engine of growth for consumption.
* Aggressive financing packages: more than ever, buyers can take out loans for the purchase of their vehicles with a slew of packages that make car buying easy and less expensive. Banks are awash with cash and car loans are proving to be a lucrative growth area that in turn supports SME business expansion reflected by higher business and consumer confidence.
* Supply: Supply of vehicles are starting to catch up to meet the rise in demand.
* New models: A number of vehicle makes have launched and will likewise be launching NEW vehicles within the year. New models give buyers an array of choices for their needs. A robust and general increase in vehicle sales likewise encourages the introduction of more new models in the country.
A 34.7% increase in sales for Passenger Cars (PC) was registered compared to the same period last year. Month on month sales increased by 6.1% due to introduction of new models, availability of stocks and marketing campaign. PCs are seeing continued growth in sales.
Commercial Vehicle sales continues to be robust with a 38.6% growth thus far. Likewise, compared to last month, CV sales for July 2010 increased by 4.6% from 9,717 units to 10,165 units due to arrival of stocks, more stable supply to meet the growing demand, as well as introduction of new models and deliveries of back orders. Key to CV sales are the popular LCVs which comprise of AUVs, Pick ups, Vans, Compact wagons. Robust growth is seen to continue in the coming months. LCV growth within the CV category experienced the largest jump in growth year to date with a whopping 47.9% increase in sales.
AUV increased by 27.7% compared with the same period last year, from 16, 567 to 21, 149 units. On a month on month basis, a 2.6% increase was recorded due to improved supply and timing of deliveries.
LCV Sales in July 2010 substantially increased by 47.9% compared with the same period last year.It is the segment that shows the most robust growth owing to the popularity of the pick up trucks and vans, as well as compact SUV. This reflects buyers preference for dual purpose vehicles where one can use it for both family and business use. Month on month, sales increased by 4.2% from 6,188 to 6,448 units.
The CAMPI is gearing up for its 3rd Philippine International Motor Show (PIMS) this coming August 19-22, 2010 at the World Trade Center. The CAMPI PIMS is touted as the country's very own flagship motor show we Filipinos can be proud of. The PIMS is put together by 20 global brand manufacturers and assemblers as well as formal distributors.