The Philippine auto industry continued its positive momentum during the 2nd quarter of 2017 with 113,102 vehicles sold, based on the latest figures consolidated from distributor groups AVID (Association of Vehicle Importers and Distributors), CAMPI (Chamber of Automotive Manufacturers of the Philippines) and TMA (Truck Manufacturers Association). The figure represented a 7.64% gain against the previous quarter's 105,063 units; and a 9.22% increase compared to the same period last year.
Commercial vehicles continued to take the larger chunk of sales for Q2 of 2017, gaining 7.09% to 71,097 units. However, passenger car sales registered a larger gain of 8.6% at 42,005 units.
Still dominating the market is Toyota which sold 45,051 units increasing its market share to 39.83%, Mitsubishi Motors remained 2nd with a slightly improved 15.95% as it sold 18,040 units. Registering a significant 14.78% growth was Ford which sold 8,922 units to take the 3rd spot for the quarter with a 7.89% market share. Hyundai slid down to 4th with 8,525 with a 7.53% share. Isuzu maintained its 5th position with 7,703 units (6.81%); Honda sold 6,433 units for 5.69%; Nissan sold 5,374 (4.75%); and Suzuki rounded up the Top 8 with 4,896 (4.33%).
In summary, the first half of the year performed quite positively with a 14.18% gain selling 218,170 units compared to the same period last year (191,072 units).
While the country may have slightly missed its GDP targets for Q1 with 6.4% instead of the 6.5 to 7.0-percent government forecast. The World Bank and the International Monetary Fund (IMF) have remained positive as they expect a 6.8% GDP growth for the Philippines by year-end. The Asian Development Bank (ADB) meanwhile projected a 6.4% gain in its 2017 outlook report.
Both CAMPI and AVID remain optimistic that auto sales will continue its positive trend until the end of the year. However, a looming excise tax hike is expected to take effect in 2018 as part of a tax reform package bill marked as a priority by President Rodrigo Duterte. The congressional version of the bill was passed in the lower house last May. The senate is now deliberating its effects and are carefully studying the billling before passing it.
"The continued positive economic outlook and prompt delivery of vehicles amongst the major players were key to our positive sales for the first half of the year which saw a 17.1% gain for our members. Good stock level and continued manufacturer dealer push as well as expected introduction of new models will be critical in furthering sales this year," said Atty. Rommel Gutierrez, CAMPI president.
"AVID delivered 48,348 vehicles nationwide for the first semester of the year, improving 6% from the same period in 2016. To sustain this positive trend, AVID will continue on its quest to innovate its products and services in response to the ever-changing customer needs," said Ms. Ma. Fe Perez-Agudo, AVID president.
With 218,170 units sold for the first half of 2017, commercial vehicles continue to take a significant share of the market with 63.01% and passenger car sales took the remaining 36.99%.
Toyota continues to outsell all players with 85,740 units covering 39.3% of the market as Mitsubishi Motors seconds with 34,549 units and a 15.84% market share. Hyundai remains in third with 17,366 units (7.96%); Ford is in close fourth with 16,695 units (7.65%); Isuzu is in fifth with 14,225 units (6.52%); Honda Cars ranked sixth with 13,789 units (6.32%); Nissan is seventh with 10,651 units (4.88%); Suzuki is eighth with 8,947 units (4.1%).