Auto Sales up in July despite Oil Price Hikes
Industry continues optimism
The auto industry continues on a strong growth path with an overall increase of 14.2% for the first 7 months of the year. Vehicle sales for July posted an 8% increase even against the backdrop of higher oil prices compared to the previous month. The industry sold a total of 11,636 units showing a sustained and strong growth so far. "We continue to be optimistic," says Elizabeth Lee, CAMPI President.
Auto players actively sustain promotional programs that makes it easier for buyers to purchase their vehicles. Fleet account sales also helped boost sales for the month. Both passenger car and commercial vehicle sales grew by 14% for the year.
"And, with value-for-money as the main purchase criteria, buyers are all the more keen in purchasing vehicles that fit specific needs. Multipurpose vehicles such as vans, pick up trucks, AUVs which continue to dominate sales, serve the growing segment of entrepreneurs and buyers with dual purpose needs. At the same time, first time car buyers whose needs are for personal use, bought passenger cars with preference for smaller engines. Buyers are also keen on the ownership cost when buying vehicles. Fuel efficiency is top of mind for buyers these days. Further, more and more buyers now appreciate the benefits of lower maintenance cost of purchasing brand new vehicles during the vehicle's life," added Ms. Lee.
CAMPI will be having it's 2nd Philippine International Motor Show (PIMS) this Aug 21 - 24 to be held at the World Trade Center.
Passenger Car sales increased by 14% compared to the same period last year (January-July). Demand for Passenger Cars also increased by 10% compared to the previous month with consumer preference shifting to smaller engine passenger cars especially for first time car buyers that use vehicles mostly for personal use due to oil prices.
However the need for multi-purpose utility vehicles still dictate the market as Commercial Vehicles continue to dominate the market with a 66% market share. Year-to-date sales continues to be strong with a double-digit growth of 14.3% so far this year vs the same period of Jan-July 2007. Month on month increase was posted at 6.9%. The continues to be supported by sales of AUVs, vans and pick ups, which make up 68% of total CV sales in the country.
AUV sales posted an increase of 7.2% compared to June 2008, mainly
caused by stocks availability and promotional campaigns. Year-to-Date sales also increased by 10.8% compared to the same period last year due to consumer preference for multi-purpose vehicles.
Light Commercial Vehicle sales remains to be the segment with the strongest growth with 18.1% increase in sales for the 1st 7 months of the year. This segment is mainly composed of pick ups, vans, and compact wagons. The strong growth can be attributed to the robust sales in vans and pickups purchased by buyers who seek value for money and multi purpose vehicles to serve their needs.
Light Trucks sales decreased by 5.8% compared to the same period last year (Jan-July 2007). However, for Month-to-date sales, a 20.6% growth was registered compared to June due to fleet accounts deliveries.
Cat IV & V sales for July 2008 increased by 59.3% compared to the month of June 2008 due to fleet account transactions. Also, Year-to-Date sales posted a 13.5% growth compared to the same period last year.