Philippine Auto Sales up by 6.3%
Positive figure shows promise
The Philippine automotive industry improved its sales this July vs June by posting a 6.3% growth and shows a minimal decline of 2.4% from last year's figures. July showed the highest monthly sales this year with a total of 11,597 vehicles sold nationwide. All segments performed relatively better with commercial vehicles gaining 8.2% in July and passenger cars gaining 2.8%. To be able to attain the forecast of 125,000 units overall year end sales, the automotive industry should sell an average of about 10,700 units per month for the rest of the year.
Commercial vehicles sales grew by 8.2% compared to June and continues to dominate the market with a 64.6% share of total vehicles sold nationwide due to sustained aggressive marketing campaigns. This reflects the buying public's preference for multipurpose vehicles that offers more value for money and can be used both for personal and business purposes. Continued overall growth is expected for the coming months.
Sales of automatic utility vehicles and light commercial vehicles was able to catch up from previous month's unhealthy sales with 7.8% and 7.4% growth respectively. Year to date sales of automatic utility vehicles however showed a 14.2% decrease. "The industry remains cautiously optimistic with buyers able to finance their purchases with relative ease and at lower cost." says Ms. Lee.
The stable increase in year to date passenger car sales of 2.8% was due to the market acceptance of the compact-size models and improved supply. There is also an increase of 0.3% in month-on-month sales attributable to existing promos and stock availability.
Marketing campaigns and dealer incentive promos together with steady sales performance of available models and launching of new models helped the industry in achieving an increase of 7.4% in sales monthly. The year to date comparison also showed an increase of 3.4%. The strong popularity of dual purpose vehicles continues on a growth path for this segment. Increased sales in the coming months are expected.
"Things are starting to look a bit brighter for the remainder of the year with the relatively good sales performance in the month of July with a 6.3% growth versus June. July sales should be a positive signal for the performance in the 2nd half of the year with more robust sales seen in the coming months assuming market conditions improve." says Ms. Elizabeth Lee, CAMPI President