Local Philippine auto sales continue to be relatively resilient with a growth of 4.4% month on month with a minimal year on year decline of only -2.8%. Total auto sales grew by 4.4% in June with sales of 10,909 vehicles sold for the month and a total of 59,910 units sold so far for the first half of the year.
"We are thankful that the local PHI auto sales is holding up and continues to register some growth month on month, even amid the global crisis and considering the negative performance of auto sales in the west and even in Asean, " says Ms. Elizabeth H. Lee, CAMPI President.
With the banking sector stable amid the global crisis and the financing environment fairly healthy, support for auto sales should continue as buyers are able to get loans to finance their purchases. Another key factor sustaining vehicle sales is the OFW remittances which managed to grow by 2.6% even with the global crisis.
"With over $16-Billion expected from remittances and the fact that 2 out of 3 households is supported by an OFW, car sales should remain fairly stable with continued month on month growth to be seen in the next half of the year. The forecast for this year remains tempered towards at least a flat growth." says Ms. Lee.
Auto players continue to support sales with aggressive packages making it easier for buyers to purchase their vehicles to serve their needs. Buyers have become more discerning in terms of purchase behavior and criteria where price, utility, and cost of ownership (maintenance and vehicle life) have become strict priorities in buying a vehicle. The public's cognizance of the value of "total cost of vehicle ownership" may also be one reason why people are opting to buy Brand new vehicles versus imported used vehicles.
Sales are supported by sustained growth in the Passenger car segment as well as the Light Commercial Vehicle (LCV) segment, both of which continue to see growth in sales. Total Passenger Car (PC) sales so far were 21,375 with a 1.2% growth from the month of May. Commercial Vehicle (CV) sales totaled to 38,535 units sold, still taking up the bulk of total vehicles sold nationwide with a 64.3% market share.
LCVs which comprise of the popular pick up trucks, vans, and compact wagons, continue to pull sales up with a remarkable 12.8% growth selling 23,298 units thus far. Sales in this segment continue to grow due to the continued entrepreneurship trend where buyers look to invest in vehicles that give them the best value for their money, vehicles which serve a dual purpose.
New model launches and continued aggressive promotions sustained the growth in the PC segment. June sales registered a 1.2% growth while year-to-date, PC sales grew by 1.8%. Total PC sales are 21,375 cars sold nationwide. PC sales are seen to maintain growth in the coming months.
CV sales grew by 6.2% compared to May which reflects the buying public's preference for multipurpose vehicles that offer more value for money and can be used both for personal and business purposes. Although YTD sales are down by 5.2%, month on month growth is seen to the next half of the year. CV sales continue to dominate overall sales nationwide with 38,535 vehicles sold so far. Growth is expected in the next half with expected fleet sales to materialize as well.
MTD, AUV posted a minimal decrease of 2.4% from May 2009, mainly caused by supply constraints. YTD sales shows a 14% decrease. LCV sales is a consistent performer with a remarkable 12.8% growth for June sales selling 4,386 vehicles for the month and 23, 298 for the year thus far. Sales reflects the continued popularity of pick up trucks, vans, and compact wagons. The dual and multi-purpose use of such vehicles continue to be in demand. YTD Sales decreased by 4.2%, while MTD sales decreased by 16.4% due to delayed arrival of some units.
A decrease of 0.9% was registered for a month on month sales comparison. Compared to last year of the same month, the sales went down by 6.8%. Auto players remain optimistic with better performance in the next half of the year.