Auto sales growth projected at lower 5% this year

Elizabeth Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), said yesterday that the automotive industry is projecting a lower sales forecast of five percent for the whole of 2006 compared to the 10.3-percent actual growth last year.

Lee did not explain the basis for CAMPI’s lower automotive sales forecast.

However, local automotive manufacturers have expressed concern about the effect of the imposition of the expanded value-added tax (EVAT) on automotive sales.

For January alone, CAMPI and the Truck Manufacturers Association (TMA) are expecting a continued increase in automotive sales due to fleet accounts deliveries and possible spillover of advance purchases made last month in anticipation of the additional EVAT implementation in February.

Total automotive sales for 2006 is projected at 102,000 units compared to the actual sales of 97,063 units last year although the 2005 sales target was 95,000 units.

CAMPI is projecting passenger car sales to hit 34,500 units this year, while projected commercial vehicle sales is 67,500 units.

CAMPI and the TMA had earlier reported that 2005 saw aggressive sales promotion and advertising expenses to sustain sales through the year.

Although sales grew, CAMPI and TMA admitted that competition remains stiff and margins slim.

Commercial vehicle sales of 61,432 units dominated the market ending the year with a 63-percent market share.

Light commercial vehicles, composed of pickups, vans, and compact sports utility vehicles, took up over half or 53 percent of the total commercial vehicle market.

Light commercial vehicle sales for 2005 reached to 32,651 units. Passenger car sales increased 7.3 percent due to the introduction of new models and fleet deliveries.

A total of 35,631 passenger car units were sold in 2005 as compared to sales of only 33,204 units in 2004.

Commercial vehicle sales grew 12.1 percent in 2005 from 54,799 units in 2004.

The growth in commercial vehicle sales was due to sustained new model sales from the pickup, light trucks and Asian utility vehicle segments, promos and stock availability.

AUV sales in 2005 of 26,391 units attained a growth of 16.4 percent compared to the 22,664 units sold in 2004.

Light commercial vehicle sales in 2005 of 32,651 units showed a positive growth of nine percent compared to the same period last year due to sustained sales of new SUV and pick-up models.

Light Trucks sales for the whole of 2005 showed an increase of five percent compared to last year due to the entry of Category 3 vehicles.