Vehicle sales jump 38.5% to 8,319 units in March

The automotive industry sold a total of 8,319 units in March, up by a notable 38.5 percent from February due to stable supply, promotions, and fleet sales delivery.

"The increase may also be the start of a positive effect on industry sales given the Supreme Court ruling against imported used vehicles as buyers in turn, become more cognizant of the medium-term effects on those vehicles," Chamber of Automotive Manufacturers of the Philippines (CAMPI) president Elizabeth Lee said.

"Additionally, should a remedy be crafted and implemented soon with regard to the restrictive effect of EVAT’s 70-percent cap on input VAT on business operations, industry sales are seen to gain momentum once the cap issue is finally resolved," Lee said.

Sales for the first quarter posted a slight increase of 0.4 percent compared to the same period last year.

Overall sales are also expected to increase in the coming months should stable political and economic conditions coupled with a strong peso continue.

Month-on-month passenger car sales posted an increase of 33 percent due to sales of small cars, introduction of new models, as well as dealer-based buying promos and marketing programs. For the three-month period, passenger car sales minimally decreased by 0.2 percent.

Month-on-month sales, meanwhile also posted an increase of 42 percent with all segments (LCV, AUV, trucks and buses) doing better than February sales result. New model sales from the LCV segment also helped boost sales for the month of March. Overall sales for the commercial vehicle category should remain stable for the following months with sustained promotions and marketing activities offered by most assemblers.

Sales of Asian Utility Vehicle (AUV) increased significantly by 53 percent due to increased fleet sales deliveries, availability of units and extensive promos.

Compared to the same period last year, however, AUV sales decreased by 12percent.

Sales of light commercial vehicle (LCV) for the month of March increased by 35 percent as well. Financing promo schemes, stock availability, some new model launch and arrival of units helped sales growth. For the three-month period LCV sales also showed a positive increase of 13 percent compared to the same period last year as some SUV models were introduced.

Light Trucks decreased by 2 percent on a year-to-date comparison. However, on a month on month basis, sales posted an increase of nine percent due to delivery of fleet accounts and high inventories.

Cat IV & V significantly increased by 300 percent compared to last month (February) attributed to the stock availability and fleet deliveries.Year-on-year sales comparison also posted an increase of 17.6 percent due to high customer demand. Demand will increase for next month due to higher demand in anticipation of the long holiday.