Auto sales jump 17% in January

The local automotive industry remained in high gear last month as sales zoomed at a double-digit pace, continuing a record run last year.

Based on preliminary data obtained by reporters, automakers sold a total of 8,808 units in January, a 17.11-percent acceleration from the 7,521 units sold during the same month a year ago.

This as demand for both passenger cars and commercial vehicles increased substantially. Car sales went up 29 percent to 2,963 units, from 2,297 units last year, while commercial vehicle sales jumped almost 12 percent to 5,845 units from 5,224 units.

Japanese auto giant Toyota remained the leader in total sales as it accounted for 3,001 units or a third of the market, although the January figure was slightly lower than the 3,013 units it sold last year.

At second was Honda, with 1,476 units, followed by Mitsubishi with 1,144 units, as the Japanese brands continue to dominate local auto sales.

In 1997, the automotive industry sold 117,903 units – the first time sales breached past the 100,000-mark since the Asian financial crisis in 1997 – posting an 18.4-percent growth.

The robust performance has been credited to the staging of the first Philippine International Motorshow, a large line up of new model introductions from most auto players, and the finality of the Supreme Court decision banning second-hand vehicle importation.

Elizabeth H. Lee, president of the Chamber of Automotive Manufacturers of the Philippines (CAMPI), said sales growth this year would likely be at a moderate pace.

“Off the bat, we are still looking at a growth for 2008 with perhaps a more conservative stance at the onset with a five to seven percent growth compared to 2007,” Lee said.

This year, Lee said more models will be introduced which, in turn, will take up most of the sales growth for 2008.

“The industry is seen to keep the momentum of growth in 2008 as well,” she noted.

She said the drivers for growth for 2008 will depend on an increasingly stable market with the peso-dollar exchange rate fluctuations kept to a comfortable level.

“On the whole, 2008 is seen to be another growth year for the industry,” she said.

The commercial vehicle segment will continue to dominate the market with greater emphasis on the light commercial vehicles. Mostly, these vehicles are used for both personal and business purposes.

Sales of passenger cars are also expected to rise because there is a demand for small and affordable vehicles.

“With the rise in oil prices, diesel-fed vehicles can have a relative advantage in terms of fuel economy,” Lee said.