CAMPI sees vehicle sales growing 16% this year

MANILA, Philippines - Vehicle assemblers see total sales growing by at least 16 percent this year from last year’s all-time high of 234,747 units on expectations of sustained demand.

According to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), it expects its combined sales with the Truck Manufacturers Association Inc. (TMA) to reach 272,000 units this year, up from the record performance in 2014.

CAMPI and TMA achieved record-high sales last year, which rose by 30 percent from the 181,283 units in 2013, due to the strong demand for passenger cars (PCs) and commercial vehicles (CVs).

The PC segment posted a 48-percent increase with sales of 90,287 units last year from 2013’s sales of 61,083 units.

“This growth in the passenger car sales was largely fuelled by the successful introduction of several new models and wider acceptance of small car product category,” CAMPI president Rommel Gutierrez said.

CVs also showed an impressive performance last year with sales posting a 20-percent uptick to 144,460 units compared to 120,200 units in 2013.

By company, Japan’s Toyota Motor Philippines Corp. remained the market leader with its 45-percent share.

Another Japanese firm Mitsubishi Motors Philippines Corp. placed second with its 21-percent market share followed by American carmaker Ford Philippines with its 8.7-percent share.

Isuzu Philippines Corp. ranked fourth with its six-percent share, while Honda Cars Philippines Inc. got the fifth spot with its 5.7-percent share.

The CAMPI’s projection for this year is based on expectations of sustained positive economic performance, higher government spending for next year’s national election as well as the continued decline in world fuel prices. 

Of the 272,000-unit sales projection, the bulk or 60 percent would be commercial vehicles (CVs), while the balance would be accounted for by PCs.

In terms of product category, the small car passenger segment is expected to continue to be attractive to buyers, particularly young professionals and those working in the business process outsourcing industry.

The CAMPI also anticipates demand for sports utility vehicles (SUV) and light commercial vehicles as passengers look for vehicles suitable for the rainy weather.

“Many consumers now see the need, as well as practicality, of owning SUVs and similar higher vehicles to combat the floods.  Dropping oil prices, wider product selection at competitive prices and improved fuel efficiency of higher displacement vehicles are providing the additional push especially to those who are considering a second vehicle purchase,” Gutierrez said.

With CAMPI and TMA’s sales expected to rise 16 percent this year, he expressed confidence the country’s total vehicle sales, including those of non-CAMPI members, for 2015 would breach 300,000 units.

The challenge now, he added, is for the local vehicle assemblers to maintain or even increase its share in the market as the government has yet to release details of a program intended to support the industry.

Last year, locally assembled vehicles accounted for only 37 percent, while imported vehicles captured 63 percent.

As the Philippines is set to host this year’s Asia Pacific Economic Conference Summit, which includes events focused on the automotive industry, Gutierrez said the CAMPI would push for programs aimed at promoting parts and components development by the small and medium enterprise sector in the discussions.