CAMPI: Automotive Industry Seen to Grow 2-4% in 2009
The local auto industry is expected to grow by a slower rate next year due to the global economic downturn.
“For next year, growth maybe between two and four percent, down from this year’s 10-percent growth,” CAMPI president Elizabeth Lee said.
According to Lee, the local industry is better off than other countries which has been besieged by falling sales as a result of the slowdown in global demand especially in the European and American markets.
“So far auto players remain cautiously optimistic given the local industry’s better performance versus that of other developed markets,” Lee said.
She said the problems of car companies overseas have an effect on the Philippines but it is not enough to cause a contraction of the industry. “We remain positive until next year,” Lee said. “This year we are still gunning for 125,000 units,” she added.
She said the industry is on track to meet this year’s sales target. “The local market is still growing when compared to others that has been declining since the first quarter.”
Latest data showed that auto sales for the first 10 months of the year went up by 10 percent as local automakers predicted they will be posting the highest yearend sales in a decade.
Data showed that total vehicle sales from January to October was at 104,757 units. Bigger when compared to the 95,242 units sold during the same period the previous year.
However, month-on-month comparison showed a decline of 2.9 percent in sales.
“Although the effect of the global crisis on the local auto industry is relatively minimal at this point in time, players are preparing for measures to guard against the devastating effect the crisis has had on other larger, mature, foreign auto markets,” Lee said.
Lee pointed out that developed countries like the United States and Europe will suffer as a direct result of the global economic slowdown.
”One of the possible ‘side effect’ of some OFWs coming back home is that they will be ‘forced’ to become dual income earners in the short to mid-term. Most may choose to become entrepreneurs against the backdrop of declining job opportunities as a result of the crisis. Bad times could somehow create some good opportunities for entrepreneurs. They must be supported as they are a significant engine for growth,” she noted.
“Aggressive inventory management to maintain optimum cash flow will be priorities for local operations. At the same time, a market offensive stance to help mitigate the dire effects of the global meltdown locally, is for the government to aggressively support and encourage entrepreneurs / SMEs most especially during these times,” Lee added.
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