CAMPI Breaks 100,000-Benchmark in 2007

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The Philippine automotive industry sold more than 108,000 units of vehicles last year, the first time in 10 years that the auto industry surpassed the 100,000-benchmark, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) disclosed.

Sales registered in 2007 is 18.4 percent more than what was sold in 2006. CAMPI President and Universal Motors Corp. Senior Vice-President for Marketing Elizabeth Lee said the increase in sales was due to a number of marketing activities, including the staging of the 1st Philippine International Motor Show.

"The improvement in economic growth, the finality of the Supreme Court's decision banning second-hand vehicle imports, and the government's active campaign against illegal vehicle imports also boosted sales," said Lee.

Members of CAMPI include Toyota Motors Philippines Inc., Nissan Motors Phils. Inc., Mitsubishi Motors Corp., Honda Cars Philippines Inc., Ford Motor Company Phils. Inc., Filipinas Daewoo Industries Corp., and Hyundai Asia Resources Inc.

These companies, which set up assembly lines here in the Philippines, are subsidiaries of big players in the global automotive industry.

Starting in 1996, auto manufacturers saw their sales decline to less than 100,000 units due to the influx of smuggled vehicles and right-hand drives.

In 2005, CAMPI had warned that auto assemblers may consider closing shop if economies of scale do not improve in the Philippines. Lee noted that the Philippine market pales in comparison to Thailand's where 500,000 units of vehicles are sold each year.

Meanwhile, Toyota dominated the Philippine market in 2007. The company cornered more than 38 percent of the market and sold 45,091 units of passenger cars, sports utility vehicles (SUVs), and commercial vehicles (CVs) last year.

Honda Cars registered the second biggest sales for 2007, cornering more than 14 percent of the market. The company sold 17,321 units of passenger cars, SUVs and CVs last year.

Mitsubishi Motors came in third with a 12-percent market share. The car company sold more than 15,005 units of passenger cars, SUVs and CVs in 2007.

For 2008, Lee projected the industry will sustain its growth momentum and that sales will grow by five to seven percent.

"Off the bat, we are still looking at a growth for 2008, with perhaps a more conservative stance at the outset with a five to seven percent growth compared to 2007," she said.

The CAMPI official disclosed that car companies are set to roll out new models this year.

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