CAMPI: Car Sales Up but Buyers Focus on Fuel Efficiency

July 10, 2008 by Tsikot

The automotive industry sold 61,654 cars and trucks in the first half of the year, up 13.6 percent from the same period last year, even as buyers shifted to fuel-efficient vehicles amid escalating petroleum prices.

“The overall Philippine automotive industry… remains relatively strong and stable,” said Elizabeth Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc.

With its first-half performance, the industry must sell 63,846 units in the remainder of the year if it is to meet its target of 125,500 units for 2008.

Lee said consumers were beginning to recognize the importance of fuel efficiency in the vehicles they bought as a result of rising fuel costs.

“Buyers are changing the way they use vehicles with utility [dual purpose vehicles for personal and business use] as well as conservation as a shift in mindset,” she said.

Commercial vehicles continued to dominate the market in the first six months, with a total of 40,651 units sold and year-on-year growth of over 15 percent.

Sales of passenger cars grew 10.9 percent with a total of 21,003 units sold.

Lee said growth was sustained on a year-to-date basis, but month-on-month sales dipped slightly by 1.2 percent last month, when only 10,772 units were sold compared to 10,900 in May.

She said the industry not only had to contend with the impact of rising fuel costs on sales, but also with typhoon Frank, which shortened selling days and disrupted the business operations of most provincial dealerships.

But Lee said the local industry still fared better than the other car industries in the region, since the decline in sales last month was still manageable compared to the double-digit sales drops seen in other countries.

The industry should still be able to show some growth for the whole year, she said.

“Sales are expected to be stable next month. Auto players continue to be cautiously optimistic. The forecast for year-end sales remains positive,” Lee said.

Toyota Motors Philippines Corp. stayed ahead with a total of 22,209 units sold, and for a market share of 36 percent.

But its sales slipped by 1.1 percent month-on-month, with only 4,003 units sold last month compared to the 4,046 units sold in May.

Mitsubishi Motors Philippines Corp. was a far second with 8,365 units sold and a market share of 13.6 percent.

Honda Cars Philippines Inc. took the third spot with 7,679 units and a 12.5-percent share.

Isuzu Philippines Corp. was at no. 4 with 5,185 units sold and an 8.4-percent share.

Hyundai Asia Resources Inc., the only Korean brand, placed fifth with 5,064 units sold and a market share of 8.2 percent.

Buyers continued to favor Asian utility vehicles, with sales improving 3.3 percent month-on-month to 3,034 units in June from only 2,938 units in May on fleet deliveries.

Although sales of light commercial vehicles last month declined by 8.8 percent from May, the overall sales result for the first half was still the strongest, with a 20.6-percent growth for this segment alone.

Compact wagons and full-sized sports utility vehicles bore the brunt of the decline in sales last month. But sales for the first half of the year remained positive, contributing 20.6 percent to the overall growth in the light commercial vehicle segment.

The slowdown in business and high fuel prices contributed to the low performance of light trucks, with sales declining by 15.5 percent to 136 units last month from 161 units in May.

Deferred purchases of most trucks and buses resulted in a 28-percent fall in sales, to 59 units in June from 82 units in May.

By Elaine Ruzul S. Ramos, Manila Standard Today

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