CAMPI Foresees Long-Term Auto Industry Investors

Foreign investors particularly in the automotive sector are taking a serious look in terms of long term investments in the country because the successful first automated national elections have sent a positive signal to investors, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said.

“The relatively peaceful election means only one thing and that is, a more vibrant automotive industry for 2010. This augurs well for the Philippines, and for Filipinos as foreign investors take a serious second look in terms of mid to long term investments- particularly in automotive,” CAMPI president Elizabeth H. Lee said.

“We can now step on the throttle and go full speed ahead with perhaps business ‘unusual’ as we look forward to an improved environment on the back of stronger consumer and business confidence that will benefit auto sales,” Lee added.

The industry’s confidence was also boosted by the issuance of Executive Order 877 or the new Motor Vehicle Development Program.

Lee said that once the initial errors and inconsistencies have been corrected and all the stakeholders are invited in the crafting of the EO’s implementing rules and regulations, then the MVDP would help attracting new investments in the auto sector. Read more

Local Car Sales up 35.5% in First Quarter

Automotive sales grew by 35.5 percent in the first quarter of the year, with increases registered in all vehicle categories except light trucks.

The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) reported that in the January to March period, the industry sold a total of 38,709 vehicles, helped mainly by the new model introductions and aggressive financing packages offered by the brands.

In March alone, the industry sold 14,373 units, 33.8 percent higher compared with the same month in 2009.

“The strong first-quarter result augurs well for the whole auto industry. We will have to revise our original forecast upwards given the first-quarter trend. We are looking forward to continued strong sales in the coming months compared to the same period last year,” Elizabeth Lee, Campi president, said in a statement.

Campi originally set a 4-percent sales growth target for the year.

Passenger cars grew by 26.5 percent year-to-date, selling a total of 13,009 units.

On the other hand, the entire commercial-vehicles segment grew by a whopping 40.6 percent for the period with a total of 25,700 units. Read more

Local Auto Sector to Revise Upward Sales Forecast for 2010

After a good two months performance, the auto industry announced they will be revising upward their sales forecast for the year.

In an interview at the sidelines of the launch of the Nissan Murano, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Elizabeth H. Lee said that the high remittance from overseas Filipino workers (OFW) will support the high vehicle sales.

“We are very bullish for the whole year,” Lee said.

According to Lee, they will revise the target upward. She said the final figure will be released after the first quarter.

Lee said they will look at the trends after March because the spending in the first three months may only be influenced by the national elections.

Meanwhile, Lee, who is also the vice president of Universal Motor Corp. announced the launch of the Murano Z51. The vehicle costs P3.1 million. Read more

CAMPI: Sales of New Commercial Vehicles Grow by 7.7% in 2009

Notorious for their tonnage and insatiable thirst for petrol, sport utility vehicles (SUVs) have never been the picture of efficient motoring, but with the Filipinos’ penchant for dual purpose vehicles—particularly after the high floods caused by tropical storm Ondoy last year—it seems that motorists are still giving these gas-guzzlers a second look.

Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) show that sales of commercial vehicles–which include SUVs, Asian utility vehicles, pick-up trucks, vans and compact wagons–continued to surpass sales of passenger vehicles last year.

According to CAMPI, commercial vehicles grew by 7.7% to 86,216 units in 2009. Passenger cars or sedans, on the other hand, sold 46,228 units, rising slower at 4.1% from the previous year. Based on sales figures recorded particularly during the final months of 2009, more motorists may have replaced their damaged cars with taller vehicles, which have a better chance of wading through flood and mud. Read more

Philippines Auto Industry Assemblers Reject New MVDP

Domestic automotive players have rejected the new Motor Vehicle Development Program (MVDP) questioning some provisions including allowing the entry of used motor vehicle parts and components that it would be better for the government to maintain the old program.

In a letter sent to Malacañang dated March 1, 2010, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Elizabeth H. Lee has sought Malacanang’s intervention as Trade and Industry Secretary Peter B. Favila has already endorsed the Executive Order for the new MVDP for President Gloria Arroyo’s signature.

Favila’s endorsement of the new MVDP was among his last efforts as DTI Secretary. Favila’s appointment as member of the Monetary Board, the policy making body of the Bangko Sentral ng Pilipinas, took effect last March 5, 2010. Read more

Philippine Car Sales in February Increases by 39%

Philippine car sales in February bucked seasonal trends as the industry sold 12,573 vehicles, 39 percent higher than what it sold in the same period last year, according to a joint report released Tuesday by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association of the Philippines (TMAP).

“We are thankful and are hopeful that the strong sales will continue in the coming months. The bulk of car sales came from commercial vehicles particularly the all utility vehicles (AUVs) and light commercial vehicles (LCVs),” CAMPI President Elizabeth Lee said in a statement.

“This trend is forecast to remain strong and will continue to support vehicle sales in the coming months,” she added.

Sales of commercial vehicles which include vans and pick-up trucks reached 8,069 units or 37.4 percent higher than what it sold in February 2009.

The passenger car (PC) segment also posted strong sales as dealers sold a total of 4,504 units in February. This is 42.8 percent higher than year-ago sales.

Toyota Motors Philippines Corp. led car manufacturers in terms of vehicle sales, selling 4,170 units during the period.

So far, the industry was able to sell a total of 24,336 units in January and February. This is 36.6 percent higher than the 17, 818 units sold by the industry in the same period last year.

CAMPI Supports Perks for CKD Importers

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), which groups 19 automotive players in the country, Thursday clarified that while they are supporting a policy bias for CKD (completely knocked down) assemblers this should not be done at the expense of the CBU (completely built-up) importers.

“The auto policy should be biased for assembler and the intention of CAMPI is for the expansion of the assembly operations in the country, but the question is the way by which it will be accomplished and (how) will the objective be attained in such a manner,” said CAMPI president Elizabeth H. Lee
It could be noted that the Deloitte Consulting, which came up with an assessment on the domestic auto industry, has proposed for a $1,000 subsidy for each CKD unit produced in the country.

Lee said there is no problem with the move to grant subsidy whether fiscal or non-fiscal incentives to CKD assemblers, but it was not clear as to the source of this subsidy. Read more

Local Auto Sales Surge 33.8% in January 2010

The local auto industry reported a strong performance in January as sales went up by a strong 33.8 percent to 11,763 units from a year ago level.

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said the growth was backed by a strong dollar inflow from overseas Filipino worker (OFW) and an increase in domestic business activity.

“A high January sales volume augurs well for the year. It is a good start for stronger sales for 2010,” CAMPI president Elizabeth H. Lee said.

“ We are looking forward to a much stronger growth for this year with increased spending as a result of bullish OFW remittances which is projected to grow by eight percent or exceeding $18 billion; increased appetite for investment and business expansion; continued liquidity in the market; ease in taking out loans and availability of loans serving buyers needs; ….not to mention this being an election year as well,” Lee added.

However, month-on-month comparison showed a decline of 13.5 percent as sales for December 2009 stood at 13,596 units. In spite of this, Lee stressed that this will be a good year for the industry. Read more

RP Posts 6.4% Increase in Auto Sales Amid Regional Slump

Carmakers exceeded their expectations last year, selling 132,444 vehicles or 6.4 percent more than they did in 2008, and on the back of higher demand sustained by remittances and aggressive financing offers.

Elizabeth Lee, president of the Chamber of Automotive Manufacturers of the Philippines Inc., said the strong December sales of 13,596 units, the industry’s highest monthly total in a decade, allowed carmakers to exceed their 4-percent growth forecast for 2009.

“Although December sales were expected to be seasonally higher, the stronger spike [that month] was a welcome result,’’ Lee said.

This augurs well for 2010.” Read more

CAMPI: 2009 Car Sales Exceed Industry Forecast

Sales of new cars grew faster last year than the 2008 pace as purchases to replace flood-damaged units in the last few months offset poor performance seen earlier, industry data released on Friday showed.

Eighteen car firms sold a total 132,444 units in 2009, up 6.4% from 2008 levels and exceeding the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) forecast of up to 4% growth or a flattening at worst.

The 2009 growth was also better than the 5.6% increase recorded in 2008, which likewise bucked downtrends seen in other Asian markets. For 2010, the group has pegged its forecast at a “conservative 4% … subject to quarterly review”.

Year-to-date sales for 2009 only began to grow in October after floods from two storms submerged many vehicles in Luzon. In December alone, the number of units sold grew by 37.5% to 13,596 versus the same month last year. Read more

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