Vehicle sales are seen rising by double digits this year as supply comes back by the second quarter of the year, according to Tatsuya Natsume, president and general manager of Honda Cars Philippines Inc. (HCPI) at the sidelines of the launch Tuesday night of the new Honda City.

Other industry sources said the marketing committee of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) agreed on a consensus of 9-percent growth this year. The forecast is subject for approval by both group’s executive committees (ex-com).

In a separate interview, Frank Nacua, a member of the excom of TMA, said he sees the industry growing 8 to 12 percent.

“The industry is very bullish of a recovery because the supply problems in Japan and Thailand are expected to be resolved. Hopefully, the supply and inventory would be stable by the second quarter. Although there would be a slight drop in the first quarter, a boom would follow,” Nacua said.

Nacua said for now demand is there but the brand and model may not be available.

Nacua said the threat of rising fuel prices may put a dent on the industry’s recovery this year.

He said another challenge is the continued influx of cheap used vehicles in one of the ports, but the good thing is that those which come are high-end vehicles.

According to Nacua, this year’s sales would continue to be fuelled by sport utility vehicles due to the popularity of pick-ups from Thailand and Japan as well as passenger vans of Toyota and Hyundai.

The Asian utility vehicle segment would still continue to grow, he said.

Nacua said passenger cars would have minimal growth.

Assemblers sold 141,616 units in 2011, down 4 percent from 147,488 units in 2010. Figures from the pure traders are yet to be released.

Malaya Business Insight

Tsikot.com Philippines

The local vehicle and parts manufacturing sector has sought government help in crafting a strategic expansion plan that will allow it to achieve economies of scale and capture a significant share in the Association of Southeast Asian Nations (Asean) single market starting 2015.

“Auto and parts manufacturing in the Philippines is both viable and sustainable. An ambitious but realistic strategy can take it to the next level,” Feliciano Torres, chairman of the Philippine Automotive Competitiveness Council Inc. (PACCI), said in a statement.

“To achieve that, we must develop and sustain a public-private partnership (PPP) that creates reforms and public policies that support industry development and encourage investment,” Torres added.

Apart from generating new jobs and providing substantial export revenues to support public spending, he said these policies can also eliminate uncertainty associated with regional supply chain disruptions.

Torres cited as an example the ill-effects of the flooding in Thailand, a major auto production hub in the region. As a result of the flooding, parts manufacturers have been forced to slow down or entirely suspend production, including parts for auto manufacturers in the Philippines.

“We need to act quickly because there is a huge opportunity to grow the domestic vehicle and parts sectors and create jobs,” Torres said.

In a 2010 study by Cid Terosa of the school of economics of the University of Asia and the Pacific, results showed that a “P1 increase in consumption or investment spending for motor vehicles will result in P3.67 worth of additional output in the economy.”

More notably, a whopping P100 billion worth of investments in the domestic automotive manufacturing industry could generate at least 169,061 new jobs.

The study further revealed that the output multiplier of Philippine automotive manufacturing industry was greater than that of all the investment priority industries of the Department of Trade and Industry, namely tourism, business process outsourcing and information technology services, electronics, mining, housingand agribusiness.

“With renewed and strong government support, we are committed to do our part to invest in the Philippines and create tens of thousands of new jobs,” Torres said.

PACCI was established in 2009 to support the domestic auto and auto parts manufacturing industries and increase their overall future competitiveness. Its members include Ford Motor Co. Philippines, Honda Cars Philippines Inc., Isuzu Philippines Corp., Mitsubishi Motors Philippines Corp., Toyota Motor Philippines Corp., and parts maker Motor Vehicle Parts Manufacturing Association of the Philippines (MVMAP).

By Amy R. Remo, Philippine Daily Inquirer

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The past year was not very kind to the auto industry, with two major disasters—a devastating earthquake and massive flooding—dealing the sector one blow after the other in just a matter of months.

Still reeling from the effects of the March 2011 earthquake that caused a tsunami and a nuclear crisis in Japan, the auto industry barely had time to recover before Thailand was hit by floods that halted operations in many key manufacturing facilities.

According to data from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi), sales slipped 4 percent to 141,616 units last year from 147,488 units in 2010.

This after registering a 27.2-percent surge in sales in 2010 to 168,490 units, from a dismal 132,444 units in 2009.

The discrepancy in sales figures between those used as a comparative figure for 2011 sales and those used as actual sales in 2010 was a result of industry No. 3 Hyundai Asia Resources Inc. breaking away from Campi in 2011.

The latest Campi report, released last Monday, showed that sales in December alone plunged 24.5 percent to only 10,374 units, from 13,749 units in the same month in 2010. The drastic sales decline was mainly due to a supply shortage stemming from the Thai flooding.

December 2011 sales were also 14.2 percent lower than November’s 12,090 units.

Sales of commercial vehicles, which accounted for the bulk of overall auto sales, dropped 2 percent to 96,754 units in 2011 from 98,749 units the year before. Passenger car sales, on the other hand, fell 8 percent to 44,862 units from the previous year’s 48,739 units.

Amid the difficulties, Toyota Motor Philippines Corp. managed to retain its Triple Crown, lording it over all other manufacturers in overall sales and in the passenger car and commercial vehicle categories.

Toyota sold a total of 54,593 units in 2011, 4 percent lower than the previous year’s 56,855 units. Despite the sales decline, the company maintained its 38.6-percent market share from the year before.

Its commercial vehicle sales hit 35,550 units for a 36.7-percent share of the pie, while passenger car sales reached 19,043 units for a 42.5-percent market share.

Steady decline

Coming from a strong sales momentum in 2010, the industry was off to a relatively good start in the first quarter of 2011, growing 8.2 percent in a cyclically slow season. The effects of the Japan earthquake started to be felt in the succeeding months, slowly eroding the momentum that was built the year before.

The first real sign of trouble came in May 2011, when growth slowed to just 1.5 percent in the first five months of the year. As early as April, however, Campi said it would have to revise its forecast of a 4- to 5-percent growth in 2011, in light of the Japan crisis.

By the end of the first half, the industry suffered its first sales decline in months at 1.6 percent. It was all downhill from there.

The Association of Vehicle Importers and Distributors (AVID) followed more or less the same trajectory. In the first quarter, the group registered a sales growth of 6 percent, but then experienced a sales decline of one percent by August. By the end of the third quarter, the sales drop had inched up to 2 percent, before growing by a slight 0.1 percent by end-October.

AVID had yet to release its 2011 sales figures as of press time.

Despite the industry’s troubles in 2011, AVID president Maria Fe Perez-Agudo expected the auto sector to turn around this year and even grow by as much as 10 percent.

This could be attributed to the expected return to the market of all the supply that was not able to enter the market due to the Japan and Thailand disasters, she said.

She also expressed confidence that vehicle importers could register a larger share of the overall pie at 20 percent, from 2011’s around 15 percent.

This market share expansion, she said, would come from the expected overall growth of the market and the importers’ more aggressive stance in marketing their vehicles.

By: Abigail L. Ho
Philippine Daily Inquirer

Tsikot.com Philippines

Toyota Motor Philippines Corp. held on to its position as the the country’s No. 1 automaker, despite selling fewer vehicles in 2011.

According to a joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association of the Philippines continued to lead sales, Toyota’s sales dropped 4% to 54,593 units in 2011 from 56,855 units in the year before, in line with industry’s decline.

Total vehicle sales in 2011 dipped a similar 4 percent to 141,616 units from 147,488 units in 2010, mainly due to supply problems brought about by the March 2011 earthquake and tsunami in Japan and the flooding in Thailand later in the year.

The problems in Thailand continued to affect December sales, which saw a sharp 24.5% drop to only 10,374 units from 13,749 units in the same month a year ago. December sales were also off 14% from November’s 12,090.

Mitsubishi Motor Philippines Corp. remained at second place in 2011 with sales of 32,603 units, just slightly lower compared with the 34,422 units it sold in 2010.

The Ford Group Philippines jumped to third place after a 32% spike in sales to 12,916 units in 2011 from 9,751 units in 2010, while Honda Cars Philippines Inc. fell to fourth place after sales dropped 30% to 11,611 units from 16,604 units in 2010.

Rounding up the top five is Isuzu Philippines Corp., which saw an 8% slide in sales to 9,820 units from 10,695 the previous year.

Commercial vehicles accounted for a large 68 percent of 2011 sales with 96,754 units, just 2% lower than the 98,749 units sold in 2010.

Sales of passenger cars, on the other hand, had a bigger decline of 8% to 44,862 units in 2011 from 48,739 in 2010.

However, sales of passenger cars jumped 22.7% to 3,073 in December from the November’s 2,504, mainly due to aggressive sales promotions.

ABS-CBN.com

Tsikot.com Philippines

Local vehicle importers expect sales to grow further next year on the back of strong consumer sentiment that will be sustained by faster economic growth.

The outlook, issued by the Association of Vehicle Importers and Distributors, Inc. (AVID), came as sales of foreign-built vehicles have fared better than their locally assembled counterparts.

“AVID is still firming up its forecast [for 2012] but it is optimistic to beat its 2011 market share,” it said in a statement.

“Against a backdrop of global and domestic economic challenges, [AVID is] confident that consumer sentiment will remain favorable while affirming its members’ brand resiliency and affinity with their customers… [through] a strong portfolio of products and services…,” it continued.

The group’s sales were up 4% to 23,012 units as of November. This compared to a 1.9% decline reported by the Chamber of Automotive Manufacturers of the Philippines, Inc.

“Our positive outlook is based on a stable and growing economy driven by sustained [migrant worker] remittances, managed inflation, and external stability,” the statement read.

AVID, which claims a market share of 15%, is a private non-stock, non-profit business association organized in the Philippines in July 2010, is composed of ten members which include British United Automobiles, Inc, CATS Motors, Inc., Focus Ventures, Inc, Foton Motor Phils, Hyundai Asia Resources, Inc, Jaguar Cars, Inc., Motor Image Pilipinas, Inc., PGA Cars, Inc., Scandinavian Motors Corporation, and The Covenant Car Company, Inc.

Business World Online

Tsikot.com Philippines

Sales of foreign-built vehicles have fared better than their locally assembled counterparts as the , Inc. (AVID) reported on Monday the slight growth in the last 11 months thanks to a pickup in holiday spending.

Aggregate sales last month grew 4% to 23,012 units from 22,187 for the same period a year ago on improved business and consumer sentiment and better branding activities by member companies. In November alone, AVID’s six members posted a combined 43% growth of 2,672 units from 1,872 last year.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), on the other hand, reported earlier a 1.9% decline in 11-month sales amid another supply setback caused by the floods in Thailand that lasted from October until last month. Earlier, CAMPI members also suffered from similar disruptions caused by the earthquake and tsunami that struck Japan in March.

AVID has thus maintained its 15% market share against larger car companies mostly belonging to the chamber.

Passenger cars led AVID’s growth with a 79% rise in sales, while light commercial vehicles grew by 3%.

AVID did not provide a breakdown for the two market segments.

“Creative and steady brand building activities by AVID member companies contributed heavily to the better-than-industry November sales performance,” the statement read.

“Growth from the country’s sound macroeconomic fundamentals, robust overseas Filipino remittances, strong investment inflows, and higher consumer spending with the onset of the Christmas season are the key factors to an optimistic business outlook in the next six to 12 months,” it added.

Hyundai Asia Resources, Inc., led the pack with 18,922 vehicles sold for the 11-month period.

The Covenant Car Company, Inc., importer of American automotive brand Chevrolet, came in a distant second with 2,434 units, followed by CATS Motors, Inc., importer of the German Mercedes Benz, with 892 cars.

“Strong sales of AVID in November bode well for promising prospects in 2012 with expectations of global and domestic economic improvements, positive consumer outlook and sustained resiliency of AVID brands,” AVID President and Hyundai Motor Co.’s local division Chief Executive Officer Maria Fe Perez-Agudo said in a statement.

Eliza J. Diaz, Business World

Tsikot.com Philippines

The first 11 months of the year coming to an end was not kind for the Philippine auto industry.

A joint report of the Chamber of Automotive Manufacturers of the Philippines (Campi) and the Truck Manufacturers Association (TMA) revealed that car sales fell by 1.9 percent to 131,242 units in the January-November period.

That number was below the 133,739 units sold in the same period last year, a notable drop attributed to the flooding that hit Thailand a few months ago.

Even sales last month went down, with only 12,090 units sold. In the same month in 2010, a total of 13,489 was sold.

According to Campi, the drop in sales was due to market seasonality and the initial impact of the Thailand flooding, which limits the supply of auto parts and some vehicle models.

Passenger car sales fell by 5.6 percent to 41,789 units in the January-November period, from 44,252 units in the same period in 2010.

Commercial car sales, meantime, dipped by 0.04 percent to 89,457 units a year ago.

Not only that, sales of light trucks also went down by 0.7 percent to 1,708 units as of November from 1,720 units in 2010.

“With the supply situation in Japan moving toward normalization, the auto industry is bracing itself for the possible impact of another natural disaster being experienced in Thailand,” the Campi report said.

“Floods have inundated several vehicle and parts manufacturing plants in Thailand, resulting in the shutdown of their operations,” it added.

Meantime, Toyota Motor Philippines Corp., as expected, stayed in top spot in total sales with sales in the first 11 months reaching 50,610 units for a 38.31 share of the market.

In second place was Mitsubishi Motors Philippines, which sold 30,175 units in the same period for a 21.94 percent market share.

Ford Motor Co. Philippines, Honda Cars Philippines Inc. and Isuzu Philippines Corp came in third, fourth and fifth, respectively.

Journal Online

Tsikot.com Philippines

Total motor vehicle sales in the 11-month period this year declined 1.9 percent to 131,242 units in the same period last year largely pulled down by the significant decline in November sales as the flooding in the Thailand took its toll on the local supply, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said.

In a report, CAMPI said the Thai flooding has caused a significant 10.4 percent decline in sales in November as sales in both passenger and commercial vehicles slump to 12,090 units from 13,489 units the previous month. Compared to November last year, the November 2011 sales dropped 3.3 percent.

Of the total sales, the passenger car segment suffered the biggest loss of 5.6 percent as sales hit only a total of 41,789 units from 44,252 units in the same 11-month period last year. Sales of passenger cars in November took a beating with 34.1 percent decrease versus November 2010 sales. The same decline was posted versus October 1011 sales.

The commercial vehicle segment also slightly declined 0.04 percent to 89,453 units from 89,487 units.

“The decline can be attributed to the initial effects of the supply problem in Thailand, which limited the availability of some models in the domestic market,” the CAMPI statement stated. Most of the local carplayers import their completely built up units and parts supplies from Thailand, the region’s automotive hub.

Except for light commercial vehicles (LCVs or the compact sports utility vehicles) and trucks and buses, all other vehicle categories suffered a decline in the January-November 2011 reckoning period.

LCVs managed to post a very modest 0.1 percent improvement to 53,752 units over 53,672 units in the January-November period this year. The LCVs already account for a hefty 59.98 percent of the total domestic vehicle market.

Sales of Asian utility vehicles (AUVs) declined 0.4 percent to 33,036 units from 33,180 units in the same 11 months last year. The LCVs account for 37.08 percent of the total domestic vehicle market. In November, however, LCV sales posted a hefty 21.7 percent increase to 5,741 units versus 4,718 units in November 2010 but it declined a negative 2 percent versus October 2011 sales.

The light trucks category posted a negative 0.7 percent in the January-November period as sales hit only 1,708 units from 1,720 units in the first 11 months of the year. This category also posted a 15.6 percent decrease compared to November 2010 sales of 160 units as November 2011 sales hit only 142 units.

Sales of trucks and buses registered a positive 4.7 percent increase to 958 units sold in the January-November period versus 915 units in the same period last year.

However, sales for this category in the November 2011 posted a sharp decline of 52.3 percent as the sector only sold 61 units versus 136 units in November 2011. It also posted a higher decline of 55.1 percent compared to October 2011 sales of 136 units.

In terms of ranking, Toyota Motor Philippines Corp. posted a 1.2 percent cline in sales for the first 11 months this year with sales of 50,610 units over 51,232 units in the same period last year. For the November month alone, TMPC sold 5,294 units reflecting a 15.1 percent improvement versus the previous month sales performance of 5,896 units.

Manila Bulletin Online

Tsikot.com Philippines

The local automotive industry reported a decline in sales for the first eight months of the year due to the effects of the disasters in Japan that limited the production and supply of some models.

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) in a joint report showed a 4.1 percent decline in January to August sales from a year ago level. During the first eight months of 2011, total industry sales stood at 93,108 units, lower than the 97,122 units recorded a year ago.

Month-on-month, however, the August sales performance was slightly higher at 11,558 from 11,550 in July due to introduction of new model, continuous promotion and availability of units.

Toyota Motor Philippines Corp. sold 34,190 units or 36.72 percent of total market share.

This was followed by Mitsubishi Motors Philippines Corp. with sales of 21,182 units or 24.43 percent market share. Third was Honda Cars Philippines Inc. with 9.73 percent market share or 9,062 units followed by Ford Motor Company Phils. Inc. with 8.81 percent or 8,200 units and followed by Isuzu Philippines Corp. with 6.72 percent or 6,259 units.

Sales of passenger cars registered a 6.8 percent growth compared to last July’s figure but lower when compared from a year ago level.

Commercial vehicle sales decreased by 3.2 percent to 7, 532 in August from 7,782 units in July.

Philippine Star

Tsikot.com Philippines

Sales of the local auto industry declined by four percent during the first seven months of the year from a year ago as the industry continues to grapple with the after effects of the twin disasters in Japan.

Joint data released by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA) showed that total industry sales stood at 81,550 units during the seven-month period, a four-percent decline from 84,905 units sold during the same period in 2010.

“Despite the residual effect of the supply limitation from Japan, which was reflected in the year to date decline of four percent, the automotive industry remained focused in its efforts to perk up the market and cope up with the demand. Such efforts reflect the confidence of the industry that this temporary supply situation would come to pass soon,” CAMPI said.

Sales of both passenger car (PC) and commercial vehicle (CV) likewise declined. PC sales went down by 4.2 percent while CV sales decreased by 3.8 percent.

For July 11 alone, sales posted a 5.2 percent increase to 11,550 units from June’s 10,978 units. The growth can be attributed to back order deliveries coupled with continuous and aggressive promotion and introduction of new models.

Total monthly sales of CV reached 7,782 units in July up to 10.4 percent from June’s 7,050 units. The bulk of the growth in commercial vehicle sales came from the positive performance of AUV and light commercial vehicles.

CAMPI has still not issued a revised target that will take into account the Japanese situation. CAMPI said the auto industry is constantly assessing its sales projection for 2011 taking into account the latest performance and other external factors that would have an impact on the market.

Toyota Motor Philippines Corp remained the number one in terms of market share with sales of 29,358 units or 36 percent market share.

Mitsubishi Motors Philippines Corp. followed with 19,705 units or 24.16 percent of the market share and Honda Cars Philippines Inc. with sales of 7,992 units.

By Ma. Elisa P. Osorio, The Philippine Star

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