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

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

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Honda Cars Philippines Inc. said Friday its dealers are on a “yellow flag” status until the vehicle supply situation normalizes.

“Currently, we are on an indefinite ‘yellow flag’ status—meaning we are on an alert mode—because of the fluidity of the situation. We will conduct a monthly review [to assess the situation],” Voltaire Gonzales, head of Honda Cars Philippines sales department, said in a text message to the Manila Standard.

He said Honda might not achieve its target to sell 17,600 units this year because of the present tight supply and reduced volume of production.

“Because of these recent events, we see sales lower than the previous forecast,” he said.

He said the company’s 2011 target was higher by 6 percent over 16,600 units in 2010. “But still we hope that the situation normalizes sooner,” Gonzales said.

The Chamber of Automotive Manufacturers of the Philippines Inc. said Thursday it was still sticking to its 4- to 5-percent sales growth target, adding that lost sales can be recovered soon.

“The effect of the tsunami disaster in Japan has been felt locally where plants scaled down operations temporarily given supply problems. This was expected given the magnitude of the disaster. The effect may be felt in these two months,” Elizabeth Lee, Campi president, said in a statement Thursday.

“However, the effect is temporary. Despite the difficulties we face due to the lack of supply of some vehicles and parts, we are optimistic that we will be able to recover the lost sales given the full-year outlook.”

“Contrary to some reports, Campi’s forecast for the year remains unchanged to date. The reports… suggesting the lowering of the forecast is incorrect. No such official statement from Campi was ever given to that effect,” Lee said.

Honda has 28 full-time dealerships nationwide, including the latest in the province of Rizal.

Earlier, Honda Cars said it was not considering price increases this year amid tight vehicle production in the country in the aftermath of the Japan disasters in March.

Tatsuya Natsume, the newly-appointed Honda Cars president, said in a press briefing recently that the company would maintain the current pricing. “Everything is very unstable [in the car industry] at the moment so we decided not to increase prices,” he said.

Manila Standard Today

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The Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) will slash its sales target for the year by half as the auto industry continues to grapple with the aftermath of the twin disasters in Japan last March.

An industry insider who spoke on condition of anonymity said the auto industry will no longer meet their four to five percent sales target for the year. Instead, the sales target will be reduced to one to two percent.

CAMPI members have already met and have all agreed to cut their targets because maintaining the four percent is “unrealistic.” CAMPI is expected to make the announcement of the lower target next month, the source said.

The country’s largest auto company Toyota Motor Philippines initially implemented a 50 percent production cut. Until now, there is no word when normal productions will resume.

The source said it is even unlikely that the new target of one to two percent growth can be met, especially if things don’t go back to normal soon. The insider said that a flat growth is a more likely scenario but the possibility of a decline also exists.

In fact sales figures have started to drop during the latest auto sales data released by CAMPI. Month on month comparison showed a 14.2 percent decline. April sales were at 11,816 units, down from the 13,775 units sold in March.

CAMPI said that understandably, the effects of the calamity are being felt as assembly plants scale down operations due to the lack of parts supply. As expected, the lack of parts supply has affected production (not limited to the Philippines).

“Although some key parts suppliers’ plants have resumed operations, they have yet to operate at normal levels. Hence, demand will continue to outpace supply temporarily as plants try to ramp up operations to higher levels at the soonest time possible,” said Elizabeth H. Lee, CAMPI president.

CAMPI said that currently, players continue to serve demand based on inventories on hand.

Previously, the local auto industry forecast a four to five percent growth for the year prior to the calamities in Japan that crippled the supply chain sending ripples across numerous countries worldwide that depend on key parts sourced from suppliers based in Japan.

“Currently, we are still within the forecast range. However, this may be revised accordingly as we move forward in the coming month with greater visibility on the extent of the damage and its lingering effect on local operations, “Lee said.

The automotive industry sold a total of 48,109 units year to date for the first four months or an average of about 12,027 units a month.

Philippine Star Online

Tsikot.com Philippines

Ford Philippines yesterday reported that exports of locally assembled cars rose 7 percent in the first quarter of the year.

Exports of Ford Focus, Ford Escape and Mazda 3 during the period went up to 1,816 units from 1,704 units in the same period in 2010.

The growth rate for the period is slightly slower than the 35 percent growth chalked up for the entire 2010, a record year for exports.

Total exports of these vehicles stood at 9,858 units last year.

Randy Krieger, Ford Philippines president, said the company would continue exports of these vehicles.

Ford is the lone exporter and participant in the government’s Automotive Export Program (AEP). It has so far exported 75,000 vehicles since 2002 valued at more than $860 million.

Krieger said the company has no plans to increase the current 36,000 units of annual production at its Sta. Rosa plant.

Krieger said Ford is happy with the existing AEP as it enables the carmaker to export completely built-up (CBU) units to Asean.

Ford is set to produce the next-generation Focus in its Thailand hub by 2012 and is still studying other products that it may produce from the Laguna plant.

Local sales grew 74 percent in the quarter from 1,375 units last year to 2,387 units, the strongest quarterly sales.

The Department of Trade and Industry is working on extending the AEP through an executive order.

Krieger noted that both the AEP and the Motor Vehicle Development Program are crucial in helping automotive firms make their plans in the country but highlighted the need to make the Philippines more cost competitive against Indonesia and Thailand.

Factors for consideration include the Philippines’ small domestic market, higher electricity rates and low supply base.

Malaya Business Insight

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Despite the continued rise in fuel prices, the Bank of the Philippine Islands (BPI) said auto loan applications and releases in the country made record-breaking sales last year.

The bank expects to end the year with double-digit growth in their auto loans, said David G. Sarmiento, BPI Family Savings Bank senior vice president for auto and motorcycle loans and credit services.

“We have already grown 15.4 percent from January to February in new auto loan releases, which is very high compared to the industry rate of only 6.7 percent compared to the same period last year,” Sarmiento said.

Sarmiento said 2010 was a record-breaking year for the auto industry as it saw the sale of 168,000 auto units, a 27 percent increase from the industry’s biggest figures of 160,000 in 1996.

Sarmiento said people were buying mostly sport utility vehilces (SUV) and Asian sport utility vehicles (AUV).

But he said there could be a market for small and more fuel-efficient car models.

Michael C. Mendoza, BPI senior manager for product marketing, said the number one selling car in the past were compact cars like Toyota Vios and Honda City, followed by the Mitsubishi Montero, an SUV that runs a diesel-powered engine.

“I think people right now tend to go for smaller cars but at the same time think of cars that are best driven in areas prone to flooding , which is the reason SUVs like Montero are still very much preferred,” he said.

The BPI Family Auto Madness promotion in Cebu will be held at the Ayala Center Cebu starting today until Sunday, April 3.

“We started this 13 years ago here in Cebu and now this is the 4th nationwide event after we also introduced it in other areas like Manila after we experienced success in Cebu 13 years ago,” said Sarmiento.

Marvin P. Sevilla, BPI Cebu Business Center head, said they approved and released 100 to 120 car units during their Cebu event last year.

He told Cebu Daily News he is optimistic they can surpass this number.

There are 15 participating dealers—including BMW; Cebu Autocentrale Corp. that deals Subaru, JMC and Suzuki; Cebu Southbay Automobiles Inc. for Mazda; Dearborn Motors Co. Cebu Inc. for Ford; Fast Autoworld Philippines Inc. for Mitsubishi; and Gateway Motors Cebu Inc. for Kia.

Also joining are Global Motors Cebu Distributors Corp. for Chevrolet, Honda Cars Cebu Inc., Hyundai Cebu Inc., Isuzo Cebu Inc. Nissan Cebu Distributors Inc., Pasajero Motors Corp. for Volvo and Toyota Cebu City Inc.

Sarmiento said free GPS units will be given for every approved loan.

Inquirer Global Nation

Tsikot.com Philippines

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.

Tsikot.com Philippines

Automobile sales for the first half of the year went down by 2.8 percent as vehicle sales around the world continue to decline.

Data from the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed that the industry sold 59,910 units from January to June this year, down 2.8 percent from the 61,632 units sold during the same period a year ago.

Auto players remain optimistic with better performance in the next half of the year.

For the month of June alone, the industry sold 10,909 units, underscoring a 4.4 percent increase when compared to the previous month.

“We are thankful that the local Philippine auto sales is holding up and continues to register some growth month on month, even amid the global crisis and considering the negative performance of auto sales in the west and even in Asean, “ CAMPI president Elizabeth H. Lee said.

Lee noted that amid the global crisis, the local banking sector remained stable and supportive to vehicle buyers by giving them loans to finance their purchases. Another key factor sustaining vehicle sales is the OFW remittances which managed to grow by 2.6 percent even with the global crisis.

“With over $16 billion expected from remittances and the fact that two out of three households is supported by an OFW, car sales should remain fairly stable with continued month on month growth to be seen in the next half of the year. The forecast for this year remains tempered towards at least a flat growth.” Lee explained.

Auto players continue to support sales with aggressive packages making it easier for buyers to purchase their vehicles to serve their needs.

“Buyer’s purchase behavior and criteria have shifted to be more discerning where price, utility, and cost of ownership have become strict priorities in buying a vehicle,” Lee said.

Sales are supported by sustained growth in the pasenger car segment as well as the light commercial vehicle (LCV)segment, both of which continue to see growth in sales. Total passenger car (PC) sales so far were 21,375.

Commercial vehicle (CV) sales reached 38,535 units, still taking up the bulk of total vehicles sold nationwide with a 64.3 percent market share.

New model launches and continued aggressive promotions sustained the growth in the PC segment. June sales registered a 1.2 percent growth while year to date, PC sales grew by 1.8 percent. Total PC sales are 21,375 cars cold nationwide. PC sales are seen to maintain growth in the coming months.

CV sales grew by 6.2 percent compared to May which reflects the buying public’s preference for multipurpose vehicles that offer more value for money and can be used both for personal and business purposes.

By Ma. Elisa P. Osorio, Philippine Star

Tsikot.com Philippines

Auto sales went up by 2.7 percent to 9,027 units in February from a month ago, a good indication that the industry may grow this year despite the dismal performance of the auto industry in other countries, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said.

“We are indeed thankful and continue to be cautiously optimistic especially when two thirds of the world went into a recession last year and auto sales elsewhere are plunging,” CAMPI president Elizabeth H. Lee said.

“We continue to bank on sustained OFW remittances, the entrepreneurial trend, and the critical stable financing market to help boost sales,” Lee added.

Despite the 2.7 percent growth rate in February, sales for the two-month period went down 2.5 percent. However, Lee said industry players continue to be optimistic with a forecast of between two percent and four percent growth for the year. Lee noted that the industry is expecting steady sales in the coming months.

Toyota Motors Philippines Corp. sold the most cars with 35.1 percent of the market share. This was followed by Mitsubishi Motors Philippines Corp. with 16.8 percent, Honda Cars Philippines Inc. 16.7 percent and Isuzu Philippines Corp. 6.4 percent.

Commercial vehicles (CV) continue to dominate the market with a 63 percent market share registering an 8.5 percent growth versus January sales although year to date sales declined by 7.6 percent when compared to the same period last year.

The growth in February sales was supported by a strong growth in Asian utility vehicle (AUV) sales as well as continued growth in the light commercial vehicle (LCV) segment. CV sales are expected to grow in the coming months.

February showed a strong growth from AUV sales with a 24.7 percent jump against the January level.

The increase in February sales is a strong indication of perhaps the start of a positive growth trend in the coming months. Strong sales in this segment are backed by purchases of vehicles used for business.

Toyota sold the most CVs with 34.6 percent of the market share. Second was Mitsubishi with 24.1 percent, Isuzu 10.1 percent, Hyundai Asia Resoirces Inc. and Universal Motors Corp both with 6.8 percent.

Meanwhile, year to date passenger car (PC) sales grew by 7.6 percent although February sales declined by 6.6 percent. Nevertheless, PC sales were at 3,162 for the month of February. The introduction of some new models will continue to boost sales in the segment. Sales are expected to grow in the following months.

Honda was the leader at 38.5 percent. Toyota at 36.1 percent market share, Hyundai 6.8 percent, Ford Motor Company Phils Inc. five percent and Mitsubishi 4.1 percent.

By Ma. Elisa P. Osorio, Philippine Star

Tsikot.com Philippines

Major automakers’ US sales continued their deep slump in February, putting the industry on track for its worst sales month in more than 27 years as huge rebates and low-interest financing failed to spur fearful consumers to make a major purchase.

General Motors’ sales tumbled 53 percent from a year earlier, while Ford’s US sales fell 48 percent. Toyota’s sales fell 40 percent, and the other major Japanese automakers were only slightly better.

The slide casts further doubt on the financial viability of GM and Chrysler, which planned to report its sales later yesterday. They need to sell cars and generate critical cash to supplement the $17.4 billion in government loans that are keeping them in business.

Automakers and analysts have been predicting sales will rebound in the second half of this year, but they are becoming less certain. Massive layoffs, the stock market decline and sliding home values are prompting people to hold on to their cars longer, while those who are buying are more often opting for a used car or truck.

Emily Kolinski Morris, Ford Motor Co.’s top economist, said retail sales to individuals had been stable for four months but dropped in February, indicating that last month may not be the bottom for auto sales.

The bottom, she told reporters and industry analysts, can’t be predicted. But she said Ford’s forecast still calls for a modest second-half recovery as economic stimulus measures takes hold.

Industry analysts say when all the numbers are tallied, February sales could be worse than January’s total of 656,976 light vehicles. That was the lowest monthly total since the industry sold 656,310 vehicles in December 1981, according to Autodata Corp. and Ward’s AutoInfoBank.

The trough is likely even though automakers spent more on rebates, low-interest financing and other incentives in an effort to bring out buyers. But despite the fantastic deals, sales continued to slump.

“If it wasn’t for the generous level of incentives now, we probably would be seeing even lower sales, if you can believe it,” said Jesse Toprak, executive director of industry analysis for the auto Web site Edmunds.com. “It seems it can’t get lower, but it could.”

Ford, which hasn’t taken any federal assistance, is preparing for sales to remain depressed. The Dearborn company said it plans to produce 425,000 vehicles in the second quarter, down 38 percent from the 685,000 it made in last year’s April-June period.

Detroit-based General Motors Corp. said it expects to make 550,000 vehicles in the second quarter, a decline of about 34 percent from year-ago levels.

Toprak said there’s little automakers can do to spur sales.

“You can spend money on marketing or incentives. That’s all you can do,” he said. “Neither is having a big impact on sales. That tells us it’s really consumer confidence and the general negative state of the economy overall causing consumers to postpone making purchase decisions.”

Industrywide, the average incentive per vehicle last month rose 8 percent from January to $2,914 per vehicle sold, Edmunds said. Incentives climbed to an average of 20 percent of the sticker price of a new car, and they topped more than $10,000 on some vehicles.

Hyundai Motor Co.’s creative “Assurance” program helped it buck the trend of double-digit sales declines with a 2 percent drop in US sales last month. The South Korean company’s program allows buyers to return a vehicle within a year if they can’t make the payments due to a misfortune such as job loss or disability.

But more people opted for a used car instead, indicating that those who need to buy a vehicle are spending less. Edmunds said its data show that 27 percent of people who intended to buy a new car switched to used at the dealership in February.

There is hope for a rebound, however. Rising used car prices are an indication that new car sales may be near the bottom, because more people will opt for new cars when they see they won’t save as much by buying a used vehicle.

Ken Czubay, Ford’s vice president of US sales and marketing, said higher values also make dealers more likely to take trade-ins on new cars, which could move the market to “a more natural balance between new and used.”

Ford will continue its strategy of reducing low-profit fleet sales and not relying on large incentives to sell vehicles, Czubay said, protecting the company’s trade-in values.

“We are zigging while some of our competitors are zagging in the incentive world,” he said.

The sales slump hit Ford at both ends of its model lineup. Sales of its F-Series truck, traditionally the best-selling vehicle in the US, fell 55 percent, while sales of the Focus small car dropped 39 percent.

Honda Motor Co.’s sales dropped 38 percent and Nissan Motor Co.’s fell 37 percent.

Demand remained strong for Honda’s Fit subcompact, whose sales dropped 2 percent, but sales of its top-selling Accord sedan fell 42 percent.

Meanwhile, Subaru of America Inc.’s US sales edged up 1 percent in February as sales of its top-selling Forester model doubled. Motor Trend magazine named the Forester its sport utility vehicle of the year in the fall.

The Associated Press reports unadjusted auto sales figures, calculating the percentage change in the total number of light vehicles sold in one month compared with the same month a year earlier. Some automakers report percentages adjusted for sales days. There were 24 sales days last month, one fewer than in February 2008.

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