Automotive sales up 20% in 1st 9 mos

Automotive sales declined for the second month in a row last September even as the full nine-month figure showed a strong 20-percent growth as consumers bought ahead of anticipated price hikes in the coming months.

Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) show that total industry sales went up from 53,749 units in January to August in 1999 to 64,504 units this year.

The popularity of sports utility vehicles (SUVs) continued to put commercial vehicles in the lead, with sales increasing by 23.9 percent from 33,267 units over the same period last year to 41,220 units this year.

However, CAMPI data showed that even commercial vehicle sales have begun to suffer from the impact of the series of price increases over the last few months, with sales declining by 3.3 percent from 5,113 units in August to only 4,942 units in September.

Passenger car sales, on the other hand took a slight two-percent dip in September as manufacturers increased their prices by as much as 15 percent. CAMPI reported that 2,548 units were sold compared to 2,599 units sold in August.

Despite the month-on-month decline, however, year-to-date performance was still better than 1999, with cumulative car sales during the period reaching 41,220 units compared to 20,482 units sold during the first nine months of 1999.

According to CAMPI, the market remained brisk as automotive manufacturers sustained aggressive promotion campaigns to gain market share while banks widened their credit window for automotive loans.

CAMPI secretary general Mario de Grano said car sales were hit squarely by the increase in prices, spurred by increasing production costs due to the radical depreciation of the peso-dollar exchange rate.

Local car makers import the parts of the car they produce except for 40 percent of automotive parts which they are required by law to source locally.

De Grano said CAMPI is not likely to revise its whole year sales target but there are initial indications that the target might be exceeded if present trends continue up to the end of the year.

This year, CAMPI expects total automotive sales to reach 76,500 units. De Grano said sales promotions launched by automotive manufacturers have been relatively successful in spurring sales.

Perennial market leader Toyota Motor continued to lead industry sales with 19,121 units sold followed by Mitsubishi Motor Phils. Corp. with 12,259 units sold. Honda Cars Philippines was third with 10,108 units sold; followed by Isuzu Philippines Corp. which entered the top four with 5,723 units.

In the passenger car segment, Honda retained its lead with sales of 7,817, followed by Toyota with 5,100 units. In third was Nissan which sold 4,441 units followed by Mitsubishi which sold 1,635 units.

CAMPI said the sales data bared strong indications that the industry is beginning to recover in earnest after receiving a beating in the wake of the Asian currency crisis. – Des Ferriols