Car industry exceeds ’07 target with sales of 117,903 units

For the first time in a decade, the auto industry sold over 100,000 units last year as the economy continued to grow and the business environment remained stable.

In a joint statement, the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA) said the auto industry exceeded its target of 108,000 units as final sales totaled 117,903.

CAMPI President Elizabeth H. Lee said growth for this year will be moderate compared to the double digit growth rate of 18.4 percent in 2007.

“We are still looking at a growth for 2008 with perhaps a more conservative stance at the onset with a five- to seven- percent growth compared to 2007,” Lee said.

Last year, the robust performance was credited to the staging of the first ever Philippine International Motorshow, a large line up of new model introductions from most auto players, and the finality of the Supreme Court decision banning second hand vehicle importation.

Lee said more models will be introduced this year which in turn will take up most of the sales growth for 2008.

”The industry is seen to keep the momentum of growth in 2008 as well,” she said, adding that “growth for 2008 will depend on an increasingly stable market with peso dollar exchange rate fluctuations kept to a comfortable level.”

Lee also, said the industry is hoping that government agencies will stick to the strict implementation of the ban on used vehicles. She explained that this will certainly have a positive effect on sales as buyers gain greater awareness of the consequences of the ban.

Lee, likewise, underscored the importance of the development of new markets like the small and medium sized enterprises and the growing middle class. These two segments, according to Lee, will have a great impact on the purchase of vehicles most especially utility vehicles that double as a family and/or business vehicle.

”On the whole, 2008 is seen to be another growth year for the industry,” she said.

The commercial vehicle (CV) segment will continue to dominate the market with greater emphasis on light commercial vehicles. Mostly, these vehicles are used for both personal and business.

Sales of passenger cars are also expected to rise because there is a demand for small and affordable vehicles.

“With the rise in oil prices, diesel fed vehicles can have a relative advantage in terms of fuel economy,” Lee said. Meanwhile, CAMPI and TMA report showed that the average monthly sales for last year was higher at  9,825 against only 8,292 in 2006. 

CV sales grew 25.6 percent for the year with 76,690 units sold. Over 6,300 commercial vehicles were sold per month in 2007 while the passenger car segment had a 7.1-percent growth for the year selling over 3,400 units per month.

New models for the AUV segment continued to support the strong growth with a 31,996 unit sales for the year.