Car makers post record sales in July

MANILA, Philippines - The local auto industry registered an all time high for vehicle sales in July as it sold 15,972 units, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) reported over the weekend.

The report further showed that for the first seven months, total industry sales surged by 37.2 percent from a year ago level.

“Continued growth in July sales signals sustained improvement in growth for the second half of the year,” said Elizabeth H. Lee, CAMPI president. Sales of commercial vehicles continue to corner 65-percent share of total vehicle sales nationwide with passenger car sales cornering the remaining 34.7 percent.

“Auto sales growth is positively correlated to the growth of the economy. The continued robust vehicle sales reflects stronger consumer and business confidence which in turn results in enterprise growth that benefits vehicle sales,“ she added.

Other factors that contributed to the growth of the industry are OFW remittances, aggressive financing packages, the steady supply and the introduction of new models, CAMPI said.

Likewise, Lee noted that under the new administration, the local auto industry can be poised to finally become a larger part of the regional ASEAN auto industry ‘hub’ where the Philippines, with its under-utilized assembly plants, can be used to supply the growth and rebound in car sales not only within the region, but possibly export beyond it as well.  

Passenger car sales recorded a 34.7-percent increase from a year ago level..

Commercial vehicle sales contiue to be robust with a 38.6-percent growth thus far. Likewise, compared to last month, commercial vehicle sales for July 2010 increased by 4.6 percent from 9,717 units to 10,165 units due to arrival of stocks, more stable supply to meet the growing demand, as well as introduction of new models and deliveries of back orders.

Meanwhile, the auto industry is calling on the government to meet its end of August deadline for the implementation of the new Comprehensive Motor Vehicle Development Plan (MVDP) because any delay will affect the investment plans of vehicle manufacturers in the country.

CAMPI and the Philippine Automotive Competitive Council Inc. (PACCI) called for the speedy resolution of the issues surrounding the MVDP or Executive Order 877-A.

The reaction was made in relation to a story published by The STAR last Saturday stating that the Board of Investments (BOI) is looking at re-engineering the MVDP to find out of the box solutions to concerns in the auto industry and at the same time provide more jobs.

“Hopefully the changes can be accommodated in the existing MVDP. The revisions can be plugged in the IRR (implementing rules and regulations) if the government decides to make do with the existing MVDP,” Benjamin Sevilla, PACCI executive director said in a telephone interview.