MANILA, Philippines - Auto sales for the month of January grew by 5.8 percent to 11,046 units from a year ago level due to sustained business and consumer confidence, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) reported yesterday.
However, last month’s sales declined 19.7 percent from what was recorded in December, traditionally the strongest month of the year.
According to CAMPI, sales of passenger cars grew 15.3 percent to 3,997 units, and commercial vehicles by only one percent to 7,049, although the latter still cornered 64 percent of total sales in January.
CAMPI president Elizabeth H. Lee said that 2011 will be a positive year as the overall economic environment continues to be relatively favorable with sustained business and consumer confidence, strong gross domestic product (GDP) growth, positive forecast for OFW remittances, manageable inflation rate forecast, continued healthy financing environment, as well as new model introductions by auto players this year.
For January, Toyota Motor Philippines got the largest piece of the market at 38 percent followed by Mitsubishi Motors Philippine Corp. with 21 percent and Honda Cars Philippines with 11 percent.
“Sales however, is just one part of the total equation that makes our Philippine auto industry. To complete the picture, and to compete for the future, we must likewise put our attention on how the industry can truly grow using the inherent advantages that support job creation and significant value-added to temper the growing CBU share,“ Lee said.
“Further, and more importantly, we look forward to increased investments and/or expansion of CKD (completely knocked down) assembly as well as enhancement of parts and components manufacturing to be part of this year’s objectives given government’s clear thrust to support our own Philippine auto industry,” she added.
The government recently included automotive as a priority under the 2011 IPP, thereby putting the development of the domestic auto industry as well as auto parts manufacturing a major policy thrust.
“With this positive move, we enter 2011 with renewed hope given government’s direction to expand local assembly operations to include parts and components manufacturing, create jobs, and create a competitive environment for increased investments into the country,” Lee said.
This year, CAMPI expects sales growth to taper off, but remain “positive.”