Auto industry posts 4.7% sales hike in January-April

MANILA, Philippines - The auto industry continues to grow in sales despite supply problems as a result of the twin disasters in Japan.

In a joint report, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) said they sold 48,109 units from January to April, 4.7 percent higher than the 45,910 units sold during the same period last year.

However, month-on-month comparison showed a 14.2 percent decline. April sales were at 11,816 down from the 13,775 units sold in March. Likewise, March 2010 sales were higher at 12,374 units representing a 4.5 percent decline.

Local assembly plants have scaled down operations due to lack of parts. As expected, this has affected production (not limited to just 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.

Currently, players continue to serve demand based on inventories on hand.

The local industry forecasted a 4 to 5-percent growth for the year prior to the tsunami disaster that crippled the supply chain sending ripples across numerous countries worldwide who 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.

Passenger cars (PC) grew by 8.9 percent, selling 16,294 units nationwide while commercial vehicles (CV) grew by 2.8 percent, selling a total of 31,815 vehicles nationwide. CVs continue to dominate overall sales with a 66 percent share.