MANILA, Philippines - Industry-wide auto sales are expected to remain robust this year on the back of an upbeat consumer sentiment, the research arm of Metropolitan Bank & Trust Co. said.
But Metrobank Research noted in its Weekly Views from the Metro that this year’s growth rate may not be as high as year-ago levels amid a weaker peso and rising interest rates.
“Expect auto sales to still grow this year, albeit slower due to possibly higher lending rates during the second half,†Metrobank Research said.
“The weak peso environment may also add pressure to costs, both in auto parts and completely built units,†it added.
Auto sales increased by 15 percent to 212,281 units last year, according to separate data from the Chamber of Automotive Manufacturers of the Philippines Inc. and the Association of Vehicle Importers and Distributors.
The figure is higher than the industry-wide target of 210,000 units and the 15-percent growth rate is faster than 2012’s 12-percent climb.
For this year, CAMPI has set an industry-wide target of 230,000 units and Metrobank Research said this is attainable.
“Consumer sentiment however remains upbeat and will still spur demand for motor vehicles,†Metrobank Research said.
“CAMPI has set an industry-wide target of 230,000 units this 2014, which will likely be achieved given the current fundamentals,†it said.
Auto sales last year were driven by new models and new players in the market and supported by the relatively low interest rates that encouraged borrowing.
Metrobank Research also noted the central bank’s Consumer Expectations Survey indicated “a more upbeat 2013 in terms of buying vehicles compared to the previous year.â€
Moreover, the survey revealed more families receiving remittances spent for consumer durables during the period.