MANILA, Philippines - Vehicle sales are expected to continue increasing this year, driven by upbeat demand, the research arm of Metropolitan Bank & Trust Co. (Metrobank) said. “Demand conditions continue to be favorable for motor vehicles, although automotive manufacturing still has room for growth in order to take advantage of high consumption spending,” Mabellene Reynaldo, research analyst at Metrobank, said in a report.
Latest data from the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) showed car sales revved up 38 percent to 19,622 in June from 14,240 in the same month last year.
The rise in sales was due to strong demand for vehicles and aggressive product launches by firms this year.
This brought the first half tally to 40,609, reflecting a 44.9 percent growth from the 28,035 recorded in the same period a year ago.
“The Philippines also posted the fastest sales growth in ASEAN (Association of Southeast Asian Nations) as reported by the ASEAN Automotive Federation,” Reynaldo noted.
CAMPI earlier this month has also forecast this year’s sales to reach 250,000, up from an earlier projection of 230,000 amid improving economic conditions.
Metrobank noted that aside from rising car sales, the Philippines should also increase its vehicle manufacturing efforts.
“Supply for auto parts and components are still mostly imported, with local content only making up around 20 percent of an assembled vehicle,” Reynaldo said.
“Production costs continue to be high compared to other countries, leading production volume from the Philippines to be the lowest in ASEAN-5,” she added.