Local vehicle assemblers post 2-digit sales hike

MANILA, Philippines - Sales of local vehicle assemblers continued to post double-digit year-on-year growth in August.

Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) president Rommel Gutierrez said in a text message yesterday combined vehicle sales were “39.5 percent up versus August 2013.”

Based on the growth rate, combined sales of the CAMPI and Truck Manufacturers Association Inc. are estimated to be a little over 19,100 units in August 2014, higher than the 13,700 units sold in the same month last year.

The August result is lower than the record-high sales of 20,730 units achieved in July.

Gutierrez said earlier the group expects  lower to stable sales in August “attributed to lower seasonality for the month.”

Data as well as breakdown of sales for the different vehicle segments in August 2014 and the January to August period this year were not available as of press time yesterday.

Last July, the CAMPI raised its 2014 forecast for total vehicle sales in the country – including those sold by non-members, to 250,000 units from an earlier projection of 230,000 units.

The forecast was revised given the strong growth in sales posted in the past months amid favorable economic conditions and rising demand.

Last year, total vehicle sales reached about 212,000 units. 

While the group is upbeat on sales for the year, it said industry players are awaiting the release of the automotive roadmap which would contain strategies and support to be given by government to promote the growth of the industry.

Gutierrez said earlier the group wants the executive order for the automotive industry roadmap to be released within the year.

“We hope PNoy (President Aquino) will prioritize it this year,” he said.

Given the expected higher demand for cars in the country and upcoming Association of Southeast Asian Nations (ASEAN) economic integration, the CAMPI has said the local automotive industry would need government support.

In particular, the group wants government to provide support that would allow local players to participate in the ASEAN economic integration and close the gap between locally produced units and imported vehicles amounting to $2,000.

Trade Secretary Gregory Domingo told reporters however that it would be difficult to give a target date for the release of the roadmap as details of the policy have yet to be finalized.

Under the proposed automotive industry roadmap, the government wants to provide incentives to firms which are able to meet certain production levels as well as assemble vehicles for exports in support of the government’s ambition to make the country a manufacturing hub.