MANILA, Philippines — Local car manufacturers reported their highest monthly sales this year in November, helping the sector beat 2020's overall record and spurring hopes of recovery for an industry vastly affected by the coronavirus pandemic.
What’s new
Automakers sold a total of 26,456 units in November, inching up 17.2% month-on-month, according to a joint report from the Chamber of Automotive Manufacturers of the Philippines, Inc (CAMPI) and Truck Manufacturers Association (TMA) released Monday. On an annual basis, vehicle sales rose 14.2%.
According to CAMPI and TMA, the November sales was the industry’s best monthly performance this year. In 11 months, carmakers sold 240,642 vehicles, up 22.7% on-year and already exceeding last year’s overall sales of 223,793 units.
Why this matters
Vehicle sales are often used as barometer of economic strength. For instance, the central bank closely follows this to measure consumer appetite for durable goods. Household consumption represents 70% of annual economic output, and big purchases like cars materially add to gross domestic product when produced more.
The industry is targeting a 30% on-year sales growth in 2021.
What VIPs say
CAMPI President Atty. Rommel Gutierrez said sales in November brought the industry closer to recovery, but there’s still some cautious optimism as the emergence of new coronavirus variants posed fresh pandemic risks to the economy.
“Surpassing our last year’s sales performance gives the industry a renewed hope that recovery is underway as restrictions started easing, and economic activities have resumed at improved levels,” Gutierrez said in a statement.
“However, the industry remains cautious and on guard at the same time on the uncertainties brought by the COVID-19 mutations, which hopefully will not undermine our recovery,” he added.
What an analyst says
Nicholas Mapa, senior economist at ING Bank in Manila, said some pent up demand helped lift sales in November after the economy reopened from lockdowns triggered by the Delta variant.
“Pickup in sales also likely due to new models released before the year end. We’ve noted the normalization of y-o-y growth rates after outsized gains in second quarter,” Mapa said.
“Car sales may pick up further should the public health crisis be mitigated in the coming months although we’ve yet to see a sustained rise in car imports to suggest that demand is sustainable.”
Other figures
- Of the total sales in November, commercial vehicles accounted for 69% of units sold during the month. Sales under this segment surged 22% month-on-month to 18,251 units.
- Passenger car sales cornered 31.01% market share. Manufacturers sold 8,205 units of this type in November, inching up 7.59% from the previous month.