Car sales continue to climb in September

MANILA, Philippines — Local car manufacturers saw sales continued their nascent climb in September, recording double-digit growth as demand improved amid economic reopening. 

What’s new

A total of 35,282 units were sold in September, skyrocketing 64.2% year-on-year according to a joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA) released Tuesday.

Local car manufacturers saw sales bloom 29.5% year-on-year in the first 9 months to 248,154 units. The industry is targeting to sell 336,000 units in 2022, 17% higher than the 268,488 units sold in 2021.

Why this matters

Vehicle sales are often used as barometers of economic strength. The central bank, for instance, 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.

What VIPs say

CAMPI President Rommel Gutierrez said the industry is expecting car sales to eke out better figures on account of resurgent demand. 

Consumer demand improved as the national government reopened the national economy in the second quarter to pave way for recovery from the pandemic.

“The automotive industry foresees continued growth in the latter part of the year, benefitting from the improving economy based on the recent growth forecast of 6.5% this year – attributed to strong domestic demand and continued easing of pandemic restrictions,” he said. 

Other figures

• Of the total sales in September, light commercial vehicles accounted for 80.84%. Cars sold under this segment increased 22.8% month-on-month to 22,073.
• Sales of passenger cars, which owned a 22.61% market share, expanded 18.46% month-on-month in the same month at 7,976.