The automotive industry is optimistic that it will hit its target growing its sales by 10% this year despite industry growth only posting single digits.
In a report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association disclosed that their October sales rose by nearly 4% to 34,397 units from 33,150 units compared to the same period last year. Both the passenger car (PC) and the Commercial Vehicle (CV) divisions posted growth. The growth numbers, however, was only in single digits.
Other organizations like the Association of Vehicle Importers and Distributors Inc. (AVID) have reflected the same trend in the AVID October 2019 report. Growth for the organization comes in at around 2% for the PC segment compared to the month of September. Over in the light commercial vehicle segment, the organization also showed growth of 6% for October compared to its sales in September.
For CAMPI, October PC sales went up by close to 7% to 10,083 units from 9,444 units. Over in the CV segment, sales grew to 24,314 units from 23,706 units. This represents a 2% growth for the segment. It echoes the same trends that have been noted by AVID.
An interesting takeaway from the CAMPI report is that the numbers showed that from the period of January to October 2019, every seven out of 10 sales made were from commercial vehicles. It shows that there is a trend in the market leaning more toward CVs. AVID noted the same as its sales went up by 6% for its light commercial vehicle segment for the month of October. The 6% growth was compared to its previous month’s sales.
The passenger car segment, however, isn’t doing too well as sales numbers have gone down according to CAMPI. January to October 2018 sales numbers came in at 90,626 units while this year’s sales number comes in at 90,400 units. The downtrend can be accredited to the implementation of excise tax which was started last year. AVID also reflects the same as its sales for the PC segment have gone down by 3%.
Moving on to the brands themselves, Toyota Philippines is standing strong with more than 40% of the automotive market – 43.25% to be precise – for the month of October. Close behind it is Mitsubishi Philippines followed by Nissan Philippines with market shares of 17.07% and 12.15%, respectively. Completing the top five for CAMPI are Suzuki and Ford, with 6.51% for the Japanese brand and 5.97% for the Blue Oval.
While the numbers do show minimal growth both organizations are confident that they can hit their sales goals as the Christmas season is in full swing.