Local car sales grew 21-percent in first half

2015 is indeed a stellar year for the local automotive industry.

According to the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Truck Manufacturers Association (TMA), the auto industry has reached its highest sales with a 21-percent growth (131,465 units) in the first semester compared to 108,957 units sold last year from January to June due to the strong demand of vehicle offerings by local car manufacturers. “We have witnessed in recent years the unprecedented and phenomenal growth in the Philippine Automotive Industry. Last year, we have recorded a total sales of 234,747 (29.5-percent increase from 2013). This is truly another milestone for the industry. With this robust growth, CAMPI is very positive that we will reach 310,000 sales by the end of the year and will sustain this growth momentum even in the medium term. With increasing income and a large population base, the Philippines is indeed the next automotive market growth area in ASEAN,” said Rommel Gutierrez, President of Chamber of Automotive Manufacturers of the Philippines.

Citing data from CAMPI, sales of passenger cars climbed by 30-percent with 52,778 units from 40,609 units last year. Commercial Vehicles also had a major leap with an increase of 15-percent with 78,687 units versus 68,348 units sold in 2014. Meanwhile, the Heavy Duty Trucks segment reached a peak with an exceeding target of 493 units sold for the first semester.

“Our macroeconomic fundamentals remain strong, despite a lower than expected GDP growth in the early part of 2015. This year is considered a “breakout year” for the Philippines because of the 2016 elections. But CAMPI strongly believes that GDP growth will continue and further boost customer and business confidence,” adds Gutierrez.

Gutierrez explained, “The implementation of the Comprehensive National Industrial Strategy of the Philippine Government will be a major catalyst for growth in 2016 and beyond. More specifically, the automotive industry is identified as one of the key sectors that would help achieve manufacturing resurgence.”

“With the implementation of Executive Order No. 182 on the Comprehensive Automotive Resurgence Strategy (CARS) Program, we expect not only an increase in sales but also an increase in our domestic production,” adds Gutierrez.

Currently, Toyota Motor Philippines leads the chart with a 43.9-percent market share followed by Mitsubishi Motors Philippines Corporation with 19.2-percent. American carmaker Ford is making a great comeback with 7.9-percent, while Isuzu Philippines Corporation has been steady with 7.7-percent and Honda Cars Philippines Inc with a 6.6-percent market share.