The Ghost Month effect on car sales, major decisions

A lot of Chinese people are firm believers of the “Ghost Month” tradition, where they treat the month of August as a period of “bad luck”. Based on the 2014 Chinese lunar calendar, this period of misfortune started on July 27 and will end on August 24. Carmudi has analyzed the Ghost Month effect on car sales.  

The month of misfortune

  During the Ghost month, people are advised not to make important decisions, especially in family matters, work and business. That includes buying a car, purchasing properties, trading stocks, visiting the sick, getting married and attending funerals. The Chinese believe that this 30-day period is the time that the “gates of hell” open, allowing ghosts and spirits to spread misfortune in the world of the living. They also believe that some of the biggest tragedies of the year happen in the Ghost Month.  

Car sales to decline

Despite the robust performance of the local car industry so far this year, experts still believe that it will take a dip in August. During this period, car dealers normally attempt to hustle up on sales by offering discounts and promos to sway buyers from the popular belief. While most Filipinos do not believe the Ghost Month phenomenon, the country’s car sales have consistently seen a downturn during this period. In 2013, August car sales (13,700 units sold) were 12.7 percent lower than July (15,686 units sold) of the same year, according to the Chamber of Automotive Manufacturers of the Philippines, Inc (CAMPI).  

Cars and heavy rainfall

Another significant factor that contributes to the decline in sales during the ghost month is the recurring strong rains and flood incidents that the nation experiences during this month. On average, the Philippines experiences twenty storms or typhoons a year. Of these, eight or nine make a landfall. Two of the “Habagat” incidents also occurred in August of 2012 and 2013. The two tragedies caused a combined death toll of 136 and P3.689 billion in damages to property, with the 2012 Habagat accounting for the majority of the losses.  

Historical events that have happened in "Ghost Month"

1. Assassination of Ninoy Aquino (August 21, 1983) 2. Death of Corazon Aquino (August 1, 2009) 3. Hostage Taking of Hongkong Nationals in Quirino Grandstand (August 23, 2010) 4. Plaza Miranda Bombing (August 21, 1971) 5. Sinking of MV St. Tomas Aquinas (August 16, 2013)